Airport Logistics System Market - By Product (Airport Baggage Handling Systems, Aviation Cargo Management Systems), By Service (System Integration and Deployment, Support and Maintenance, Consulting), By Technology, Forecast 2024 - 2032

Airport Logistics System Market - By Product (Airport Baggage Handling Systems, Aviation Cargo Management Systems), By Service (System Integration and Deployment, Support and Maintenance, Consulting), By Technology, Forecast 2024 - 2032

Airport Logistics System Market size is poised to expand at over 8.5% CAGR from 2024 to 2032 driven by the continual rise in air passenger and cargo traffic across the globe.

Increasing demand for air travel coupled with the expansion of international trade is driving the need for efficient logistics systems at airports as they incorporate advanced technologies and automation for facilitating seamless handling of growing passenger volumes and cargo shipments. To meet the challenges posed by escalating traffic, airports are investing in modern logistics solutions for baggage handling, cargo processing, and overall ground operations, further propelling the market growth. To cite an instance, in January 2023, Siemens Logistics announced that it would begin installing a new outgoing baggage handling system at Austin-Bergstrom International Airport in Texas, U.S.

The airport logistics system industry is segmented into product, service, technology, and region.

Based on product, the market share from the aviation cargo management systems segment is anticipated to depict considerable growth through 2032 owing to the increasing investments by major airports in advanced systems to streamline and enhance cargo operations. Aviation cargo management systems, incorporate technologies such as RFID, automation, and real-time tracking, to optimize the handling, storage, and retrieval of airfreight. The efficiency offered by cargo management also contributes to reduced turnaround times and increased throughput, boosting the segment growth.

In terms of service, the airport logistics system market from the support and maintenance segment is estimated to record steady growth between 2024 and 2032. Several airports worldwide are increasingly recognizing the critical role of robust logistics systems for increasing the focus on maintaining and optimizing existing infrastructure. Support and maintenance services ensure reliability, efficiency, and longevity of airport logistics systems for covering baggage handling, cargo operations, and the overall ground handling processes. Additionally, proactive maintenance, system upgrades, and 24/7 technical support leading to minimized downtime and enhanced system performance will add to the product adoption.

Regionally, the Asia Pacific airport logistics system industry is set to expand at a notable CAGR through 2032 attributed to the expanding air travel, rising e-commerce activities, and increased investments in airport infrastructure. The presence of well-established aviation hub in the region is spurring authorities to prioritize advanced logistics systems at airports to handle the escalating passenger and cargo volumes.

Additionally, with focus on streamlining operations, enhancing efficiency, and adopting cutting-edge technologies, airports across APAC are increasingly adopting advanced logistics systems. For instance, in February 2023, Kale Logistics Solutions launched its cutting-edge cargo management system, GALAXY, for completing the deployment of all-digital domestic cargo operations at the new Goa airport. Moreover, the booming e-commerce sector and the surge in international trade will further amplify the demand for sophisticated logistics solutions in the region.