Baggage Handling System Market to Grow at 7.2% CAGR till 2027; Increasing Number of Airports across the Globe to Brighten Market Prospects

The global Baggage Handling System market size is expected to touch USD 14.79 billion by 2027 owing to promising growth of the world tourism industry, shares Fortune Business Insights™ in its report, titled “Baggage Handling System Market Size, Share & Industry Analysis, By Type (Destination coded vehicle (DCV), Conveyor), By Technology (Radio-Frequency Identification (RFID), Barcode), By Application (Airport, Railway, Marine), and Regional Forecast, 2020-2027”. According to the report, the value of the market was at USD 8.44 billion in 2019 and is anticipated to register a CAGR of 7.2% from 2020 to 2027.

BEUMER Group to Massively Upgrade Bangalore’s Kempegowda Airport

Bangalore International Airport handpicked the Germany-based BEUMER Group in March 2020 to equip its new second terminal with efficient and flexible baggage handling system (BHS) to enhance its passenger management capacity. As per the contract, the Group will provide the airport with an end-to-end BHS, with a moving capacity of 4,500 baggage items an hour. The BHS will be an advanced unit, featuring full redundancy, BEUMER’s superior controls, and minimizing probability of failure. Moreover, the technology powering the system is extensively used in many international airports worldwide. Thus, global airport equipment giants are turning their attention to the speedily growing international airports in developing countries and are looking to establish themselves in these burgeoning markets.

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COVID-19 Outbreak to Create Roadblocks for the Market

The coronavirus pandemic has strangulated the aviation industry and is posing a grave threat to the Baggage Handling System market growth as these systems are majorly deployed at airports. Exponential rise in COVID-19 cases has crippled international air transport. According to the International Civil Aviation Organization (ICAO), as compared to 2019, the number of international air passengers is likely to decline between 33% and 74% in 2020 as a result of the COVID-19 outbreak. Substantiating this estimation, the Airports Council International (ACI) projects a revenue loss for airports at approximately USD 76 billion and a 40% reduction in passenger traffic. These disturbances caused by the coronavirus are also bound to hinder the up-gradation and modernization projects undertaken by various airport authorities in various countries in a bid to accelerate tourism and emerge as transition hubs. Besides the aviation industry, the pandemic is also set to redesign the dynamics of the railway and marine industries in the immediate future.

Geographic Expansion to be the Mainstay Strategy of Market Players

One of the marquee features in this market’s competitive milieu is the sustained efforts of major players to expand their business horizons in the growing regions of Asia and Africa. The most preferred strategy employed by players in this regard is to join hands with government authorities in these regions and penetrate the market with their globally recognized products and solutions. This would also enable companies to broaden their customer base and build trust among prospective clients.

Industry Development:

• February 2019: The Netherlands-based airport equipment giant, Vanderlande Industries, entered into an agreement with Airport Authority Hong Kong (AAHK) to expand application areas of the company’s advanced baggage logistics system called FLEET. The company’s partnership with the Hong Kong airport is premised on the fact that it is one of the busiest and largest transit airports in the world.

List of Companies Covered in this Market Report:

•  B2A Group


•  Smiths Detection Group Ltd.


• Pteris Global Limited


• Daifuku Co., Ltd.


• Vanderlande Industries


• Logplan


• G&S Airport Conveyer


•  Babcock International Group PLC


• SITA


• BEUMER GROUP


• Siemens

Further Report Findings:

• The airport segment is expected to lead the market in the coming years owing to the steadily rising number of air travelers around the world. On the other hand, the railway segment accounted for a share of 5.8% in 2019.


• The market in Middle East & Africa and Latin America is anticipated to perform impressively on account of increasing tourist activities in countries such as Dubai, Brazil, and Saudi Arabia.


• With revenue generation of USD 3.06 billion in 2019, Asia-Pacific is forecasted to dominate the Baggage Handling System market share during the forecast period owing to heavy government investment in railway transportation and airport up-gradation projects in the region.  

Table of Segmentation: