Market Trends of North America Airport Baggage Handling Systems Industry
The More Than 40 Million Airport Capacity segment is expected to lead the market during the forecast period
The more than 40 million segment is expected to lead the North American airport baggage handling systems market during the forecast period.
Baggage handling at small airports is a relatively simpler matter, whereas, in large airports, the process is far more complex and can have a significant impact on cost and quality of service. Increased passenger traffic year after year has simultaneously increased the baggage volume, which is the primary reason for the adoption of automated systems at airports with an airport capacity of above 40 million. Baggage handling systems are being adopted by such airports to solve bottlenecks that occur during peak times. To tackle the growing air passenger traffic of the region, large airports having a capacity of more than 40 million are adopting automated airport baggage handling systems, which will fuel the growth of the market during the forecast period.
The United States is Anticipated to Register the Highest CAGR During the Forecast Period
According to the US Department of Transportation, the number of air passengers traveling to or from the United States increased from 67 million in 2020 to close to 178 million in 2022. However, the growth in terms of infrastructure modernization or expansion has fallen far behind compared to the growth in the number of air passengers. The US airports are usually funded with federal grants through FAA's Airport Improvement Program (AIP), a local user fee called the Passenger Facility Charge (PFC), and airport-generated revenue from tenant rents and fees. Several airports need new investments to maintain and modernize their infrastructure. Lack of funding over the past two decades has resulted in several airports operating in a crowded environment. Several airports, like Los Angeles International Airport, Hartsfield-Jackson Atlanta International Airport, Kansas City International Airport, and Chicago's O'Hare Airport, have launched modernization projects worth billions of dollars in the last few years to tackle the increasing airport passenger traffic. As the airports undergo a major expansion, demand is likely to be generated for new and advanced systems, like automated baggage handling systems. Hence, the US market is estimated to register the highest growth during the forecast period.
