Market Trends of Airport Baggage Handling Systems Industry
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.
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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.
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