Baggage Handling System Market

Global Baggage Handling System Market Size (2023 to 2028)

The global baggage handling system market size is expected to be valued at USD 8.15 billion in 2023 and USD 11.53 billion by 2028, growing at a CAGR of 7.2% from 2023 to 2028.

The baggage handling system may be a sort of conveyor system that helps move the luggage from the sign-up where the luggage is loaded into the transportation vehicle to the place where the passenger claims his luggage. The primary function of the handling is to transfer the bags to the right location. Additionally, the system serves tasks like tracking, counting, automatic tag reader, load balancing, solving overlapping of luggage, and detection of bag jams. This technique of luggage handling uses different technologies for the luggage handling process, like frequency Identification (RFID) and barcode System.

Global Baggage Handling System Market Drivers:

The increasing specialization in improving operational efficiency at airports, growing air passenger volume, and significant developments in intermodal transport are the main factors that can drive the market. According to the International Air Transport Association (IATA), the number of airline passengers in 2037 will be over 8 billion. Passengers traveling by air have increased in recent years, owing to factors such as sustained economic growth, favorable population dynamics, demographic profiles, and rising household incomes. Considering these issues, airports are investing considerably in baggage handling equipment and contemporary facilities that can improve the customer experience. For example, the Chicago City Council authorized a USD 8.5 billion expansion plan for airport restoration in March 2018, which included renovating existing terminals and increasing the number of gates. As a result, the rapid growth of this market is being driven by an increase in people traveling by air.

Global Baggage Handling System Market Restraints:

Manufacturers are making significant investments to provide better service to their customers. However, technological advancement necessitates greater investments in baggage transportation infrastructure innovation. Due to reasons such as many passengers and insufficient security, the railway sector is having difficulty investing in smart baggage handling systems. This necessitates improved luggage handling capabilities as well as significant financial expenditure. Furthermore, the unexpected failure of luggage handling equipment at airports puts the airport infrastructure facilities under strain. Operating system failure, network failure, power failure and outages induced by incorrect usage are all examples of sudden breakdowns. If any of these problems occur, the system will be unable to carry out its functions automatically. Given all these variables, airports and governments around the world will need to invest more to improve the efficiency of baggage handling equipment.

Global Baggage Handling System Market Opportunities:

The key dynamics that are fueling the market expansion are the increase in global population, fast urbanization, increasing preference for air travel, affordable ticket costs, and increased disposable incomes. Furthermore, increasing technical breakthroughs at the worldwide level upgraded infrastructures, and creative product releases by market participants are expected to propel the global airport baggage handling system market forward in the coming years. Higher maintenance costs and the risk of system failure, on the other hand, are expected to hinder the growth of the airport baggage handling system market over the forecast period. Furthermore, factors such as growing robotics use, increased R&D efforts, new airport building, and modernization of existing airports are paving the way for various profitable prospects in the global airport baggage handling system market.

Global Baggage Handling System Market Challenges:

The rivalry in this market is fierce, and significant firms are devising methods to place them ahead of the pack. To do so, several rivals are forming agreements with government agencies in order to boost their market share and position themselves for global expansion.

REPORT COVERAGE:

This research report on the global baggage handling system market has been segmented and sub-segmented into the following categories.

Global Baggage Handling System Market - By Mode of Transport:

• Airport 
• Railway 
• Marine 

Currently, the airport segment includes handling capacity between 25 to 40 million, which is projected to possess the most significant share compared to its counterparts. Airports with higher handling capacity have increased, with new airports entering this segment from 15-25 million. The growing aviation demand, especially in Asia-Pacific, has forced several smaller airports to extend their passenger handling capacities. Chongqing Airport, Seoul Gimpo Airport, and Tokyo Narita Airport were among the highest airports, with passenger handling capacities of just about 40 million by the top of 2017. Earlier in March 2017, Narita International Airport introduced a replacement self-check-in baggage machine at the airport. Thus, the main target is currently on this segment, which is the reason for its expected high CAGR.

Global Baggage Handling System Market - By Tracking Technology:

• Barcode System 
• RFID System 

The check-in process during peak traveling times generally consumes most of the time and is exhausting for the passengers. This process is often made convenient using the automated kiosk, remote queue management system, and remote check-ins. Similarly, other technologies utilized in baggage handling systems, like radio-frequency identification (RFID) and near-field communication (NFC) are successfully implemented in numerous airports for automated check-in services. As an example, it was announced in June 2018 that an Italian company developed a replacement tagging technology incorporated with RFID chips for tracking passenger’s luggage in real-time at every stage of the transfer, which is predicted to decrease the quantity of lost or delayed baggage that costs airlines billions of dollars per annum. 

Using this technology, scanners on conveyor belts can scan the RFID tags attached to the baggage and reroute if they are misplaced or moving in the wrong direction. This is able to convince as a pivotal technology within the baggage handling system over the barcode hand scanning technology. Thus, the incorporation of RFID technology within the baggage handling system is predicted to spice up the expansion of this market.

Global Baggage Handling System Market - By Check-in Service Type:

• Assisted Service 
• Self-service 

Global Baggage Handling System Market - By Type:

• Conveyor 
• Destination Coded Vehicle (DCV) 

Global Baggage Handling System Market - By Solution:

• Check-in, Screening, and Loading 
• Conveying and Sorting 
• Unloading and Reclaim 

Global Baggage Handling System Market – By Region:

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • The United Kingdom
  • Spain
  • Germany
  • Italy
  • France
  • Rest of Europe
• The Asia Pacific
  • India
  • Japan
  • China
  • Australia
  • Singapore
  • Malaysia
  • South Korea
  • New Zealand
  • Southeast Asia
• Latin America 
  • Brazil
  • Argentina
  • Mexico
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • UAE
  • Lebanon
  • Jordan
  • Cyprus

North America accounted for the most critical market share during the review period due to an outsized number of airports within the region and the modernization of existing airports. The Asia Pacific is projected to carry the most significant market share. Factors like growing air passenger volume, upcoming airport projects, the presence of the cruise industry, the scope for multimodal transport, the economy of nations, government investments in railway, marine, and airport projects, consumer acceptance, and government regulations have triggered the demand for luggage handling systems within the region. Thanks to the ever-growing air passenger traffic, China accounts for the best market share of the Asia Pacific market. Consistent with the IATA, India is predicted to be the third-largest aviation market (in terms of passengers) by 2024, which can make the Asia Pacific the essential travel market within the near future. Such developments are expected to assist the Asia Pacific in dominating the market within the outlook period.

KEY MARKET PLAYERS:

Siemens AG, Logplan LLC., Daifuku Co., Ltd., Beumer Group GmbH & Co. KG, SITA, Grenzebach Maschinenbau GmbH, Vanderlande Industries B.V., G&S Airport Conveyor, Fives Group, Glidepath Group, Crisplant, Aversan Inc., Babcock Airports Ltd., Pteris Global Limited and BCS Group are some of the major companies in the global baggage handling system market.

RECENT HAPPENINGS IN THE MARKET:

• Indian Prime Minister Narendra Modi’s cabinet has signed off on an idea to sell all or a part of Air India Ltd., a debt-ridden, state-run carrier with the foremost unusual baggage.
• Siemens Postal, Parcel & Airport Logistics (SPPAL) has commissioned one of the first modern, high-performance baggage handling systems in the world at Incheon International Airport in South Korea.
• The Bangalore International Airport Limited introduced 16 fully automated self-bag drop machines, which will remarkably accelerate baggage transactions and reduce check-in queues.