Airport Baggage Handling System Market Report Scope & Overview:

The Airport Baggage Handling System Market size was valued at USD 7.5 Billion in 2022 & is estimated to reach USD 12.69 Billion by 2030 and increase at a compound annual growth rate (CAGR) of 6.8% between 2023 and 2030.

The baggage handling system is a type of transportation system that's in use at airports. It's being used to transfer checked baggage from the ticket counter into a place where luggage can be put on an airplane. Transfer of luggage from an aircraft into a baggage claim area shall also be carried out using this system. For processing, the baggage handling system uses various technologies such as barcode scanners and RFID sensors.

A projected increase in air traffic is driving the worldwide Airport Baggage Handling System Markets market. Moreover, market growth is driven by the modernisation of new airports as well as technical progress. The growth of the market is hindered by High upfront and maintenance costs for luggage handling systems, as well as complex consequences resulting from system failure. Moreover, the market is projected to benefit from new growth opportunities as a result of use of robots in airports.

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Transporting baggage is the principal function of Airport Baggage Handling System Markets, ensuring that bags are placed where they should be. It also provides other functions, like load balancing, bag and volume management, detection of bags jams, automatic tag reader (ATR), tilt tray sorters, vertical sorting units, etc.

MARKET DYNAMICS

DRIVERS:

• The market for airport baggage management systems is being driven by a steady increase in terminals and the renovation of infrastructure at airports.

The use of technologies that are gradually becoming obsolete is the main reason for these renovations or modernizations. Revitalisation and modernisation are further boosted by an increase in the number of passengers. Moreover, modernising airports is helping to meet the needs of today's and future passengers. 

• Increase in number of passengers who travel by air.

RESTRAIN:

• High cost of implementation and maintenance.

BHSs are complex systems that require a significant investment in capital and ongoing maintenance. This can be a barrier for some airports, especially those in developing countries.

• Complex integration with existing airport systems.

BHSs need to be integrated with a variety of other airport systems, such as check-in systems, security systems, and baggage claim systems. This integration can be complex and time-consuming.

OPPORTUNITY:

• Growing demand for self-service baggage handling solutions.

 Passengers are increasingly demanding self-service options for baggage handling. This is creating opportunities for BHS vendors to develop new solutions that allow passengers to check in and tag their baggage.

• Increasing adoption of RFID technology for baggage tracking.

RFID technology is being increasingly adopted for baggage tracking. This is because RFID tags can be read electronically, which can help to improve the accuracy and efficiency of baggage tracking.

CHALLENGES:

• Cybersecurity threats and data privacy concerns.

As BHSs become more connected and computerized, they are becoming more vulnerable to cybersecurity threats. Airports and BHS vendors need to take steps to protect BHSs from cyberattacks and to ensure that passenger data is protected.

• Integrating BHS with emerging technologies such as artificial intelligence and machine learning.

Artificial intelligence (AI) and machine learning (ML) are two emerging technologies that have the potential to revolutionize the BHS industry. However, integrating AI and ML into BHSs can be challenging.

IMPACT OF RUSSIAN RUSSIAN-UKRAINE WAR

The war has led to a significant decline in international passenger traffic, which has directly impacted the demand for Airport Baggage Handling System Markets. According to the International Air Transport Association (IATA), global passenger traffic is expected to fall by 11% in 2023 compared to pre-pandemic levels. This decline in passenger traffic is expected to have a negative impact on the revenue generated by the Airport Baggage Handling System Market. The war has also caused a rise in energy and transportation costs, which has put upward pressure on the prices of Airport Baggage Handling System Markets. This has made it more difficult for airport operators to invest in new systems or upgrade existing ones.

The impact of the war on the Airport Baggage Handling System market has been felt most acutely in Europe and Russia. The European market is expected to decline by 4% in 2023, while the Russian market is expected to decline by 20%.

 IMPACT OF ONGOING RECESSION

The ongoing recession is likely to have a significant impact on the Airport Baggage Handling System Market (BHS). The recession is expected to lead to a decrease in air travel, which will in turn reduce the demand for BHSs. Additionally, the recession is likely to make it more difficult for airports to finance new BHS projects. The International Air Transport Association (IATA) expects air travel to decline by 5.4% in 2022. A recent survey of BHS manufacturers found that 72% of respondents expect the recession to hurt their business. Airlines are cutting back on flights and reducing their capacity. Airports are delaying new BHS projects. BHS manufacturers are reporting a decrease in orders.

The impact of the recession is likely to be felt differently in different regions of the world. The Asia Pacific region is expected to be the most resilient, as it is the fastest-growing market for air travel. Europe and North America are expected to be more affected, as they are more mature markets. The long-term outlook for the BHS market is still uncertain. The recession is likely to continue to harm the market in the near term. However, the market is expected to recover in the long term, as the demand for air travel is expected to continue to grow.

KEY MARKET SEGMENTATION

By Airport Class

• Class A

• Class B

• Class C

By Service

• Self-Service

• Assisted Service

By Type

• Conveyor

• Destination Coded Vehicle

By Airport Capacity

• 15 million

• 15-25 million

• 25-40 million

• above 40 million

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REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

REGIONAL ANALYSIS

During the projected period, North America is anticipated to dominate the market for Airport Baggage Handling System Markets. North America's biggest market for Airport Baggage Handling System Markets is the US. The use of Airport Baggage Handling System Markets in North America has been hastened by cooperation between Airport Baggage Handling System Market organizations and private drone service companies. Public-private partnerships have made it easier for Airport Baggage Handling System Market organizations to access cutting-edge drone technologies, knowledge, and operational assistance. The substantial demand for Airport Baggage Handling System Markets in North America has been largely attributed to a strong focus on Airport Baggage Handling System Markets, supportive regulatory frameworks, technological innovation, diversified landscapes, and cross-sector cooperation.

During the forecast period, Asia Pacific is expected to witness significant growth. In order to cope with growing passenger traffic in the region, investments in airport infrastructure have increased at a rapid pace over recent years. Over the last several years there has been a huge increase of passenger traffic at Chinese, Indian and Korean airports. This has led airport operators in the region to increase their investment in expanding existing airports and building new ones. The Asia Pacific region is expected to account for 58 % of global air passenger demand, resulting in the region upgrading its airport infrastructure with investments to meet this growth:

KEY PLAYERS

The Major Players are Alstef Group, Beumer Group, China International Marine Containers (Group) Ltd., C I MATECH LOGISTICS SAS, Daifuku Co. Ltd, Fives, Leonardo S.p.A, Siemens AG, Toyota Industries Coporation, ULMA Group and Other Players

RECENT DEVELOPMENT

• Alstef Group has been awarded a contract for improvements of baggage handling system at Strasbourg AirportSXB in France.

• Melbourne Airport has a very ambitious plan for the future and is currently in the process of implementing major improvements to its baggage system as part of this development.