Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| Market Size (2025) | USD 0.62 Billion |
| Market Size (2030) | USD 1.19 Billion |
| Growth Rate (2025 - 2030) | 14.08% CAGR |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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North America Airport Baggage Handling Systems Market Analysis by Mordor Intelligence
The North America Airport Baggage Handling Systems Market size is estimated at USD 0.62 billion in 2025. It is expected to reach USD 1.19 billion by 2030, at a CAGR of 14.08% during the forecast period (2025-2030).
The COVID-19 pandemic, which struck in 2020, had a significant impact on the airport's overall operations. The travel restrictions imposed by several nations led to a sudden drop in air passenger traffic. Slowly, as the number of COVID-19 cases began to decline during 2021, air passenger traffic started to regain momentum, showing a positive impact on the North America airport baggage handling systems market.
According to IATA, in 2022, passenger numbers in North America were expected to reach 94% of 2019 levels, with a full recovery anticipated in 2023 (102%), ahead of other regions. As several major airports are operating close to their maximum passenger capacity, they are opting for advanced systems that can improve airport operations and reduce delays. The growth in air traffic in North America is driving an increase in demand for more efficient airport baggage-handling systems, which is expected to propel market growth during the forecast period. The construction of new airports, as well as terminal expansion, is expected to provide further growth opportunities for manufacturers of airport baggage handling systems during the forecast period. The increasing emphasis on airport security, along with advanced technologies for passenger baggage screening, is expected to support the market's growth in the years to come.
North America Airport Baggage Handling Systems Market Trends and Insights
The More Than 40 Million Airport Capacity segment is expected to lead the market during the forecast period
The more than 40 million segment is expected to lead the North America airport baggage handling systems market during the forecast period.
Baggage handling at small airports is a relatively simple matter, whereas in large airports, the process is far more complex and can have a significant impact on the cost and quality of service. Increased passenger traffic year after year has simultaneously increased baggage volume, which is the primary reason for the adoption of automated systems at airports with an annual capacity of over 40 million. Such airports are adopting baggage handling systems to solve bottlenecks that occur during peak times. To address the increasing air passenger traffic in the region, large airports with a capacity of more than 40 million are adopting automated airport baggage handling systems, which is expected to drive market growth during the forecast period.
The United States is Anticipated to Register the Highest CAGR During the Forecast Period
According to the US Department of Transportation, the number of air passengers traveling to or from the United States increased from 67 million in 2020 to nearly 178 million in 2022. However, the growth in infrastructure modernization or expansion has fallen far behind the increase in the number of air passengers. US airports are typically funded through federal grants from the FAA's Airport Improvement Program (AIP), a local user fee known as the Passenger Facility Charge (PFC), and revenue generated by airports from tenant rents and expenses. Several airports need new investments to maintain and modernize their infrastructure. Lack of funding over the past two decades has resulted in several airports operating in a crowded environment. Several airports, including Los Angeles International Airport, Hartsfield-Jackson Atlanta International Airport, Kansas City International Airport, and Chicago's O'Hare International Airport, have launched modernization projects worth billions of dollars in the last few years to address the increasing demand for airport passenger traffic. As airports undergo significant expansion, demand is likely to arise for new and advanced systems, such as automated baggage handling systems. Hence, the US market is estimated to register the highest growth during the forecast period.
Competitive Landscape
The North America airport baggage handling systems market is moderately consolidated in nature, with a few players holding significant shares in the market. Some of the prominent players are SITA, Vanderlande Industries, Siemens Logistics GmbH, Daifuku Co., Ltd, and BEUMER Group GmbH & Co. KG. The industry has witnessed significant market consolidation due to increased spending on software and IT solutions. Various contracts received by players in recent years helped the companies strengthen their market presence.
In January 2023, Siemens Logistics announced that it would soon begin installing the new outbound baggage handling system (BHS) at Austin-Bergstrom International Airport in Texas, USA. The company will supply a new mainline belt conveyor, vertical sorters, and sortation via high-speed diverters. It will also modernize the higher and lower-level controls for the entire system. The installation is expected to be completed by 2024.
North America Airport Baggage Handling Systems Industry Leaders
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SITA
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Vanderlande Industries
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Daifuku Co. Ltd
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Siemens Logistics GmbH
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BEUMER Group GmbH & Co. KG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- June 2022: Siemens Logistics unveiled the Baggage 360, the versatile airport operations software that features real-time forecasting of baggage flows. Baggage 360 also enables ground handlers to plan their fixed, mobile, and personnel resources with maximum efficiency.
- May 2021: Vanderlande designed and delivered an individual carrier system (ICS) to Los Angeles International Airport as part of a wider design-build-operate-maintain (DBOM) contract. The first phase of the ICS project was handed over to the airport in January 2021, and the baggage handling system (BHS) officially began on 24 May 2021.
North America Airport Baggage Handling Systems Market Report Scope
A baggage handling system, or BHS, is a type of conveyor system installed in an airport that enables the transportation of passenger baggage from ticket counter areas to the area where the baggage is loaded onto the aircraft. A BHS helps in transporting the checked luggage, which is unloaded from the plane to the baggage claim area. A BHS system may have an integrated Baggage Security Scanner installed.
The North America airport baggage handling systems market is segmented by airport capacity and country. By airport capacity, the market is segmented into those with a capacity of up to 15 million, 15-25 million, 25-40 million, and more than 40 million. By country, the market is segmented into the United States and Canada. The report provides the market size of the above-mentioned segments in USD million.
Airport Capacity
| Up to 15 million |
| 15-25 million |
| 25-40 million |
| More than 40 million |
Country
| United States |
| Canada |
| Airport Capacity | Up to 15 million |
| 15-25 million | |
| 25-40 million | |
| More than 40 million | |
| Country | United States |
| Canada |
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Key Questions Answered in the Report
How big is the North America Airport Baggage Handling Systems Market?
The North America Airport Baggage Handling Systems Market size is expected to reach USD 0.62 billion in 2025 and grow at a CAGR of 14.08% to reach USD 1.19 billion by 2030.
What is the current North America Airport Baggage Handling Systems Market size?
In 2025, the North America Airport Baggage Handling Systems Market size is expected to reach USD 0.62 billion.
Who are the key players in North America Airport Baggage Handling Systems Market?
SITA, Vanderlande Industries, Daifuku Co. Ltd, Siemens Logistics GmbH and BEUMER Group GmbH & Co. KG are the major companies operating in the North America Airport Baggage Handling Systems Market.
What years does this North America Airport Baggage Handling Systems Market cover, and what was the market size in 2024?
In 2024, the North America Airport Baggage Handling Systems Market size was estimated at USD 0.53 billion. The report covers the North America Airport Baggage Handling Systems Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the North America Airport Baggage Handling Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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