Airport Automation Market by Automation Level (Level 1.0, Level 2.0, Level 3.0, Level 4.0), Application (BHS, Ground Transportation and Parking, Facility Management, Air Traffic Management, Others), System, Airport Side, Airport Size, End Market, and Region - Global Forecast to 2028
[288 Pages Report] The Airport Automation Industry size is projected to grow from USD 5.8 Billion in 2023 to USD 7.7 Billion by 2028, at a Compound Annual Growth Rate (CAGR) of 5.8% from 2023 to 2028. Air travel has been steadily increasing, leading to a surge in the number of passengers passing through airports. To manage this growing demand, airports are turning to automation to optimize processes and reduce congestion.
Airport Automation Market Forecast to 2028
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Airport Automation Market Dynamics
Driver: Growing Emphasis on Customer-centric Strategies
Airports and airlines are recognizing the paramount importance of prioritizing passenger experience and satisfaction. By adopting automated technologies, such as self-service check-in kiosks, streamlined security procedures, and personalized travel notifications through mobile apps, airports can enhance the overall passenger journey.
Customer-centric automation not only reduces waiting times and improves efficiency but also empowers travelers to have greater control over their travel experience. This emphasis on providing a seamless, hassle-free journey can lead to increased customer loyalty, positive word-of-mouth, and a competitive advantage for airports in attracting more airlines and passengers. As the aviation industry becomes increasingly customer-oriented, the adoption of airport automation solutions becomes a strategic imperative for meeting evolving traveler expectations and demands.
The increasing utilization of self-service technologies, such as self-check-in kiosks, automated baggage drop-off, and biometric-enabled boarding, is propelling the expansion of the airport automation market. Passengers' growing preference for seamless and efficient travel experiences has prompted airports to implement these user-friendly and time-saving solutions. By offering passengers greater control over their check-in and boarding processes, self-service technologies enhance overall airport efficiency and passenger satisfaction. As a result, airports and airlines are increasingly investing in automation solutions to meet the rising demand for self-service capabilities and to stay competitive in the evolving aviation industry.
Restraints: Enhancing Cybersecurity to Foster Trust in Automation
Cybersecurity stands as a critical restraint to the seamless implementation of airport automation. To foster trustworthy automation, it is imperative to prioritize and enhance cybersecurity measures. Robust security protocols and advanced technologies must be in place to safeguard automated systems from potential cyber threats and data breaches. By reinforcing cybersecurity practices, the aviation industry can instill confidence in passengers and stakeholders regarding the reliability and integrity of automated processes, facilitating the successful integration of automation in airport operations.
As airports increasingly rely on automation, the risk of cyber threats and data breaches becomes a significant concern. Securing automated systems and protecting passenger data requires robust cybersecurity measures. Actions must be taken to invest in advanced cybersecurity technologies, conduct regular security audits, and implement stringent data protection protocols to build trust and confidence among passengers and stakeholders.
Opportunity: Rising Utilization of Data-backed Decision Making
The increasing adoption of data-backed decision making presents a promising avenue for enhancing airport operations and passenger experiences. By leveraging advanced data analytics and artificial intelligence, airports can collect and analyze vast amounts of data from various sources, including passenger flows, aircraft movements, weather patterns, and operational processes. This data-driven approach enables airports to make informed decisions, optimize resource allocation, and proactively identify potential bottlenecks and issues before they escalate. With data-driven insights, airports can efficiently manage capacity, streamline security procedures, and improve overall operational efficiency. Data-driven decision making empowers airports to personalize passenger services, predict passenger needs, and offer tailored experiences, ultimately boosting customer satisfaction and loyalty. The ability to harness real-time data and historical trends also enables airports to adapt swiftly to changing circumstances, such as unexpected flight delays or changes in passenger demands.
Embracing data-driven decision making in airport automation fosters a culture of continuous improvement and innovation. By continually refining and optimizing processes based on data insights, airports can remain competitive, resilient, and well-equipped to meet the evolving demands of the aviation industry and its passengers.
Challenge: Gradual Incorporation of Cutting-edge Technologies Due to Significant Capital Expenditures
One of the challenges faced in airport automation is the slow integration of innovative technologies. This is primarily attributed to the high capital expenditure required for implementing and adopting advanced automation solutions. The cost of acquiring and deploying state-of-the-art technologies, such as advanced robotic systems, biometric authentication, and sophisticated AI-driven processes, can be substantial. As a result, airports and airlines may face financial constraints in rapidly adopting these innovations. This challenge necessitates careful planning, cost-benefit analyses, and strategic investment decisions to ensure a steady and sustainable integration of automation while maximizing the long-term benefits for all stakeholders involved in the aviation industry.
