Status : Published Published On : May, 2021 Report Code : VRAT4089 Industry : Automotive & Transportation Available Format : Page : 186

Global Baggage Handling System Market – Analysis and Forecast (2020-2025)

Industry Insights by Mode of Transport (Airport, Railway, Marine), by Tracking Technology (Barcode System, RFID System), by Type (Conveyor, Destination Coded Vehicle), by Solution (Check-in, Screening, & Loading, Conveying & Sorting, Unloading & Reclaim)

Industry Overview

The baggage handling system market is projected to grow at a CAGR of 6.6%, from USD 7.5 billion in 2020 to USD 10.3 billion by 2025. 

The growing emphasis on optimising airport operating performance, the number of air passengers and major advances in intermodal transport are the key factors driving the demand for baggage handling market.

Baggage Handling System Market Highlights

The Baggage Handling System Market will be influenced by the increasing emphasis on enhancing air connectivity and expanding intermodal transport. In addition, demand for baggage handling systems is also projected to be powered by increasing smart city initiatives and the growing maritime industry. The growth of this business is constrained by factors such as complex architecture and the high level of initial investments.

The baggage handling system is a type of conveyor system that helps to move the baggage from the location where the baggage is loaded into the transport vehicle at the check-in point to the place where the passenger baggage claim area is situated. The primary function of luggage is to move the luggage to the right position. Furthermore, the system provides functions such as tracking, counting, automatic tag reader, load balancing, bag overlap solving, and bag jam detection. This baggage handling system uses various technologies, such as Radio Frequency Identification (RFID) and the barcode system, for the baggage handling process.

Market Segmentation 

Insights by Mode of Transport 

•   Airport
•   Railway
•   Marine

The airport segment is projected to be the largest contributor during the forecast period.

During the forecast period, the baggage handling system market for airports is estimated to account for the largest market share. Almost 95 percent of the market share is provided by airports. The airport segment will continue to dominate the baggage handling system market in the next 20-30 years, according to key insights. The rising percentage of air passenger traffic worldwide can also be attributed to the growth of this industry. According to the International Air Transport Association (IATA), from 2014 to2034, the global average annual air passenger travel is projected to grow by about 3.8 percent.

Insights by Tracking Technology

•   Barcode System
•   RFID System

By tracking technology, RFID system to be the fastest growing segment for Baggage Handling System Market.

In the coming years, the RFID system segment, with Resolution 753 mandates, is expected to show strong growth. According to primary insights, however, Resolution 753 will never fully discard barcode systems. Between November 2016 and June2018, domestic Indian airlines received 763 baggage-related grievances, according to the Ministry of Civil Aviation, the fourth highest after complaints about flight delays, ticket fares, and check-in and boarding. RFID systems have a better area of coverage than barcode systems and do not need to be positioned for scanning in the line of sight.

Baggage Handling Conveyor System Market, Insights by Type

•   Conveyor
•   Destination Coded Vehicle

The conveyor type of baggage handling system is expected to account for the largest market during the forecast period.

By type, the conveyor segment is projected to lead the market for the baggage handling conveyor system. Airports with low passenger traffic use conveyors as the primary means of baggage transport. The conveyor type baggage handling system is used by Class C and a few class B airports. The Destination Coded Vehicle (DCV) is a relatively new technology used by multiple terminals in larger airports. The DCV is currently the fastest way to transport luggage, according to main insights. The increase in DCV adoption can be attributed to the interconnection of terminals, the increase in passenger traffic and the improvement of airports.

Baggage Handling System Market, Insights by Solution

•   Check-in, Screening, and Loading
•   Conveying and Sorting
•   Unloading and Reclaim

The conveying and sorting segment is expected to lead in the baggage handling system market.
It is expected that the conveying and sorting segment will lead the baggage handling system market by solution. Sorting is the cornerstone of the overall baggage handling scheme, according to crucial observations. The unprecedented growth in air and marine passenger numbers for domestic and foreign travel around the world has prompted manufacturers of baggage handling systems to find ways to develop current automated sorting technology for baggage handling.

Baggage Handling System Market, On the basis of Region

Asia Oceania

•   China
•   Australia
•   India
•   Singapore
•   Japan
•   Thailand
•   Rest of Asia Oceania

Europe

•   Germany
•   Italy
•   Spain
•   UK
•   France
•   The Netherlands
•   Rest of Europe

Americas

•   US
•   Brazil
•   Canada
•   Mexico
•   Rest of Americas

MEA

•   South Africa
•   UAE
•   Qatar
•   Rest of MEA

During the projection period, Asia Oceania is expected to grow the largest in the Baggage Handling System Market.

