Airport Automation Market

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.

The Global Airport Automation Market Industry is poised for substantial growth, with projections indicating a market value of 6.84 USD Billion in 2024 and an anticipated increase to 11.5 USD Billion by 2035. This growth trajectory suggests a robust demand for automation technologies as airports seek to enhance operational efficiency and passenger experience. The market is expected to experience a CAGR of 4.81% from 2025 to 2035, reflecting the ongoing investment in innovative solutions that address the challenges posed by increasing passenger traffic and operational complexities.

Security remains a critical concern in the Global Airport Automation Market Industry, driving the adoption of advanced automated solutions. Airports are increasingly implementing technologies such as automated screening lanes and AI-driven surveillance systems to bolster security protocols. These innovations not only enhance safety but also expedite the screening process, addressing the growing demand for efficient security measures. The integration of such technologies is indicative of a broader trend towards automation in security operations, which is essential for maintaining passenger confidence and operational integrity in the face of evolving threats.

In the Global Airport Automation Market Industry, the drive for operational cost reduction is paramount. Automation technologies enable airports to streamline processes, thereby minimizing labor costs and enhancing resource allocation. For example, automated baggage handling systems can significantly reduce the need for manual labor, leading to substantial savings. Additionally, the implementation of self-service kiosks allows airports to operate with fewer staff while improving passenger satisfaction. This focus on cost efficiency is likely to propel the market forward, with a projected CAGR of 4.81% from 2025 to 2035, as airports seek to optimize their operations.

The Global Airport Automation Market Industry is experiencing rapid technological advancements that enhance operational efficiency and passenger experience. Innovations such as biometric identification systems, automated baggage handling, and self-service kiosks are becoming increasingly prevalent. For instance, airports are integrating facial recognition technology to streamline passenger processing, which not only reduces wait times but also improves security measures. This trend is reflected in the projected market value of 6.84 USD Billion in 2024, indicating a growing reliance on technology to facilitate smoother airport operations.

The Global Airport Automation Market Industry is driven by the continuous increase in global passenger traffic. With air travel becoming more accessible, airports are facing the challenge of managing higher volumes of travelers efficiently. The International Air Transport Association projects that passenger numbers will reach 8.2 billion by 2037, necessitating the adoption of automated solutions to handle the influx. Automation technologies, such as advanced check-in systems and automated security screening, are essential to accommodate this growth while maintaining high service standards. This demand is expected to contribute to the market's growth to 11.5 USD Billion by 2035.

The Global Airport Automation Market Industry is influenced by the need for compliance with evolving regulatory standards. Governments and aviation authorities are establishing stringent regulations to ensure safety, security, and efficiency in airport operations. Automation technologies play a crucial role in helping airports meet these compliance requirements. For instance, automated systems can provide accurate data reporting and monitoring capabilities, facilitating adherence to safety protocols. As regulatory frameworks continue to evolve, the demand for automated solutions that ensure compliance is expected to grow, further driving the market's expansion.

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, Market Research Future 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.

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.