The number of airports reaching saturation point will drive the growth of the business intelligence market, according to Frost & Sullivan. In Analysis of the Global Airport Passenger Flow Management Market, Forecast to 2025 the Airports Team at Frost & Sullivan says that with growing demand in air travel, operators face challenges to ensure a better passenger experience and efficient terminal operations. The forecast says that the market is expected to grow significantly from $76.1m in 2016 to $184m in 2025. Saturation at airports and constrained revenues have also led operators to transition to a profit-driven business model and increase investments in digital technologies.
The report sheds light on three key segments that are gaining prominence in the passenger flow management (PFM) market: Passenger Detection, Passenger Tracking & Queue Management, and Mobility & Location-based Service Platforms. Global demand for air travel has increased steadily with 2016 registering year-on-year growth of 6.0 per cent. This rise in demand, particularly at capacity-constrained Tier I and Tier II airports, has led to encumbered passenger flow and longer wait times, leading airport operators to seek PFM solutions that help optimize capacity and enhance efficiency.
Airports Senior Research Analyst Renjit Benjamin said: “The need of the hour is for the development of low-cost technology with standardized metrics that can be integrated with existing platforms, but flexible enough to scale in relation to the complexity of airport operations. Currently, there is a proliferation of niche technology providers. This paves the way for forging partnerships and acquisitions and increasing product and technology R&D to meet airport requirements.”
Physical constraints in European airports have led to the rapid adoption of analytic and flow solutions to optimize resources and manage passenger flow. In the US, airports operate under stringent regulations and budget restrictions, making it slower for suppliers to penetrate. Airports in APAC are gradually increasing the implementation of flow solutions, providing growth opportunities for suppliers. However, airports endeavor to develop solutions in-house with local expertise and partnerships.
Players should focus on automation and digital technology engenders data generation which is leveraged by various PFM platforms to manage operations and push relevant information to passengers.
“The high growth rate of PFM solutions will result in an integration with operational platforms leading to a single source of information for operators to track, monitor and manage airport operations,” Benjamin added. “This will give rise to opportunities to develop solutions that cut across various airport segments and manage total airport operations.”
Global Airport Passenger Flow Management Market, Forecast to 2025 is part of Frost & Sullivan’s Global Aerospace, Defense & Security Growth Partnership Service program.