Airport Automation Market - By System (Data Storage, Automation & Control, Data Acquisition & Communication, Software & Solutions), By Level of Automation, By Technology, By Application, By End User & Forecast, 2024 – 2032

Airport Automation Market Size

Airport Automation Market was valued at USD 6.3 billion in 2023 and is estimated to register a CAGR of over 5% between 2024 & 2032. The market growth is driven by an increased focus on improving operational efficiency and cost reduction. Airport automation helps improve operational efficiency by streamlining various processes such as check-in, baggage handling, security checks, and boarding

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Citing an instance, in October 2023, Biju Patnaik International Airport (BPIA) inaugurated a state-of-the-art Air Traffic Management (ATM) Automation System at its recently established Air Traffic Control Centre. This advanced system is poised to elevate operational efficiency for flights while prioritizing safety in the airspace. According to official sources, the indigenously developed ATM Automation System equips controllers with conflict prediction and alert warning tools, facilitating informed decision-making for safe and efficient air traffic control. Authorities emphasize that this innovation will bolster the airport's capacity handling capabilities, enhancing flight safety by reducing controller workload.

Growing emphasis on passenger experience enhancement will help shape the airport automation market outlook through 2032. Airports are increasingly investing in automation to enhance the overall passenger experience. Self-service airport kiosk system for check-in, automated baggage drop systems, and biometric-based security screening contribute to a smoother and more convenient journey for travelers.

Against this backdrop, in November 2023, IDEMIA's ALIX introduced artificial intelligence to streamline the process of identifying lost luggage. By harnessing advanced biometric identification technologies, IDEMIA enables airport operators to match luggage with its rightful owner efficiently. The integration of AI, imaging, and biometric expertise allows IDEMIA to offer a seamless solution that easily integrates into the baggage handling systems of airlines or airports. Developed in collaboration with Air France, ALIX (Augmented Luggage Identification eXperience) is a field-proven solution designed to enhance luggage identification with the added advantage of AI technology.

In addition, the airport automation industry is witnessing a transformative phase propelled by airline technology integration and the expansion of the airport information system market. This convergence is revolutionizing airport operations, fostering seamless collaboration between airlines and airport systems, and optimizing processes such as check-in, baggage handling, and security screening.
 

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In contrast, the deployment of advanced automation technologies in airports often involves substantial upfront costs for infrastructure upgrades, technology acquisition, and system integration. Many airports, especially those with limited financial resources, may find it challenging to justify and afford the initial investment required for comprehensive automation. This financial barrier can hinder the widespread adoption of automation solutions, slowing-down the overall industry progression.

Airport Automation Market Trends

Robotic Process Automation involving the use of software robots to automate repetitive and rule-based tasks will emerge as a prominent trend across the airport automation industry. In the airport industry, RPA can be applied to various functions, including baggage handling, passenger services, and back-office operations. Automation through RPA can lead to increased operational efficiency, cost savings, and improved accuracy. As airports seek to optimize processes and reduce human intervention in routine tasks, the adoption of RPA is anticipated to rise.

Quoting an instance, in February 2024, IAG extended an invitation to Future Travel Experience at its Waterside headquarters near Heathrow. During a comprehensive briefing that spanned a few hours, IAG showcased several key division heads and thought leaders, providing insights into its ongoing innovation initiatives. As a Corporate Partner of the FTE Digital, Innovation & Startup Hub, IAG expressed its commitment to collaborating with airport partners on various trials. These trials encompass a broad spectrum of innovations, including robotics and automation, artificial intelligence and machine learning, biometrics and digital identity, personalization, startup collaborations, sustainability, private networks, and the Internet of Things (IoT). The focus of these initiatives extends across airport areas such as the ramp, lounges, and accessibility, showcasing IAG's dedication to advancing technology and enhancing the passenger experience.

Airport Automation Market Analysis

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Based on system, the market is divided into data storage, automation & control, data acquisition & communication, and software & solutions. In 2023, the automation & control segment accounted for over USD 2 billion. Airport automation and control systems could witness high demand, propelled by the urgent need for enhanced operational efficiency, heightened security measures, and an overall improvement in passenger experience. Airports worldwide are embracing automation technologies to optimize processes, such as check-in, baggage handling, and security screening, leading to reduced delays and increased capacity handling. The integration of advanced control systems also addresses the imperative of ensuring strict compliance with evolving aviation regulations, thus bolstering safety and security measures. Moreover, the drive for innovation and the pursuit of sustainable practices contribute to the increasing demand for sophisticated airport automation solutions.

