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This market is primarily driven by the growing number of new airport terminals and upgradation of existing airport infrastructure. The upgrades can be due to existing systems turning obsolete on the basis of technology used, or due to increase in the handling capacity of the airport. Irrespective of the factors affecting the market demand, the global market is experiencing a surge in demand, attributed to rise in airline passengers, airline operators, and the airport as an independent unit.

The requirement of a BHS (Baggage Handling System) is primarily driven by the need for efficient systems, which are able to manage the movement of customer/airline baggage in and out of the check-in and checkout points at the airports. The roles of a BHS have increased significantly, with developments of new technologies and improved systems.

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A typical BHS performs the following tasks in the current market scenario – movement of baggage from the check-in point to the air-craft loading point or cart, movement of baggage from one aircraft to another (in case of transit flights), and moving baggage from an inbound aircraft to the baggage claim section of the airport.

Some advanced BHS additionally perform functions such as baggage screening, and tagging as well as sorting. Geographically, the Asia-Pacific region holds a high potential for market growth, due to large number of airports, high demand of airport upgrades, and a rise in the number of new upcoming projects and those under consideration. Also, the Asia-Pacific region, which accounts for the largest share for number of inbound and domestic travelers, is a probable market for high capacity BHS.

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The scope of BHS in railways is also a probable market, and holds new opportunities across some of the busiest networks. However, the concept is new in the market, and might take time for global acceptance. The key challenges faced by the commercial airport baggage handling systems are on-time movement of baggage from one point to another and efficient performance during peak and non-peak hours.
Industry players are continuously working on technologies to improve the overall performance of the entire system. Features such as remote controlled operation, which can be integrated with smart handheld devices or smart phones, are new concepts and are expected to drive the market growth.

With a rise in the number of travelers, airline operators, and security challenges, the demand and operational challenges for baggage handling systems is expected to go up. These factors are already being explored by leading players in the market, who are developing advanced systems. Some of the market players in the airport baggage handling systems market are Siemens AG, Daifuku Webb, Vanderlande Industries B.V., and Glidepath.

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