The global 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.
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.
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.
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.
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)
Global Electric Off-Highway Vehicle Market Coverage
Mode of Transport Insight and Forecast 2015-2025
Tracking Technology Insight and Forecast 2015-2025
Type Insight and Forecast 2015-2025
Solution Insight and Forecast 2015-2025
Global Electric Off-Highway Vehicle Market by Region
Rest of the World (RoW)