Airport Baggage Handling System Market

Global Airport Baggage Handling System Market:

The global airport baggage handling system market size reached US$ 4.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 11.9 Billion by 2032, exhibiting a growth rate (CAGR) of 11.8% during 2024-2032. The increasing adoption of eco-friendly baggage handling solutions, the rising development of lightweight and durable materials for luggage, the growth of e-commerce, and the heavy investments in resilient baggage handling systems are some of the factors propelling the market.

Global Airport Baggage Handling System Market Analysis: 

• Market Growth and Size: The ongoing expansion of the aviation industry and the increasing number of air travelers demanding efficient and scalable baggage handling solutions are primarily driving the market growth. In addition to this, rising investments in advanced automated systems and the elevating adoption of state-of-the-art technologies are to facilitate easy handling of rising passenger and luggage volumes, are further expanding the airport baggage handling system market share.
• Major Market Drivers: The inflating need to modernize airports with efficient baggage handling systems is a primary driver augmenting the market growth. Moreover, the increase in air travel and the subsequent demand for streamlined operations and enhanced customer satisfaction are further contributing to the airport baggage handling system market demand. Rising security concerns on account of increased terrorist threats globally necessitate advanced baggage screening technologies, further propelling the market's growth.
• Key Market Trends: The rising adoption of advanced technologies, including RFID and barcode systems, for luggage tracking and management, is a significant market trend. The increasing shift towards automation and real-time monitoring to propel operational efficiency and reduce mishandling is creating a positive outlook for the overall market.
• Geographical Trends: The Asia-Pacific region holds the largest market share. This can be attributed to its rapid economic growth, increasing air traffic, and significant investments in airport modernization and infrastructure enhancement to accommodate the growing number of travelers.
• Competitive Landscape: Some of the leading airport baggage handling system industry competitors are Siemens, Vanderlande, Daifuku Co., Ltd., Pteris Global, Beumer Group, Fives Group, G&S Airport Conveyor, Grenzebach Maschinenbau, BCS Group, Logplan, Glidepath Limited, Ansir Systems, Babcock International Group, and SITA, among others.
• Challenges and Opportunities: The industry faces challenges such as high installation costs and the complexity of integrating advanced technologies into existing airport infrastructure. This is augmenting the need for significant investments and strategic planning. However, there are substantial opportunities in developing energy-efficient, cost-effective systems that can handle high volumes of baggage, reduce processing times, and enhance the passenger experience.

Global Airport Baggage Handling System Market Trends:

Expanding aviation industry

With the global expansion and the growth of the aviation sector, airports are taking initiatives to meet their challenges, including the saturation of passenger traffic and the density of air traffic. It is becoming crucial to deploy efficient systems for managing and transporting baggage that can easily scale up to support passenger movement in the airport. For instance, Narita International Airport Corporation announced that the expansion of Terminal 3 of Narita International Airport was completed in April 2022. The expansion began in 2018 with an investment of US$ 111.7 Million. The passenger handling capacity of the terminal increased from 7.5 million passengers per year to 15 million per year. Moreover, in November 2022, Hamad International Airport (HIA) unveiled its impressive airport expansion project to the world. With this expansion of Phase 3, the airport passenger capacity reached 58 million passengers per year. The final expansion phase began in January 2023 and is expected to be completed by 2025, increasing the airport's annual capacity to approximately 70 million passengers. In addition to this, the development and enhancement of baggage processing systems are further leading to increased aviation traffic flow. The growing prominence of cutting-edge automatic systems powered by modern technology is ongoing to meet the high demand of the increasing number of travelers and their luggage.

