Baggage Handling System Market

The global Baggage Handling System Market is valued at USD 8.9 Billion in 2022 and is projected to reach a value of USD 14.7 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 7.50% between 2023 and 2030.

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The market is driven by a surge in passenger traffic. Technological advancements and the development of new airports have also played a significant role in fueling this growth. Moreover, there is a growing emphasis on enhancing operational efficiency at airports, which is anticipated to further boost the market's expansion in the future. For instance, to alleviate airport operations and congestion-related delays, there is a focus on enhancing efficiency at major airports. Hamad International Airport (HIA) made a significant announcement in November 2022, unveiling its remarkable airport expansion initiative. This third phase of expansion has propelled the airport's passenger capacity to 58 million annually. The last phase of expansion commenced in January 2023 and is projected to conclude by 2025, ultimately raising the airport's yearly capacity to around 70 million passengers.

• The market will experience growth as upgrade their baggage handling systems. Furthermore, authorities worldwide are investing in upgrading infrastructure to enhance passenger comfort and improve baggage handling. For instance, according to the IATA International Air Transport Association, the aviation industry can save the future by globally adopting RFID technology.
• Asia Pacific generated more than 40.60% of revenue share in 2022
• North America is expected to grow at the quickest rate from 2023 to 2030
• Airport segment accounted for the largest market growth. It contributed over 90.2% of the total revenue share in 2022
• RFID System segment revealed the most significant market growth, contributing more than 58.5% of the total revenue share in 2022
• Self-service dominant segment accounts for largest revenue of 55.5% in 2022
• Conveyor segment will dominate the market with market share of 53.2% in 2022
• Conveying and Sorting will account for largest share of 48.5% in 2022

Economic Insights

The rapid expansion of the industry is primarily being fueled by several key factors including the increase in global air passenger traffic. In response, airports are increasingly looking to implement more efficient and automated baggage handling systems in order to reduce costs and improve passenger satisfaction. This has led to a growing demand for advanced technologies such as radio-frequency identification (RFID), conveyor systems, and sorting solutions, which are expected to drive further market expansion. Additionally, government initiatives aimed at modernizing airport infrastructure and enhancing baggage handling capabilities are also contributing to the overall growth of the industry, creating numerous economic opportunities throughout various sectors.

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Top Market Trends

• Automation and Robotics: The market for baggage handling systems is going through a significant automation and robotics revolution. For effective luggage sorting, tracking, and delivery, airports are rapidly investing in autonomous robots and conveyor systems integrating AI and machine intelligence.
• Integration of IoT: The Internet of Things (IoT) is becoming more popular, and BHS used IoT technology to improve operational effectiveness. Real-time monitoring of luggage using sensors and connected devices decreased the possibility of mishandling and increased security.
• Sustainable Solutions: As environmental sustainability became a rising concern, new energy-saving and environmentally friendly luggage handling techniques are used. Improved waste management techniques, low-energy motors, and electric conveyors were some of these.
• Enhanced Security Measures: Systems for managing luggage were being updated to adhere to more stringent security rules. To improve security checks, BHS was integrating cutting-edge screening technologies including CT scanners and automated explosive detection systems.
• Customization and Scalability: Airports were looking for baggage handling systems that were adaptable and scalable to handle increasing passenger volumes. To accommodate these shifting needs, modular and adaptable BHS solutions were in high demand.

Market Segmentation

The globel Baggage Handling System market can be categorized into Mode , Tracking Technology , Check-in Service Type, Type , Solution, Region . The Market can be categorized into Airport, Railway , Marine based on Mode . The Market can be categorized into Barcode System, RFID System based on Tracking Technology . The Market can be categorized into Assisted Service , Self-service based on Check-in Service Type. The Market can be categorized into Conveyor, Destination Coded Vehicle (DCV) based on Type . The Market can be categorized into Check-in, Screening and Loading, Conveying and Sorting, Uploading and Reclaim based on Solution. The Market can be categorized into North America, Europe, Asia Pacific , Latin America , Middle east & Africa based on Region .

