Airport Baggage Handling System Market to Hit Valuation of USD 13.05 Billion by 2032 | A Data-Driven Perspective is Offering Lucrative Revenue Opportunity Says Astute Analytica
The global airport baggage handling system market is experiencing robust growth driven by rising air travel and the need for efficient, seamless baggage management. Technological advancements like RFID, automation, and AI are transforming the industry, promising reduced mishandling, enhanced accuracy, and improved passenger experience.
New Delhi, March 26, 2024 (GLOBE NEWSWIRE) -- As per new research by Astute Analytica, the global airport baggage handling system market is projected to reach US$ 13.05 billion by 2032, up from US$ 7.30 billion in 2023, at a CAGR of 6.67% during the forecast period 2024–2032.
The incredible volume of air travel puts a massive strain on baggage handling systems worldwide. In 2022 alone, a staggering 4.5 billion bags were processed by airports globally. While the rate of mishandled baggage was relatively low at 5.57 bags for every thousand passengers, the sheer number of travelers still results in a significant number of mishandled bags. Issues with transfers account for approximately 45% of these cases. The good news is that the vast majority (97%) of mishandled luggage is eventually recovered, with only a tiny percentage (0.57%) ending up truly lost. Still, airlines face a $2.5 billion annual cost due to mishandled baggage.
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As passenger numbers continue to climb, projected to double by 2037, efficient baggage handling system such as check-in systems, security screening systems, transportation, sortation and storage systems, and reclaim systems will become even more critical. In line with this, airports and airlines are responding with technological advancements like widespread implementation of self-bag drop systems (planned for 60% of international airports by 2022) and the adoption of Radio Frequency Identification (RFID) tagging in the airport baggage handling system market. By 2022, an estimated 26% of bags were expected to carry RFID chips, a technology with the potential to cut mishandling rates by up to 25%.
*Security Remains Key Driver*
Security remains a top priority, with 100% of checked luggage undergoing screening in many countries. To give passengers peace of mind, around 60% of airlines and airports introduced real-time baggage tracking systems by 2019. Artificial intelligence (AI) further bolsters efficiency, with more than 40% of airlines deploying AI-powered baggage handling systems by the end of 2022. Robotics also plays a growing role, with 42% of airports planning to incorporate robots into their processes by 2025. Sustainability joins efficiency and security as a central focus, with modern baggage systems contributing to a 10-15% reduction in airports' carbon footprints. These compelling statistics underscore the ever-increasing demand for advanced airport baggage handling systems to seamlessly manage the vast flow of luggage associated with global air travel.
*Key Findings in Global Airport Baggage Handling System Market *
Market Forecast (2032) US$ 13.05 billion
CAGR 6.67%
Largest Region (2023) Asia Pacific (40.7%)
By Type Conveyor (72.9%)
By Solution Transportation, Sortation, and Storage Systems (50.4%)
By Tracking Technology Barcode System (76.6%)
By Check-In Service Type Assisted (71.3%)
By Airport Class Class A (42.4%)
Top Trends · Increasing adoption of self-service bag drop and remote bag drop facilities
· Growing use of automation and advanced technologies like RFID tracking and AI
· Focus on enhancing the passenger experience through improved baggage handling
Top Drivers · Surging air travel demand and passenger volumes in the Asia Pacific region
· Need for efficient and secure baggage handling to support airport operations
· Competitive landscape pushing innovation and investments in advanced solutions
Top Challenges · Handling sudden surges or fluctuations in baggage volumes during peak periods
· Ensuring seamless integration of baggage systems with airport infrastructure
· Maintaining baggage security and chain-of-custody throughout the handling process
*The Lucrative Opportunity in Airport Baggage Handling System Market: A Data-Driven Perspective*
The sheer volume of global air travel creates a pressing need for efficient, seamless baggage handling. In 2022 alone, airports managed an impressive 4.5 billion bags. The good news is that the rate of mishandled baggage was relatively low at 5.57 bags for every thousand passengers. Yet, these mishandlings still cost airlines a hefty $2.5 billion annually and cause passenger inconvenience. This underscores the demand for technologically-driven airport baggage handling systems, especially as passenger numbers are expected to double by 2037.
Modern airport baggage handling system market is characterized by speed and efficiency. Automated systems can move and sort bags at up to 10 meters per second, enabling major hubs to process upwards of 30,000 bags per hour, ensuring timely flight schedules. Moreover, technologies like RFID and barcode scanning provide nearly 100% tracking accuracy, minimizing lost luggage. In fact, 97% of initially mishandled bags are eventually returned to their owners. Redundancies within these systems provide reliability and keep operations flowing even if certain components experience issues.
Passenger satisfaction is deeply linked to efficient baggage handling. Automated systems ensure bags arrive promptly at their destination, creating a positive travel experience. Passengers also appreciate being freed from having to transport their own luggage after check-in. Within the airport, baggage systems streamline logistics by moving luggage swiftly between key areas like check-in, security, and baggage claim. These systems can be customized to any terminal layout and reduce the amount of space needed for baggage handling in passenger areas.
Airlines in the airport baggage handling system market also benefit from robust baggage handling systems, as reliability becomes a deciding factor when choosing hub airports. Furthermore, automation reduces labor costs and allows for round-the-clock operations. The data generated by these systems allows for optimization and improved planning, benefiting both airlines and airport operations overall.
*Segmental Analysis: A Market Snapshot of Airport Baggage Handling*
The airport baggage handling systems market is a diverse landscape, segmented by type, solution, airport class, and tracking technology. The traditional conveyor system reigns supreme, holding a 72.9% revenue share due to its robustness, scalability, and ease of integration. However, the destination-coded vehicle (DCV) segment shows promising growth (CAGR of 7.15%), offering more flexibility, reduced manual intervention, and lower mishandling rates.
