The Baggage Handling System Market is projected to grow at a CAGR of 7.31%, from USD 6.83 billion in 2020 to USD 12.01 billion by 2028. The increasing specializes in improving operational efficiency at airports, growing air passenger volume, and significant developments in intermodal transport are the main factors which can drive the Baggage Handling System Market. A baggage handling system (BHS) is a kind of conveyor system installed in airports that transports checked luggage from ticket counters to areas where the luggage is loaded onto airplanes. A BHS also transports checked baggage coming from airplanes to baggage claims or to a region where the bag is often loaded onto another airplane.

The COVID-19 pandemic has deeply impacted the Baggage Handling System Market. Most countries underwent lockdowns, and airport, marine, and railway operations were stopped due to the pandemic. Also, most of the continuing airport construction projects were cancelled or delayed. Along with the other industries, the aviation industry was also hit by the pandemic, and therefore the supply chain was considerably affected. However, with the resumption of few airports’ construction projects and terminal expansion activities within the last half of the year, the market is anticipated to witness positive growth going forward.

The conveying and sorting segment is projected to steer the Baggage Handling System Market, by solution. Consistent with primary insights, sorting is the heart of the full baggage handling system. The exponential increase in air and marine passenger volume for domestic and international travels worldwide has encouraged baggage handling system manufacturers to seek out ways to enhance existing baggage handling technologies with automated sorting. In step with Société Internationale de Télécommunications Aéronautiques (SITA), with an increase in automation reflected in increasing use of conveyor systems, the speed of luggage mishandling reduced in 2018 compared to 2017. The Baggage Handling System Market for airports is estimated to account for the most important market share during the forecast period. Airports contribute almost 80.11% share of the market.Containment measures are resulting in a considerable reduction in economic activities. This has resulted in disruption of on-going airport construction projects and reduction in air passenger traffic, ultimately impacting the income of airlines and airports. Most of the projects are delayed, and few were called off. The market for baggage handling systems is estimated to undergo a phase of decline in 2020. Furthermore, within the marine industry, many countries in geographic region banned cruise ships from disembarking their passengers for fear of importing the virus through infected passengers and crew. Additionally, considerable visit global Chinese exports in container volumes have affected the American trade routes. Similarly, in railways, the unprecedented impact of COVID-19 and adverse effects on conveyance have decreased the operation of railways and is anticipated to be a significant concern for bags handling system manufacturers.

Asia Pacific is projected to hold a significant market share. Factors like growing air passenger volume, upcoming airport projects, presence of cruise industry, scope for multimodal transport, economy of states, government investments in railway, marine, and airport projects, consumer acceptance, and government regulations have triggered the demand for bags handling systems within the region. Thanks to the ever-growing air passenger traffic, China accounts for the best market share of the Asia Pacific Baggage Handling System Market.

Baggage Handling System Market is segmented on the basis of mode of transport –airport, railway, marine; tracking technology - barcode system and RFID system; by check-in service type - assisted service and self-service; by type -conveyor and destination coded vehicle (DCV); by solution - check-in, screening, and loading, conveying and sorting and unloading and reclaim.The Baggage Handling System Market is dominated by few global players and comprises several regional players as well. The key players in the Baggage Handling System Market are Siemens (Germany), Vanderlande Industries (Netherlands), Daifuku (Japan), Pteris Global Limited (Singapore), BEUMER (Germany), and SITA (Switzerland), among others.