Airport Baggage Handling System Market Forecasts to 2028 – Global Analysis By Identification Technology (Barcode, Radio Frequency Identification (RFID)), Type (Destination Coded, Conveyor), Application (Commercial, Military) and By Geography
According to Stratistics MRC, the Global Airport Baggage Handling System Market is accounted for $11.35 billion in 2022 and is expected to reach $16.76 billion by 2028 growing at a CAGR of 6.7% during the forecast period. Airport Baggage Handling System refers to a conveyor system that transports verified luggage from check-in counters to the area defined for loading luggage into airplanes. Besides, it is also used for the transportation of luggage from airplanes to the baggage claim area. This system aims at ensuring the correct location of the luggage, hence avoiding the loss of luggage. The entire system consists of different sensors, barcode readers, RFID tags, and other technologies to make the process much easier in a long run.
As of February 2020, there were over 19,600 airports and similar facilities in use in the United States. The Federal Aviation Administration (FAA) is the agency in charge of the country’s civil aviation, including the construction and operation of airports. As of October 2019, around 133.3 billion U.S. dollars were spent on airport infrastructure in the North America. According to the consulting group NMSC, the airport baggage handling system market is expected to increase in size worldwide from 6.7 billion U.S. dollars in 2021 to 16.1 billion U.S. dollars by 2030. Airport baggage handling systems refer to conveyor systems that transport verified luggage from check-in counters to the area defined for loading luggage into airplanes.
Market Dynamics:
Driver:
Increasing preference towards air travel
The continuous rise in several airport terminals and renovation of the existing airport infrastructure drive the airport baggage handling system market. The primary reason for such renovation or modernization is due to the technologies used that are gradually becoming obsolete. The rise in the frequency of passengers also boosts the renovation and modernization.
Restraint:
High upfront and maintenance cost of baggage handling system
The high initial investment due to the usage of conveyor belts, RFID sensors, X-ray screening machines, and others, and the inflated cost of a baggage handling system hamper the market growth. In addition, the operational and maintenance services of the BHS add to the basic cost of the system, which includes the cost of maintenance, staffing, and electricity.
Opportunity:
Utilization of robotization in the airports
The baggage handling robots are expected to help in the process of loading passenger baggage into unit load devices (ULD) and carts in airport operations. Also, some of the leading European airports are incorporating this technology. For instance, SITA Lab’s baggage robot named Leo, a fully automated; self-propelling baggage robot can run tasks such as luggage check-in, print bag tags, and transport up to two bags with a maximum weight of 32kg.
Threat:
High consequences of system failure
The higher cost of maintenance and drawback of system failure are the factors responsible for slow-down the growth of the airport baggage handling system market during the forecast period. The high consequences of failure lead over time to the construction of multiple layers of defense against failure. These defenses include obvious technical components and human components but also a variety of organizational, institutional, and regulatory defenses.
The radio frequency identification (RFID) system segment is expected to have the highest CAGR during the forecast period
The radio frequency identification (RFID) system segment is growing at the highest CAGR in the market due to the cost-effectiveness and reliability of the technology in improving the airport baggage handling process. The major airline companies are investing in RFID technology to provide a better travelling experience to customers. For instance, Delta airlines invested approximately USD 50 million to implement RFID baggage tracking technology at 344 stations across the globe.
The Conveyor System segment is projected to have the largest share during the forecast period
The Conveyor System segment is expected at be the largest share in the market due to the increase in adoption of DCVs can be attributed to the interlinking of terminals, increase in passenger traffic, and upgrading of airports. As destination coded vehicle (DCV) is a relatively new technology used in bigger airports with multiple terminals. Moreover, airports with low passenger traffic use conveyors as the prime transportation medium for baggage. Class C and a few class B airports use the conveyor type baggage handling system.
Region with largest share:
North America is projected to hold the largest share in the market. This is attributable to factors such as the thriving aerospace industry, high R&D investments, infrastructure advancements as well as technological developments. Moreover, there is an increasing number of airports, and modernization of existing airports especially in the US is the factor expected to drive the growth of the market in the region.
Region with highest CAGR:
The Asia Pacific is projected to have the highest CAGR due to the rise in air traffic and growth in the number of new airport construction projects in emerging countries such as India and China. Furthermore, an increase in disposable income, an upsurge in the tourism industry as well a growing demand for higher operational efficiency are expected to enhance the growth of the airport baggage handling system market.
Key players in the market:
Some of the key players profiled in the Airport Baggage Handling System Market include Logplan, Glidepath Group, Ansir Systems, Babcock International Group, SITA, Vanderlande, Daifuku Company, Pteris Global, Beumer Group, Fives Group, G&S Airport Conveyer, Grenzebach Maschinenbau, BCS Group, and Siemens.
Key developments:
In December 2019: Pteris Global Limited, a subsidiary of CMIC Group, signed an agreement with Chennai International Airport to provide baggage-handling system for the airport’s new terminal. The estimated worth of the agreement is approximately USD 45 million.
In September 2019: Siemens modernized the existing inspection system for luggage control at Madrid, Barcelona, Malaga, Palma de Mallorca and Gran Canaria Airports in Spain for around USD 175 million. The modern solution named as ‘Hi-SCAN 10080 XCT’ will help tighten the security regulations of the European Civil Aviation Conference (ECAC).
In May 2019: Vanderlande Industries signed a 20-year framework agreement with the Brussels Airport Company. The agreement includes replacement of existing conventional baggage handling system with Vanderlande’s TUBTRAX technology, an up-gradation to high-level controls and integration of new baggage screening machines with EU regulations.
In May 2019: Beumer Group implemented in-tote hold baggage screening and 1800-position early baggage storage crisStore baggage-handling system for an approximate amount of USD 4.3 billion at terminal 2 in Kuwait International Airport.
Airport Classes Covered:
• Class A Airport
• Class B Airport
• Class C Airport
Identification Technologies Covered:
• Barcode System
• Radio Frequency Identification (RFID) System
Types Covered:
• Destination Coded Vehicle
• Conveyor System
Check-In Types Covered:
• Self-Service Bag Check-In
• Assisted Service Bag Check-In
Efficiencies Covered:
• Below 3000
• 3000 to 6000
• Above 6000
Cost Analysis Covered:
• Operational Cost Analysis
• Installation Cost Analysis
Airport Capacities Covered:
• Up to 15 Million
• 15-25 Million
• 25-40 Million
• Above 40 Million
Applications Covered:
• Commercial
• Military
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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