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Growth In Tourism Industry Boosting Baggage Handling System Market: Major Factor in the Transformation of the Baggage Handling System Market in 2025

02-10-2025 05:40 AM CET | Logistics & Transport

Press release from: The Business Research Company

Baggage Handling System Market Share

Baggage Handling System Market Share

How Will the Baggage Handling System Market Grow, and What Is the Projected Market Size?
In recent times, the market for baggage handling systems has witnessed significant expansion. The market, worth $10.31 billion in 2024, is expected to increase to $11.19 billion in 2025, with a compound annual growth rate (CAGR) of 8.4%. Factors contributing to this growth during the historic period include heightened air passenger traffic, a surge in the desire for uninterrupted travel experiences, more investments from airport authorities, a demand for adaptable and expandable baggage handling solutions, and increased funding in airport enlargement projects.

Expectations are high for a significant surge in the size of the baggage handling system market in the upcoming years. It is projected to expand to $15.28 billion by 2029, maintaining a compound annual growth rate (CAGR) of 8.1%. Factors contributing to this growth during the forecast period include the increase in air passenger traffic, a high demand for instantaneous tracking, the widespread adoption of RFID technology, an upswing in e-commerce and cargo volumes, and a preference for cloud-based solutions. Key trends anticipated during this period are the progression in automatic sorting and loading systems, the application of AI and machine learning, the incorporation of IoT devices for real-time surveillance, the adoption of cloud-based platforms for data storage and analysis, and the introduction of biometric scanning.

What Is Driving the Growth Trajectory of the Baggage Handling System Market?
The growth of the baggage handling system market is set to be driven by the booming tourism industry. The tourism sector is comprised of businesses and services designed to facilitate the needs of tourists and travelers, such as transportation, lodging, tourist spots, and hospitality. The acceleration of the tourism industry is attributed to improvements in infrastructure, economic development, increased disposable incomes, globalization, and easy access to travel information. Baggage handling systems play a crucial role in supporting the tourism sector by effectively managing luggage in a systematic manner, ensuring tourists have a hassle-free travel experience and enhancing the operational efficiency and satisfaction for travel service providers. To illustrate, data from the Croatian Bureau of Statistics, a government agency based in Croatia, indicated that in 2023 commercial accommodation establishments witnessed 17.8 million tourist arrivals and 90.0 million overnight stays in 2022, reflecting an increase of 39.1% and 28.3% compared to 2021. Consequently, the blossoming tourism sector is propelling the growth of the baggage handling system market.

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Who Are the Major Industry Players Fueling Baggage Handling System Market Expansion?
Major companies operating in the baggage handling system market are Siemens AG, Babcock International Group PLC, Daifuku Co. Ltd., Vanderlande Industries B.V., Fives Group, SICK AG, BEUMER Group, SITA, INFORM SOFTWARE, Interroll Group, Smiths Detection Group Limited, Grenzebach Maschinenbau GmbH, Pteris Global Limited, Alstef Group, Cassioli Srl, ULMA Handling Systems, G&S Airport Conveyor, Logplan LLC, Ansir Systems, Matrex, Kinematik SA Machinery Manufacturing

Which Key Developments Are Influencing the Baggage Handling System Market?
Leading businesses active in the baggage handling system market are working on breakthrough technologies, such as enhanced automation solutions, to boost the speed and precision of baggage handling. These advanced automation solutions can improve proficiency, exactitude, and capacity, upgrade security, cut down on labor costs, and better the overall traveler experience. For example, Beumer Group GmbH & Co. KG, a company based in Germany, introduced Next-Gen Line Sorter and Pouch Systems, sophisticated automation solutions, in July 2022. The BG Line Sorter merges the straightforwardness of a standard line sorter with the capabilities of a swift cross-belt sorter. Its modular construction makes the best use of distribution center space, while extremely long-lasting belts lead to negligible maintenance. The BG Pouch System is a singular multi-use sorting system that can buffer, sort, sequence, and manage item returns with barely any manual interaction.

How Is the Segmentation of the Baggage Handling System Market Defined?
The baggage handling system market covered in this report is segmented -

1) By Type: Destination Coded Vehicle (DCV), Conveyor
2) By Technology: Radio-Frequency Identification (RFID), Barcode
3) By Mode: Airport, Railway, Marine
4) By Application: Check-In Systems, Security Screening Systems, Sorting Systems, Transfer Systems, Arrival And Reclaim Systems

Subsegments:
1) By Destination Coded Vehicle (DCV): Automated DCV System, Semi-Automated DCV System
2) By Conveyor: Belt Conveyor, Gravity Roller Conveyor, Powered Roller Conveyor, Spiral Conveyor, Tilt Tray Conveyor

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What Is the Leading Region in the Baggage Handling System Market?
Asia-Pacific was the largest region in the baggage handling system market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the baggage handling system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Baggage Handling System Global Market Report?

- Market Size Analysis: Analyze the Baggage Handling System Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Baggage Handling System Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Baggage Handling System Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Baggage Handling System Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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