Airport Automation Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of airport automation. These companies have established a strong foothold in the market through diversified product portfolios, advanced technologies, and robust global sales and marketing networks. The prominent companies are Daifuku Co. Ltd. (Japan), Collins Aerospace (US), Siemens (Germany), and Amadeus IT Group (Spain). Airport Operators, Air Navigation Solution providers, Airport Solution integrators, Aviation Regulatory Bodies are some of the end users of these solutions.
Automation and Control Segment to Dominate Market Share During the Forecast Period
Based on System, the Airport Automation Market has been segmented into Data acquisition and Communication, Automation and Control, Data Storage, and System and Software. The integration of advanced technologies, including robotics and AI, into airport automation systems enhances the capabilities of HMIs and AGVs. These innovations contribute to more intelligent decision-making and responsive airport operations.
Air Traffic Management to Hold Large Market Share in 2023
Based application, air traffic management segment to hold large market share in the Airport Automation market. Automated systems provide air traffic controllers with real-time information and contribute to reducing the risk of human error. For instance, automated conflict resolution systems can detect and alert controllers to potential conflicts between aircraft, enhancing overall safety.
The Greenfield Segment is to Witness Grow the Highest During the Forecast Period
Based on end market, greenfield segment witnessing highest growth during forecast period. Greenfield projects provide a unique opportunity for airports to incorporate automation into their design and planning from the outset. This integrated approach allows for the seamless incorporation of automated systems, such as baggage handling, security, and passenger processing, into the airport infrastructure.
Asia Pacific is Projected to Witness the Largest Market Share During the Forecast Period
Asia Pacific leads the Airport Automation Market due presence of key players, automation solution manufacturers, and component manufacturers, which are a few factors expected to drive the growth of the Airport Automation Market in the region. These players invest in developing technological advanced electric boating solutions to improve efficiency and reliability. Major manufacturers and suppliers of Airport Automation in this region include Daifuku Co. Ltd. (Japan), Collins Aerospace (US), Siemens (Germany), and Amadeus IT Group (Spain)
Airport Automation Market by Region
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Airport Automation Industry Companies - Top Key Market Players
The Airport Automation Companies are dominated by globally established players such as Daifuku Co. Ltd. (Japan), Collins Aerospace (US), Siemens (Germany), and Amadeus IT Group (Spain)
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- Latest News, Updates & Trend analysis
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Report Metric |
Details |
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Estimated Market Size |
USD 5.8 Billion in 2023 |
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Projected Market Size |
USD 7.7 Billion by 2028 |
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Growth Rate |
CAGR of 5.8% |
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Market Size Available for Years |
2019-2028 |
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Base Year Considered |
2022 |
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Forecast Period |
2023-2028 |
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Forecast Units |
Value (USD Million/Billion) |
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Segments Covered |
System, Application, Airport Side, Airport Size, End Market, Automation Level |
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Geographies Covered |
North America, Europe, Asia Pacific, Middle East Rest of the World |
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Companies Covered |
Daifuku Co. Ltd. (Japan), Collins Aerospace (US), Siemens (Germany), and Amadeus IT Group (Spain). |
Airport Automation Market Highlights
This research report categorizes the Airport Automation Market based on System, Application, Airport Side, Airport Size, End Market, Automation Level and Region
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Segment |
Subsegment |
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System |
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Application |
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Airport Side |
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Airport Size |
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End Market |
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Automation Level |
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Recent Developments
- In June 2023, Pristina International Airport is implementing Amadeus' Airport Management Suite (AMS) to effectively plan flight schedules up to one year ahead. The new operational systems will distribute and regularly update crucial flight data at strategic points throughout the airport. Additionally, they will introduce advanced optimization algorithms to enhance the management of commonly used airport facilities such as parking areas, departure gates, and check-in counters, benefiting the airlines operating from Pristina.
- In May 2023, Siemens Logistics GmbH a subsidiary company of Siemens has secured a contract to provide advanced baggage handling solutions for Terminal 2 at Hefei Xinqiao Airport in eastern China. In addition to VarioStore early bag storage solution, the innovative BagIQ software will be implemented to optimize system control.
- In August 2023, Vanderlande and Avinor, the airport operator, have established an innovation partnership with the aim of achieving full automation in the final phase of baggage handling. Vanderlande will provide two innovative solutions: BAGLOAD for integrated robot loading and FLEET Batch for ULD transportation. These solutions will undergo testing at Oslo Gardermoen Airport in Norway. The primary objective of this partnership is to improve the efficiency and dependability of baggage handling, which will have positive implications for the entire airport industry.
Frequently Asked Questions (FAQs) Addressed by the Report:
What are your views on the growth prospect of the Airport Automation Market?
The Airport Automation Market is being driven by the increasing need for airport operational efficiency and the need for reduced workforce.
What are the key sustainability strategies adopted by leading players operating in the Airport Automation Market?
Key players have adopted various organic and inorganic strategies to strengthen their position in the Airport Automation Market. The major players include Daifuku Co. Ltd. (Japan), Collins Aerospace (US), Siemens (Germany), and Amadeus IT Group (Spain). These players have adopted various strategies, such as acquisitions, contracts, expansions, new product launches, and partnerships & agreements, to expand their presence in the market.