Analyzing the airport baggage handling system market by solution, the Transportation, Sortation, and Storage Systems segment dominates with a 50.4% share. This reflects the fundamental need for efficient baggage movement, sorting, and temporary storage within all airports.
Class A mega-hub airports hold a 42.4% market share, processing vast volumes of baggage and prioritizing innovation due to their high traffic and financial capabilities. Interestingly, Class B airports are emerging as fast adopters with a CAGR of 7.06%, driven by increased passenger traffic and infrastructure investment in developing economies.
Barcode technology remains the preferred tracking method in 76.6% of airports due to its cost-effectiveness, reliability, and standardization. However, RFID technology is gaining traction with a projected CAGR of 6.93%, offering higher accuracy (99%), reduced mishandling, and decreasing costs. Industry leaders are already deploying RFID, and its adoption is expected to grow significantly in the coming years, potentially saving airlines billions of dollars.
*Asia Pacific is an Epicenter of Global Airport Baggage Handling System Market *
The Asia Pacific region has seen tremendous growth in tourism in recent years. Countries like China, Japan, South Korea, Thailand, and others have become increasingly popular destinations for international travelers, attracted by the region's rich cultural heritage, natural beauty, and growing business opportunities. In 2023, Japan is expected to host 32 million international tourists, while Cambodia anticipates welcoming 4 million visitors. To accommodate the surge in air travel, many countries in the Asia Pacific are investing heavily in airport infrastructure. New airports are being built and existing ones are undergoing expansions to increase capacity and improve facilities. For example, the newly constructed Beijing Daxing International Airport introduced RFID technology for baggage tracking. These infrastructure investments are driving demand for advanced baggage handling systems.
Airports in the Asia Pacific airport baggage handling system market are adopting cutting-edge technologies to enhance efficiency and passenger experience. This includes automated baggage handling systems, self-service check-in kiosks, biometric security systems, and more. In 2018, Siemens commissioned one of the world's most modern baggage handling systems at Incheon International Airport in South Korea, capable of processing nearly 20,000 bags per hour.
The Asia Pacific is home to some of the world's fastest-growing economies. Initiatives like China's Belt and Road are boosting connectivity and investment in airport development across the region. The growing affluence and business activity are fueling both leisure and business travel. As a result, airports are seeing higher passenger volumes and demand for efficient baggage handling. In line with this, the airport baggage handling systems market in Asia Pacific is moderately fragmented with several key players. Companies like John Bean Technologies, ADELTE Group, Cavotec, and others are competing for contracts with different airports in the region. This competitive landscape is driving innovation and investments in advanced baggage handling solutions.
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*Top 10 players Captured Less Than 40% Share of Global Airport Baggage Handling System Market *
The global airport baggage handling system market is a dynamic landscape with a multitude of players vying for dominance. The fact that the top 10 companies hold less than 40% of the market share indicates a fragmented industry where innovation and specialization play critical roles. Wherein, Beumer Group, Daifuku Co. Ltd., Fives Group, G&S Airport Conveyor, Glidepath Group, Grenzebach Group, Logplan LLC, Pteris Global Limited (CIMC Group), Siemens AG, and Vanderlande Industries B.V. are some of the prominent players.
It has been found that most of the key players are focusing more on technology improvement and development to stay competitive. In fact, it has become a major battleground, with leading companies heavily investing in research and development. New systems like Vanderlande's TUBTRAX and BEUMER Group's CrisBag represent radical departures from traditional conveyor-based baggage handling, showcasing an emphasis on speed, efficiency, and uniqueness in their offerings. Players like Siemens are carving out a niche by focusing on software solutions, providing the 'brains' to optimize baggage system performance.
Software is becoming integral to the baggage handling process, with solutions like SITA's BagManager and the use of Matrox Imaging Library highlighting the importance of real-time tracking, data analytics, and automation in minimizing baggage mishandling and improving efficiency.
Customization and flexibility are also critical success factors in the airport baggage handling system market. The ability to design systems that fit seamlessly into a variety of airport environments, from sprawling hubs to smaller terminals, is highly valued by clients. Daifuku and Grenzebach stand out in this area, specializing in modular components and customized early bag storage solutions that enable airports to make the most of their space and improve overall baggage flow.
A competitive advantage also comes from providing comprehensive long-term support and maintenance services to ensure that these complex systems continue to operate seamlessly. Companies that offer 24/7 support, preventative maintenance, and on-site engineers demonstrate a commitment that builds trust with airports and airlines. Experience in the field cannot be discounted; players with a history of successful deployments at major airports worldwide inspire confidence by showcasing their competence in handling complex baggage handling projects.
*Global Airport Baggage Handling Systems Market Key Players*
· Beumer Group
· Daifuku Co. Ltd.
· Fives Group
· G&S Airport Conveyor
· Glidepath Group
· Grenzebach Group
· Logplan LLC
· Pteris Global Limited (CIMC Group)
· Siemens AG
· Vanderlande Industries B.V.
· Other Prominent Players
*Key Segmentation:*
*By Type*
· Conveyor
· Destination Coded Vehicle (DCV)
*By Solution*
· Security Screening Systems
· Transportation, Sortation, and Storage Systems
· Reclaim Systems
*By Airport Class*
· Class A
· Class B
· Class C
· Others
*By Tracking Technology*
· Barcode System
· RFID System
*By Check-in Service Type*
· Assisted Service
· Self-Service
*By Region*
· North America
· Europe
· Asia Pacific
· South America
· Middle East & Africa
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*About Astute Analytica*
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
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CONTACT: Vipin Singh
BSI Business Park, H-15,Sector-63, Noida- 201301- India
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/