According to Stratistics MRC, the Global Airport Supply Chain Management Market is accounted for $26.41 billion in 2024 and is expected to reach $52.95 billion by 2030 growing at a CAGR of 12.3% during the forecast period. Airport supply chain management involves the coordination and management of various processes and stakeholders to ensure the smooth flow of goods, services, and information within an airport environment. It encompasses the procurement, storage, and distribution of materials such as fuel, cargo, and spare parts for aircraft and ground operations. ASCM also focuses on managing logistics, ensuring timely deliveries, and optimizing inventory to minimize costs.
According to a survey by Accenture, around 21% of supply chain executives deployed cloud-enabled capabilities across their entire supply chains.
Market Dynamics:
Driver:
Growth in global passenger and freight traffic
As airlines and airports handle increased volumes of passengers, cargo, and baggage, the need for optimized supply chain solutions becomes critical. ASCM ensures timely deliveries, inventory management, and smooth operations across various airport sectors; including fuel, spare parts, catering, and cargo. With more airlines and logistics companies focusing on improving efficiency, reducing delays, and enhancing passenger experiences, the expanding traffic necessitates advanced technology and automation, fueling growth in the ASCM market to meet the rising demands and ensure operational effectiveness.
Restraint:
Economic instability
Economic instability in the airport supply chain management arises from fluctuating fuel costs, geopolitical tensions, currency volatility, and global trade disruptions. These factors increase operational costs and create uncertainty in investment decisions. Reduced air travel during economic downturns impacts passenger and cargo volumes, leading to diminished revenues for airports and their supply chain partners. Further, delays in infrastructure projects, reduced funding, and strained partnerships hampers market the expansion.
Opportunity:
Expansion and modernization of airports
Modern airports require sophisticated supply chain solutions to handle higher passenger volumes, cargo operations, and security needs. Expansions involve integrating smart technologies such as IoT, AI, and real-time tracking to streamline operations. Additionally, modernized infrastructure supports enhanced vendor collaboration, inventory management, and procurement processes. As airports evolve into global hubs, supply chain systems become critical to ensuring seamless operations, fostering market growth, and enabling faster, cost-effective, and sustainable logistics solutions.
Threat:
Geopolitical issues
Geopolitical issues in airport supply chain management stem from trade restrictions, political tensions, sanctions, and regional conflicts. These factors disrupt cross-border logistics, restrict access to critical materials, and complicate regulatory compliance for international supply chains. Additionally, fluctuating policies and regional instability create inefficiencies, increase costs, and reduce operational reliability, collectively hampering the growth and resilience of the airport supply chain management market.
Covid-19 Impact
The covid-19 pandemic significantly disrupted the airport supply chain management market, causing sharp declines in passenger traffic and cargo volumes. Reduced airline operations led to lower demand for ground handling and airport services, straining revenue streams. Supply chain bottlenecks and labor shortages further impacted efficiency, while airports faced increased costs for health and safety measures. However, the crisis accelerated the adoption of digital technologies and automation to enhance supply chain resilience, streamline operations, and adapt to fluctuating demand in a post-pandemic landscape.
The international airports segment is expected to be the largest during the forecast period
The international airports segment is predicted to secure the largest market share throughout the forecast period. Airport supply chain management in international airports involves the seamless coordination of logistics, procurement, and distribution to support diverse operations, including passenger services, cargo handling, retail, and catering. It focuses on optimizing inventory, ensuring timely delivery of goods, and minimizing operational delays. Collaborative efforts among airlines, airport authorities, and suppliers are essential for managing the complexities of global air travel.
The cargo & freight management segment is expected to have the highest CAGR during the forecast period
The cargo & freight management segment is anticipated to witness the highest CAGR during the forecast period. Airport supply chain management in cargo and freight management focuses on the efficient handling, transportation, and tracking of goods within airports. It involves streamlining the movement of freight from origin to destination, optimizing storage, and managing inventory to reduce delays. This application is vital for enhancing operational efficiency, minimizing costs, improving security, and meeting international regulatory standards, ensuring smooth cargo handling at global airports.
Region with largest share:
Asia Pacific is expected to register the largest market share during the forecast period fuelled by increasing air traffic, expanding airport infrastructure, and the rise of low-cost carriers. Countries like China, India, Japan, and Southeast Asian nations are investing heavily in modernizing airports, improving logistics, and adopting digital solutions. Additionally, airports are focusing on automation, contactless technologies, and real-time data analytics to enhance operational efficiency and passenger experience in the region.
Region with highest CAGR:
North America is expected to witness the highest CAGR over the forecast period driven by robust air travel demand and advanced airport infrastructure. The U.S. and Canada lead in adopting automation, IoT, and AI to optimize logistics, inventory, and operations. The market benefits from major airport hubs like Atlanta, Los Angeles, and Toronto, fostering increased demand for efficient cargo handling, passenger services, and ground operations. Further, the region market is poised for significant growth, supported by continued advancements and increasing demand for integrated supply chain solutions.
Key players in the market
Some of the key players profiled in the Airport Supply Chain Management Market include Accenture, Honeywell International Inc., Siemens AG, IBM Corporation, SAP SE, Oracle Corporation, SITA, A.P. Moller – Maersk A/S, Vanderlande Industries, Adani Airport Holdings Limited (AAHL), Thales Group, Delta Airlines, Swissport International Limited, Lufthansa Technik, Menzies Aviation, Air France-KLM Group and Kuehne + Nagel.
Key Developments:
In October 2024, Adani Airport Holdings Limited (AAHL) and Thales have announced a strategic partnership aimed at revolutionizing international airport operations and enhancing passenger experiences across India. This partnership marks a significant step forward in leveraging cutting-edge technologies to streamline airport management and ensure superior services for travellers.
In March 2023, A.P. Moller - Maersk inaugurated a new air freight service connecting Billund, Denmark (BLL), to Hangzhou, China (HGH). This service addresses the growing demand for efficient logistics solutions between Europe and China. The operation commenced with three weekly flights, utilizing the first of three newly converted Boeing 767-300 freighters added to Maersk Air Cargo's fleet.
Airport Types Covered:
• International Airports
• Domestic Airports
• Cargo Airports
• Hub Airports
• Other Airport Types
Components Covered:
• Hardware
• Software
• Services
Applications Covered:
• Cargo & Freight Management
• Ground Handling Services
• Airline Operations Management
• Airport Infrastructure & Facility Management
• Retail & Concessions Management
• Security & Safety Management
• Information Technology & Communications Systems
• Other Applications
End Users Covered:
• Airlines
• Retail & Duty-Free Operators
• Maintenance, Repair, and Overhaul (MRO) Service Providers
• Logistics Service Providers
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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