Digital Transformation Of Airports Could Cost Up To $4.6 Billion
Digital transformation is increasingly becoming relevant for businesses, with national infrastructures too investing in evolving digitally. Airports are more driven than ever to become more innovative, but their efforts could be costly.
According to research by Frost & Sullivan, the efforts to increase passenger traffic and global capacity constraints through the means of digital transformation could drive airport IT spending to nearly $4.63 billion by 2023.
Digital transformation efforts are already driving growth opportunities, so the spending will not be in vain. According to analysis, European airports are more motivated to invest in digitalizing operations rather than physical infrastructure while airports of Asia-Pacific are innovating as a brand attribute and to enhance the airport experience.
“Capacity constraints coupled with unprecedented growth in aircraft and passenger traffic,” said Renjit Benjamin, Senior Industry Analyst at Frost & Sullivan. “As well as competition and the promise of new non-aeronautical revenue streams necessitate a transformation in airports’ value proposition, by leveraging emerging technologies and transitioning from a process centric to a passenger centric business model.”
Among the technologies being used to drive digital transformation in airports are biometrics, blockchain, analytics and artificial intelligence (AI). AI will play a pivotal role in e-commerce functions in airports, while blockchain will be an imperative part of passenger data.
“As airports transition to a data-driven infrastructure, there will be considerable investment in data analytics, storage, and security products and services. The industry will also witness the growth of end-to-end data platforms that consolidate airport functions and processes,” added Benjamin.
source : Forbes Middle East