Airport Automation Market: Current Analysis and Forecast (2024-2032)

The Airport Automation Market is growing at a steady rate of 5.30% in the forecast period due to steadily increasing air travel, leading to a surge in the number of passengers passing through airports. The relentless increase in air travel continues to be one of the most fundamental drivers fueling the airport automation market. Therefore, to manage this growing demand, airports are turning to automation to optimize processes and reduce congestion. The adoption of airport automation technologies and investments in smart airport infrastructure, including automation, artificial intelligence, and Internet of Things (IoT) technologies, is expected to accelerate in the coming years as airports seek to meet the growing demand for air travel while maintaining operational efficiency and passenger satisfaction. The International Air Transport Association (IATA) forecasts global air passenger numbers to eclipse 4 billion in 2024. Additionally, stringent safety protocols make airport automation a vital and non-negotiable aspect of airline operations, further fueling the market demand.

Based on the airport side, the market is fragmented into the land side and the air side. The landside segment has the highest market share and is expected to maintain its position in the forecast period. The landside division encompasses zones like passenger and cargo terminals, parking structures, and road entry systems. Its role involves overseeing the movement of passengers and cargo from their arrival at the airport to their boarding point at the aircraft or terminal. For instance, in December 2022, Riyadh Airports collaborated with Amazon Web Services (AWS) and AIRIS, an AI company, to revamp their baggage handling systems and services. This partnership focuses on developing AI-based solutions to enhance airport operations, showcasing the development and integration of advanced technologies in the landside and airside segments. Moreover, the growing smart parking solutions have boosted segmental growth. Airports are integrating smart parking solutions that use sensors, cameras, and digital payments to improve parking operations and maximize space usage. These technologies offer up-to-date data on parking availability, facilitate automatic payment procedures, and improve traffic control within the airport premises.

Based on the level of automation, the market is segmented into level 1, level 2, level 3, and level 4. The level 4 segment held most of the share in 2023 and is expected to behave similarly in the forecast period. Level 4 automation involves the integration of various systems and processes, enabling seamless and highly automated operations across multiple aspects of airport operations, including passenger processing, baggage handling, resource management, and airside operations. Additionally, level 4 automation enhances operational efficiency by streamlining processes, minimizing manual tasks, and maximizing resource allocation. This results in substantial cost reductions and improved efficiency. For instance, the successful deployment of automated baggage handling systems at prominent airports such as Singapore Changi Airport and Dubai International Airport has significantly enhanced baggage processing speed and decreased mishandled baggage incidents.

Based on the end market, the market is fragmented into greenfield and brownfield. The brownfield segment has dominated and is expected to continue dominating the airport automation market in the forecast period. The brownfield segment refers to the implementation of airport automation solutions in existing airports or facilities, as opposed to greenfield projects, which involve the construction of new airports from the ground up. The vast majority of airports across the globe are either existing or brownfield facilities, which presents a significant market potential for airport automation solutions. These solutions are commonly integrated into renovation, growth, or enhancement initiatives within these well-established airports. Moreover, the deployment of automation solutions in brownfield airports is typically more economical compared to constructing brand-new facilities. This approach enables airports to use their current infrastructure and smoothly introduce automated systems without facing the steep expenses of greenfield developments. For instance, in February 2024, The US government (President Biden) planned to invest USD 1 billion in federal funding for infrastructure projects to modernize 114 U.S. airports across 44 states and three territories. The USD 970 million in funding will be used to create wider concourses, larger security checkpoints, more efficient baggage systems, additional gate capacity, and more modern air traffic control towers.

Based on the system, the market is segmented into data acquisition and communication, automation and control, data storage, and software and solution. The automation and control segment has dominated and is expected to continue dominating the airport automation market in the forecast period. This is due to increasing emphasis on efficiency, safety, and cost reduction in airport operations. By automating various processes such as baggage handling, security checks, and passenger boarding, airports can streamline operations, reduce human errors, and enhance overall efficiency. Furthermore, the implementation of automation and control systems within airports plays a crucial role in improving safety protocols through the minimization of potential accidents and security threats. Additionally, these systems can generate cost efficiencies for airports over time by streamlining resource distribution and cutting operational costs.

Based on the application, the market is segmented into baggage handling and tracking, ground transportation and parking, retail and dinning, facility management, passenger service and assistance, emergency response and safety, ground support equipment, air traffic management, airfield management, and others. The air traffic segment has dominated and is expected to continue dominating the airport automation market in the forecast period. The increasing investments in constructing new greenfield airports and expanding existing airports globally to cater to the anticipated rebound in passenger traffic are expected to majorly drive the demand for smart airport technologies in the future. This rapid growth of passenger traffic has increased the pressure on airport operators to augment their passenger handling capacity and integrate digital solutions to regulate passenger flow, cargo and baggage handling capabilities at airports. The increasing global air passenger traffic is a major factor driving the demand for aircraft handling services. With more people traveling by air, there is a greater need for efficient and timely aircraft handling during ground operations, which falls under the service segment of the ground handling system market. Integration of new passenger flow solutions at airports, such as the partnership between Veovo and Aeropuertos Argentina 2000, aims to regulate passenger flow, cargo, and baggage handling capabilities, further emphasizing the importance of the air traffic management segment.

For a better understanding of the market of the Airport Automation market, the market is analyzed based on its worldwide presence in countries such as North America (The US, Canada, and Rest of North America), Europe (Germany, The UK, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The North America airport automation market currently dominates and is expected to dominate in the forecasted period due to several factors, such as the region's commitment to technological advancements and efficient operations. The region, especially the United States, is home to some of the world's leading technology companies and research institutions. This environment fosters innovation and drives the development of innovative automation technologies for airports. Moreover, many airports in North America are undergoing significant infrastructure upgrades and expansions. Automation is crucial in modernizing these facilities and optimizing operations to accommodate growing passenger volumes. For instance, The Federal Aviation Administration (FAA) has initiated a program to fund projects for airport security improvement, capacity enhancement, protection, and environmental aspects. FAA funds are allocated to public and private airports meeting specific traffic standards, national interest, and geographic criteria. In addition to these funds, there are injections of money from the bipartisan infrastructure law, the so-called Job Act, which has earmarked USD 15 billion over five years for the airport sector.

Some of the major players operating in the market include Siemens, Daifuku Co., Ltd., Collins Aerospace, Wipro, Amadeus IT Group SA, Vanderlande Industries B.V., Thales, Honeywell International Inc., SITA, and NEC Corporation.