Increasing modernization of airports worldwide

The upgradation and renovation of the existing airport infrastructure to meet the needs of contemporary air travel is leading to the introduction of innovative baggage handling systems. For instance, in December 2022, TSA launched a high-tech baggage handling system at Denver International Airport. The Checked Baggage Inspection System (CBIS) features a complicated network of conveyor belts that sort and track the luggage through the security screening process. The cost of the system was nearly US$ 160 Million. In addition to this, various key market players are collaborating with each other to develop technologically advanced baggage security and tracking solutions. For instance, Edmonton International Airport (YEG) in Canada partnered with Alstef Group for its baggage system modernization project. The project involves upgrading the airport's baggage handling system (BHS). In the first phase, legacy control equipment will be replaced, and new bag-tag readers will be added and upgraded. Similarly, Dubai International Airport will undergo a revamp, which will likely continue for the next 5-7 years, and this will lead to DXB handling up to 120 million annual passengers within the next 15 years. Enhanced and technologically advanced baggage processing guarantees less waiting time and ameliorates airport activities. Such initiatives will help airports to manage the growing number of passengers and implement the needed level of passenger satisfaction and the utilization of airport assets.

Rising terrorist threats

The escalating number of terrorist threats on a global scale is bolstering the need for robust and more secure airport baggage handling solutions. With the rising security concerns, airports are advancing their security measures, including thoroughly screening checked luggage. This initiative to enhance security drives the demand for advanced baggage handling systems with sophisticated screening technologies. To mitigate the risk of potential threats, airports are investing in cutting-edge baggage screening equipment, such as explosive detection systems and advanced imaging technologies. These systems are integrated into baggage handling processes to efficiently identify and intercept prohibited or dangerous items. In addition to this, real-time tracking and monitoring solutions are gaining traction to ensure luggage's secure and traceable movement throughout the airport. Consequently, the growing terrorist threats are prompting airports to allocate substantial resources toward adopting and enhancing technologically advanced airport smart baggage handling solutions. This, in turn, is safeguarding passenger safety and reinforcing the critical role of such systems in maintaining global air travel's integrity and security.

Global Airport Baggage Handling System Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global airport baggage handling system market report, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on identification technology, airport class, check-in type, type, efficiency and cost analysis.

Breakup by Identification Technology:

• Barcode System
• RFID System
   

Barcode system dominates the market

The report has provided a detailed breakup and analysis of the market based on the identification technology. This includes a barcode system and RFID system. According to the report, the barcode system represented the largest segment.

The segment focusing on identification technology, specifically the Barcode System, plays a significant role in propelling the market's growth. Barcode technology has evolved into a fundamental tool for efficient baggage handling processes at airport. By encoding essential information onto labels, barcodes facilitate accurate tracking, sorting, and routing of luggage throughout its journey. Airports increasingly adopt advanced barcode systems to improve aircraft ground handling operations. These systems enable real-time monitoring, enhancing visibility and reducing the likelihood of mishandled baggage. Furthermore, the integration of barcode technology with other components of baggage handling, such as conveyor systems and sorting mechanisms, ensures smooth and precise luggage flow.

As air travel demand rises, the Barcode System segment addresses the critical need for dependable and effective baggage identification. Its role in minimizing delays, enhancing passenger satisfaction, and optimizing operational efficiency positions it as a driving force behind market growth.

Breakup by Airport Class:

• Class A Airport
• Class B Airport
• Class C Airport
   

Class A airport dominates the market

The report has provided a detailed breakup and analysis of the market based on the airport class. This includes class A airport, class B airport, and class C airport. According to the report, class A airport represented the largest segment.

Class A airports, characterized by high passenger volumes and extensive international operations, demand robust and sophisticated baggage handling solutions to manage their operations' complexities effectively. These airports require systems capable of handling large quantities of baggage while maintaining stringent security standards. Furthermore, various leading payers and government authorities are increasingly investing in the Class A airports to integrate state-of-the-art automated baggage handling technologies to streamline processing, minimize delays, and enhance the overall passenger experience. For instance, in a bid to enhance airport security measures and streamline passenger experiences, Bengaluru’s Kempegowda International Airport and the upcoming Noida International Airport are introducing cutting-edge CT X-ray machines for security screening. This revolutionary technology, initially tested at Delhi’s Indira Gandhi International Airport, promises to bring about a paradigm shift in airport security procedures. These systems incorporate advanced sorting mechanisms, real-time tracking, and integration with digital platforms to ensure efficient baggage movement.

