Airport Baggage Handling Systems Market to Hit $3.95B by 2030, Driven by Rising Passenger Traffic and Smart Airport Investments, Says Mordor Intelligence

Introduction
The airport baggage handling systems market, valued at USD 2.46 billion in 2025, is projected to reach USD 3.95 billion by 2030, growing at a 9.87% CAGR. The expansion is supported by the rebound in global air travel, ongoing airport infrastructure upgrades, and increasing automation to offset workforce shortages. Airports are investing in digital-twin predictive maintenance, AI-driven tracking, and cybersecure conveyor systems to enhance efficiency and resilience. Sustainability-focused retrofits, including energy-efficient drives and UV-C disinfection modules, are also becoming integral to modern baggage handling operations.

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Market Growth Dynamics

Shift Toward Integrated RFID Tracking: Airports are increasingly adopting integrated RFID and sensor-based tracking to enhance baggage visibility and reduce losses. These systems enable seamless monitoring across terminals, linking each bag's journey with real-time data analytics. The technology supports predictive maintenance and operational efficiency while paving the way for biometric and IoT-enabled baggage management in next-generation airports.

Surging Global Passenger Volumes: The rapid recovery in global air travel is pushing airports to modernize baggage operations to keep pace with rising passenger volumes. Leading terminals are introducing flexible, automated systems that streamline sorting and reduce errors. By integrating advanced tracking and analytics, operators aim to enhance efficiency and reliability, ensuring smoother passenger experiences even during peak travel periods.

Airport Capacity-Expansion Programs: Global airport expansion projects are reshaping baggage handling infrastructure with a focus on automation, sustainability, and energy efficiency. Modern terminals are incorporating smart conveyors, climate-optimized workspaces, and low-power drive systems to enhance performance and reduce operating costs. These large-scale upgrades also open long-term opportunities for software updates, sensor retrofits, and cybersecurity services across the baggage handling ecosystem.

Legacy IT and Interoperability Gaps : Airports are facing integration hurdles as legacy communication systems struggle to align with modern digital platforms. Outdated messaging frameworks increase operational complexity and raise implementation costs for new baggage handling systems. Maintaining both old and new infrastructures during transitions adds financial strain, often offsetting expected efficiency gains. Without sufficient investment in system integration, airports risk reduced performance, higher maintenance expenses, and diminished passenger satisfaction.

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Segmentation Insights

By Airport Capacity
-Up to 15 million
-15 to 25 million
-25 to 40 million
-Above 40 million

By Solution
-Check-In and Ticketing Systems
-Security Screening Systems
-Conveying and Sorting Systems
-Early Baggage Storage
-Baggage Reclaim/Unloading
-Tracking and Tracing

By Technology
-Barcode
-RFID
-IoT Sensors and Edge Devices
-Robotics and Autonomous Vehicles
-AI/Machine Learning Software

By System Type
-Conveyor Belt Systems
-Tilt Tray and Cross-Belt Sorters
-Destination Coded Vehicle (DCV)
-Tote-Based/Individual Carrier Systems
-Hybrid and Other Emerging Systems

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Notable Companies in the Market

Vanderlande Industries BV

Siemens AG

Alstef Group

Leonardo S.p.A

Daifuku Co. Ltd.

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Conclusion

The airport baggage handling market is poised for steady expansion as airports worldwide modernize their ground operations and enhance passenger service efficiency. Increasing air travel demand, airport infrastructure upgrades, and the adoption of smart, automated baggage handling systems are central to market momentum. The integration of AI-driven tracking, RFID tags, and real-time data analytics is helping operators reduce mishandling rates while improving turnaround time.

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Industry Related Reports

Airport Passenger Boarding Bridges Market: The Airport Passenger Boarding Bridges Market is valued at USD 1.94 billion in 2025 and is projected to reach USD 2.73 billion by 2030, registering a CAGR of 7.05% during the forecast period. Growth is driven by expanding airport infrastructure, rising air passenger traffic, and modernization initiatives aimed at improving passenger safety, comfort, and boarding efficiency across global airports.

Get More insights: https://www.mordorintelligence.com/industry-reports/airport-passenger-boarding-bridge-market?utm_source=openpr

Air Taxi Market: The Air Taxi Market is valued at USD 1.74 billion in 2025 and is projected to reach USD 4.96 billion by 2030, registering a CAGR of 23.32% during the forecast period. Growth is driven by increasing demand for urban air mobility, advancements in electric vertical take-off and landing (eVTOL) technologies, and strong investments from aerospace companies and mobility service providers to address traffic congestion in metropolitan areas.

Get More insights: https://www.mordorintelligence.com/industry-reports/air-taxi-market?utm_source=openpr

Smart Airport Market: The Smart Airport Market is valued at USD 6.61 billion in 2025 and is projected to reach USD 10.83 billion by 2030, registering a CAGR of 10.36% during the forecast period. Growth is driven by rising adoption of digital technologies, integration of IoT and AI for seamless passenger experiences, and ongoing investments by governments and airport authorities to enhance operational efficiency, security, and sustainability.

Get More insights: https://www.mordorintelligence.com/industry-reports/smart-airport-market?utm_source=openpr

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