Global Air Cargo Screening System Market 2023-2030

Global Air Cargo Screening System Market 2023-2030

Global Air cargo screening system Market Size, Share & Trends Analysis Report by Technology (Explosive Detection Systems, Metal Detection Systems, Non-Computed Tomography (Non-CT) Transmission X-ray Devices, and Narcotics Trace Detectors), and by Airport Terminal Type (International and Domestic) Forecast Period (2023-2030)

The global air cargo screening system market is anticipated to grow at a CAGR of 5.2% during the forecast period (2023-2030). The global aviation sector faced considerable challenges due to the COVID-19 pandemic. The pandemic had a significant impact on the commercial aviation sector, leading to a notable reduction in passenger and cargo traffic, and a downturn in demand for airport equipment. According to the 2022 report of the International Air Transport Association (IATA), the aviation industry suffered losses of $175 billion in 2020 and $104 billion in 2021 respectively. As per the 2023 report from IATA, the industry is expected to regain profitability in 2023, rebounding from the loss of $175 billion in 2020. Anticipated total airline revenue is projected to reach approximately 93% of the 2019 level, accompanied by operating profits amounting to $22.4 billion. The increase in air passenger traffic noted in 2022 continued its momentum in the first quarter of 2023. Industry-wide revenue passenger kilometers (RPKs) reached 88% of pre-pandemic levels by March 2023. Also, all regions demonstrated improvements, highlighting the resilience of the broad-based gradual recovery. With the rapid growth of passenger traffic and revenue of the aviation industry, the demand for air cargo screening systems is also expected to grow globally.

Segmental Outlook

The global air cargo screening system market is segmented by technology and airport terminal type. By technology, the market is sub-segmented into explosive detection systems, metal detection systems, Non-Computed Tomography (Non-CT) transmission X-ray devices, and narcotics trace detectors. By Airport Terminal Type, the market is sub-segmented into international and domestic terminals. Among the technologies, the demand for Explosive detection systems is expected to grow in the global air cargo screening system market.Explosive Detection Systems (EDS) for air cargo employ advanced technologies, such as computed tomography and X-ray imaging, to identify explosive materials within shipments. These systems conduct non-intrusive inspections efficiently, processing large cargo volumes while upholding security standards. The usage of EDS improves aviation security by detecting concealed threats, ensuring compliance with international standards, and reducing the risk of in-flight incidents. Globally growing security concerns and regulatory environment, the rapid growth of air traffic and technological advancements in the industry are driving the industry's inclination towards adopting more sophisticated and reliable screening solutions like EDS. In August 2023, OSI Systems announced that its subsidiary Rapiscan Itemiser 5X Explosive Trace Detection (ETD) device has fulfilled the qualification criteria established by the TSA, enabling its inclusion in the Air Cargo Screening Technology List (ACSTL). The ACSTL compiles approved technologies for use in the air cargo sector, encompassing carriers, freight forwarders, and shippers. This inclusion ensures compliance with US regulatory requirements and reinforces cargo security measures.

The International Air Traffic is Expected to Contribute Significantly to the Global Air cargo screening system Industry.

International air traffic is growing due to increased global connectivity and business collaborations. Growing middle-class incomes in emerging economies are making air travel more accessible for both business and leisure purposes. Additionally, Open-skies agreements between countries have expanded airline options and reduced fares. According to the IATA, in July 2023, International traffic has grown to 29.6% compared to the same month a year ago with all markets showing robust growth. International revenue passenger kilometers (RPKs) reached 88.7% of July 2019 levels. The passenger load factor (PLF) for the industry reached 85.7% which is the highest monthly international PLF ever recorded. Among the regions, Asia-Pacific airlines saw a 105.8% increase in July 2023 traffic compared to July 2022, continuing to lead the regions. Capacity climbed 96.2% and the load factor increased by 3.9 percentage points to 84.5%. With rapid growth in international air traffic, the demand for air cargo screening systems is also expected to grow.

Regional Outlook

The global air cargo screening system market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, North America is expected to hold a significant share of the market. As per International Air Transport Association (IATA), the regional carriers accounted for 28.9% of industry RPKs in 2022 compared to 22.3% in 2019. Additionally, the presence of market players such as Smith Detection, OSI Systems along with the growing government support are other factor driving the overall market. For instance, in September 2023, Smiths Detection announced that its IONSCAN 600 explosives trace detector (ETD) has been designated as Qualified Technology on the Transportation Security Administration’s (TSA) Air Cargo Screening Technology List (ACSTL), allowing the IONSCAN 600 to be purchased and used as part of global screening operations by regulated air cargo facilities.

Asia-Pacific Region is Expected to Hold a Significant Share of the Global Air Cargo Screening Market

Among all the regions, the Asia-Pacific region is expected to be the fastest-growing market. Rapidly growing regional aviation industry and the increasing air passenger & cargo traffic, along with the growing security concerns in the region. As per the 2023 data of IATA, Asia-Pacific airlines saw a 105.8% increase in international passenger market in July 2023 traffic compared to July 2022, which is the highest among all regions. Also, there has been significant growth in Asia-related trade activities which is further driving growth in the overall air cargo screening system market. As per IATA, In September 2023, most of the Asia-related trade lanes recorded strong annual growth in their international Cargo Tone Kilometers (CTKs), with the highest by Africa-Asia (12.8%) and Europe-Asia (9.6%). Also, Industry-wide international CTKs recorded the strongest growth in Asia Pacific among all regions by 4.2%. Considering the rapid growth of air cargo traffic in the region, market players are also focusing on business expansion to the Asia-Pacific region. For instance, in September 2023, Smiths Detection unveiled the HI-SCAN 6040 CTiX for the Indian market. According to the company, this advanced cabin baggage screening system, utilizing Computed Tomography (CT) technology, is tailored for passenger checkpoint scanners. The introduction follows guidance from the Bureau of Civil Aviation Security (BCAS), mandating the installation of 3D computed tomography X-ray machines at pre-departure security checkpoints in all Indian airports with an annual traffic surpassing five million passengers.

Market Players Outlook

The major companies serving the global air cargo screening system market include Leidos Holdings, Inc., Teledyne Technologies Inc., Astrophysics Inc., and Autoclear, LLC, among others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in January 2023, Rapiscan Systems Inc. acquired all assets of VOTI Detection Inc. As a result, all technical support services for VOTI Products are now being transitioned into the Global Rapiscan service organization.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the air cargo screening system market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.