Airport Baggage Handling Systems Market Size
| Study Period: | 2018-2027 |
| Fastest Growing Market: | North America |
| Largest Market: | Asia-Pacific |
| CAGR: | 12.84 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Airport Baggage Handling Systems Market Analysis
The Airport Baggage Handling Systems Market size is estimated at USD 1,507.71 million in 2023, and is expected to reach USD 2,758.24 million by 2028, growing at a CAGR of 12.84% during the forecast period (2023-2028).
The COVID-19 pandemic has had a negative effect on the airport baggage handling systems market. The pandemic led to governments imposing stringent air travel regulations worldwide. This led to a decline in the number of passengers at airports and greatly impacted the airport baggage handling systems market. With the decline in the COVID-19 pandemic, airport authorities and airlines have significantly increased their investments to make significant changes to the baggage handling processes. The demand for contactless and self-service technologies on arrival and departure is also expected to reflect in baggage handling operations. Some airports have invested in the installation and testing of the new baggage handling systems such as self-service bag drops, RFID baggage handling and tracking solutions, disinfection of baggage either by aerosols or using UV light, and automated baggage handling systems. This is expected to lead to growth in the market during the forecast period.
As the passenger traffic recovers and the profit margins improve in the latter half of the forecast period, airport operators and airlines are expected to install advanced systems for efficient baggage handling and tracking to enhance passenger experience and ensure smoother operations, which is expected to drive the growth of the market during the forecast period.
Baggage mishandling has been a major challenge for aviation authorities over the years. However, focus on better baggage tracking procedures and the introduction of the recent IATA's Resolution 753, which requires airlines to track bags at the four main touchpoints (make-up, loading, transfer, and arrival) across the journey, have helped reduce the number of mishandled bags over the last few years. Companies are investing in developing better baggage tracking technologies to obtain the data to comply with Resolution 753. Such investments are expected to drive market growth in the years to come.
Airport Baggage Handling Systems Industry Segmentation
A baggage handling system or a BHS is a type of conveyor system installed in an airport that enables the transport of passenger baggage from the ticket counter areas to the area where the baggage is loaded onto the aircraft. A BHS helps in transporting the checked baggage, which is unloaded from the aircraft to the baggage claim area.
The airport baggage handling systems market is segmented by airport capacity and geography. By airport capacity, the market is segmented into up to 15 million, 15-25 million, 25-40 million, and above 40 million. By geography, the market has been segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. The report also covers market sizes and forecasts of different geographical regions. Moreover, the report offers a market forecast and is represented by USD million. Furthermore, the report also includes various key statistics on the market status of leading market players and provides key trends and opportunities in the airport baggage handling market.
| Airport Capacity | |
| Up to 15 million | |
| 15-25 million | |
| 25-40 million | |
| Above 40 million |
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Airport Baggage Handling Systems Market Trends
This section covers the major market trends shaping the Airport Baggage Handling Systems Market according to our research experts:
The Above 40 million Segment Is Expected To Witness Significant Growth During The Forecast Period
The above 40 million segments is expected to witness significant growth during the forecast period. There is a significant increase in the number of airports entering the above 40 million passenger handling capacity segment. This is primarily due to the growing investments in expansion by major airports to cater to future passenger traffic and reduce congestion.
For instance, Narita International Airport Corporation announced that the expansion of terminal 3 of Narita International Airport was completed in April 2022. The expansion began in 2018 with an investment of JPY 14 billion (USD 111.7 million). The passenger handling capacity of the terminal increased from 7.5 million passengers per year to 15 million per annum. Similar projects are ongoing in several other countries in different regions. Such airport expansion projects are anticipated to generate demand for new baggage handling systems that will efficiently process passengers and baggage in the airport.
Large airports in this segment are also trying to increase their efficiency to reduce delays due to airport operations and congestion. In this regard, for instance, in January 2022, Delhi International Airport Limited (DIAL) began the installation of an integrated cart system (ICS) at Terminal 1 of Indira Gandhi International (IGI) Airport. The new baggage handling system is capable of processing up to 6,000 bags with a speed of 2.1 m per second. Such developments in larger airports will lead to the market witnessing significant growth during the forecast period.
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The Asia-Pacific Region Is Expected To Witness Significant Growth During The Forecast Period.
The Asia-Pacific region is expected to witness significant growth during the forecast period. There has been a rapid increase in investments in airport infrastructure to cater to the growing passenger traffic in the region over the past few years. Airports in China, India, Japan, and South Korea have witnessed exponential growth in passenger traffic in the past few years. As a result of this, the airport authorities have increased their investments in the expansion of existing airports and the construction of new airports in the region.
According to the data released by Airport Council International, the Asia-Pacific region houses 57% of the total 300 new airports which are in plans to be opened worldwide in the coming years. The newly planned greenfield airport will lead to the fulfillment of the vision of net zero emissions by 2050. According to ACI (Airport Council International), the Asia-Pacific region will be expected to account for 58% of the global air passenger demand which will result in the region upgrading its airport infrastructure capacity with investments totaling USD 1.3 trillion till 2040 in order to accommodate such growth. Various countries in the Asia-Pacific region have started upgrading their airport capacity to accommodate the increasing number of air passenger traffic. For instance, as part of China’s 14th Five-Year Plan (2021-25), the country plans to increase its civil aviation capacity with accelerated investments in airport construction. Under this new five-year plan, the Civil Aviation Administration of China (CAAC) plans to open over 30 new civil airports and increase the civil aviation capacity by 43%. Likewise, in March 2021, Vanderlande Industries (VI) Australia was awarded a contract to supply a new baggage handling system (BHS) to Western Sydney International Airport (WSIA). The BHS will utilize digital technology to track, load, and move baggage more efficiently. The new airport is expected to enter operational readiness and acceptance trials (ORAT) in late 2024 and begin operations for international and domestic services in late 2026.
