Airport Baggage Handling Systems Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.24 Billion |
| Market Size (2029) | USD 3.99 Billion |
| CAGR (2024 - 2029) | 12.22 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Airport Baggage Handling Systems Market Analysis
The Airport Baggage Handling Systems Market size is estimated at USD 2.24 billion in 2024, and is expected to reach USD 3.99 billion by 2029, growing at a CAGR of 12.22% during the forecast period (2024-2029).
The airport baggage handling systems market has been driven by the growth in the number of air passenger traffic in recent years. The modernization of new airports and technological advancements have been fueling the market's growth. The increasing focus on improving operational efficiency at airports is expected to lead the market's growth over the coming years.
Technological advancements such as robot utilization for baggage handling processes and endeavors, including establishing new airports and expanding existing terminals, are expected to result in a positive outlook for the market.
The renovation of baggage handling systems at various airports will also lead to growth in the market. In addition, most global airport authorities are now investing in renewing airport infrastructure to offer better comfort and baggage handling experience. According to the International Air Transport Association (IATA), the global adoption of RFID can help the aviation industry save billions of dollars over the coming years.
The aviation industry needs to be technologically updated to utilize its maximum potential. The check-in process during peak traveling consumes most of the time and is exhausting for passengers. Automated kiosks, remote queue management systems, and remote check-ins may make this process more convenient, which is expected to fuel the market's growth in the coming years.
Baggage mishandling had been a significant challenge for aviation authorities earlier. However, a growing focus on better baggage tracking procedures and the introduction of the recent IATA's Resolution 753, which requires airlines to track bags at the four main touchpoints (make-up, loading, transfer, and arrival) across the journey, have helped reduce the number of mishandled bags over the last few years. Companies have been investing in developing better baggage-tracking technologies to obtain the data to comply with Resolution 753. Such investments are expected to drive the market's growth over the coming years.
Airport Baggage Handling Systems Market Trends
The Above 40 Million Segment is Expected to Witness Significant Market Growth During the Forecast Period
The above 40 million segment is expected to grow significantly during the forecast period. There has been a significant increase in the number of airports entering the above 40 million passenger handling capacity segment. This has been primarily due to the growing investments in expansions by major airports to cater to future passenger traffic and reduce congestion. For instance, in 2023, Atlanta International Airport recorded passenger traffic of approximately 104 million. In April 2024, the airport announced that its work module had been initiated with an investment of USD 1.4 billion. Under the investment, the airport's Concourse D, which has been in existence for 44 years, is set to undergo expansion. The expansion will involve increasing its footprint from 60 feet to 99 feet (18 to 30 meters), extending its overall length by 288 feet (87 meters). The project’s primary objective will be to enhance the travel experience and efficiently handle the substantial number of passengers that pass through the concourse daily. Its anticipated completion date is 2029.
Similarly, in July 2023, the United Arab Emirates announced that it aims to make Dubai’s Al Maktoum International Airport one of the world’s largest airports by 2050, with an annual capacity of up to 255 million passengers, through a huge investment of USD 33 billion. Furthermore, in November 2022, Hamad International Airport (HIA) unveiled its impressive airport expansion project to the world. With this expansion of Phase 3, the airport passenger capacity reached 58 million passengers per year. The final expansion phase began in January 2023 and is expected to be completed by 2025, boosting the airport's annual capacity to approximately 70 million passengers. Similar projects are ongoing in several other countries across different regions. Such airport expansion projects are anticipated to generate demand for new baggage handling systems that would efficiently process passengers and baggage in the airport.
Asia-Pacific Expected to Dominate the Market During the Forecast Period
Investments in airport infrastructure across Asia-Pacific have surged, mirroring the region's escalating passenger traffic. Notably, China, India, Japan, and South Korea have all experienced a sharp uptick in passenger numbers, prompting significant investments toward expanding existing airports and building new ones.
