Airport Logistics System Market - By Product (Airport Baggage Handling Systems, Aviation Cargo Management Systems), By Service (System Integration and Deployment, Support and Maintenance, Consulting), By Technology, Forecast 2024 – 2032

Airport Logistics System Market Size

Airport Logistics System Market was valued at USD 4.5 billion in 2023 and is estimated to register a CAGR of over 8.5% between 2024 and 2032. The market growth is driven by rapid evolution of air cargo systems and their widespread adoption across global airport

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The exponential rise in e-commerce is pushing the need for faster and more efficient cargo handling. For instance, in August 2023, Kale Logistics Solutions launched its Airport Cargo Community System at GMR Hyderabad International Airport (GHIAL) to optimize operations, automate communications, and improve efficiency within the airport's cargo complex. The influx of advanced technologies, such as AI and IoT to optimize operations along with the presence of stringent security measures will also drive the need for sophisticated logistics solutions. With airports globally embracing these advancements, the demand for robust logistics systems capable of managing the increasing complexities of modern air cargo will further intensify, adding to the market expansion.

Heightened demand due to increasing need for proper communication systems within airports, along with technological improvements, such as automation, IoT, AI and data analytics for enhanced efficiency and accuracy of logistics systems will propel the market development. Advancements in technology have revolutionized airport logistics. Several airports are seeking innovative solutions to optimize operations, improve security, and handle the increasing volumes of cargo. For instance, in August 2023, Incheon International Airport launched AIRCIS, an advanced air cargo information system for connecting forwarders, service operators, and bonded carriers online.
 

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However, the challenges stemming from regulatory complexities as they demand compliance with varying international standards coupled with the hindering seamless integration may limit the market expansion to some extent. High initial costs deterring smaller airports from adopting advanced systems, further limiting accessibility and standardization will also pose as a restraint for the product deployment.

Airport Logistics System Market Trends

Increasing funding driven by the prioritization of business expansion in multiple companies will contribute to the adoption of airport logistics systems. The jump in investments is fueling infrastructure enhancements, technological upgrades, and operational efficiency for driving innovations for fostering AI-driven cargo handling, IoT-integrated tracking, and eco-friendly solutions. The growing focus of companies on seamless, contactless systems for meeting the rising demands and enhancing passenger experiences will also set the stage for robust growth. For instance, in September 2023, Mumbai-centered SaaS cargo management firm Kale Logistics Solutions secured a fresh USD 30 million funding round for extensive penetration in the U.S. and European airports.

Airport Logistics System Market Analysis

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Based on product, the market is divided into airport baggage handling systems and aviation cargo management systems. The airport baggage handling systems segment accounted for around 60% of the market share in 2023 and is anticipated to experience substantial growth over the forecast period. With the surging rate of air travel, the need for efficient, error-free luggage management is intensifying. Modern systems leverage automation, RFID tracking, and AI for precise handling, minimizing delays and losses. The growing passenger volume also necessitates scalable, rapid systems to ensure quick processing and delivery. The emerging trend of contactless and sustainable solutions along with the rising innovations in baggage handling technology will boost the segment expansion.

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Based on service, the airport logistics system market is categorized into system integration and deployment, support and maintenance, and consulting. The system integration and deployment segment accounted for a industry share of around 55% in 2023 and is poised for significant growth over the forecast period. The seamless fusion of technologies like AI, IoT, and RFID helps streamline operations for optimizing efficiency. The preference for cloud-based services is rising as they enable real-time data access for informed decision-making. The increasing obligation for fostering agile, responsive systems for meeting the dynamic demands for enhancing operational excellence, and passenger experiences in the aviation sector will also outline the segment progress.

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Noth America is experiencing growth in the airport logistics system market. The region accounted for a market share of over 35% in 2023 and is slated to register significant growth over the forecast period. North America market growth is driven by extensive air travel network along with the greater need for advanced and efficient logistics systems. Technological innovations, such as AI-driven cargo handling and IoT-enabled tracking is helping meet the demand for speed and accuracy in the region. Stricter security protocols are also enhancing the need for sophisticated systems. The rapid rise in E-commerce, the amplified urgency for streamlined cargo handling and the surging demand for eco-friendly, contactless solutions will also shape the regional market demand.

Airport Logistics System Market Share

Leading players in the market prioritize innovation and the integration of cutting-edge technologies. This includes advancements in IoT (Internet of Things), artificial intelligence, and automation to enhance the efficiency and reliability of baggage handling, cargo operations, and overall airport logistics.

Establishing a robust global presence and forming strategic partnerships with airports, airlines, and other stakeholders is a key strategy among market players. This allows companies to expand their reach, tap into emerging markets, and collaborate on large-scale projects, fostering a comprehensive approach to airport logistics.

Airport Logistics System Market Companies

Major players operating in the airport logistics system industry are

• Daifuku Co., Ltd.
• Siemens AG
• SITA
• Vanderlande Industries B.V.
• Smiths Detection Inc.
• BEUMER Group
• CIMC-TianDa Airport Support Ltd.
• IBS Software
• ULMA Handling Systems
• Alstef Automation S.A.
• Daifuku Co., Ltd.
• Siemens AG

Airport Logistics System Industry News

• In August 2023, Siemens Logistics secured an order to manage and maintain Palma de Mallorca Airport's baggage handling system in Spain. With a two-year term and potential extensions, Siemens vows to optimize belt conveyor availability through effective maintenance methods.

The airport logistics system 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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By Product, 2018 – 2032

Airport Baggage Handling Systems Sorting Systems

• • Scanners
  • Conveyors
  • Check-in Systems
  • Security Screening System
  • Others 
• Aviation Cargo Management Systems
  • Warehouse and Operation Management System
  • Freight Information System
  • Aviation Cargo Screening Systems
  • Others

By Service, 2018 – 2032

• System Integration and Deployment
• Support and Maintenance
• Consulting

By Technology, 2018 – 2032

• Internet of things (IoT)
• Artificial Intelligence and Machine Learning
• RFID
• Automation and Robotics
• Others

The above information is provided for the following regions and countries

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