Market Trends of Europe Smart Airport Industry
Passenger, Cargo and Baggage Control Segment Will Showcase Remarkable Growth During the Forecast Period
The passenger, cargo, and baggage control segment is anticipated to grow significantly in the European smart airport market during the forecast period. The change is attributed to the increase in air passenger traffic at various airports in the European region. Moreover, the increased baggage and cargo handled by multiple regional airports will lead to several European airports modernizing themselves using smart technologies to ensure smoother airport operations, thereby driving market growth during the forecast period.
According to the air passenger transport data published by Eurostat, in 2022, there were 820 million passengers carried in the EU, an increase of 119.3 % compared to 2020. Moreover, the most significant recovery in the number of commercial air flights occurred in the second half of 2022. On the other hand, according to data published by Airport Council International (ACI) Europe, passenger traffic across the European airport network nearly doubled (+98%) in 2022 compared to 2021 and reached 1.92 billion passengers. On the other hand, these numbers were still less than the 2019 volume, with just 27% of Europe鈥檚 airports having fully recovered their 2019 passenger traffic level.
Furthermore, there has been significant growth in passenger, cargo, and baggage control in the European region. The substantial increase in the air traffic passenger in the area has also led to immense growth in the number of passenger baggage being handled by the airports, and this has led to many airports within the region to undergo construction to expand airport capacity to cater to growing air traffic passengers or install several innovative technologies for faster baggage processing/handling. For instance, in August 2021, Stansted Airport in the United Kingdom announced that they had completed an upgrade to the baggage handling system worth USD 85.37 million. The airport announced they had installed 2.4 km of conveyor belts, tracks, and 180 automated carts to improve efficiency.
Thus, the increased usage of smart technologies in airports within the European region for passenger, cargo, and baggage control will lead to a positive outlook and significant market growth during the forecast period.
United Kingdom Dominates the Market During the Forecast Period
The UK is a central hub and a key connecting point between the eastern and western continents. Owing to the country鈥檚 highly beneficial geographic location for airlines, the UK witnesses many passengers converging to change air routes between Asia, the Middle East, and Central Europe, traveling to North and South American countries. According to the data published by the UK Civil Aviation Authority, air travel in the country witnessed significant growth in 2022, with over 224 million passengers traveling to and from the airports of the UK and reaching 75 percent of 2019 levels. Moreover, these numbers are a considerable increase from 2021, with 65.4 million passengers traveling through the airports within the country.
London Heathrow Airport, Gatwick Airport, Stansted Airport, Luton Airport, and Southend Airport are significant airports operating various airlines across the United Kingdom. London Heathrow is the primary airport connecting major international airlines that operate the trans-Atlantic route from the UK and toward the North and South American continents. In June 2023, Heathrow Airport announced its plans to construct a third runway following the rebound of international air traffic. In addition, the project and its associated new west terminal will help to facilitate an additional 260,000 flights annually from the airport.
Moreover, the increased passenger influx also brings in the need for high-speed internet connectivity for passengers waiting for long layovers for international or trans-Atlantic air routes. As a result, various airports across the UK have been upgrading their services to cater to passengers. For instance, in June 2021, London Luton Airport announced that they had unveiled a range of new digital services to improve the passenger experience further. The new services that were unveiled will now include the introduction of unlimited 10mb/s Wi-Fi across the terminal building, the creation of LLA Market Place, which enables passengers to pre-order food and drink contact-free, and an airport's first offer of portable mobile chargers that can be rented for the duration of a trip.
Thus, the increase in the number of air traffic passengers coupled with the rise in the number of airport construction, the significant growth in services for the passengers within the region, and the growing development of smart airports within the country will lead to a positive outlook and also lead to significant market growth of smart airports within the United Kingdom during the forecast period.