India, for example, unveiled plans in July 2023 to construct between 230 and 240 airports by 2030. Highlighting this trend, Chennai International Airport in Tamil Nadu, India, marked a milestone in April 2023 with the completion of its New Integrated Terminal Building (NITB) Phase-1. This modern terminal, covering 1,36,295 sq. m and costing INR 1,260 crores, is set to boost the airport's passenger handling capacity to 30 million annually. In a further move, the airport, in April 2024, introduced eight new self-baggage drop kiosks in its domestic terminal (T1), of which IndiGo secured four as it serves 60% of the airport's passengers.
Asia-Pacific countries are ramping up their airport capacities to match the surging air passenger numbers. For instance, as part of China's 14th Five-Year Plan (2021-2025), the nation is accelerating its investments in airport construction to bolster its civil aviation capacity. The Civil Aviation Administration of China (CAAC) aims to unveil over 30 new civil airports and boost civil aviation capacity by 43% under this plan. Similarly, in May 2024, two airports in Vietnam selected Vanderlande as their baggage handling systems (BHS) provider, leveraging Vanderlande's status as an Airport Lab Network Partner of the FTE Baggage Innovation Working Group. With such ambitious expansion strategies, the region's demand for new airport baggage handling systems is poised for growth over the coming years.
Airport Baggage Handling Systems Industry Overview
The airport baggage handling systems market is semi-consolidated, with a few players holding significant market shares. Some prominent market players are Siemens AG, SITA, Beumer Group, Vanderlande Industries, and Leonardo SpA.
These companies have expanded their presence in various regions through partnerships with airport authorities and airlines. For instance, in December 2022, TSA launched a high-tech baggage handling system at Denver International Airport. The Checked Baggage Inspection System (CBIS) features a complicated conveyor belt network that sorts and tracks luggage through the screening security process. The cost of the system was nearly USD 160 million. As market demand improves with the growth in passenger traffic, smaller players are expected to gain a competitive advantage to cater to customers' needs.
Airport Baggage Handling Systems Market Leaders
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Siemens AG
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SITA
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BEUMER GROUP
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Vanderlande Industries Holding B.V.
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Leonardo S.p.A
*Disclaimer: Major Players sorted in no particular order
Airport Baggage Handling Systems Market News
- April 2024: Paris Charles de Gaulle Airport unveiled an advanced security baggage system and a dedicated handling area, gearing up for the 2024 Paris Olympic Games. The new system boasts an upgraded scanner, allowing for comprehensive luggage checks and eliminating the need for passengers to remove items like electronics, aerosols, or liquids.
- April 2024: Manchester Airport rolled out a state-of-the-art baggage system in its Terminal 2, a key component of its USD 1.65 billion Transformation Programme. With Terminal 2 projected to serve around 70% of the airport's passengers by 2025, this cutting-edge system promises a smooth and efficient journey for all travelers.
Airport Baggage Handling System Market Report - Table of Contents
1. Introduction
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. Market Segmentation
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5.1 Airport Capacity
- 5.1.1 Up to 15 million
- 5.1.2 15-25 million
- 5.1.3 25-40 million
- 5.1.4 Above 40 million
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5.2 Geography
- 5.2.1 North America
- 5.2.1.1 United States
- 5.2.1.2 Canada
- 5.2.2 Europe
- 5.2.2.1 United Kingdom
- 5.2.2.2 France
- 5.2.2.3 Germany
- 5.2.2.4 Rest of Europe
- 5.2.3 Asia-Pacific
- 5.2.3.1 China
- 5.2.3.2 India
- 5.2.3.3 Japan
- 5.2.3.4 South Korea
- 5.2.3.5 Rest of Asia-Pacific
- 5.2.4 Latin America
- 5.2.4.1 Brazil
- 5.2.4.2 Rest of Latin America
- 5.2.5 Middle East and Africa
- 5.2.5.1 Saudi Arabia
- 5.2.5.2 United Arab Emirates
- 5.2.5.3 Kuwait
- 5.2.5.4 Rest of Middle East and Africa
6. Competitive Landscape
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 Daifuku Co. Ltd
- 6.2.2 Alstef Group
- 6.2.3 Siemens AG
- 6.2.4 CIMC TianDa Holdings Co. Ltd
- 6.2.5 Vanderlande Industries Holding BV
- 6.2.6 BEUMER Group
- 6.2.7 G&S Airport Conveyer
- 6.2.8 Ansir Systems
- 6.2.9 SITA
- 6.2.10 Leonardo SpA
- *List Not Exhaustive
7. Market Opportunities and Future Trends
** Subject To AvailablityAirport Baggage Handling Systems Industry Segmentation
A baggage handling system, or BHS, is a type of conveyor system installed in an airport that enables the transportation of passenger baggage from ticket counter areas to the area where the baggage is loaded onto the aircraft. BHS helps transport checked baggage, which is unloaded from the aircraft to the baggage claim area.