With such robust expansion plans, the demand for new airport baggage handling systems in this region is expected to grow during the forecast period.
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Airport Baggage Handling Systems Industry Overview
Some of the prominent players in the airport baggage handling systems market are Siemens AG, SITA, Beumer Group, Vanderlande Industries, and Leonardo SpA, among others.
These companies have expanded their presence in various regions through partnerships with airport authorities and airlines. For instance, in April 2021, Siemens Logistics, a subsidiary of Siemens AG, received a contract from Incheon International Airport Corporation to expand the baggage handling system at Terminal 2 of Incheon Airport. In addition to the installation of baggage conveying and sorting technology, the company will provide technical project management, layout design, and software solutions and integrate the new equipment into the existing system. Also, companies have been investing in the R&D of new automated baggage-handling solutions to enhance their sales and net profits.
As the market demand improves with the growth in passenger traffic, it is expected that the smaller players will be acquired to gain a competitive advantage to cater to customers’ needs.
Airport Baggage Handling Systems Market Leaders
Siemens AG
SITA
BEUMER GROUP
Vanderlande Industries
Leonardo SpA
*Disclaimer: Major Players sorted in no particular order
Airport Baggage Handling Systems Market News
In December 2022, Kuala Lampur International Airport in Malaysia announced that they have contracted Siemens Logistics and local company T7 Global to modernize the baggage handling system (BHS) at Terminal 1. The order covers the systematic phase-out of the existing system as well as the design, installation, and commissioning of new baggage handling systems. Siemens will supply its VarioTray and VarioBelt technology, as well as the VarioStore early bag store and high-performance controlling software. Moreover, the baggage handling systems market will also feature the VarioBelt conveyor.
In August 2022 Alstef announced they had unveiled a new mobile robot for handling baggage at airports. The new machine codenamed the BAGXone has a high-speed automated guided vehicle designed to handle individual bags. It can cover short distances, from check-in to screening machines or from the screening machines to an early bag store, reconciliation room, and make-up carousel.
In June 2022 SITA announced that it signed a partnership agreement with Alstef Group, an established baggage handling specialist, to launch Swift Drop, a new self-bag drop solution that significantly speeds up the experience of passengers checking their bags. The fast and intuitive interface allows passengers to quickly check their bags, avoiding long queues at traditional check-in points.
Airport Baggage Handling Systems Market Report - Table of Contents
1. Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. Market Segmentation
5.1 Airport Capacity
5.1.1 Up to 15 million
5.1.2 15-25 million
5.1.3 25-40 million
5.1.4 Above 40 million
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 France
5.2.2.3 Germany
5.2.2.4 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 Japan
5.2.3.4 South Korea
5.2.3.5 Rest of Asia-Pacific
5.2.4 Latin America
5.2.4.1 Brazil
5.2.4.2 Rest of Latin America
5.2.5 Middle East and Africa
5.2.5.1 Saudi Arabia
5.2.5.2 United Arab Emirates
5.2.5.3 Kuwait
5.2.5.4 Rest of Middle East and Africa
6. Competitive Landscape
6.1 Vendor Market Share
6.2 Company Profile
6.2.1 Daifuku Co. Ltd
6.2.2 ALSTEF Group
6.2.3 Siemens AG
6.2.4 CIMC TianDa Holdings Co. Ltd
6.2.5 Vanderlande Industries
6.2.6 BEUMER Group
6.2.7 G&S Airport Conveyer
6.2.8 Ansir Systems
6.2.9 SITA
6.2.10 Leonardo SpA
7. Market Opportunities and Future Trends
Airport Baggage Handling Systems Market Research FAQs
What is the study period of this market?
The Airport Baggage Handling Systems Market is studied from 2018-2027.
What is the growth rate of Airport Baggage Handling Systems Market?
The Airport Baggage Handling Systems Market is growing at a CAGR of 12.84% over the next 5 years.
What is Airport Baggage Handling Systems Market size?
The Airport Baggage Handling Systems Market is expected to reach USD 1507.71 million in 2023 and grow at a CAGR of 12.84% to reach USD 2758.24 million by 2028.
Which region has highest growth rate in Airport Baggage Handling Systems Market?
North America is growing at the highest CAGR over 2018-2027.
Which region has largest share in Airport Baggage Handling Systems Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Airport Baggage Handling Systems Market?
Siemens AG, SITA, BEUMER GROUP, Vanderlande Industries, Leonardo SpA are the major companies operating in Airport Baggage Handling Systems Market.
Airport Baggage Handling Systems Industry Report
Statistics for the 2023 Airport Baggage Handling Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Airport Baggage Handling Systems analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Airport Baggage Handling Systems Report Snapshots
