Press release
Air Traffic Volume Surge Driving Airport Automation Market Growth: An Emerging Driver Transforming The Airport Automation Market Landscape
Airport Automation
What Is the Projected Growth of the Airport Automation Market?
The growth in the airport automation market has been significant in recent years, forecasted to rise from $7.95 billion in 2024 to $8.51 billion in 2025, with a compound annual growth rate (CAGR) of 7.0%. This surge in the historic period is driven primarily by rising demand for air travel, improvements in passenger experience, advancements in safety and security, operational efficiency, and regulatory adherences.
In the coming years, the airport automation market is poised to experience significant growth, reaching a value of $10.54 billion in 2029 with a 5.5% compound annual growth rate (CAGR). This expected growth during the forecast period can be attributed to several factors including the ongoing increase in air travel, the heightened focus on contactless solutions, endeavours towards enhancing operational efficiency and minimizing costs, stricter regulatory requirements and security measures, as well as an increased emphasis on environmental sustainability. Key trends anticipated to characterise the forecast period include the adoption of artificial intelligence (AI) and machine learning technologies, the expanded use of biometric identification systems, the growth in the use of robotics and automation for ground handling, the emergence of smart airport concepts, and the integration of contactless solutions in the post-pandemic world.
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What Are the Different Airport Automation Market Segments?
The airport automation market covered in this report is segmented -
1) By System: Data Acquisition And Communication, Automation And Control, Data Storage, Software And Solutions
2) By Airport Side: Land Side, Air Side
3) By Application: Baggage Handling And Tracking, Ground Transportation And Parking, Retail And Dining, Facility Management, Passenger Services And Assistance, Emergency Response And Safety, Ground Support Equipment, Air Traffic Management, Airfield Management, Other Applications
4) By End market: Greenfield, Brownfield
Subsegments:
1) By Data Acquisition And Communication: Passenger Information Systems, Flight Information Display Systems (FIDS), Baggage Handling Systems
2) By Automation And Control: Security Screening Systems, Self-Check-In Kiosks, Automated Boarding Gates
3) By Data Storage: Cloud-Based Storage Solutions, On-Premises Data Storage Systems
4) By Software And Solutions: Airport Management Software, Resource Management Solutions, Analytics And Reporting Tools
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What Are the Primary Drivers Shaping the Airport Automation Market?
The airport automation market's growth is anticipated to be fueled by increased air traffic volume. The term air traffic volume denotes the quantity of aircraft movements within specific airspace, an airport, or a region over a certain amount of time. Heightened corporate travel and burgeoning global economic activities contribute to the hike in air traffic volume, due to businesses conducting cross-border operations and global collaborations. Airport automation plays an essential role in handling this air traffic volume by improving the use of airspace, orchestrating aircraft movements, ensuring effective communication between air traffic controllers and pilots, minimizing human mistakes, and bolstering overall operational efficiency and security. For example, Eurostat, a statistical office based in Luxembourg for the European Union (EU), reported a considerable increase in air travel in the European Union in 2022, with the total passenger volume hitting 820 million, a striking rise of 119.3% compared to 2021. Hence, the elevated air traffic volume is propelling the expansion of the airport automation market.
Which Companies Are Leading in the Airport Automation Market?
Major companies operating in the airport automation market are Siemens AG, Raytheon Technologies Corporation, Panasonic Corporation, The International Business Machines Corporation, Cisco Systems Inc., Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., NEC Corporation, Collins Aerospace, Thales Group, L3Harris Technologies, Leidos Holdings Inc., Wipro Limited, Rockwell Automation Inc., Amadeus IT Group SA, Daifuku Co. Ltd., Advantech Co. Ltd., Bosch Rexroth AG, Vanderlande Industries B.V., SITA - Société Internationale de Télécommunications Aéronautiques, Smiths Detection, Morpho
What Are the Major Trends Shaping the Airport Automation Market?
Leading players in the airport automation sector are focusing on innovation, especially through products such as digital tower air traffic control systems that yield a competitive advantage. These cutting edge technologies allow air traffic controllers to handle airport traffic from remote settings through the use of digital tools, which include cameras and sensors. For example, Saab AB, an aerospace and defense firm in Sweden, introduced a unique air traffic control system, known as the Integrated Digital Tower Solution (i-DTS), specifically designed for larger airports, in November 2023. The i-DTS integrates automated systems expertise with remote tower technology to provide a higher level of resilience along with complete control and training functionalities. Controllers get access to live imagery and event detection due to the panoramic camera views and role-specific console displays, which ultimately enhances situational awareness and raises operational efficiency.
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What Are the Top Revenue-Generating Geographies in the Airport Automation Market?
Asia-Pacific was the largest region in the airport automation market in 2024. The regions covered in the airport automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Airport Automation Market?
2. What is the CAGR expected in the Airport Automation Market?
3. What Are the Key Innovations Transforming the Airport Automation Industry?
4. Which Region Is Leading the Airport Automation Market?
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