Upgrading legacy systems and implementing new technologies will ignite fresh growth opportunities, finds Frost & Sullivan
LONDON, Jan. 22, 2019 /PRNewswire/ -- By 2025, digital transformation will change the landscape of global airport airside systems operations. There is increased focus and opportunities in areas such as airport collaborative decision making (A-CDM) platforms, total airport management, service-level agreements, IoT-enabled mobility services, video analytics, data platforms, and disruption management. Growth prospects in the global airport airside systems market will be fuelled by an upgrade in legacy systems and transition to autonomous and sustainable operations. Frost & Sullivan expects the commercial airport airside systems market to reach $6.23 billion by 2025, growing at a CAGR of 4.3% from 2017 to 2025.
"The gap between airside and landside operations is blurring with common objectives of enhancing passenger experience, avoiding delays, improving safety and security, and providing a greener and energy-efficient operation," said Renjit Benjamin, Senior Industry Analyst, Airports & Airlines at Frost & Sullivan. "Operators are currently investing in digital technology to leverage real-time data and create end-to-end systems that optimise operations, enhance capacity, better manage resources and provide greater automation of processes."
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Benjamin predicts consolidation and divestments among operators to strengthen market position, expand product portfolios, utilise leaner business models, and provide end-to-end solutions. He recommends operators diversify into adjacent operational segments as a way to maximise product potential, with product development focusing on increasing interoperability and vertical integration deployment.
Five trends creating growth opportunities in the market include:
- High demand for upgrades and deployments within areas such as advanced surface movement guidance and control systems, apron and drone management, simulation and training, and collaborative platforms such as A-CDM;
- Autonomous services and use of unmanned aerial vehicles bringing new competition and potential strategic and technical partnerships;
- Airspace modernisation programs such as SESAR (in Europe) and NextGen (in the United States) and collaborative programs such as A-CDM driving operators and ANSPs to upgrade their tower systems;
- Transition to energy-saving LED infrastructure and trialling of autonomous inspection systems; and
- Integration of Artificial Intelligence and Big Data-based analytics and cybersecurity measures.
"Although airside digital transformation is a vision strategy for most airports, three out of four airports have reported implementation challenges largely caused by a reliance on capital-intensive infrastructure modifications," noted Benjamin. "Streamlining turnaround activities and identifying legacy systems and architecture that add to maintenance costs are additional challenges requiring consideration."
Frost & Sullivan's recent analysis, Global Airport Airside Systems Market, Forecast to 2025, assesses disruptive trends, drivers and restraints, industry best practices, hardware and technology currently utilised, and future market trends. It provides a competitive benchmark of products and suppliers, taking into account key market participants. The research focuses on IT systems, technologies and applications at airport airside segments, such as gate and apron, airfield, tower, operations control and security, and ground handling, on a global level.
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Global Airport Airside Systems Market, Forecast to 2025
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