Based on Mode

Airport holds the largest share

The market is dominated by airport due to their crucial role in efficiently managing the daily volume of baggage processed by airports. These systems are essential for various tasks within the airport, including baggage check-in, intra-airport transportation, and aircraft loading. Additionally, they provide real-time tracking and passenger notifications regarding baggage location. The airport segment of this market is expected to experience continuous growth due to the rising number of air passengers and the demand for reliable baggage handling solutions.

Based on Tracking Technology

RFID System will dominate the market during Forecast Period

RFID systems dominates the market due to its accuracy, as they outperform barcode systems by effectively reading tags even in challenging conditions. Additionally, RFID systems boast impressive speed, leading to shorter check-in and processing times. Their reliability is also unwavering despite environmental factors like dirt, dust, and moisture, making them even more desirable. Furthermore, the versatility of RFID systems allows for comprehensive baggage tracking throughout the entire journey, minimizing the likelihood of lost or misplaced bags.

Based on Check-in Service Type

Self-service dominant will account for largest market share

In terms of check in service type, self-service check-in dominant are anticipated to hold the greatest market share for the self-service check-in segment is projected to maintain its dominance in the baggage handling system market by check-in service type. One of the main reasons is the convenience it offers passengers, allowing them to check in for flights and manage their baggage at their own pace.

Based on Type

Conveyor will lead the market

The conveyor systems will dominate the Baggage Handling System market because they are highly versatile, seamlessly transporting baggage from the check-in area to the aircraft, providing comprehensive coverage throughout the airport. These systems can be scaled up or down to suit airports of different sizes, making them adaptable to diverse operational requirements. In addition to their reliability and low maintenance needs, conveyor systems offer a cost-effective solution for installation and operation.

Based on Solution

Conveying and Sorting dominated the market

The conveying and sorting segment dominated the market for , capturing a significant share of total revenue. Conveyor systems are crucial in seamlessly transporting baggage throughout the airport, from check-in to aircraft loading, while sorting systems efficiently categorize baggage based on destination, flight, and other relevant criteria. The potential for growth in this segment is strong, driven by the increasing number of air travelers and the growing demand for reliable and efficient baggage handling solutions.

Based on Region

Asia Pacific will lead the market

Asia Pacific is expected to dominate the market. The region's rapid increase in air passenger traffic, making it the world's fastest-growing air travel market, is placing significant pressure on existing airport infrastructure, including baggage handling systems. To cope with the rising number of passengers, airports in Asia Pacific are investing in advanced baggage handling systems that prioritize efficient and secure baggage processing. Furthermore, government support is accelerating this growth, with various governments actively supporting the development of the aviation industry and investing in airport infrastructure, including baggage handling systems.

Competitive Landscape

The global market is fragmented, including a diverse array of the presence of several key players continue to command significant market shares. These players are investing in research and development to create advanced, automated, and energy-efficient baggage handling solutions. Collaboration and partnerships between technology providers, airport authorities, and airlines are becoming more common to create comprehensive and integrated baggage handling systems. Additionally, market players are prioritizing sustainability by incorporating eco-friendly technologies to reduce their environmental impact. Overall, success in this market is driven by agility, innovation, and sustainability.

The players in the global market include Vanderlande Industries, Siemens, Daifuku Co., Ltd., BEUMER GROUP, Pteris Global Limited, SITA, Fives, Babcock International Group PLC, Smiths Detection Group Ltd., G&S Airport Conveyor, B2A Group, Logplan among others.

Recent Market Developments

• May 2023: In Bulgaria, Sofia Airport has recently awarded Alstef Group a contract worth USD 11 million. Under this agreement, Alstef Group will be responsible for providing, installing, and maintaining a state-of-the-art baggage handling system (BHS). Notably, the airport witnessed a significant surge in passenger numbers in 2022, serving close to 6 million travelers.
• February 2023: Alstef Group and Edmonton International Airport (YEG) in Canada have teamed up to modernize the airport's baggage system. The project focuses on enhancing the baggage handling system (BHS), starting with the replacement of outdated control equipment and the addition of new bag-tag readers. This comprehensive initiative includes the overhaul of the airport's existing baggage handling infrastructure and improved operational technical support.

Segmentation of the Global Market