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Airport Baggage Handling System Market Size, Share & COVID-19 Impact Analysis, By Type (Destination-coded Vehicle (DCV), Conveyors, Sorters, Self-bag Drop (SBD)), By Mode of Operation (Automated and Manual), and Regional Forecast, 2023 – 2030

Region : Global | Format: PDF | Report ID: FBI108712



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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.

  • For instance, according to the International Air Transport Association (IATA), the number of air passengers in the world increased by 55% in February 2023, as compared to February 2022. Such growth in air passenger traffic and tourism revenue drives the demand for advanced and automated airport baggage handling equipment in the market.


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.

  • For instance, according to IATA, global airport infrastructure development is estimated to rise between USD 1.2 trillion to USD 1.5 trillion by 2030. Also, in 2021, IATA notified 159 total projects with a combined valuation of USD 110 billion.


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.

  • For instance, according to IATA, approximately 39 new airline carriers have been operating in the industry, and increase of 19 new entrants from the past years of just 20 new airline carriers.

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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.

  • For instance, according to Airports Council International, the U.S. government is planning to invest around USD 151 billion in the construction of new airports from the period of 2023 to 2027. This included the construction of large airports, small airports, and medium airports. Large-sized airports required the highest investment of USD 79.3 billion, followed by USD 28.0 billion. All such aforementioned factors uplift the growth of the market.


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.


By Type Analysis

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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By Mode of Operation Analysis 

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.

  • For instance, according to the Federal Aviation Administration (FAA), the number of air passenger traffic in the U.S. is projected to increase by 158% from 2019 to year 2024. Such a tremendous growth in air passenger traffic is projected to provide lucrative opportunities for the key players operating in the market.

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.

  • For instance, according to the International Air Transport Association (IATA), the number of air passenger traffic in the U.S. increased by 102% in February 2023, as compared to February 2019.

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.

  • For instance, according to International Air Transport Association (IATA), the air passenger traffic in China grew by 25.2% in 2019 to 2022.

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.

  • For instance, according to the Business Traveller, in March 2023, the Kuwait government planned to invested around USD 4.36 billion for the expansion of Kuwait’s International Airport.

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.

  • For instance, In August 2022, Alstef Group, a leading baggage handling solution provider, introduced the mobile robot BAGXone, an autonomous robot that comes with features, such as easy integration, seamless commissioning, and high-speed baggage handling.

List of Key Companies Profiled:

  • Alstef Group (France)

  • Beumer Group (Germany)

  • China International Marine Containers (Group) Ltd. (China)

  • C I MATEC LOGISTICA S A S (Colombia)

  • Daifuku Co., Ltd. (Japan)

  • Fives (France)

  • Leonardo S.p.A (Italy)

  • Siemens AG (Germany)

  • Toyota Industries Corporation (Japan)

  • ULMA Group (Spain)


  • December 2022: Siemens Logistics, in partnership with local consortium T7 Global BHD, acquired the Kuala Lumpur airport terminal expansion project, providing systematic erection, design, installation, and commissioning of a new baggage handling system.

  • October 2022: Daifuku, North America, expanded its Americas footprint with the grand opening of a new manufacturing plant that will manufacture all logistic solution products under one roof.

  •  June 2022: Alstef Group installed a new baggage handling system at Princess Juliana International Airport based in the Caribbean Island. It is one of the busiest airports operating in the Caribbean region. The installation process was done for installing 22 check-in locations, 12 self-bag drops, and 3 CT-X-ray scanning systems for the airport.

  • March 2022: Alstef Group installed a new baggage handling system for Felipe Angeles International Airport based in Mexico. This project includes the installation, operation, and maintenance of the machine. This contract involves installing 20 self-bag drop baggage handling systems at the airport.

  • March 2022: Siemens Logistics launched a product for automatically unloading goods from unit load devices (ULD). With a powerful shredding unit, the VarioTip can discharge up to 20 ULDs (about 800 bags) per hour in the arrival and transfer zone.


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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Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 6.6% from 2023 to 2030


Value (USD Billion)

















By Type

  • Destination-coded Vehicle (DCV)

  • Conveyors

  • Sorters

  • Self-bag Drop (SBD)

By Mode of Operation

  • Automated

  • Manual

By Region

  • North America (By Type, By Mode of Operation, and By Country)

    • U.S.

      • Northeast

      • Midwest

      • South

      • West

    • Canada

  • Europe (By Type, By Mode of Operation, and By Country)

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • Netherlands

    • Russia

    • Turkey

    • Switzerland

    • Rest of Europe

  • Asia Pacific (By Type, By Mode of Operation, and By Country)

    • China

    • Japan

    • India

    • Southeast Asia

    • Rest of Asia Pacific

  • Middle East & Africa (By Type, By Mode of Operation, and By Country)

    • UAE

    • Saudi Arabia

    • South Africa

    • Egypt

    • Nigeria

    • Kenya

    • Morocco

    • Rest of Middle East and Africa

  • Latin America (By Type, By Mode of Operation, and By Country)

    • Mexico

    • Brazil

    • Colombia

    • Peru

    • Caribbean

      • Puerto Rico

      • Dominican Republic

      • Rest of Caribbean

      • Rest of Latin America

Frequently Asked Questions

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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