Baggage Handling System Market Analysis and Global Forecast 2023-2033

Baggage Handling System Market Overview

Baggage Handling System Market Size is expected to reach USD 16.78 Billion by 2033. The Baggage Handling System industry size accounted for USD 8.47 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 7.34% from 2023 to 2033. The Baggage Handling System (BHS) market comprises solutions designed to efficiently manage and transport luggage within airports. It encompasses conveyor systems, scanners, sorters, and automated technologies aimed at streamlining baggage handling processes. Key factors driving market growth include rising air travel demand, stringent security regulations, and the need for enhanced operational efficiency. The market is witnessing innovations such as RFID tagging, AI-powered sorting, and predictive maintenance systems to optimize performance and minimize errors.

Global Baggage Handling System Market Synopsis

COVID-19 Impact Analysis

The Baggage Handling System market experienced a detrimental effect due to the Covid-19 pandemic. The Baggage Handling System (BHS) market faced significant disruption due to the COVID-19 pandemic, as air travel restrictions and reduced passenger traffic led to a decline in demand for airport infrastructure upgrades. Many airports postponed or scaled back BHS expansion projects to conserve resources amidst financial uncertainties. However, the pandemic also highlighted the importance of automation and contactless technologies in ensuring safety and efficiency in baggage handling processes.

Global Baggage Handling System Market Dynamics

The major factors that have impacted the growth of Baggage Handling System are as follows:

Drivers:

⮚      Globalization and International Travel

The need for advanced baggage handling solutions is fueled by both the expansion of international travel and the globalization of business. Airports require systems that meet international standards and can manage a variety of luggage kinds with efficiency.

Restraint:

• High Initial Investment

A significant initial investment is needed to implement or upgrade baggage handling systems. For airports and airlines, especially those with tight budgets or financial difficulties, this can be a major hindrance.

Opportunity:

⮚      Expansion in Emerging Markets

With rapid urbanization and economic growth in emerging markets, there’s a growing demand for airport infrastructure development. BHS providers can capitalize on this opportunity by expanding their presence in regions such as Asia-Pacific, Latin America, and the Middle East, where new airport construction and expansion projects are underway.

Baggage Handling System Market Segment Overview

By Transport Mode

Based on the Transport Mode, the market is segmented based on Airport, Marine, and Railway With the continuous growth of air travel and the expansion of airport infrastructure worldwide, there is a significant need for efficient baggage handling solutions to support the increasing passenger volumes. While there are applications of baggage handling systems in marine and railway transport, the airport segment remains the primary focus due to its substantial market size and demand.

By Type

Based on Type, the market has been divided into Conveyor and Destination Coded Vehicle. Conveyors have historically dominated the market, offering a reliable and efficient means of transporting luggage within airports. However, DCV systems are gaining traction due to their flexibility, adaptability to varying airport layouts, and ability to automate the movement of baggage directly to specific destinations, thereby enhancing operational efficiency and reducing processing times.

By Service

Based on the Service, the market has been divided into Self-service and Assisted Service. Self-service options, such as self-tagging and self-drop systems, are gaining prominence due to their ability to streamline processes and empower passengers. However, Assisted Service, which includes manned check-in counters and staff-assisted processes, remains crucial for catering to diverse passenger needs and ensuring a smooth travel experience, particularly for those who require additional assistance or face technological barriers.

By Technology

Based on Technology, the market has been divided into Barcode and RFID. While Barcode systems have traditionally been widely used for baggage tracking, RFID technology offers advantages such as real-time tracking, improved accuracy, and enhanced security. As airports increasingly prioritize efficiency and passenger satisfaction, the adoption of RFID technology is expected to continue growing, driving its dominance in the BHS market.

Global Baggage Handling System Market Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of North America is anticipated to dominate the market for the usage of Baggage Handling System, followed by those in Asia-Pacific and Europe.

Baggage Handling System North America Market

The North American region holds a dominant position in the Baggage Handling System market. Because of rising investments in the airport industry, rising disposable income, and rising intra-country travel between the United States and Canada, the North American area is anticipated to hold the largest share during the forecast period. In order to increase demand across the country, there is also a growing focus on airport security and the integration of modern technologies into baggage handling systems at small, medium, and big airports.

Baggage Handling System Asia Pacific Market

The Asia-Pacific region is witnessing rapid growth and emerging as a significant market for the Baggage Handling System industry. Asia Pacific region is set to grow progressively owing to rising number of air passenger traffic, and modernization of airport infrastructure developments in the China, Japan, India, and other countries, are the important factors creates the demand for airport baggage handling system, fuels the growth of the market.

Competitive Landscape

The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as Siemens AG, Beumer Group, G&S Airport Conveyor, Vanderlande Industries B.V, and Daifuku Co. Ltd. are some of the leading players in the global Baggage Handling System Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.

Key Market Players:

• Siemens AG
• Beumer Group
• G&S Airport Conveyor
• Vanderlande Industries B.V
• Daifuku Co. Ltd.
• Pteris Global Limited
• Fives Group
• Grenzebach Group
• Logplan LLC
• Glidepath Group

Key Development:

December 2022: Siemens Logistics, in partnership with local consortium T7 Global BHD, acquired the Kuala Lumpur airport terminal expansion project, providing systematic erection, design, installation, and commissioning of a new baggage handling system.

March 2022: Siemens Logistics launched a product for automatically unloading goods from unit load devices (ULD). With a powerful shredding unit, the VarioTip can discharge up to 20 ULDs (about 800 bags) per hour in the arrival and transfer zone.

Scope of the Report

Global Baggage Handling System Market, by Transport Mode

• Airport
• Marine
• Railway

Global Baggage Handling System Market, by Type

• Conveyor
• Destination Coded Vehicle

Global Baggage Handling System Market, by Service

• Self-service
• Assisted Service

Global Baggage Handling System Market, by Technology

• Barcode
• RFID

Global Baggage Handling System Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $16.78 Billion
CAGR	7.34% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Transport Mode, Type, Service, Technology
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Siemens AG, Beumer Group, G&S Airport Conveyor, Vanderlande Industries B.V, Daifuku Co. Ltd., Pteris Global Limited, Fives Group, Grenzebach Group, Logplan LLC, Glidepath Group
Key Market Opportunities	Growing E-commerce Industry
Key Market Drivers	Increasing Consumer Demand Technological Advancements

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Baggage Handling System Industry trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities analysis in the future
• Historical market size for the year 2021, and forecast from 2023 to 2033
• Baggage Handling System market share analysis for each segment
• Competitor analysis with a comprehensive insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted by the key players including new product development, mergers and acquisitions, joint ventures, collaborations, and partnerships.
• To identify and understand the various factors involved in the global Baggage Handling System market affected by the pandemic
• To provide year-on-year growth from 2022 to 2033
• To provide short-term, long-term, and overall CAGR comparison from 2022 to 2033.
• Provide Total Addressable Market (TAM) for the Global Baggage Handling System Market.