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Based on the application, the market is categorized into terminal-side operations, airside operations, and landside operations. In 2023, the landside operations segment accounted for a market share of 43% and is projected to grow significantly till 2032. Airport automation is gaining substantial traction in landslide operations due to its potential to significantly enhance efficiency, accuracy, and passenger experience. Automated systems streamline check-in processes, baggage handling, and security procedures, reducing queues and operational bottlenecks. This results in quicker turnaround times, minimizing delays and optimizing overall airport performance. Additionally, automation technologies contribute to heightened safety and security through advanced screening processes. The demand for improved passenger experiences and the imperative to meet stringent regulatory standards are key drivers, propelling the widespread adoption of automation in landslide operations across airports globally.

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North America dominated the global market with a major share of over 35% in 2023. North America airport automation market is flourishing due to a combination of factors that underscore the region's commitment to technological innovation and operational efficiency. With a robust aviation sector, airports in North America are investing significantly in cutting-edge automation technologies to streamline processes and enhance passenger experience. The region's stringent security regulations also drive the adoption of advanced automation solutions. Furthermore, the proactive approach of North American airports in embracing emerging trends, such as biometrics and artificial intelligence, contributes to the market's flourishing growth, making it a focal point for automation advancements in the aviation industry.

Airport Automation Market Share

Collins Aerospace and ABB Ltd. hold a significant market share of over 7% in the airport automation industry. These prominent players in the market deploy various key strategies to fortify their positions. Emphasis on technological innovation is pivotal, with companies investing in cutting-edge solutions such as biometrics, artificial intelligence, and robotics to enhance efficiency and passenger experience.

Strategic collaborations and partnerships with airport authorities, airlines, and technology providers enable market players to expand their reach and offer comprehensive solutions. Mergers and acquisitions are common strategies, facilitating the integration of complementary technologies and the expansion of service portfolios. Additionally, a focus on sustainability and compliance with stringent aviation regulations helps companies build trust and credibility in the market, strengthening their competitive edge and fostering long-term growth.

Airport Automation Market Companies

Major players operating in the airport automation industry are

• ABB
• Amadeus IT Group
• Collins Aerospace
• Daifuku Co. Ltd.
• Honeywell
• IBM Corporation
• L3Harris Technologies
• Leidos Holdings, Inc.
• Siemens
• Thales Group

Airport Automation Industry News

• In January 2024, TKH Group N.V., the parent company of TKH Airport Solutions, announced the acquisition of 100% ownership in JCAI Inc (JCAII). This strategic acquisition brings together the distinctive expertise of TKH Airport Solutions in smart airfield ground lighting (AGL) and JCAII's cutting-edge traffic guidance systems. JCAII specializes in advanced guidance software and equipment, offering airports essential tools for the automatic direction of aircraft over the tarmac. This facilitates the optimization of throughput while maintaining a crucial balance with safety measures.
   
• In September 2023, Vanderlande and Avinor joined forces to explore the complete automation of the last mile in baggage handling. This collaboration aims to revolutionize a segment of the baggage handling process that has seen little change for over half a century. Vanderlande will provide two solutions – Fleet Batch for ULD transportation and BagLoad for integrated robot loading. The overarching objective of this partnership is to elevate the efficiency and dependability of baggage handling processes, ultimately benefiting the entire airport industry.

The airport automation market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By System

• Data storage
• Automation & control
• Data acquisition & communication
• Software & solutions

Market, By Level of Automation

• Level 1
• Level 2
• Level 3
• Level 4

Market, By Technology

• Baggage handling systems
• Passenger processing
• Security systems
• Air Traffic Management (ATM)
• Information Technology (IT) solutions
• Automated ground handling

Market, By Application

• Terminal-side operations
• Airside operations
• Landside operations

Market, By End-user

• Commercial airports
• Military airports
• Cargo airports

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA