The COVID-19 pandemic that struck in 2020 had a huge impact on the airport's overall operations. The travel restrictions throughout several nations caused the sudden drop in air passenger traffic. Slowly, as the number of COVID-19 cases started to reduce during the 2021s, air passenger traffic began to regain its momentum thereby showing a positive impact on the North American airport baggage handling systems market.
As per IATA, in 2022, passenger numbers in North America were expected to reach 94% of 2019 levels, and full recovery is expected in 2023 (102%), ahead of other regions. As several of the major airports are operating close to their maximum passenger capacity, the airports are opting for advanced systems that can improve airport operations and reduce delays. An increase in air traffic growth in North America is leading to an increased demand for more efficient airport baggage-handling systems, which is expected to propel the growth of the market during the forecast period. Construction of new airports, as well as terminal expansion, is expected to provide further growth opportunities for the manufacturers of airport baggage handling systems, during the forecast period. The increasing emphasis on airport security, as well as advanced technologies for passenger baggage screening, is expected to support the growth of the market in the years to come.
North American Airport Baggage Handling Systems Market Trends
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.North American Airport Baggage Handling Systems Industry Overview
The North American airport baggage handling systems market is moderately consolidated in nature with few players holding significant shares in the market. Some of the prominent players are SITA, Vanderlande Industries, Siemens Logistics GmbH, Daifuku Co., Ltd, and BEUMER Group GmbH & Co. KG. The industry has witnessed a lot of market consolidation due to increased spending on software and IT solutions. Various contracts received by the players in the recent past helped the companies strengthen their market presence.In January 2023, Siemens Logistics announced that it will soon begin the installation of the new outbound baggage handling system (BHS) at Austin-Bergstrom International Airport, Texas, USA. The company will supply a new mainline belt conveyor, vertical sorters, and sortation via high-speed diverters. It will also modernize the higher and lower-level controls for the entire system. The installation will be completed by 2024.
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Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- BEUMER GROUP
- Vanderlande Industries
- SITA
- Siemens AG
- Daifuku Co. Ltd
- Logplan
- G&S Airport Conveyer
- Glidepath Limited
Methodology
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