The airport baggage handling systems market is segmented by airport capacity and geography. By airport capacity, the market is segmented into up to 15 million, 15-25 million, 25-40 million, and above 40 million. The report also covers the sizes and forecasts for the airport baggage handling system market in major countries across different regions. For these segments, the market size is provided in terms of value (USD).
| Airport Capacity | Up to 15 million | |
| 15-25 million | ||
| 25-40 million | ||
| Above 40 million | ||
| Geography | North America | United States |
| Canada | ||
| Geography | Europe | United Kingdom |
| France | ||
| Germany | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | Brazil |
| Rest of Latin America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| Kuwait | ||
| Rest of Middle East and Africa |
Airport Baggage Handling System Market Research FAQs
How big is the Airport Baggage Handling Systems Market?
The Airport Baggage Handling Systems Market size is expected to reach USD 2.24 billion in 2024 and grow at a CAGR of 12.22% to reach USD 3.99 billion by 2029.
What is the current Airport Baggage Handling Systems Market size?
In 2024, the Airport Baggage Handling Systems Market size is expected to reach USD 2.24 billion.
Who are the key players in Airport Baggage Handling Systems Market?
Siemens AG, SITA, BEUMER GROUP, Vanderlande Industries Holding B.V. and Leonardo S.p.A are the major companies operating in the Airport Baggage Handling Systems Market.
Which is the fastest growing region in Airport Baggage Handling Systems Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Airport Baggage Handling Systems Market?
In 2024, the Asia-Pacific accounts for the largest market share in Airport Baggage Handling Systems Market.
What years does this Airport Baggage Handling Systems Market cover, and what was the market size in 2023?
In 2023, the Airport Baggage Handling Systems Market size was estimated at USD 1.97 billion. The report covers the Airport Baggage Handling Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Airport Baggage Handling Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in the Airport Baggage Handling System Market?
Emerging trends in the Airport Baggage Handling System Market are a) Integration of IoT and AI for smarter baggage handling b) Adoption of green initiatives for sustainability
What are the emerging trends in the Airport Baggage Handling System Market?
Emerging trends in the Airport Baggage Handling System Market are a) Integration of IoT and AI for smarter baggage handling b) Adoption of green initiatives for sustainability
Airport Baggage Handling System Industry Report
The global airport baggage handling system market is witnessing remarkable growth, propelled by an increase in air passengers and the development of new airports, alongside renovations of existing ones worldwide. This surge is attributed to the need for efficient luggage transport, sorting, and management within airport terminals to reduce delays and enhance passenger experience. The market's expansion is further fueled by the adoption of advanced, automated baggage handling solutions, including destination-coded vehicles and self-bag drop systems, aimed at boosting operational efficiency. This shift towards automation reflects a broader move towards technologically advanced airport infrastructure. With the market segmented by type, operation mode, and region, airport baggage handling companies are at the forefront of driving innovation and efficiency in airport logistics. The baggage handling system market size is set to grow significantly, fueled by ongoing modernization and technological advancements. For detailed insights, including market share, size, revenue growth rate, and a forecast outlook, Mordor Intelligence™ offers a comprehensive analysis and free report PDF download on the Airport Baggage Handling Systems market.