Breakup by Check-In Type:

• Assisted Service Bag Check-In
• Self-Service Bag Check-In
   

Assisted service bag check-in dominates the market

The report has provided a detailed breakup and analysis of the market based on the check-in type. This includes assisted service bag check-in and self-service bag check-in. According to the report, assisted service bag check-in represented the largest segment.

Assisted service bag check-in involves the involvement of ground staff or self-service kiosks with staff assistance during the check-in process. This approach is beneficial for passengers who require guidance or face specific circumstances. Airports and airlines are increasingly adopting assisted service bag check-in solutions to enhance the aircraft ground handling operations and improve passenger experience, especially for those with special needs or who prefer personal assistance. For instance, in March 2021, Vanderlande Industries (VI) Australia was awarded a contract to supply a new baggage handling system (BHS) to Western Sydney International Airport (WSIA). The BHS would utilize digital technology to track, load, and move baggage more efficiently. The new airport is expected to enter operational readiness and acceptance trials (ORAT) in late 2024 and begin operations for international and domestic services in late 2026.

These solutions streamline check-in while ensuring accurate baggage handling and routing, improving operational efficiency. The demand for personalized and efficient services grows as the aviation industry continues to evolve. Assisted service bag check-in systems cater to this demand, aligning with the changing preferences of passengers.

Breakup by Type:

• Conveyor System
• Destination Coded Vehicle
   

Conveyor system dominate the market

The report has provided a detailed breakup and analysis of the market based on the type. This includes a conveyor system and destination coded vehicle. According to the report, the conveyor system represented the largest segment.

Conveyor systems are considered highly efficient in baggage handling within airports, offering a reliable and automated solution for aircraft ground handling between various points in the terminal. They enable seamless baggage flow, allowing for quick and accurate movement of luggage from check-in counters to sorting areas and ultimately onto the aircraft. Various leading market players are investing in technologically upgrading the conveyor system to smoothly handle diverse luggage sizes and shapes, ensuring smooth processing for many passengers. For instance, in December 2022, TSA launched a high-tech baggage handling system at Denver International Airport. The Checked Baggage Inspection System (CBIS) features a complicated network of conveyor belts that sort and track the luggage through the security screening process. The cost of the system was nearly US$ 160 Million.

Airports across the globe, regardless of size, recognize the importance of conveyor systems in optimizing their operations. With the increasing passenger volume, airports are rapidly undergoing modernization, which is further bolstering the demand for advanced conveyor systems with enhanced features such as automated sorting, tracking, and real-time monitoring grows.

Breakup by Efficiency:

• Below 3000
• 3000 to 6000
• Above 6000
   

3000 to 6000 dominate the market

The report has provided a detailed breakup and analysis of the market based on the efficiency. This includes below 3000, 3000 to 6000, and above 6000. According to the report, 3000 to 6000 represented the largest segment.

The segmentation by efficiency, specifically the range of 3000 to 6000, significantly influences the market. This range reflects the throughput capacity of the baggage handling systems, indicating their ability to process a specific volume of luggage within a given time frame. Baggage handling systems falling within the 3000 to 6000 efficiency range are crucial for airports with moderate to high passenger traffic. These systems strike a balance between operational capacity and resource optimization. They ensure that baggage processing remains efficient and timely, preventing bottlenecks and delays during peak hours.

Breakup by Cost Analysis:

• Operational Cost Analysis
• Installation Cost Analysis
   

The report has provided a detailed breakup and analysis of the market based on the cost analysis. This includes operational cost analysis and installation cost analysis.

The focus on operational cost analysis has been pivotal. Airlines and airports recognize the significance of streamlined baggage handling for operational efficiency. By investing in advanced systems, they reduce labor costs, minimize mishandled baggage incidents, and enhance passenger experience, leading to long-term savings and improved reputation.

