In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
May 7, 2020: Pittsburgh International Airport (PIT) turns into the first U.S. airport to install autonomous robotic cleaners with incorporated ultra-violet lights in collaboration with Carnegie Robotics to transform the way airport infrastructure is disinfected.
May 2020: SITA, one of the leading companies in the global aviation sector, announced via its official twitter handle about a webinar titled 'The New Normal: The Changing Face Of Aviation Post COVID-19' in conversation with their CEO Barbara Dalibard. She said that the worldwide flight commotion has come down to 80 percent year-on-year at the end of April.
April 15, 2020: Emirates in synchronization with Dubai Health Authority (DHA), became the first airline to manage on-site quick COVID-19 tests for commuters. The tests were conducted by DHA and results were accessible within 10 minutes.
September 2019: Siemens entered into a contract with five of Spain’s busiest airports – Madrid, Barcelona, Malaga, Palma de Mallorca, and Gran Canaria to completely refurbish their security infrastructure. In agreement with the new regulations set by the European Civil Aviation Conference (ECAC), Siemens will offer intelligent software to these airports for effective management of commuter luggage.
As commuters become more technologically sophisticated and connected, we have entered the “Airport 3.0” revolution where technology and data combined transform airport operations.
Digital technology such as cloud computing, big data and analytics, smart machines and robots, virtual modeling and simulation, and the internet of things (IoT) has been implemented in smart airports for the operations. Cloud computing can facilitate airports to be more responsive and created new solutions with better ease. Whereas, analytics and virtual modeling can help in monitoring passenger flows.
As the countries across the globe have gone into lockdowns, the aviation sector has suffered enormously. As the primary point of entry and exit in most countries, airports play a vital part in handling health emergencies.
The smart airports market is expected to attain a notable CAGR during the forecast period, i.e., 2020-2028. The market is segmented by technology, application, location, size, and region. Among application segmentation, the non-aeronautical application segment is anticipated to hold the leading market share during the forecast period owing to services such as retail outlets, advertising, smart parking, Wi-Fi, restaurants, lounges, conference rooms, lodging facilities, and personalized services that is expected to boost the growth in non-aeronautical operations.
By efficiently employing IoT, AI, and big data, airports can prominently reduce the wait time for passengers and address some of the most frequently confronted problems, such as lost bags, flight delays, and customer service issues. The growing number of passengers at airports demand upgraded solutions that would ease and allow the automation of the processes at airports. With the growing digital advancements, airports are emphasizing on self-service results and adopting novel technologies such as robotics booth, facial recognition, automated passport control, and others to manage airport operations efficiently.CLICK TO DOWNLOAD SAMPLE REPORT
One of the most noticeable trends in smart airport market is the expanding degree of integration of the Internet of Things (IoT) at airports to cater to the increasing security concerns across the globe. IoT can help efficiently observe critical airport infrastructure and streamline security and check-in procedures for travelers. Thus, significantly augmenting the value of an airport, which will fuel the market revenue in the foreseeable future.
Due to the worldwide outbreak of the COVID-19 pandemic, all the regions are facing stringent travel regulations or bans to curb the spread of the virus, which is adversely impacting the global aviation industry.
On March 11, 2020, the U.S. imposed a 30-day travel ban on passengers from the Schengen Area. In the meantime, in Europe, Italy witnessed a 22% drop in flights corresponding to the declaration of a national lockdown on March 9, 2020.
According to the World Economic Forum, an amalgamation of trip cancellations and country-specific constraints on international flights cost the airline industry $880 billion. Almost 40% of flights impacted by European travel bans are U.S. based, such as Delta and United Airlines, with billions in lost profits already projected for the year 2020.
Additionally, novel safety protocols at the airports might create airport logjams.
Our in-depth analysis of the smart airports market includes the following segments:
Geographically, the smart airports market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
North America is predicted to hold the largest market share. Airports across urbanized regions, such as the U.S., have automated parking facilities, to capture a greater profit share of the non-aeronautical operations segment. According to the US Transport Security Administration (TSA), American airports alone touched a record of 813.8 million travelers in 2018. Additionally, the TSA coped to embark on a more stringent form of carry-on screening techniques at airports across the US. This rise in air tourism is attributable to growing income and overall economic development in the region, producing a need for smart management of airport operations.
Europe is the second-largest smart airports market due to escalation in smart airport initiatives in the countries, such as Germany, France, and Spain.
Asia-Pacific region is projected to bolster as the fastest-growing region over the forecast period, owing to a sharp proliferation in traveler traffic, improvement and implementation of novel technologies in airport communication and security systems, and flourishing tourism industry in India and China.
The smart airports market is further classified based on region as follows:
• North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
• Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
• the Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of the Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis.