Airport Automation Market Forecasts to 2030 - Global Analysis By Component, Automation Type, Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Airport Automation Market is accounted for $6.39 billion in 2023 and is expected to reach $12.22 billion by 2030 growing at a CAGR of 9.7% during the forecast period. Airport automation involves the integration of advanced technologies to streamline operations and enhance efficiency within airports. These advancements aim to improve efficiency, reduce queues, enhance security, and provide a smoother experience for passengers. Additionally, automation enables airports to optimize resource allocation and reduce operational costs. Embracing automation also allows airports to adapt to increasing passenger volumes and changing industry demands, ultimately contributing to a more seamless and enjoyable travel experience for passengers worldwide.

According to the International Air Transport Association (IATA), China is set to displace the US as the world's largest smart aviation market by the mid-2020s.

Market Dynamics:

Driver:

Growing air passenger traffic

As airports face increasing pressure to enhance operational efficiency and passenger experience, automation technologies offer solutions to streamline processes such as check-in, baggage handling, security screening, and boarding. By leveraging automation, airports can manage growing passenger volumes more effectively, reduce waiting times, minimize human error, and improve overall operational performance. Consequently, the demand for airport automation solutions continues to escalate, driven by the imperative to meet the evolving needs of the modern air travel industry.

Restraint:

Integration challenges

Integration challenges in airport automation arise due to the complexity of merging new technologies with existing infrastructure, systems, and processes. This complexity often leads to compatibility issues, data silos, and operational disruptions, hindering seamless adoption of automation solutions. Delays in integration increase costs and undermine the efficiency gains promised by automation, discouraging investment and market growth.

Opportunity:

Rising demand for remote air traffic control towers

RAiTC systems leverage advanced technologies like cameras, sensors, and data analytics to remotely manage air traffic at multiple airports from centralized control centers. These systems offer numerous benefits, including cost savings, enhanced safety, and improved operational efficiency. With the increasing need for efficient air traffic management amid growing air travel, airports are increasingly adopting RAiTC solutions, thereby propelling the demand for automation technologies within the airport industry.

Threat:

High initial investment costs

Airport automation requires significant initial investment due to the need for advanced technology, infrastructure upgrades, and specialized training. This high cost presents a barrier to entry, particularly for smaller airports and those in developing regions, limiting their ability to adopt automation solutions. Consequently, market growth is hindered as airports struggle to justify the upfront expenses, delaying or preventing the implementation of automation technologies.

Covid-19 Impact

The covid-19 pandemic significantly impacted the airport automation market as travel restrictions and reduced passenger volumes led to a slowdown in airport operations worldwide. Many airports postponed or scaled back automation projects due to budget constraints and uncertain future demand. However, the pandemic also highlighted the importance of automation in enabling touchless and contactless travel experiences to enhance safety and hygiene protocols. As travel gradually resumes, airports are expected to prioritize automation solutions such as self-service kiosks and biometric systems to streamline processes and restore passenger confidence in air travel.

The air traffic management systems segment is expected to be the largest during the forecast period

The air traffic management systems segment is estimated to have a lucrative growth. ATMS play a pivotal role in the airport automation, facilitating the efficient movement of aircraft within airport airspace and surrounding regions. With the increasing demand for air travel, airports are investing in modern ATMS solutions to optimize airspace utilization, minimize delays, and mitigate environmental impacts. Furthermore, the integration of ATMS with other automation technologies enables seamless coordination between air traffic controllers, airlines, and ground handling services, ensuring smooth and safe airport operations.

The security & surveillance segment is expected to have the highest CAGR during the forecast period

The security & surveillance segment is anticipated to witness the highest CAGR growth during the forecast period, due to its strong focus on enhancing safety and mitigating security threats. These systems enable real-time monitoring of airport premises, identification of security breaches, and proactive threat response. With growing concerns over terrorism and other security risks, airports are investing in robust security and surveillance automation to ensure the safety of passengers, staff, and infrastructure, thereby driving innovation and market growth in this sector.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to technological advancements and increasing air passenger traffic. With airports striving to enhance operational efficiency, reduce costs, and improve passenger experience, automation solutions including self-service kiosks, baggage handling systems, and biometric identification systems are witnessing high demand. Countries like China, India, and Japan are key contributors to this growth, with ongoing infrastructure development projects and a focus on modernizing airport facilities. The market is expected to continue expanding as airports prioritize automation to meet growing aviation demands in the region.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to increasing air travel demand, stringent security regulations, and the need for operational efficiency. The United States and Canada lead the market, driven by large-scale airport modernization projects and regulatory requirements for enhanced security measures. Additionally, partnerships between airports and technology providers are driving innovation and adoption. This market is poised for continued expansion as airports prioritize automation to streamline operations and enhance passenger experience.

Key players in the market

Some of the key players profiled in the Airport Automation Market include Siemens AG, Honeywell International Inc., Thales Group, SITA, Rockwell Collins, Amadeus IT Group SA, IBM Corporation, L3Harris Technologies Inc., Saab AB, Daifuku Corporation, Vanderlande Industries, BEUMER Group, Smiths Detection, NEC Corporation, Indra Sistemas SA and Raytheon Technologies.

Key Developments:

In November 2023, Saab has launched the latest addition to its growing portfolio of remote/digital tower air traffic control systems. The Integrated Digital Tower Solution (i-DTS) is aimed at large airports, initially as a "mirror" contingency tower to ensure they can maintain operations in the face of adverse events, but ultimately to develop into a system that could replace the traditional ATC tower.

In May 2023, Siemens Logistics GmbH a subsidiary company of Siemens has secured a contract to provide advanced baggage handling solutions for Terminal 2 at Hefei Xinqiao Airport in eastern China. In addition to VarioStore early bag storage solution, the innovative BagIQ software will be implemented to optimize system control.

Components Covered:

• Hardware
• Software
• Service

Automation Types Covered:

• Baggage Handling Systems
• Passenger Processing Systems
• Air Traffic Management Systems
• Airport Operations Management Systems
• Other Automation Types

Technologies Covered:

• Radio-Frequency Identification (RFID)
• Biometrics
• Artificial Intelligence (AI) & Machine Learning
• Internet of Things (IoT)
• Robotics
• Other Technologies

Applications Covered:

• Terminal Management
• Landside Operations
• Airside Operations
• Security & Surveillance
• Check-in & Boarding
• Other Applications

End Users Covered:

• Commercial Airports
• Military Airports

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances