Airport Automation Market Expected to Reach $19.6 Billion by 2032—Allied Market Research

Airport automation market refers to the sector of the economy tasked with developing, installing, and utilizing automated technologies and systems in airport environments. Improving operational performance in all areas of airport operations, including efficiency and safety, is the main goal of airport automation. This market includes a broad spectrum of products and services intended to increase productivity, decrease manual labor, and enhance the general traveler's experience.

For instance, in August 2023, the Norwegian airport operator, Avinor partnered with Vanderlande to explore viable ways to automate last-mile baggage handling processes. Throughout this project, Vanderlande is expected to supply its bag load solution for integrated robot loading and its fleet batch product for the transportation of unit load devices (ULDs). Furthermore, such solutions will be trialed at Oslo Gardermoen Airport (OSL) to enhance the efficiency and reliability of the operator’s baggage handling processes.

In addition, biometric technologies, such facial recognition and fingerprint scanning, are increasingly being used to verify passengers during various airport operations, such as check-in, boarding, and security checks. Furthermore, robotics is being used in airports to help with cleaning, disinfecting, and passenger support. Drones are being investigated for security, surveillance, and runway inspection purposes. Moreover, artificial intelligence (AI) algorithms and machine learning are two examples of advanced security systems that are being incorporated into security screening procedures to improve threat detection capabilities while minimizing passenger discomfort.

Automated baggage handling systems are always developing; they now include RFID technology, automated sorting, and tracking options to cut down on mistakes, boost productivity, and give travelers access to luggage information in real time. Furthermore, travelers may independently check in, choose their seats, and obtain flight information with self-service kiosks and smartphone apps. Processes are streamlined by these technologies, which makes traveling easier for passengers.

To maximize operations, airports are combining many technologies and utilizing data analytics. Better resource allocation results from predictive analytics, which helps predict passenger volumes, equipment maintenance requirements, and other crucial factors. For instance, in December 2023, UPS, a logistics service provider, planned to build a new package sorting hub at the Hong Kong International Airport and near the Hong Kong-Zhuhai-Macau Bridge, stating that the facility will improve service to customers and enhance the company’s operations in Asia.

Baggage Handling Systems (BHS) are automated systems intended to handle and move checked baggage through an airport, from check-in to loading onto an aircraft, and back again when the passenger arrives. Ensuring the precise and prompt delivery of passengers' luggage while reducing the possibility of mistakes and delays is the main objective of a baggage handling system.

These systems have a major impact on improving overall passenger happiness and are essential to the smooth operation of airports. Furthermore, checked baggage can be left at designated counters or self-service kiosks by travelers. For instance, in October 2023, Aurrigo partnered with IAG on autonomous solutions for UK airports to launch autonomous aviation solutions and vehicles across the UK. The partnership will begin with a four-month evaluation and simulation phase to explore the use of the company’s autonomous vehicles in a controlled environment.

The Impact of the Russia-Ukraine War on Airport Automation Industry

Russia Ukraine war could cause delays or cancelling of airport automation orders, affecting the airport automation industry. Global supply chains may get disrupted due to geopolitical tensions and conflicts. The sourcing of essential technology or components for airport automation systems from areas directly impacted by the conflict may cause delays, shortages, or higher expenses for suppliers and manufacturers.

Geopolitical events can create uncertainty and instability, which can cause delays or make investment decisions in infrastructure projects, such as modernization and expansion plans for airports, to be reevaluated or delayed. This is expected to affect airports' adoption of new automation systems.

According to Ravi Raj, Lead Analyst, Aerospace & Defense, at Allied Market Research, “the airport automation market is dominated in the aerospace and defense industry due to the need for enhanced security, operational efficiency, and seamless passenger experiences, driving the adoption of automated technologies in airport infrastructure and processes.

KEY FINDINGS OF THE STUDY

• On the basis of system, the data storage segment is anticipated to exhibit significant growth during the forecast period.
• On the basis of application, the baggage handling and tracking segment is anticipated to exhibit significant growth during the forecast period.
• On the basis of airport side, the air side segment is anticipated to exhibit significant growth during the forecast period.
• On the basis of end market, the brownfield segment is anticipated to exhibit significant growth during the forecast period.
• On the basis of automation level, the level 1.0 segment is anticipated to exhibit significant growth during the forecast period.
• On the basis of region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global airport automation market include Amadeus It Group Sa, Collins Aerospace, Daifuku Co., Ltd., Honeywell International Inc., NEC Corporation, Siemens, SITA, Thales, Vanderlande Industries B.V., and Wipro. have adopted strategies such as contracts, agreements, acquisitions, product launches, and others to improve their market positioning.