Global Airport Automation Market Overview
Airport Automation Market Size was valued at USD 6.5 Billion in 2023. The airport automation market industry is projected to grow from USD 6.84 Billion in 2024 to USD 9.825 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.30% during the forecast period (2024 - 2032). The market for airport automation is growing as a result of various market drivers, including increased passenger traffic and the need for efficiency, tighter security rules and legal compliance, lower prices, and more operational efficiency.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Airport Automation Market Trends
- Increasing number of air traffic is driving the market growth
The anticipated growth of the airport automation market CAGR is expected to rise in the future as air traffic continues to increase. Air traffic volume refers to the quantity of aircraft operations occurring in a designated airspace, airport, or area during a specific timeframe. Due to increased international partnerships and cross-border operations, levels of air traffic have gone up due to more corporate travel and the expansion of the economy. Airport automation helps manage air traffic volume by optimizing airspace usage, coordinating aircraft movements, improving communication between air traffic controllers and pilots, minimizing mistakes, and boosting operational efficiency and safety. The EU statistical office Eurostat, based in Luxembourg, reported a considerable rise in EU air travel in 2022, with 820 million passengers flying - a huge surge of 119.3% from the previous year. Hence, the need for airport automation is increasing due to the uptick in air traffic.
To obtain a competitive advantage, major players in the airport automation industry are creating cutting-edge technologies, including digital tower air traffic control systems. With the use of sophisticated technologies, air traffic controllers may remotely supervise airport air traffic using cameras, sensors, and other digital instruments thanks to digital tower air traffic control systems. For instance, the Swedish aerospace and military company Saab AB introduced the Integrated Digital Tower Solution (i-DTS) in November 2023. It is a new air traffic control system intended for larger airports. Combining automated systems knowledge with remote tower technology, the i-DTS offers full control and training capabilities along with increased resilience. Controllers can receive real-time imagery and event detection through role-based console displays and panoramic camera views, which enhances situational awareness and operational efficiency. Thus, driving the revenue of the airport automation market.
Airport Automation Market Segment Insights
Airport Automation System Insights
The airport automation market segmentation, based on system, includes Data storage, Automation & Control, Data Acquisition & Communication, and Software & Solutions. In 2023, the data acquisition & communication segment dominated the market. Airports are investing in smart infrastructure, which is made up of various components with sensors and communication devices attached. This includes gates, smart runways, luggage systems, and security systems. Airports may increase overall productivity and optimize operations by boosting data collection capabilities through the implementation of these sophisticated components. These factors will lead to profitable growth prospects for the segment.
Airport Automation Technology Insights
The airport automation market segmentation, based on technology, includes Baggage Handling Systems, Passenger Processing, Air Traffic Management (ATM), Information Technology (IT) Solutions, Security Systems, and Automated Ground Handling. The baggage handling systems category generated the most income in 2023 because of its essential function in automating the delivery, tracking, and sorting of luggage during airport travel, enhancing operational effectiveness, lowering mistakes, and raising customer satisfaction.
Airport Automation Level of Automation Insights
The airport automation market segmentation, based on level of automation, includes Level 1, Level 2, Level 3, and Level 4. The level 3 category generated the most income in 2023. Airports are constantly searching for ways to enhance operating efficiency, reduce costs, and raise safety. Level 3.0 automation can address these problems. The deployment of advanced automation technology may be fueled by the rise in air travel worldwide and the increasing need for efficient and effective airport operations. Consequently, the industry is expected to experience rapid growth in the next years.
Airport Automation Application Insights
The airport automation market segmentation, based on application, includes Terminal-side Operations, Airside Operations, and Landside Operations. The airside operations category generated the most income in 2023 due to the growing use of cutting-edge technologies, such as automated aircraft boarding, intelligent apron management, and enhanced air traffic control systems, that increase efficiency and security on the airside of airports.
Airport Automation End-user Insights
The airport automation market segmentation, based on end-user, includes Commercial Airports, Military Airports, and Cargo Airports. The commercial airports category generated the most income in 2023. These airports benefit from having a clean slate, which allows them to give the passenger experience priority when developing and deploying automation technologies. Self-service kiosks, expedited check-in procedures, and other technological advancements to improve general satisfaction are examples of this.
Figure 1: Airport Automation Market, by End-user, 2023 & 2032 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Airport Automation Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American airport automation market area will dominate this market due to a variety of factors that demonstrate the region's commitment to technological innovation and efficient operations. Because the aviation industry is booming, airports in North America are investing heavily in cutting-edge automation technologies to enhance passenger experience and streamline operations. Strict security regulations in the area also affect the adoption of cutting-edge automation technology.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.
Figure 2: Airport Automation Market Share By Region 2023 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe airport automation market accounts for the second-largest market share because the adoption of contemporary automation technologies is being fueled by the region's increasing urbanization, economic expansion, rising demand for air travel, and significant investments in the rehabilitation of airport infrastructure. Furthermore, the European region has invested a significant amount of money in updating and expanding its airport infrastructure. Airports found it difficult to handle more travelers, so they resorted to automation to boost capacity and streamline processes. Further, the German airport automation market held the largest market share, and the UK airport automation market was the fastest growing market in the European region.
