The airport terminal operations market is projected to register a CAGR of 4.46% during the forecast period.
- The market is driven by the need for managing passengers, aircraft, and baggage on time at airports, construction of new airports or terminals, and the increase in the air passenger traffic. However, operational accidents and missing/loss of baggage remain as concerns for the market.
- The use of blockchain technologies and increasing automation of the total airport management systems is expected to revolutionize the entire operations of the terminals at an airport. Modern airport terminals are rapidly adopting smart technologies, such as artificial intelligence (AI) powered self-service kiosks and robots, to enhance their service offerings to the passengers.
Key Market Trends
The Baggage Screening Segment had the Largest Market Share in 2019
In 2019, the baggage screening segment had the largest market share. Major airports are focusing to minimize passenger delay at checkpoints while maintaining an advanced level of security. Airports are incorporating advanced and innovative technologies to improve the screening of bags. Increasing air passenger traffic and rising security threats across the world are some of the key factors driving the need for advanced baggage screening systems. New regulations by airport regulatory agencies demand airports to incorporate intelligent systems that detect a wide range of dangerous goods and substances to prevent terrorism and the movement of illicit materials. Additionally, the entire hold baggage screening (HBS) process is set to be transformed, as airports across Europe upgrade to the European Civil Aviation Conference (ECAC) Standard 3-certified explosive detection systems (EDS). The deadline for ECAC Standard 3 compliance was 2018 for the United Kingdom and 2020 for the Rest of Europe. Earlier, in August 2019, the current UK government announced its plan to mandate 3D cabin baggage screening equipment at all the major airports in the United Kingdom by December 2022. In addition, the development of technologically advanced systems that offer enhanced operational efficiencies is expected to create the demand for such systems, thereby, boosting the growth of the market segment during the forecast period.
Asia-Pacific Dominated the Market in 2019
In 2019, Asia-Pacific held the largest share in the market. The region is also projected to register the highest CAGR during the forecast period. China had a total of more than 230 civil airports by 2018, and China is planning to have a total of 450 airports by 2035, by building around 220 new airports in the next 16 years, to cater to the growing air passenger traffic demand. With such a huge number of airports under construction, there is a huge demand for baggage handling systems for airports. China has developed new body scanners that are expected to be installed in Chinese airports in the coming years. The new scanners are-powered and were developed by a research institute, under the supervision of China’s Aerospace Science and Industry Corporation (CASIC). The scanners will be able to detect up to 89 banned items within 0.7 seconds. The scanners operate by collecting electromagnetic waves off the scanned passengers to generate an image that pinpoints the location of suspicious items. Also, Beijing Daxing International Airport began trial operation by deploying 10 virtual robots and 10 physical robots inside its terminal halls in August 2019. These robots will help passengers with flight information, services, airport facilities, and other information. Furthermore, the airlines and airports in China are making plans to integrate artificial intelligence and automation into their operations. According to SITA, 88% of both airlines and airports are investing into major programs or R&D with AI. In addition, as passenger traffic is soaring across India, the country is looking for ways to manage the airports with smart technologies. For instance, in March 2018, the Airports Authority of India (AAI) expanded its agreement with air transport IT provider, SITA, which will allow the company to install its baggage management solution, BagManager, at 15 airports across India, namely, Trivandrum, Calicut, Mangalore, Tirupati, Chennai, Madurai, Kolkata, Goa, Lucknow, Jaipur, Amritsar, Leh, Chandigarh, Trichy, and Ahmedabad. Under the terms of the expanded agreement, the AAI will also install SITA Airport Management Solution at Goa and Lucknow airports. Featuring a suite of integrated software applications, SITA’s Airport Management Solution supports and enhances airport operations from landside to airside and throughout the landing and take off. Such developments in various airports across the Asia-Pacific are helping the gowth of the market in the region currently.
OSI Systems Inc., SITA, BEUMER Group, Adelte Group SL, Smiths Group, and ThyssenKrupp AG are some of the prominent players in the market studied.
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