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Airport Digitalization Market Size to Grow by USD 14.79 Billion 2031 | 8.5% CAGR
Wednesday, June 25, 2025
NEW YORK, June 17, 2025 /PRNewswire/ -- According to a new comprehensive report from The Insight Partners, the global airport digitalization market is observing healthy growth owing to rising air traffic and passenger expectations, and security and regulatory compliance requirements.
The report runs an in-depth analysis of market trends, key players, and future opportunities. During the course of the research study, various leading industry experts, global sales managers, key opinion leaders, and industry veterans shared their valuable and critical insights about global and regional trends related to the airport digitalization market.
To explore the valuable insights in the Airport Digitalization Market report, you can easily download a sample PDF of the report - https://www.theinsightpartners.com/sample/TIPRE00024491/
Overview of Report Findings
1. Market Growth: The airport digitalization market is expected to reach US$
7.38 billion in 2024 and is expected to reach US$ 14.79 billion by 2031;
it is estimated to record a CAGR of 8.5% from 2025 to 2031. The rapid
adoption of e-commerce platforms, constant need to transport
temperature-sensitive products; sustainable aviation and green logistics
solutions; infrastructure development and airport expansion; express and
time-definite delivery services; perishable goods and fresh food
transportation, and pharmaceutical & healthcare product transportation
are some of the major factors pushing the growth of airport
digitalization market across different regions.
2. Rising Air Traffic and Passenger Expectations: The global surge in air
travel demand is one of the primary drivers of airport digitalization.
According to International Air Transport Association (IATA), in April
2024, total demand, measured in revenue passenger kilometers (RPK), was
up 8.0% compared to April 2024. Total capacity, measured in available
seat kilometers (ASK), was up 6.5% year-on-year. Such rise will be
requiring significant infrastructural and operational enhancements.
Traditional airport systems, often plagued by manual inefficiencies and
capacity bottlenecks, are no longer adequate to handle such volumes.
Digitalization provides the tools to scale airport operations
efficiently. Technologies such as biometric identification, e-gates, and
automated check-in systems streamline passenger processing, reducing long
queues and improving the overall customer experience. Moreover, increased
air traffic places pressure on airport authorities to manage operational
efficiency. AI-driven predictive analytics can help airports forecast
passenger flow, optimize staffing, and allocate resources dynamically. As
demand rises, so does the need for scalability and flexibility, which
digital systems inherently provide. This demand for enhanced efficiency,
passenger satisfaction, and scalability underpins the aggressive digital
transformation initiatives seen at major global airports such as
Heathrow, Changi, and Schiphol.
3. Security and Regulatory Compliance Requirements: Airports operate in a
high-security environment, subject to complex national and international
regulations. Security protocols have intensified significantly, and
digital technologies are now seen as indispensable in maintaining
compliance and enhancing threat detection. Advanced digital tools,
including biometric identification, facial recognition, and behavior
monitoring systems, help airports meet stringent security regulations
while minimizing passenger inconvenience. For example, U.S. airports
under the TSA PreCheck program use digital identity verification to
expedite security processes while maintaining safety. Cybersecurity has
also become a top priority. As airports integrate more digital
touchpoints, from smart kiosks to IoT-based baggage handling, they become
more vulnerable to cyber threats. Digitalization must therefore include
robust cybersecurity frameworks compliant with standards like ISO/IEC
27001 and the EU's NIS2 directive.
4. Geographical Insights: In 2024, North America led the market with a
substantial revenue share, followed by Europe and APAC, respectively.
Asia Pacific is expected to register the highest CAGR during the forecast
period.
For Detailed Airport Digitalization Market Insights, Visit: https://www.theinsightpartners.com/reports/airport-digitalization-market
Market Segmentation
-- Based on product type, the airport digitalization market is segmented
into hardware, software, and services. The hardware segment held the
largest market share in 2024.
-- By application, the market is segmented into asset management and
maintenance, cargo and freight management, passenger experience
management, operations and workflow management, security and
surveillance, and others. The passenger experience management segment
held a significant share of the market in 2024.
-- Based on deployment mode, the airport digitalization market is segmented
into on-premise, cloud, and hybrid. The on-premise segment held the
largest market share in 2024.
-- Based on end use, the airport digitalization market is segmented into
commercial airports and military airports. The commercial airports
segment held the largest market share in 2024.
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Competitive Strategy and Development
-- Key Players: A few of the major companies operating in the airport
digitalization market are Microsoft Corporation, IBM Corp, Cisco Systems
Inc., Siemens AG, SAP SE, T-Systems International GmbH, Wipro Limited,
Daifuku Co., Ltd., SITA, Indra Sistemas S.A among others.
-- Trending Topics: Global airport digitalization market, air freight
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transformation air freight, supply chain optimization, aviation
cybersecurity, Internet of Things (IoT) in aviation, passenger
experience management, air cargo digitalization etc.
Global Headlines on Airport digitalization market
-- Kochi airport embarks on major digital shift
-- Norway's airports to undergo major digital transformation
-- GMR Airports introduces an AI-powered digital twin at Hyderabad Airport
-- IATA released data for April 2025 global passenger demand for air travel
Conclusion
The global airport digitalization market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). North America accounts for the largest market share in 2024. The APAC region is expected to grow with the highest CAGR. The Asia Pacific airport digitalization market is undergoing substantial transformation, driven by increasing air passenger traffic, rising demand for operational efficiency, and significant investments in advanced technologies. Countries across the region are prioritizing digital infrastructure development within the aviation sector to meet evolving passenger expectations and to enhance the competitiveness of their airport operations.
A noteworthy development occurred in December 2024, when India's aviation sector marked a major milestone with the launch of the nation's first AI-powered airport digital twin at Rajiv Gandhi International Airport in Hyderabad. Developed by GMR Airports, this advanced digital twin platform is complemented by the implementation of a next-generation Airport Predictive Operation Centre (APOC). This integrated system enables real-time monitoring, predictive analytics, and dynamic resource management, setting new benchmarks for operational efficiency, safety, and passenger service excellence in the region.
Across Asia Pacific, airports are increasingly adopting emerging technologies such as artificial intelligence, the Internet of Things (IoT), biometrics, and cloud-based solutions to streamline processes including check-in, security screening, baggage handling, and airside operations. These initiatives are further supported by public-private partnerships and national aviation modernization strategies. Consequently, the region is poised to be a key contributor to the global airport digitalization market's growth trajectory in the coming years.
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About Us:
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
Contact Us:
If you have any queries about this report or if you would like further information, please contact us:
Contact Person: Ankit Mathur
E-mail: ankit.mathur@theinsightpartners.com
Phone: +1-646-491-9876
Home - https://www.theinsightpartners.com/
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