Asia Oceania is expected to have the largest share of the market. The demand for baggage handling systems in the area has been triggered by factors such as the rising number of air travellers, upcoming airport projects, the involvement of the cruise industry, the potential for multimodal transport, the economy of countries, government spending in rail, marine and airport projects, customer approval and government regulations. China accounts for the largest market share of the Asian Oceania baggage handling device market due to the ever-growing air passenger traffic.

Market Trends – Salient trends of Baggage Handling System Market

Renovation of Airports across the Globe is Upholding Market Growth. 

Due to the high acceptance of airways as a mode of transport, the number of airports across the globe is increasing. The key reason for the adoption of air travel is the improvement of airport facilities by using technical innovations such as the incorporation of the baggage handling system with RFID technology, the robotic baggage handler system developed by AI, etc. In June2016, for example, SITA released a self-propelling luggage robot called Leo with a carrying capacity of 32kgs. The first use of Leo was at Geneva Airport in Switzerland. Moreover, in 2019, Smiths detection Group Ltd. Signed a contract of approximately USD 70 million with Transportation Security Administration (TSA) to set up luggage handling system across the U.S. In addition, new airline carriers have launched airline services as well. In India, for example, in February2017, Zoom Air began its airline operations with its route restricted to select Indian cities. It eventually raised the need for additional facilities for handling luggage. Therefore, the upgrading of airports around the world is stimulating the growth of the industry.

Market Drivers:

Sudden increase in Passengers Travelling via Airlines to swell the market

In 2037, the International Air Transport Association (IATA) stated that airline passenger numbers will be about 8 billion. Due to factors such as sustained economic growth, favorable population trends, demographic profiles, and improved household incomes, passengers travelling via airways have risen in recent years. Airport authorities are investing heavily in baggage handling equipment and new services that will improve passenger service, taking these considerations into account. This business growth is then motivated by sudden rises in passengers commuting via airways.

Challenges: 

High Investment required for Advanced Luggage Management Systems to Hamper Market Growth.

Manufacturers are spending aggressively in order to give their clients quality services. However, in terms of creativity in the baggage transport infrastructure, technical advancement needs further spending. Due to factors such as large numbers of passengers and low safety, the railway industry is facing a problem of investing in a smart baggage handling system. This calls for proper infrastructure for treating baggage which needs a large amount of money. In addition, the unexpected failure of baggage handling equipment threatens airport infrastructure services at airports. Sudden collapse relates to the malfunction of the operating system, network failure, and power failure caused by excessive use and indignation. The machine would not be able to carry out its operations automatically if either of these faults take place.

Key Market Players:

•   Siemens (Germany)
•   Vanderlande Industries (Netherland)
•   Daifuku Company (Japan)
•   Pteris Global (Singapore)
•   Beumer Group (Germany)
•   Grenzebach Maschinenbau (Germany)
•   BCS Group (New Zealand)
•   Logplan (US)
•   G&S Airport Conveyor (US)
•   Fives Group (France)

Latest News 

Industry Developments:

December 2019: The contract for the baggage handling project launched at Chennai International Airport in Tamil Nadu, India, has been secured by Pteris Global Limited, a subsidiary of Hong Kong-based CMIC Tianda. At an estimated worth of 360 million Yuan, the order is India's biggest state-owned baggage device project currently.

May 2019: The Netherlands-based Vanderlande Industries has entered into an arrangement to modernise the baggage handling facility at Brussels Airport with the Brussels Airport Group. The business will offer expertise to update and refine operating processes under the 20-year-long term.

Baggage Handling System Market Analysis

Source: VynZ Research

Frequently Asked Questions

Global Baggage Handling System Market is projected to grow at approximately 6.6% CAGR during the forecast period 2020-2025.
Asia Oceania region holds the largest potential for baggage handling system market growth.
The global baggage handling system market is predicted to reach USD 10.3 billion by 2025.
Sudden increase in Passengers Travelling via Airlines are the key growth drivers for the global baggage handling system market.
Some of the major key players of global baggage handling system market are Siemens, Vanderlande Industries, Daifuku Company, Pteris Global, Beumer Group, Grenzebach Maschinenbau, BCS Group, Logplan, G&S Airport Conveyor, and Fives Group.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Baggage Handling System Market