What are the new emerging technologies and use cases disrupting the Airport Automation Market?
Smart robots are instrumental in reducing the dependency on manually operated service desks, as they can offer passengers on-demand information and guidance, anytime and anywhere. Furthermore, they contribute significantly to optimizing airport operations by simplifying tasks such as security screening, baggage handling, and floor management. Notably, automated robots offer distinct advantages for travelers with disabilities, as they provide independent navigation assistance within the airport environment, reducing the need for additional support. This investment in automation and robotics demonstrates a commitment to efficiency, convenience, and inclusivity in airport services.
Who are the key players and innovators in the ecosystem of the Airport Automation Market?
The key players in the Airport Automation Market include Daifuku Co. Ltd. (Japan), Collins Aerospace (US), Siemens (Germany), and Amadeus IT Group (Spain).
Which region is expected to hold the highest market share in the Airport Automation Market?
The Airport Automation Market in Asia Pacific is projected to hold the highest market share during the forecast period due to Asia Pacific having the largest demand for airport automation solutions in the world.
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The study involved four major activities in estimating the current market size for the Airport Automation Market. Exhaustive secondary research was conducted to collect information on the market, the peer markets, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation procedures were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources, such as D&B Hoovers, Bloomberg, BusinessWeek, and different magazines, were referred to identify and collect information for this study. Secondary sources also included annual reports, press releases & investor presentations of companies, certified publications, articles by recognized authors, and simulator databases.
Primary Research
The Airport Automation Market comprises several stakeholders, such as raw material providers, Airport Automation equipment manufacturers and automation solution providers, and regulatory organizations in the supply chain. While the demand side of this market is characterized by various end users, the supply side is characterized by technological advancements in airport solutions. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the Airport Automation Market . These methods were also used extensively to estimate the size of various subsegments of the market. The research methodology used to estimate the market size includes the following:
- Key players in the industry and markets were identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, were determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
Market size estimation methodology: Bottom-up Approach
The market sizing was undertaken from the demand side. The market was sized based on the year-on-year growth of newly built boats and retrofitted electric boats.
Market size estimation methodology: Top-down Approach
In the top-down approach, the overall market size was used to estimate the size of individual markets (mentioned in the market segmentation) acquired through percentage splits from secondary and primary research. For the calculation of specific market segments, the size of the most appropriate, immediate parent market was used to implement the top-down approach. The bottom-up approach was also implemented to validate the revenue obtained for various market segments.
- Companies supplying airport automation solution, as well as components, were included in the report.
- The total revenue of these companies was identified through their annual reports and other authentic sources. In cases where annual reports were not available, company earnings were estimated based on the number of employees, press releases, and any publicly available data.
- Company revenue was calculated based on the various operating segments.
- All publicly available company contracts related to Airport Automation were mapped and summed up.
- Based on these parameters (contracts, agreements, partnerships, joint ventures, product matrix, secondary research), the share of electric ships in each segment was estimated.
Data Triangulation
After arriving at the overall market size-using the market size estimation process explained above-the market was split into several segments and subsegments. Data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides of the Airport Automation Market .
Report Objectives
- To identify and analyze key drivers, restraints, challenges, and opportunities influencing the growth of the Airport Automation Market
- To analyze the impact of macro and micro indicators on the market
- To forecast the market size of segments for four regions, namely, North America, Europe, Asia Pacific, Middle East and the Rest of the World, along with major countries in each of these regions
- To strategically analyze micro markets with respect to individual technological trends, prospects, and their contribution to the overall market
- To strategically profile key market players and comprehensively analyze their market ranking and core competencies
- To provide a detailed competitive landscape of the market, along with an analysis of business and corporate strategies, such as contracts, agreements, partnerships, and expansions.
- To identify detailed financial positions, key products, unique selling points, and key developments of leading companies in the market
Market Definition
A battery contains one or more cells that convert chemical energy directly into electrical energy. The primary electrical system in a vessel or boat incorporates one or more batteries. These batteries are used to power up the electrical system and to start the auxiliary power unit and the engines. A boat with a length under 70 feet and a lower range can be considered a vessel. An electric boat refers to a boat entirely driven by battery power.
Market Stakeholders
- Smart Component/Solution/Service Providers
- Airport System and Component Integrators/Manufacturers
- Airlines
- Airports
- Research Bodies
- Government Bodies, Agencies, and Regulators
- Investors and Financial Community Professionals
- System Integrators
Available Customizations
Along with the market data, MarketsandMarkets offers customizations as per the specific needs of companies. The following customization options are available for the report:
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Regional Analysis
- Further breakdown of the market segments at country-level
Company Information
- Detailed analysis and profiling of additional market players (up to 6)
Growth opportunities and latent adjacency in Airport Automation Market