The Asia-Pacific Airport Automation Market is expected to grow at the fastest CAGR from 2024 to 2032 because of the region's rapid economic growth, the rise in air travel, the creation of substantial infrastructure, the proactive adoption of new technologies, government support, and the focus on enhancing the quality of travel in general, especially in China. The development of the middle class, urbanization, and increased disposable income have all contributed to a dramatic increase in air travel in the Asia-Pacific region. Moreover, China’s airport automation market held the largest market share, and the Indian airport automation market was the fastest growing market in the Asia-Pacific region.
Airport Automation Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the airport automation market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the airport automation industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the airport automation industry to benefit clients and increase the market sector. In recent years, the airport automation industry has offered some of the most significant advantages to medicine. Major players in the airport automation market are attempting to increase market demand by investing in research and development operations, including ABB, Collins Aerospace, Amadeus IT Group, Honeywell, IBM Corporation, L3Harris Technologies, Leidos Holdings, Inc., Daifuku Co. Ltd., Siemens, and Thales Group.
Advanced IT solutions are offered to the travel and tourism (T&T) sector by Amadeus IT Group SA (Amadeus). Operating on a transaction-based business model, the company provides a wide range of technology-focused goods and services, such as worldwide distribution systems and reservation processing services. Amadeus offers travel suppliers and travel agencies solutions for the whole value chain, including searching, pricing, booking, reservations, inventory management, payments, check-in, and departure.
Daifuku Co Ltd (Daifuku) provides logistics systems and material handling equipment consulting, designing, manufacture, engineering, installation, and after-sales services through its subsidiaries. The company's offerings include car wash machines, manufacturing and distribution systems, semiconductor production lines, flat panel display lines, airport technologies, and vehicle production lines. In addition, Daifuku provides solutions like IT systems, wireless power supply solutions, sorting and picking systems, conveyor systems, and storage systems.
Key Companies in the airport automation market include
- ABB
- Collins Aerospace
- Amadeus IT Group
- Honeywell
- IBM Corporation
- L3Harris Technologies
- Leidos Holdings, Inc.
- Daifuku Co. Ltd.
- Siemens
- Thales Group
Airport Automation Industry Developments
For Instance, January 2024 The parent business of TKH Airport Solutions, TKH Group N.V., declared that it has acquired a 100% stake in JCAl Inc. (JCAll). Through this strategic acquisition, JCAll's state-of-the-art traffic guidance systems and TKH Airport Solutions' unique experience in smart airfield ground lighting (AGL) are combined. Specializing in cutting-edge guiding software and hardware, JCAll provides airports with the necessary capabilities for automatically directing airplanes over the tarmac. This makes it easier to optimize throughput while keeping safety precautions in check.
For Instance, September 2023 Together, Vanderlande and Avinor investigated fully automated baggage handling over the final mile. The goal of this partnership is to completely transform a baggage handling procedure that hasn't changed in more than 50 years. For ULD transportation, Vanderlande will offer Fleet Batch, and for integrated robot loading, BagLoad. This partnership's main goal is to improve baggage handling procedures' dependability and efficiency, which will eventually help the airport sector as a whole.
Airport Automation Market Segmentation
Airport Automation System Outlook
- Data storage
- Automation & Control
- Data Acquisition & Communication
- Software & Solutions
Airport Automation Technology Outlook
- Baggage Handling Systems
- Passenger Processing
- Air Traffic Management (ATM)
- Information Technology (IT) Solutions
- Security Systems
- Automated Ground Handling
Airport Automation Level of Automation Outlook
- Level 1
- Level 2
- Level 3
- Level 4
Airport Automation Application Outlook
- Terminal-side Operations
- Airside Operations
- Landside Operations
Airport Automation End-user Outlook
- Commercial Airports
- Military Airports
- Cargo Airports
Airport Automation Regional Outlook
- North America
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 6.5 Billion |
| Market Size 2024 |
USD 6.84 Billion |
| Market Size 2032 |
USD 9.825 Billion |
| Compound Annual Growth Rate (CAGR) |
5.30% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
System, Technology, Level of Automation, Application, End-user, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea |
| Key Companies Profiled |
ABB, Collins Aerospace, Amadeus IT Group, Honeywell, IBM Corporation, L3Harris Technologies, Leidos Holdings, Inc., Daifuku Co. Ltd., Siemens, and Thales Group. |
| Key Market Opportunities |
Growing passenger traffic in airplanes |
| Key Market Dynamics |
Increasing productivity and cutting expenses Enhanced passenger experience with improved |
Frequently Asked Questions (FAQ) :
The market size was valued at USD 6.5 Billion in 2023.
The market is projected to grow at a CAGR of 5.30% during the forecast period, 2024-2032.
North America had the largest share in the market.
The key players in the market are ABB, Collins Aerospace, Amadeus IT Group, Honeywell, IBM Corporation, L3Harris Technologies, Leidos Holdings, Inc., Daifuku Co. Ltd., Siemens, and Thales Group, among others.
The data acquisition & communication category dominated the market in 2023.
The airside operations category had the largest share in the market.
