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Rising Air Traffic Drives Airport Baggage Handling System Market Growth Driving Market Acceleration in the Airport Baggage Handling System Industry, 2025
Airport Baggage Handling System
How Large Will the Airport Baggage Handling System Market Size By 2025?
The market size for airport baggage handling systems has seen robust growth in the recent past. This market is forecasted to expand from $8.74 billion in 2024 to $9.46 billion in 2025, showing a Compound Annual Growth Rate (CAGR) of 8.3%. The driving factors behind this growth during the historic period include increased air travel, security protocols, efficiency and throughput, airport growth and remodeling, and passenger expectations.
How Big Is the Airport Baggage Handling System Market Size Expected to Grow by 2029?
The market size for airport baggage handling systems is projected to experience robust growth in the coming years. It's projected to reach a market value of $12.85 billion in 2029, growing at a compound annual growth rate (CAGR) of 8.0%. The prospect of growth in the forecast period can be contributed to factors such as predictive upkeep, sustainable and green measures, strategies to mitigate risk, cost efficiency, enhancing passenger experience, and increased tourism. Key trends to anticipate in the forecast period encompass improving passenger convenience, customization to meet airport demands, remote monitoring and controlling, integration of smart sensors, and predictive analytics.
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Which Key Market Drivers Powering Airport Baggage Handling System Market Expansion and Growth?
The ascending trend in air traffic is anticipated to boost the progression of the airport baggage handling system market. The term "air traffic" signifies the movements of aircraft within airports. The growth in air traffic can be attributed to economic and demographic expansion, elevated income levels, the urgency to transport goods more swiftly, and other factors. The demand for airport baggage handling systems is predicted to escalate in correlation with the rise in air traffic, to streamline bustling airport operations and diminish the waiting period for aircraft and within airports. For example, the International Air Transport Association (IATA), which represents the global airline industry, published passenger data in May 2022, which revealed an 83.1% increase in total air traffic compared to May 2021. This surge was largely fueled by a robust rebound in international traffic. At present, global air traffic has returned to 68.7% of the levels seen before the pandemic. Additionally, international traffic in May 2022 saw a massive 325.8% growth as compared to May 2021. Hence, it is projected that the escalating trend in air traffic will stimulate the expansion of the airport baggage handling systems market.
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Which Fast-Growing Trends Are Poised to Disrupt the Airport Baggage Handling System Market?
The airport baggage handling system market is increasingly influenced by technological progress. Both the leading entities within the system and the airports themselves are welcoming new technological approaches like near-field communication (NFC) and radio frequency identification (RFID) to automate baggage checking and handling processes. For instance, Delhi Airport, a leading international Indian airport, launched BAGG TRAX in June 2022. This is an RFID-based tagging application that allows passengers to monitor their luggage in real-time throughout the transfer process. When registered, this tag must be placed in the check-in luggage, enabling passengers to get updates on their mobile phones regarding the arrival of their luggage at the airport and its availability at the assigned baggage carousel. The implementation of this system is anticipated to lessen the frequency of lost or delayed luggage, thereby saving airlines billions of dollars each year that they currently spend on such mishaps.
What Are the Emerging Segments in the Airport Baggage Handling System Market?
The airport baggage handling system market covered in this report is segmented -
1) By Type: Conveyors, Destination Coded Vehicles
2) By Solution: Check-In, Screening And Load, Conveying And Sorting, Unload And Reclaim
3) By Service: Assisted Service, Self-Service
4) By Technology: Barcode, RFID (Radio Frequency Identification)
5) By Application: Airport, Railway, Marine, Other Applications
Subsegments:
1) By Conveyors: Belt Conveyors, Roller Conveyors, Modular Conveyors, Airport Sortation Conveyors
2) By Destination Coded Vehicles (DCVs): Automated Guided Vehicles (AGVs), Towing Vehicles, Tracked Vehicles, Electric Carts
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Who Are the Global Leaders in the Airport Baggage Handling System Market?
Major companies operating in the airport baggage handling system market are Beumer Group, Daifuku Co. Ltd., Fives SA, G&S Airport Conveyor, Glidepath Limited, Grenzebach Maschinenbau GmbH, Logplan LLC, Pteris Global Limited, Siemens AG, Vanderlande Industries BV, SITA AG, BCS Group, Ansir Systems, Babcock International Group, Leonardo SpA, Airport Equipment Services Pte. Ltd., ALPHA-CIM Baggage, Alstef Automation S.A., Ammeraal BelTech, Aversan Inc., BB Computerteknik AS, BDP International, CASSIOLI Group, CIMC-TianDa Airport Support Ltd., Dalmec Industrial Manipulators India, LAS-1 Ltd., Logan Teleflex UK Ltd., Losch Airport Service GmbH, Matrex India Pvt. Ltd., Siemens Logistics GmbH
Which are the Top Profitable Regional Markets for the Airport Baggage Handling System Industry?
North America was the largest region in the airport baggage handling system market in 2024. The regions covered in the airport baggage handling system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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