Furthermore, installation cost analysis plays a crucial role. While upfront expenses for implementing sophisticated baggage handling systems might seem substantial, the long-term benefits overshadow this. Installation costs encompass equipment, integration, maintenance, and training. As airports seek to modernize facilities and comply with stringent security regulations, they are willing to allocate resources for these installations. This expenditure is justified by increased throughput, fewer delays, and better compliance, all of which contribute to market growth.

Breakup by Region:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America
   

Asia Pacific exhibits a clear dominance, accounting for the largest market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. According to the report, Asia Pacific accounted for the largest market share.

Asia-Pacific is home to some of the world's busiest airports and is experiencing rapid economic growth, leading to increased air travel and passenger traffic. There has been a rapid increase in investments in airport infrastructure in Asia-Pacific to cater to the growing passenger traffic in the region over the past few years. Airports in China, India, Japan, and South Korea have witnessed exponential growth in passenger traffic. As a result, the airport authorities have increased their investments in expanding existing airports and constructing new airports in the region. For instance, according to the data released by Airport Council International, Asia-Pacific houses 57% of the total 300 new airports planned to open worldwide in the coming years. The newly planned greenfield airport will fulfill the vision of net-zero emissions by 2050. According to ACI (Airport Council International), the Asia-Pacific is expected to account for 58% of the global air passenger demand, resulting in the region upgrading its airport infrastructure capacity with investments totaling US$ 1.3 Trillion until 2040 to accommodate such growth. 

With such robust expansion plans, the demand for new airport baggage handling systems in this region is expected to grow during the forecast period.

Competitive Landscape:

Top companies are strengthening the market through innovative solutions, technological prowess, and industry expertise. Armed with years of experience, these companies are driving growth by introducing advanced technologies that optimize baggage processing and enhance overall passenger experiences. Leaders in the field are developing state-of-the-art automated systems that expedite luggage sorting, tracking, and routing. They incorporate cutting-edge elements like artificial intelligence, machine learning, and IoT to ensure efficient operations and minimize delays. These companies also focus on sustainability by designing energy-efficient systems that align with environmental goals. Moreover, the expertise of top companies in integrating various components of baggage handling systems, such as barcode scanners, conveyor belts, and screening devices, ensures seamless coordination within the airport infrastructure. Through strategic partnerships with airports worldwide, these companies customize solutions to address unique operational needs, reinforcing their presence and impact on the evolving baggage handling system market.

The report has provided a comprehensive analysis of the competitive landscape in the airport baggage handling system market. Detailed profiles of all major companies have also been provided.

• Siemens
• Vanderlande
• Daifuku Co., Ltd
• Pteris Global
• Beumer Group
• Fives Group
• G&S Airport Conveyor
• Grenzebach Maschinenbau
• BCS Group
• Logplan
• Glidepath Limited
• Ansir Systems
• Babcock International Group
• SITA
   

Global Airport Baggage Handling System Market News:

• March 2024: Southwest Airlines recently awarded Leonardo a US$ 27 Million contract to provide a new baggage handling solution with cross-belt sorter technology for its transfer bag facility at Denver International Airport. According to Airport Business reports, the Leonardo solution will eliminate a labor-intensive, manual sorting and tail-to-tail transfer bag method. By revamping its baggage handling system, the airline seeks to ensure faster connection times, accommodate tight flight schedules, and increase capacity to manage future passenger volume growth.
• January 2024: Centralny Port Komunikacyjny has launched a tender for the design, delivery, and implementation of the Baggage Handling System (BHS) for CPK airport. The purpose of this competitive dialogue process is to examine the conceptual design of the BHS, focusing on how the system design will be implemented, and to refine the tender description in collaboration with potential operators. Additionally, it aims to confirm the key terms of the contract.
• March 2023: Alstef Group signed a contract worth US$ 11 Million with Sofia Airport in Bulgaria to supply, install, and maintain a new baggage handling system (BHS). The airport served nearly 6 million passengers in 2022.

Global Airport Baggage Handling System Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the airport baggage handling system market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global airport baggage handling system market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the airport baggage handling system industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.