Baggage Handling System Market Forecasts to 2030 – Global Analysis By Type (Destination Coded Vehicle (DCV) and Conveyor), Check-in Service Type (Self-service and Assisted Service), Mode of Transport, Tracking Technology and By Geography

Baggage Handling System Market Forecasts to 2030 – Global Analysis By Type (Destination Coded Vehicle (DCV) and Conveyor), Check-in Service Type (Self-service and Assisted Service), Mode of Transport, Tracking Technology and By Geography

According to Stratistics MRC, the Global Baggage Handling System Market is accounted for $9.93 billion in 2023 and is expected to reach $17.92 billion by 2030 growing at a CAGR of 8.8% during the forecast period. Baggage handling systems are the systems that are installed at airports and railway stations and are responsible for handling luggage from the point of check-in to the area where it is loaded onto trains or aeroplanes. The baggage handling systems are in charge of automatically reading bag data, monitoring the weight of the bags, and scanning the bags for security. They play a significant role in the logistics and operations of an airport, contributing to the smooth flow of passengers and their belongings.

According to Société Internationale de Télécommunications Aéronautiques (SITA), with a rise in automation reflected in increasing use of conveyor systems, the rate of baggage mishandling reduced in 2018 compared to 2017.

Market Dynamics:

Driver:

Significant increase in air travelling

As the number of air travellers continues to rise significantly, airports face heightened demand for efficient baggage management. This necessitates advanced baggage handling system technologies to streamline processes, minimise delays, and enhance overall operational efficiency. Moreover, to accommodate increased passenger volumes, airports invest in automated sorting and real-time tracking systems, highlighting the critical role of BHS in meeting the challenges posed by the surge in air travel and ensuring a seamless travel experience for passengers.

Restraint:

High initial costs

Implementing advanced BHS technologies involves substantial upfront expenditures, including the purchase of equipment, integration with existing infrastructure, and installation. This financial barrier is particularly challenging for smaller airports or those with budget constraints. The need for substantial capital investment can deter airports from upgrading or modernising their baggage handling systems, impacting their ability to meet the growing demands of increased air travel efficiently. Thereby, it will hamper market growth.

Opportunity:

Widespread adoption of RFID and sensor technologies

RFID enhances real-time baggage tracking, automates sorting processes, and reduces the risk of errors and lost luggage. Sensor technologies provide continuous monitoring of baggage conditions, ensuring security and integrity. As airports and airlines prioritise efficiency and passenger experience, integrating RFID and sensors into BHS not only streamlines operations but also aligns with the industry's growing emphasis on advanced tracking and security measures. This trend presents a valuable opportunity for BHS providers to meet evolving market demands and enhance the overall performance of baggage management systems.

Threat:

Rapid advancements in technology

The fast pace of technological evolution may render existing BHS systems obsolete, requiring frequent updates to stay competitive. This creates challenges for both BHS providers and airports, including high upgrade costs, system integration complexities, and potential disruptions to operations. The pressure to continuously innovate and adapt to emerging technologies may strain resources and hinder the long-term stability of baggage handling system providers.

Covid-19 Impact

Travel restrictions, lockdowns, and a drastic reduction in air travel demand have led to delayed or cancelled airport expansion projects. With airports experiencing financial strain, investments in BHS upgrades have been deferred, affecting market growth. The decreased passenger traffic has also shifted priorities, diverting focus to immediate operational needs rather than long-term infrastructure improvements. However, the pandemic has highlighted the importance of agility and adaptability in the BHS market, prompting a reassessment of strategies to navigate the evolving challenges posed by the global health crisis and its aftermath.

The destination coded vehicle (DCV) segment is expected to be the largest during the forecast period

The destination coded vehicle segment is estimated to hold the largest share. These vehicles transport luggage between various points in the airport, such as check-in, security, and departure gates, ensuring efficient and accurate routing. DCVs enhance the overall speed and reliability of baggage handling, reducing manual handling and minimising the risk of errors. This segment represents a key component in modern BHS solutions, contributing to streamlined operations and an improved passenger experience in airports around the world.
The airport segment is expected to have the highest CAGR during the forecast period

The airport segment is anticipated to have lucrative growth during the forecast period. The BHS within airports is designed to streamline the entire baggage handling process, ensuring efficient and secure transportation from check-in to the aircraft and, ultimately, to the passenger at the destination. The airport segment addresses the unique needs of airports in managing increasing passenger volumes, enhancing security measures, and optimising overall operational efficiency in the context of baggage logistics.

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period. With a rapidly growing aviation industry and increasing air travel demand, airports in this region are investing in advanced BHS technologies. Key factors driving growth include the need for enhanced operational efficiency, compliance with international security standards, and the integration of innovative technologies. Furthermore, BHS providers in the Asia-Pacific region focus on delivering solutions that cater to the diverse requirements of airports, contributing to the overall development of the aviation infrastructure.

Region with highest CAGR:

North America is expected to witness profitable growth over the projection period, owing to established aviation infrastructure, major airports, and technological innovation. The BHS market in this region is influenced by the need for advanced systems to handle rising passenger volumes, stringent security measures, and the integration of cutting-edge technologies. Investments focus on upgrading existing systems, incorporating automation, and ensuring compliance with evolving industry standards. Moreover, the North American BHS market reflects a commitment to efficiency, security, and passenger experience, contributing to the region's leadership in the global aviation industry.

Key players in the market

Some of the key players in the Baggage Handling System Market include Siemens, Vanderlande Industries B.V., Daifuku Co., Ltd., Pteris Global Limited, Grenzebach Group, Logplan , G&S Airport Conveyer, Alstef Group, BEUMER GROUP, Babcock International Group PLC, Scarabee Aviation Group B.V., DSA Detection, ICM Airport Technics, SITA, Omega Aviation Services Inc, Smiths Detection Group Ltd., Delite Systems Engineering Pvt Ltd, Glidepath Limited, B2A Group and Cage Inc.

Key Developments:

In February 2023, Alstef Group and Edmonton International Airport (YEG) in Canada have teamed up to modernize the airport's baggage system. The project focuses on enhancing the baggage handling system (BHS), starting with the replacement of outdated control equipment and the addition of new bag-tag readers. This comprehensive initiative includes the overhaul of the airport's existing baggage handling infrastructure and improved operational technical support.

In November 2022, Siemens announced that the company will provide baggage handling system for Noida Airport. They will design, supply, install, commission and maintain the baggage handling system for NIA's Terminal One.

Types Covered:
• Destination Coded Vehicle (DCV)
• Conveyor

Check-in Service Types Covered:
• Self-service
• Assisted Service

Mode of Transports Covered:
• Railway
• Marine
• Airport

Tracking Technologies Covered:
• RFID System
• Barcode System

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
JapanChinaIndiaAustralia
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 2021, 2022, 2023, 2026, and 2030
- 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

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances