Market Trends of Smart Airport Industry
The Passenger, Cargo, and Baggage Ground Handling Segment to Dominate the Market
- Rising passenger traffic presses airport operators to boost their handling capacities and adopt digital solutions for smoother operations. Across Europe and Asia, airports are swiftly adopting automated baggage handling systems. These systems alleviate the burden on ground support staff and enhance passenger satisfaction for airports, airlines, and ground handlers.
- For example, in July 2023, Melbourne Airport unveiled a major enhancement to its international baggage system, aligning with its strategic growth plans. The airport is also injecting a substantial USD 500 million into its baggage infrastructure, responding to escalating demands from the commercial aviation sector. In a similar move, in February 2023, Edmonton International Airport (YEG) in Canada collaborated with Alstef Group to revamp its baggage system. The overhaul includes upgrading control equipment, introducing new bag-tag readers, and bolstering existing systems. This comprehensive project also involves modernizing the airport's legacy baggage infrastructure and operational support. Such strategic investments in passenger and baggage handling systems are set to drive further growth in this segment.
Asia-Pacific Expected to Witness the Highest Growth
The Asia-Pacific region is poised for substantial growth, driven by hefty investments in new airport constructions and the expansion of existing ones. Countries like China, India, Japan, and South Korea have witnessed a sharp uptick in airport passenger traffic in recent years, prompting significant investment announcements from governmental bodies and airport authorities.
In June 2023, the Indian Ministry of Civil Aviation set an ambitious target of establishing 200-220 airports and heliports within 2-3 years. With a hefty USD 12 billion investment from public and private sources, India is keen on fortifying its airport infrastructure. These funds are earmarked for expanding current airports, constructing new terminals, and implementing advanced security measures to handle the burgeoning passenger influx.
Moreover, regional airports are turning to smart solutions to enhance operational efficiency and ensure seamless passenger services. In a notable move in March 2023, Siemens Logistics clinched a deal to install an advanced baggage handling system at China's Hefei Xinqiao Airport. The contract involves outfitting the airport with Siemens' cutting-edge baggage handling and sorting technologies, gearing up to serve an estimated 30 million passengers annually. The Siemens suite includes the VarioTray technology, VarioStore early bag store, and intelligent BagIQ software. This strategic modernization with smart airport solutions is poised to propel the growth of the market studied in the region in the coming years.
