Commercial Airport Baggage Handling Systems Market Size, Share, Growth, and Industry Analysis, By Type (Smart Baggage Tracking Devices, Smart Baggage Screening Technologies and Other), By Application (For Small Airport, For Medium Airport and For Large Airport), Regional Insights, and Forecast To 2032

Updated On: 29 April 2024

Commercial Airport Baggage Handling Systems Market REPORT OVERVIEW

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global commercial airport baggage handling systems market size was USD 9002.65 million in 2021 and the market is projected to touch USD 32187.05 million by 2032 at a CAGR of 12.28% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the commercial airport baggage handling systems experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Commercial airport baggage handling systems are critical components of airport infrastructure responsible for efficiently managing the flow of passengers' luggage within airports worldwide. These systems ensure that checked baggage is properly sorted, transported, and delivered to the correct destinations, contributing to a smooth and hassle-free passenger experience. The market for these systems has experienced significant growth and innovation in recent years, primarily driven by the increasing demand for air travel and the need for more advanced and reliable baggage handling solutions

Stringent security measures at airports, including comprehensive baggage screening and tracking, have spurred the adoption of advanced baggage handling technologies to ensure passenger safety and regulatory compliance. Airport requirements can vary widely based on their size, location, and passenger flow. Consequently, baggage handling system providers are offering customizable solutions tailored to meet the specific needs of each airport.

COVID-19 IMPACT: Increased Emphasis on Safety and Sanitization to Boost Demand Significantly

COVID-19 had a life changing impact globally. The commercial airport baggage handling systems market was significantly affected. The virus had various impacts on different markets. Lockdowns were imposed in several nations. This erratic pandemic caused disruptions on all sorts of businesses. Restrictions tightened during the pandemic due to increasing number of cases. Numerous Industries were affected. However, the market for commercial airport baggage handling systems experienced an increased demand.

Companies specializing in baggage handling systems faced disruptions in their operations due to supply chain interruptions, reduced demand for new systems, and postponed installations. This resulted in financial challenges for many system providers. The unpredictability of the pandemic's course and the varying pace of recovery in different regions created uncertainty for airport operators and baggage handling system providers. Planning for the future became challenging as the situation continued to evolve.

In response to the pandemic, airports had to prioritize safety and sanitization measures. This included enhanced cleaning and disinfection of baggage handling equipment and facilities. It also led to the need for touchless or contactless baggage processes, which could influence future investments in baggage handling technology. Some airports invested in health screening equipment, such as thermal scanners and health declaration kiosks, which were integrated into the baggage handling process. These additions aimed to enhance passenger safety but also required adjustments to existing baggage handling systems. The market is anticipated to boost the commercial airport baggage handling systems market share following the pandemic.

LATEST TRENDS

"Integration with Automation and AI & Machine Learning Technology to Broaden Market Growth"

AI and machine learning algorithms are being applied to baggage handling systems for predictive maintenance, optimizing baggage flow, and improving security through advanced screening techniques. Automation remains a prominent trend, with airports increasingly adopting robotic systems for tasks such as baggage loading and unloading. These systems improve efficiency, reduce errors, and enhance passenger satisfaction.

In response to the COVID-19 pandemic, there is a growing demand for contactless and touchless solutions in baggage handling. This includes self-service kiosks, mobile apps, and digital baggage tags that reduce physical contact points. These latest developments are anticipated to boost the commercial airport baggage handling systems market share.

Commercial Airport Baggage Handling Systems Market SEGMENTATION

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By Type

Based on type, the market is divided into Smart Baggage Tracking Devices, Smart Baggage Screening Technologies and Other.

By Application

Based on application, the market is bifurcated into For Small Airport, For Medium Airport and For Large Airport.

DRIVING FACTORS

"Rising Air Travel to Boost Market Share"

The continuous increase in global air travel, driven by business and leisure purposes, results in higher passenger volumes at airports. This necessitates efficient baggage handling systems to manage the growing volume of luggage. Many airports are expanding and modernizing their facilities to accommodate more passengers and improve their overall infrastructure. As part of these upgrades, they invest in advanced baggage handling systems to enhance efficiency and passenger experience.

"Passenger Expectations to Boost Market Size"

Passengers today expect quicker and more reliable baggage services. To meet these expectations, airports are investing in improved baggage handling systems to enhance the overall passenger experience. Ongoing advancements in baggage tracking technologies, RFID (Radio-Frequency Identification) tags, AI-powered analytics, and other innovative solutions enable airports to offer improved baggage services, boosting the market's growth. Automation in baggage handling systems helps reduce operational costs, minimize baggage mishandling, and improve the overall efficiency of baggage processing, making it a driving force in the market. These factors are anticipated to drive the commercial airport baggage handling systems market share.

RESTRAINING FACTORS

"Economic Uncertainty to Hamper Market Share"

Implementing or upgrading baggage handling systems involves significant capital expenditure. The cost of purchasing, installing, and integrating these systems can be a deterrent, especially for smaller or financially constrained airports. Economic downturns and financial crises can affect airport budgets and delay or halt planned investments in baggage handling systems. Airport operators may prioritize cost-cutting measures over system upgrades during tough economic times. The factors are anticipated to hinder the commercial airport baggage handling systems market growth.

Commercial Airport Baggage Handling Systems Market REGIONAL INSIGHTS

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"North America Dominates the Market with Large Aviation Industry"

North America, particularly the United States, boasts one of the world’s largest and busiest aviation industries. It is home to numerous major international airports, including Hartsfield-Jackson Atlanta International Airport, Los Angeles International Airport, and Chicago O'Hare International Airport, which handle significant passenger traffic. Air travel in North America is consistently growing, thanks to a robust economy, business travel, and leisure tourism. This growth has driven the demand for efficient baggage handling systems at airports to accommodate increasing passenger numbers.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

List of Market Players Profiled

• Alstef [France]
• ULMA Group [Spain]
• SITA [Switzerland]
• Daifuku [Japan]
• Logplan [U.S.]
• Vanderlande [Netherlands]
• Cisco Systems [U.S.]
• Scarabee [Netherlands]
• Bluesmart [U.S.]
• IBM [U.S.]
• Honeywell [U.S.]
• Fives Group [France]
• G&S Airport Conveyor [U.S.]
• Siemens [Germany]
• Pteris Global [Singapore]
• BCS Group [New Zealand]
• Beumer [Germany]

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.