Smart Airports Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Technology:

Based on technology, the smart airports market is segmented into security systems, communication systems, cargo & baggage handling control, air/ground traffic control, endpoint devices, and others.

Trends in technology:

• Smart airports are advancing quickly, using advanced technologies to make travel experience better for passengers and more efficient for operators. AR and VR technologies are becoming an ideal choice, while making airports more engaging.
• 5G networks are progressing communication networks, while helping airports monitor security in real-time and improving-in-flight services.

The cargo & baggage handling control segment accounted for the largest revenue share in the year 2024.

• Airports worldwide are investing heavily in upgrading their baggage handling infrastructure to accommodate larger aircraft, increase throughput capacity, and minimize delays and mishandled baggage incidents.
• By investing in technologies like advanced baggage screening systems and automated tracking solutions, airports enhance their security measures while optimizing operational efficiency.
• For instance, in September 2023, Vaderlande announced the partnership with Avinor, to provide complete automation in baggage handling at the airports. Through this collaboration, Vanderlande offered two solutions, BagLoad for integrated robot loading and Fleet Batch for ULD transportation to elevate the efficiency and dependability of cargo and baggage handling processes.
• Thus, as per analysis, the aforementioned factors are driving the smart airports market growth.

The security systems segment is anticipated to register the fastest CAGR during the forecast period.

• The increasing need for air travel and the rising threat of cyber-attacks on airports are expected to drive the segment progression.
• The rise of tourism and the growing trend of experiential travel is expected to increase in air travel requirement.
• The growing integration of biometrics in various security applications presents significant prospects for enhancing safety and convenience. Biometrics, such as fingerprint recognition, facial recognition, and iris scans, offer a level of accuracy, that traditional security methods, like passwords or PINs, cannot match.
• These factors will be driving the smart airports market demand during the forecast period.

By Application:

Based on application, the market is segmented into aeronautical operations and non-aeronautical operations.

Trends in Application:

• Business applications encompass revenue-generating services such as retail, hospitality, and advertising, which capitalize on smart technologies to enhance the passenger experience and generate additional sources of income for airports.
• Governments and private organizations are aggressively investing in airport infrastructure worldwide. This encompasses opening out of existing terminals, new airport construction, and upgrades to facilities.

The aeronautical services segment accounted for the largest revenue share in the year 2024.

• Aircraft ground handling services are crucial component of aeronautical applications, comprises of various tasks such as lavatory cleaning, ramp operations parking assistance, and others. These services are essential for ensuring efficient turnaround times for aircraft between flights and for smooth functioning of airports.
• Aircraft maintenance services play a pivotal role within the aeronautical segment, encompassing a range of activities aimed at ensuring the airworthiness of aircraft. This includes routine inspections, periodic repairs, and other maintenance tasks essential for the continued safe operation of aircraft.
• These developments are collectively driving the smart airports market trends.

The non-aeronautical operations segment is anticipated to register the fastest CAGR during the forecast period.

• The evolution of consumer behaviour and preferences is playing a vital role in driving the non-aeronautical revenue applications. Consequently, airports are diversifying their amenities to include high-quality retail outlets, parking services, dining establishments, and entertainment options within terminal facilities, catering to the evolving needs and desires of passengers during their wait times.
• The proliferation of e-commerce has given rise to airports to embrace digital transformation initiatives, facilitating the development of online shopping platforms and contactless payment solutions. These technological advancements not only streamline the shopping experience for passengers but also contribute to the non-aeronautical applications.
• For instance, in August 2024, The Veer Savarkar International Airport, Port Blair, India launched an automated parking system featuring an automatic ticket dispenser, a CCTV, and sensor-based boom barrier, to provide a seamless parking experience for passengers and visitors.
• These factors are driving the need for smart airports during the forecast period.

By Terminal Type:

Based on terminal type, the market is segmented into baggage handling, check-in systems, building operations, and sustainable energy management.

Trends in Terminal Type:

• The segment growth can be attributed to the rising need for air travel, technological advancements, increased investments in airport infrastructure, and the necessity to streamline operations to improve passenger experience and optimize airport efficiency.
• A major trend influencing the terminal type segment is the widespread adoption of advanced technologies to automate and enhance various processes. This encompasses the deployment of self-service kiosks for check-in, biometric authentication systems for security screening, and baggage handling systems incorporating RFID technology for improved tracking and efficiency.

The baggage handling segment accounted for the largest revenue share of 33.53% in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• The stringent regulations and security protocols mandated by aviation authorities demand sophisticated baggage handling that prioritize compliance and safety.
• By investing in technologies like advanced baggage screening systems and automated tracking solutions, airports enhance their security measures while optimizing operational efficiency.
• The ongoing modernization efforts at new and existing airports worldwide contribute significantly to the segment expansion, as airports are adapting cutting-edge technologies to streamline operations and enhance passenger experience.
• These factors are driving the smart airports market trends.

By Airside:

Based on airside, the market is segmented into ATM, resource management, aircraft parking, and aircraft maintenance.

Trends in Airside:

• The seamless integration with landside and terminal side operations through technologies, such as digital passenger flow management systems, improves airport efficiency, and passenger experience.
• The surge in need for airside services is fuelled by the increasing trend of international travel and tourism. With globalization and improved connectivity, there is a growing preference for international travel among individuals worldwide.

The aircraft maintenance segment accounted for the largest revenue in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• The aircraft line maintenance segment has experienced significant growth due to the increasing demand for air travel, resulting in a higher number of flights and aircrafts in operation. Airlines and aircraft operators rely on line maintenance providers to minimize aircraft downtime, ensure on-time departures, and optimize fleet performance.
• Moreover, the rise of low-cost carriers and the development of airline networks are fuelling the demand for line maintenance services.
• The growing emphasis on sustainability is driving the development of eco-friendly maintenance practices, such as the use of biofuels and environmentally friendly materials in the maintenance processes.
• These factors are expected to drive the smart airports market growth during the forecast period.