Airport Automation Market: Current Analysis and Forecast (2024-2032)
Emphasis on Airport Side (Land Side and Air Side); Level of Automation (Level 1, Level2, Level 3, and Level 4); End Market (Greenfield and Brownfield); 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 Service and Assistance, Emergency Response and Safety, Ground Support Equipment, Air Traffic Management, Airfield Management, and Others) and Region/Country
Airport Automation Market Size & Forecast
The Airport Automation Market was valued at USD 6,016.30 million and is expected to grow at a robust CAGR of around 5.30% during the forecast period (2024-2032) owing to increased passenger traffic and the need for tighter security rules, efficiency, lower prices, and more operational efficiency.
Airport Automation Market Analysis
The airport industry is transforming, driven by the growing demand for enhanced operational efficiency, seamless passenger experiences, and sustainability. At the forefront of this transformation lies the burgeoning airport automation market, poised for significant growth in the coming years. The airport automation market is witnessing a surge in technological innovations, redefining how airports operate and interact with passengers.
From self-service check-in kiosks and biometric security checkpoints to automated baggage handling systems and robotic cleaning solutions, the latest airport automation technologies are revolutionizing every aspect of airport operations. These advancements streamline processes and enhance passenger satisfaction by reducing wait times and minimizing human errors.
Furthermore, integrating artificial intelligence (AI) and machine learning (ML) algorithms into airport automation systems enables real-time decision-making, predictive maintenance, and optimized resource allocation. For instance, in April 2024, Honeywell and Siemens announced a strategic partnership to develop an AI-powered airport management platform. This platform aims to optimize airport operations by leveraging data analytics and predictive modeling, ultimately improving operational efficiency and reducing carbon emissions.
Additionally, the airport automation market is witnessing a heightened focus on sustainability and environmental consciousness. Automated systems are designed to minimize energy consumption, reduce waste, and promote eco-friendly practices. In March 2024, Amsterdam Airport Schiphol unveiled its fully automated Terminal 4, featuring energy-efficient lighting, water conservation measures, and a state-of-the-art waste management system.
As the demand for air travel continues to rise, the airport automation market is poised to play a pivotal role in ensuring that airports remain competitive, efficient, and sustainable. With continuous technological advancements and a growing emphasis on passenger experience and environmental responsibility, the airport automation market is set to soar to new heights in the coming years.
Airport Automation Market Trends
Integration of Artificial Intelligence (AI) and Data Analytics
The integration of Artificial Intelligence (AI) and data analytics is a significant trend that is shaping the future of airport automation. Airports generate vast amounts of data, including passenger flow, aircraft movements, maintenance records, and meteorological information. By utilizing AI and advanced data analytics, airports can gain valuable insights and optimize their operations, improving efficiency, security, and passenger experience. For instance, in June 2023, Mumbai airport is expected to see a 10% increase in flights due to the implementation of artificial intelligence and machine learning (AI-ML) technology. This technology has the potential to improve the airport’s operational efficiency significantly. The civil aviation ministry has also announced improvements in the air traffic situation at the Mumbai airport, with significant reductions in flight arrival delays. Furthermore, major companies operating in the market are developing innovative products, such as airport management tools and digital tower air control systems, to gain a competitive edge. An airport management tool is a dedicated digital platform designed to automate and enhance the primary functions of an airport, such as passenger processing, baggage handling, arrival and departure procedures, departure control systems, information dissemination, and air traffic control (ATC). For instance, in 2024, SITA, a tech-based company providing airport technology services to airports, launched its airport management tool called Airport Operations Total Optimizer. This platform harnesses AI and the principles of Total Airport Management to optimize various airport functions, addressing the growing demand for smarter digital solutions and sustainable business practices in the aviation industry. The air transport industry is turning to digitalization, focusing on key technology solutions to fortify operations against disruption, automate the passenger experience, and provide more scalability and flexibility. This digitalization is central to the industry’s success in ensuring agile, resilient, and efficient operations.
North America Dominated the Airport Automation Market
The North America airport automation market currently dominates and is expected to dominate in the forecasted period due to various 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 cutting-edge 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.
Airport Automation Industry Overview
The airport automation market is competitive and concentrated, with few global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some major players operating in the market are Siemens, Daifuku Co., Ltd., Collins Aerospace, Wipro, Amadeus IT Group SA, Vanderlande Industries B.V., Thales, Honeywell International Inc., SITA, and NEC Corporation.
Airport Automation Market News
In September 2023, Vanderlande and airport operator Avinor formed an innovation partnership to explore ways of fully automating the last mile of the baggage handling process. The partnership aims to automate a part of the baggage handling process that has remained unaltered for over 50 years. The unloading of luggage from the baggage handling system onto containers bound for the aircraft is currently a labor-intensive and costly operation. According to Avinor, about 50% of costs related to baggage handling are incurred through these last-mile activities. Vanderlande will supply two innovative solutions – BAGLOAD for integrated robot loading and FLEET Batch for the transportation of ULDs. These solutions will be trialed at Oslo Gardermoen Airport in Norway.
In November 2023, Sanad, a subsidiary of Mubadala Investment Company, signed a preliminary agreement with Thales to develop industrial services for airport security, air traffic, and avionics systems. This collaboration aims to diversify Sanad’s business portfolio towards industrial services in the Middle East and Africa, leveraging synergies with international partners.
Airport Automation Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The global airport automation market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Airport Automation Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global airport automation market were the three major steps undertaken to create and analyze the adoption of airport automation in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global airport automation market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the airport automation market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the airport automation market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report airport side, level of automation, end market, system, and application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the airport automation market. Further, we conducted factor analysis using dependent and independent variables such as the airport side, level of automation, end market, system, and application of the airport automation market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the airport automation market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global airport automation market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the airport automation market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global airport automation market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global airport automation market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of the airport side, level of automation, end market, system, and application in the global airport automation market.
The main objective of the Global Airport Automation Market Study
The current & future market trends of the global airport automation market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the airport automation market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas of the airport side, level of automation, end market, system, and application.
- Define and analyze the regulatory framework for the airport automation
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the airport automation market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
- Company profiles of the airport automation market and the growth strategies adopted by the market players to sustain in the fast-growing market.
- Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the current market size and growth potential of the airport automation market?
Q2: What are the driving factors for the growth of the airport automation market?
Q3: Which segment has the largest airport automation market share by Airport Side?
Q4: What are the emerging technologies and trends in the airport automation market?
Q5: Which region will dominate the airport automation market?
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