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The global airport baggage handling system market size was valued at USD 7.89 billion in 2022. The market is projected to grow from USD 8.27 billion in 2023 to USD 12.90 billion by 2030, exhibiting a CAGR of 6.6% during the forecast period.
An airport baggage handling system is a sophisticated infrastructure designed to efficiently transport, sort, and manage checked luggage or baggage within an airport terminal. It is a crucial component of airport logistic operations, ensuring passengers' bags are moved swiftly and accurately between the check-in area, the departure gates, and the aircraft, as well as between arriving aircraft and the baggage claim area. The primary goal of an Airport Baggage Handling System (BHS) is to streamline handling luggage, minimizing delays and errors, and providing a seamless experience for travelers.
Growing construction of new airports and renovation activities across the U.S., Germany, France, and India is boosting the demand for destination-coded vehicles and sorters, driving the growth of the market. Additionally, a rising number of air passengers across the globe and majorly in the domestic travel industry owing to minimal fair prices, which in turn has boosted the demand for airport baggage handling systems. Also, the growing urban population, increasing disposable income of the population, and growth in the tourism industry across the U.S., China, India, and many others raising investments in the construction of new airports fuels the airport baggage handling system market growth.
Minimal Scale of Operations Impacted Revenue of Airport Baggage Handling System Manufacturers Globally
The COVID-19 pandemic affected the aviation industry extensively, with a major decline in passenger operating revenues as of decreased seats in all international and regional airports. Also, the revenue from China and Europe sectors is expected to perform lower than expected, while the infrastructure improvement is observed to boost the revenues for handling equipment players over the forecast period. Thus, it is assumed that normal economic growth, which was tremendously changed by the COVID crisis, could change in 2023, 2024, and 2025.
Ease in Travel Restrictions and Increased Airline Operators to Boost Airport Logistic Operations
Post-pandemic, ease in restrictions and rise in international and intra-travel passengers as of the potential earnings of the passengers is observed to grow the demand for airport logistics equipment. Additionally, increasing visa-free countries will help revive the gross development progress of the country by maintaining substantial growth in the economy. Also, substantial recovery in airport passengers and low air travel price trends have raised the entry of new airline operators to the air travel industry. Thus, all the above-mentioned factors are estimated to expand the airport baggage handling system market share in the long term.
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Integration of Baggage 4.0 Infrastructure to Drive Operational Demand
Raised demand for Baggage 4.0 integration to the facilities owing to a rise in government initiatives for upgrading existing facilities and developing new advanced automated airport projects. Also, strong recovery in airport passenger traffic has put a load on the operational capabilities of existing facilities, thus driving the demand for airport baggage handling systems for sustainable baggage management, which fuels the demand for such equipment across the aviation industry.
Increased Operational Expense to Suppress Short-Term Demand
Baggage handling systems are observed to grow very slowly owing to the restraints occurring in the industry through increased high operational costs. Also, airports handling large airport passenger traffic require more operation capabilities to handle the luggage and goods of passengers, which will restrain the market in the short term period. Thus, this market is anticipated to recover in the long term with new technological advancements, such as Radio Frequency Identification (RFID) and other offerings in the market.
Conveyors to Dominate Due to High Demand for Heavy Luggage Transport
Based on type, the product offerings are classified into Destination-coded Vehicle (DCV), conveyors, sorters, and Self-bag Drop (SBD).
As per our analysis, the conveyor segment is projected to dominate the market over the forecast timeframe. Conveyors have high preference in the market owing to major players being engaged in providing products that are easy to manufacture and easy to install. Also, optimal speed ensures low baggage mishandling complaints that drive the demand for conveyors in the baggage handling industry.
However, the destination-coded vehicle segment is projected to grow with the highest growth rate, owing to this type having a high speed 5 times than conveyors and being largely adopted in large airports.
Also, the sorters and self-bag drop segment is growing with potential growth, owing to the often installation of products in the small as well as large airports. All such factors contribute positively to the market growth.
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Growing Implementation of Automated Handling Systems to Boost Adoption Progressively
Based on the mode of operation, the baggage handling system market is segmented into automated and manual.
The automated segment is set to dominate the market during the forecast period, owing to almost all airports implementing technology-efficient and high-speed automated airport baggage handling systems. The automation integration to baggage conveyor systems ensuring correct and optimal delivery of baggage to passengers is driving baggage handling systems demand.
The manual segment is projected to grow steadily during the forecast period, owing to rising demand from small and medium airports. Additionally, an increasing modernization of new airports coupled with automated conveyors are the major factors expanding an airport baggage handling system market size over the forecast period.
North America Airport Baggage Handling System Market Size, 2022 (USD Billion)
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Based on geographies, markets have been studied for regions North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
North America region is projected to hold the highest share during the forecast period, owing to growing investments in the airport sector, rise in disposable income, and growth in intra-travel across the U.S. and Canada. Also, an increasing emphasis on airport security and advanced technologies integration in airport baggage handling systems across small, medium, and large airports to raise demand across the U.S.
The U.S. dominates the baggage handling system implementation across the North America region, with the largest operational airports handling millions of passengers traveling daily. Also, there is a rise in intra-travel and passengers with high-load luggage to leverage the demand for airport baggage handling systems.
Asia Pacific region is set to grow progressively owing to rising number of air passenger traffic, and modernization of airport infrastructure developments in the China, Japan, India, and other countries, are the important factors creates the demand for airport baggage handling system, fuels the growth of the market.
European market is set to grow moderately with a strong presence of major players in the Europe region, such as Siemens AG, Beumer Group, Fives, and ULMA Group, and others, engaged in providing destination-coded vehicles, conveyors, sorters, and self-bag drop systems in the market.
Middle East & Africa region is set to grow steadily with investment and strong economic development witnessed a strong order of baggage handling systems at airports and terminals for sustainable baggage handling, which drives the market growth.
Latin America region is anticipated to grow with potential growth owing to government investment in the aviation industry, and expansion projects, which subsequently drives the growth of the market.
Expanding Market Reach with Product Diversification across Geographies
Major players, such as Siemens AG, Vanderlande Industries, Alstef Group, and Ulma Holding Systems are engaged in activities to improve the product portfolio of airport baggage handling systems through advanced capabilities, including Baggage 4.0, automation and increasing supply chain network through expansion in diversified geographic locations.
The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, Competitive analysis, product/service types, and leading applications of the product. Besides, the report offers insights into the key performance indicators and key market indicators. Market trends and dynamics and highlights key industry developments. In addition to the factors above, the handling system market report encompasses several factors that contributed to the growth of the market in recent years.
An Infographic Representation of Airport Baggage Handling System Market
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CAGR of 6.6% from 2023 to 2030
Value (USD Billion)
By Mode of Operation
The market is projected to reach USD 12.90 billion by 2030.
In 2022, the market was valued at USD 7.89 billion.
The market is projected to grow at a CAGR of 6.6% during the forecast period.
The conveyor type segment is expected to lead the market.
Integration of baggage 4.0 infrastructure to drive operational demand is the key factor driving the market growth.
Alstef Group, Beumer Group, China International Marine Containers (Group) Ltd., C I MATEC LOGISTICA S A S, Daifuku Co., Ltd., Fives, Leonardo S.p.A, Siemens AG, Toyota Industries Corporation, and ULMA Group are the top players in the market.
North America is expected to hold the highest market share.
By mode of operation, the automated baggage system is expected to grow with a remarkable CAGR during the forecast period.
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