Airport Baggage Handling Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

the Airport Baggage Handling System 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 the Middle East and Africa). the Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

Airport Baggage Handling System Market Size

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Airport Baggage Handling System Market Summary
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Study Period 2019 - 2029
Market Size (2024) USD 1.85 Billion
Market Size (2029) USD 3.39 Billion
CAGR (2024 - 2029) 12.88 %
Fastest Growing Market North America
Largest Market Asia-Pacific

Major Players

Airport Baggage Handling Systems Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Airport Baggage Handling System Market Analysis

The Airport Baggage Handling Systems Market size is estimated at USD 1.85 billion in 2024, and is expected to reach USD 3.39 billion by 2029, growing at a CAGR of 12.88% during the forecast period (2024-2029).

  • The airport baggage handling systems market is driven by the growth in the number of air passenger traffic in recent years. The modernization of new airports and technological advancements fuel the market's growth. The increasing focus on improving operational efficiency at airports is expected to lead the market's growth in the coming years.
  • Technological advancements, such as robot utilization for baggage handling processes and endeavors, including establishing new airports and expanding existing terminals, are expected to show a positive outlook for the market.
  • The renovation of baggage handling systems at various airports will also lead to growth in the market. In addition, most global airport authorities are now investing in renewing airport infrastructure to offer better comfort and baggage handling experience. According to the IATA International Air Transport Association, the global adoption of RFID can help the aviation industry save billions of dollars over the coming years.
  • The aviation sector needs to be technologically updated to utilize its maximum potential. The check-in process during peak traveling consumes most of the time and is exhausting for the passengers. This process may be made convenient using automated kiosks, remote queue management systems, and remote check-ins, thus expected to fuel the market's growth in the coming years.
  • Baggage mishandling has been a significant 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 the market's growth in the upcoming years.

Airport Baggage Handling System Market Trends

Above 40 million Segment Expected to Witness Significant Growth During the Forecast Period

  • The above 40 million segment is expected to grow significantly 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 would efficiently process passengers and baggage in the airport.
  • Large airports in this segment are also trying to increase efficiency to reduce delays due to airport operations and congestion. In November 2022, Hamad International Airport (HIA) unveiled its impressive airport expansion project to the world. With this expansion of Phase 3, the airport passenger capacity reached 58 million passengers per year. The final expansion phase began in January 2023 and is expected to be completed by 2025, increasing the airport's annual capacity to approximately 70 million passengers.
airport baggage handling systems market - World's Top 5 Busiest Airport (Passenger Traffic in Millions), 2022

Asia-Pacific is Expected to Dominate Market Share During the Forecast Period

  • There has been a rapid increase in investments in airport infrastructure in Asia-Pacific 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, the airport authorities have increased their investments in expanding existing airports and constructing new airports in the region.
  • According to the data released by Airport Council International, the Asia-Pacific houses 57% of the total 300 new airports planned to open worldwide in the coming years. The newly planned greenfield airport will fulfill the vision of net zero emissions by 2050. According to ACI (Airport Council International), the Asia-Pacific is expected to account for 58% of the global air passenger demand, resulting in the region upgrading its airport infrastructure capacity with investments totaling USD 1.3 trillion till 2040 to accommodate such growth. 
  • Various countries in Asia-Pacific 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%. Similarly, 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 would 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 - Growth Rate by Region (2023 - 2028)

Airport Baggage Handling System Industry Overview

The airport baggage handling systems market is semi-consolidated, with few players holding significant shares in the market. Some of the prominent players in the market are Siemens AG, SITA, Beumer Group, Vanderlande Industries, and Leonardo SpA.

These companies have expanded their presence in various regions through partnerships with airport authorities and airlines. For instance, in December 2022, TSA launched a high-tech baggage handling system at Denver International Airport. The Checked Baggage Inspection System (CBIS) features a complicated network of conveyor belts that sort and track the luggage through the security screening process. The cost of the system was nearly USD 160 million. As the market demand improves with the growth in passenger traffic, it is expected that the smaller players are expected to gain a competitive advantage to cater to customers' needs.

Airport Baggage Handling System Market Leaders

  1. Siemens AG

  2. SITA

  3. BEUMER GROUP

  4. Vanderlande Industries Holding B.V.

  5. Leonardo S.p.A

*Disclaimer: Major Players sorted in no particular order

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Airport Baggage Handling System Market News

March 2023: Alstef Group signed a contract worth USD 11 million with Sofia Airport in Bulgaria to supply, install, and maintain a new baggage handling system (BHS). The airport served nearly 6 million passengers in 2022.

February 2023: Edmonton International Airport (YEG) in Canada entered into a partnership with Alstef Group for its baggage system modernization project. The project involves upgrading the airport's baggage handling system (BHS). In the first phase, legacy control equipment will be replaced, and new bag-tag readers will be added and upgraded. The project involves an overhaul of the airport's legacy baggage handling infrastructure and operational technical support.

Airport Baggage Handling System Market Report - Table of Contents

  1. 1. Introduction

    1. 1.1 Study Assumptions and Market Definition

    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 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. Market Segmentation

    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 & 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 & 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 Alstef Group

      3. 6.2.3 Siemens AG

      4. 6.2.4 CIMC TianDa Holdings Co. Ltd

      5. 6.2.5 Vanderlande Industries Holding BV

      6. 6.2.6 BEUMER Group

      7. 6.2.7 G&S Airport Conveyer

      8. 6.2.8 Ansir Systems

      9. 6.2.9 SITA

      10. 6.2.10 Leonardo SpA

  7. 7. Market Opportunities and Future Trends

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Airport Baggage Handling System 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. The report also covers the market sizes and forecasts for the airport baggage handling systems market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).

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 & Africa
Saudi Arabia
United Arab Emirates
Kuwait
Rest of Middle East & Africa
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Airport Baggage Handling System Market Research FAQs

The Airport Baggage Handling Systems Market size is expected to reach USD 1.85 billion in 2024 and grow at a CAGR of 12.88% to reach USD 3.39 billion by 2029.

In 2024, the Airport Baggage Handling Systems Market size is expected to reach USD 1.85 billion.

Siemens AG, SITA, BEUMER GROUP, Vanderlande Industries Holding B.V. and Leonardo S.p.A are the major companies operating in the Airport Baggage Handling Systems Market.

North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia-Pacific accounts for the largest market share in Airport Baggage Handling Systems Market.

In 2023, the Airport Baggage Handling Systems Market size was estimated at USD 1.64 billion. The report covers the Airport Baggage Handling Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Airport Baggage Handling Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Airport Baggage Handling System Industry Report

Statistics for the 2024 Airport Baggage Handling Systems market share, size and revenue growth rate, created by Mordor Intelligenceā„¢ Industry Reports. Airport Baggage Handling Systems analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Airport Baggage Handling Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)