Airport Baggage Handling Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Airport Baggage Handling Systems Market is Segmented by Airport Capacity (Up to 15 million, 15-25 million, 25-40 million, and Above 40 million) and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers the market sizes and forecasts for all the above segments in value (USD billion).

Market Snapshot

airport-baggage-handling-system-market_Market Summary
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >6.7 %

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Market Overview

The airport baggage handling systems market was valued at about USD 5.03 billion in 2020, and it is projected to grow to approximately USD 7.32 billion by 2026, with a CAGR of over 6.7% during the forecast period (2021 - 2026).

Due to the impact of the COVID-19 pandemic and the subsequent reduction in passenger traffic in 2020, the revenues of airports and airlines have been severely affected. This factor is expected to force the airport authorities and airlines to take a conservative approach toward investing in augmenting airport infrastructure, thereby affecting the market for baggage handling systems, at least in the near future.

However, the pandemic is expected to drive significant changes in the baggage handling process. The demand for contactless and self-service technologies on arrival and departure is expected to reflect in baggage handling operations as well. Some airports have invested in the installation and testing of 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.

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 one of the major challenges 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 the market growth in the years to come.

Scope of the Report

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 market is segmented based on aircraft capacity into up to 15 million, 15-25 million, 25-40 million, and above 40 million. The report also covers the market sizes and forecasts for the market in major countries across different regions. The market sizing and forecasts have been provided in value (USD billion).

Airport Capacity
Up to 15 million
15-25 million
25-40 million
Above 40 million
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Kuwait
Rest of Middle-East and Africa

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Key Market Trends

The Above 40 million Segment is Expected to Exhibit 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, in October 2019, Hamad International Airport in Qatar announced its second expansion phase plan, which will include the expansion of Phases A and B. Under Phase A, the passenger handling capacity is expected to increase to more than 53 million passengers annually by 2022 and may further increase to more than 60 million passengers after the completion of Phase B. The passenger handling capacity prior to the start of the expansion project was about 35 million. 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 allow efficient processing of passengers and baggage in the airport. Large airports that were existing in this segment are also trying to increase their efficiency to reduce delays due to airport operations and congestion. In this regard, Frankfurt Airport Services Worldwide selected Leonardo to install a baggage handling system for the new Pier G at Terminal 3 of Frankfurt Airport. The new system is capable of handling bags of about five million passengers annually with its two Multisorting Baggage Handling System (MBHS) cross-belt sorting machines. The new baggage handling solution, which will incorporate safety and sorting functions, will be implemented in two phases. In 2021, the BHS will be delivered and installed as a stand-alone system, while in the second phase, the system will be expanded and integrated with the airport’s wider baggage handling system. Such similar developments in larger airports may propel the growth of this segment during the forecast period.

airport baggage handling systems market segmentation

The Asia-Pacific Region is Expected to Witness the Highest Growth During the Forecast Period

The Asia-Pacific region is expected to witness the highest growth due to a rapid increase in the investments in airport infrastructure to cater to the growing passenger traffic in the region over the past few years. The airports in countries like 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. As part of China’s 14th Five-Year Plan (2021-25), the country plans to increase its civil aviation capacity with accelerated investments toward 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.

airport baggage handling systems market geography

Competitive Landscape

Some of the prominent players in the airport baggage handling systems market are SITA, Vanderlande Industries, BEUMER Group, Daifuku Co. Ltd, and Siemens AG. The companies witnessed a slight decline in revenue in 2020 as airlines and airports witnessed decreased revenue. However, the companies have been expanding their presence in various regions through partnerships with various 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 also provide technical project management, layout design, and software solutions and integrate the new equipment into the existing system. Also, the companies have been investing in the research and development 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.

Recent Developments

In June 2020, BEUMER Group announced that the company installed the CrisBag Independent Carrier System (ICS), a tote-based ICS, at the new Harvey Milk Terminal 1 of the San Francisco Airport (SFO). The ICS baggage handling system is planned to be used between various airlines at the airport.

In February 2020, Daifuku Co. Ltd provided Japan Airlines with Self Baggage Drops (SBDs) that were collaboratively developed with the company. The company delivered six SBD units at Haneda Airport Terminal 1 for domestic flights and further announced its plan to deliver a total of 38 units to the terminal by summer 2020.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers/Consumers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD billion)

    1. 5.1 Airport Capacity

      1. 5.1.1 Up to 15 million

      2. 5.1.2 15-25 million

      3. 5.1.3 25-40 million

      4. 5.1.4 Above 40 million

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 United Kingdom

        2. 5.2.2.2 France

        3. 5.2.2.3 Germany

        4. 5.2.2.4 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 India

        3. 5.2.3.3 Japan

        4. 5.2.3.4 South Korea

        5. 5.2.3.5 Rest of Asia-Pacific

      4. 5.2.4 Latin America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Rest of Latin America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 United Arab Emirates

        3. 5.2.5.3 Kuwait

        4. 5.2.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Daifuku Co. Ltd

      2. 6.2.2 Glidepath Limited

      3. 6.2.3 Siemens AG

      4. 6.2.4 CIMC TianDa Holdings Co. Ltd

      5. 6.2.5 Vanderlande Industries

      6. 6.2.6 BEUMER Group

      7. 6.2.7 G&S Airport Conveyer

      8. 6.2.8 Ansir Systems

      9. 6.2.9 ALSTEF Automation SAS

      10. 6.2.10 SITA

      11. 6.2.11 Leonardo SpA

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Airport Baggage Handling Systems Market market is studied from 2018 - 2026.

The Airport Baggage Handling Systems Market is growing at a CAGR of >6.7% over the next 5 years.

The Airport Baggage Handling Systems Market is valued at 5 Billion USD in 2018.

The Airport Baggage Handling Systems Market is valued at 7 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Siemens AG, SITA, BEUMER GROUP, Vanderlande Industries, Daifuku Co. Ltd are the major companies operating in Airport Baggage Handling Systems Market.

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