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Airport Baggage Handling System Market

Airport Baggage Handling System Market Forecasts to 2028 – Global Analysis By Identification Technology (Barcode, Radio Frequency Identification (RFID)), Type (Destination Coded, Conveyor), Application (Commercial, Military) and By Geography

4.8 (50 reviews)
Published: January 2022 ID: SMRC21276
4.8 (50 reviews)
Published: January 2022 ID: SMRC21276

This report covers the impact of COVID-19 on this global market

According to Stratistics MRC, the Global Airport Baggage Handling System Market is accounted for $10.64 billion in 2021 and is expected to reach $16.76 billion by 2028 growing at a CAGR of 6.7% during the forecast period. Airport Baggage Handling System refers to a conveyor system that transports verified luggage from check-in counters to the area defined for loading luggage into airplanes. Besides, it is also used for the transportation of luggage from airplanes to the baggage claim area. This system aims at ensuring the correct location of the luggage, hence avoiding the loss of luggage. The entire system consists of different sensors, barcode readers, RFID tags, and other technologies to make the process much easier in a long run.

Market Dynamics:

Driver:

Increasing preference towards air travel


The continuous rise in several airport terminals and renovation of the existing airport infrastructure drive the airport baggage handling system market. The primary reason for such renovation or modernization is due to the technologies used that are gradually becoming obsolete. The rise in the frequency of passengers also boosts the renovation and modernization.

Restraint:

High upfront and maintenance cost of baggage handling system


The high initial investment due to the usage of conveyor belts, RFID sensors, X-ray screening machines, and others, and the inflated cost of a baggage handling system hamper the market growth. In addition, the operational and maintenance services of the BHS add to the basic cost of the system, which includes the cost of maintenance, staffing, and electricity.

Opportunity:

Utilization of robotization in the airports


The baggage handling robots are expected to help in the process of loading passenger baggage into unit load devices (ULD) and carts in airport operations. Also, some of the leading European airports are incorporating this technology. For instance, SITA Lab’s baggage robot named Leo, a fully automated; self-propelling baggage robot can run tasks such as luggage check-in, print bag tags, and transport up to two bags with a maximum weight of 32kg.

Threat:

High consequences of system failure


The higher cost of maintenance and drawback of system failure are the factors responsible for slow-down the growth of the airport baggage handling system market during the forecast period. The high consequences of failure lead over time to the construction of multiple layers of defense against failure. These defenses include obvious technical components and human components but also a variety of organizational, institutional, and regulatory defenses.

The radio frequency identification (RFID) system segment is expected to have the highest CAGR during the forecast period

The radio frequency identification (RFID) system segment is growing at the highest CAGR in the market due to the cost-effectiveness and reliability of the technology in improving the airport baggage handling process. The major airline companies are investing in RFID technology to provide a better travelling experience to customers. For instance, Delta airlines invested approximately USD 50 million to implement RFID baggage tracking technology at 344 stations across the globe.

Region with highest share:

North America is projected to hold the largest share in the market. This is attributable to factors such as the thriving aerospace industry, high R&D investments, infrastructure advancements as well as technological developments. Moreover, there is an increasing number of airports, and modernization of existing airports especially in the US is the factor expected to drive the growth of the market in the region.

Region with highest CAGR:

The Asia Pacific is projected to have the highest CAGR due to the rise in air traffic and growth in the number of new airport construction projects in emerging countries such as India and China. Furthermore, an increase in disposable income, an upsurge in the tourism industry as well a growing demand for higher operational efficiency are expected to enhance the growth of the airport baggage handling system market.

Key players in the market:

Some of the key players profiled in the Airport Baggage Handling System Market include Logplan, Glidepath Group, Ansir Systems, Babcock International Group, SITA, Vanderlande, Daifuku Company, Pteris Global, Beumer Group, Fives Group, G&S Airport Conveyer, Grenzebach Maschinenbau, BCS Group, and Siemens.

Key developments:

In December 2019: Pteris Global Limited, a subsidiary of CMIC Group, signed an agreement with Chennai International Airport to provide baggage-handling system for the airport’s new terminal. The estimated worth of the agreement is approximately USD 45 million.

In September 2019: Siemens modernized the existing inspection system for luggage control at Madrid, Barcelona, Malaga, Palma de Mallorca and Gran Canaria Airports in Spain for around USD 175 million. The modern solution named as ‘Hi-SCAN 10080 XCT’ will help tighten the security regulations of the European Civil Aviation Conference (ECAC).

In May 2019: Vanderlande Industries signed a 20-year framework agreement with the Brussels Airport Company. The agreement includes replacement of existing conventional baggage handling system with Vanderlande’s TUBTRAX technology, an up-gradation to high-level controls and integration of new baggage screening machines with EU regulations.

In May 2019: Beumer Group implemented in-tote hold baggage screening and 1800-position early baggage storage crisStore baggage-handling system for an approximate amount of USD 4.3 billion at terminal 2 in Kuwait International Airport.

Airport Classes Covered:
• Class A Airport
• Class B Airport
• Class C Airport

Identification Technologies Covered:
• Barcode System
• Radio Frequency Identification (RFID) System

Types Covered:
• Destination Coded Vehicle
• Conveyor System

Check-In Types Covered:
• Self-Service Bag Check-In
• Assisted Service Bag Check-In

Efficiencies Covered:
• Below 3000
• 3000 to 6000
• Above 6000

Cost Analysis Covered:
• Operational Cost Analysis
• Installation Cost Analysis

Airport Capacities Covered:
• Up to 15 Million
• 15-25 Million
• 25-40 Million
• Above 40 Million

Applications Covered:
• Commercial
• Military

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan       
o China       
o India       
o Australia 
o New Zealand
o South Korea
o Rest of Asia Pacific   
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

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