Airport Automation Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the airport automation market was 5.2 billion in 2022, and a CAGR of 5.1% is expected during the forecast period. Increased focus on improving operational efficiency and cost reduction is driving growth in the airport automation market. The increasing number of air passengers and the number of flights is driving the demand for airport automation. Airport security and passenger guidance are the key components of the airport automation market.

Airport automation refers to simplifying various airport operations and increasing efficiency. Automated baggage handling systems play a crucial role in efficiently managing luggage throughout the airport, from check-in to loading into aircraft. These systems utilize conveyor belts, sorting machines, and automated storage systems to reduce processing times and minimize errors.

Impact of Covid-19

COVID-19 has had a significant impact on the airport automation market. Due to the temporary shutdown of airports because of flight cancellations and postponements, the market had to face a temporary slowdown. Due to supply chain disruptions, stringent lockdown, and social distancing, the market had to face a negative impact. With health and safety concerns, there was a greater demand for contactless technologies such as self-service kiosks, biometric authentication, and touchless bags to minimize physical interaction and reduce the risk of virus transmission.

Automation technologies are being deployed to implement health screening measures such as temperature checks and health questionnaires at various touchpoints in airports to ensure passenger and staff safety. Shifts in priorities and investments and the integration of AI and analytics to optimize resource allocation, improve passenger flow management, and improve overall operational resilience are the key factors helpful in reducing the impact of COVID-19.

Growth Drivers

Increasing investment by airports to make the passenger’s experience smoother and more convenient in aspects of travel. Automation enables airports to improve operational efficiency by reducing manual processes and optimizing resource allocation. Automated baggage handling systems, for example, enhance baggage throughput and minimize the risk of mishandling. Automating repetitive tasks and streamlining processes do lead to significant cost- savings for airports.

Increasing demand for automation to enhance safety and security features at airports is driving growth in the market significantly. Increasing demand to detect prohibited items at airports with efficiency is being met by automated security screening systems. In order to ensure contactless solutions in airports to minimize physical interactions among people, the market is growing.

Advances in technology, including artificial intelligence and machine learning, are driving innovation in the airport automation market. Regulatory requirements and standards related to safety, security, and passenger experience drive the adoption of automation in airports. In order to assure operational efficiency, automation in various airports is required. Increasing concern about the security of passengers is driving growth in the market.

Segmentation

By Airport Side

·         Air Side

·         Land Side

By End-User Market

·         Brown-Field

·         Green-Field

By Automation Level

·         Level-1.0

·         Level-2.0

·         Level-3.0

By System

·         Data Acquisition and Communication

·         Automation and Control

·         Data Storage

·         Software and Solution

Application

·         Baggage Handling and Tracking

·         Ground Transportation and Parking

·         Retail and Dinning

·         Facility Management

·         Passenger Services and Assistance

·         Emergency response and safety

·         Ground Support Equipment

·         Air Traffic Management

·         Airfield Management

·         Others

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Airport Automation Air Type Segmentation

On the basis of the air type, the airport automation market is segmented into air-side and land-side. Airside is the area that refers to the areas of an airport that directly relate to the servicing and movement of aircraft, including runways, taxiways, aprons, and aircraft parking stands. Automation technologies in the airside focus on improving aircraft operations, such as automated landing systems, ground control systems, and aircraft maintenance automation. Landside refers to the areas of an airport that cater to passengers and cargo, including terminal buildings, parking lots, baggage handling systems, and check-in counters. Both play a crucial role in modernizing airports.

Regional Outlook

On the basis of regions, the airport automation market is segmented into 5 regions: Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. Asia Pacific is the leading segment and is expected to dominate during the forecast period. A large number of key players are present in this region. Increasing investment is needed to develop technologically advanced electric boating solutions to improve reliability and efficiency.

The presence of some big airports in this region, like in Beijing, Shanghai, Seoul, New Delhi, Mumbai, and Tokyo, is driving the demand for airport automation. Increasing emphasis on making the journey of an air passenger smoother and more efficient is the factor driving the growth in the market significantly. Europe and North America, due to their good infrastructure, are not far behind in this aspect. European countries, for example, the Heathrow airport in London and airports in cities like New York, Moscow, Berlin, Paris, and Rome, are relying on the latest technology.

Increasing emphasis is placed on making the airports more advanced. Increasing air passenger traffic, the need for efficient operations, and advancements in technology are driving the growth of the airport automation market. Both regions are investing in automation solutions such as self-service kiosks, baggage handling systems, and automated security checks to enhance the passenger experience and streamline airport operations. Major players in the industry are actively expanding their presence in these regions to capitalize on the growing demand for airport automation solutions.

The Middle East is the region where the market is witnessing significant growth due to the increasing awareness among the authorities. The presence of airports like those in Dubai, Riyadh, Muscat, and Johannesburg in South Africa is big enough to provide lucrative opportunities for automation. The Russia-Ukraine war had a negative impact on the automated airport market.

Due to economic uncertainty caused by this geopolitical conflict, tourism and business in the affected area are badly hampered. Supply- chains were interrupted due to this war, and there was a delay in the delivery of the products required for automation in airports. Security became a primary issue, as several people had to leave Ukraine and take shelter in Poland and in some other countries.

Key Players

·         ABB

·         Amadeus IT Group

·         Collins Aerospace

·         Daifuku Co. Ltd

·         Honeywell

·         IBM Corporation

·         L3Harris Technologies

·         Indra Sistemas S.A.

·         International Business Machines Corporation

·         Leidos Holdings

·         Siemens

·         Other Players