Airport Baggage Handling System Market Report 2025

The airport baggage handling system market size has grown strongly in recent years. It will grow from $8.74 billion in 2024 to $9.46 billion in 2025 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to air travel growth, security measures, efficiency and throughput, airport expansions and renovations, passenger expectations.

The airport baggage handling system market size is expected to see strong growth in the next few years. It will grow to $12.85 billion in 2029 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to predictive maintenance, sustainability and green initiatives, risk mitigation strategies, cost-efficiency requirements, passenger experience enhancement, rising tourism. Major trends in the forecast period include focus on passenger convenience, customization for airport needs, remote monitoring and management, smart sensor integration, predictive analytics.

A surge in air traffic is anticipated to drive the expansion of the airport baggage handling system market. Air traffic encompasses the movement of aircraft at airports, and this upsurge is primarily attributed to factors like economic and demographic growth, increased income levels, and the necessity for swifter transportation of goods. As air traffic escalates, the demand for airport baggage handling systems is set to climb to accommodate bustling airport operations and streamline aircraft and airport lead times. Notably, in May 2022, the International Air Transport Association (IATA) released passenger data indicating an 83.1% increase in total air traffic compared to May 2021, largely driven by the robust resurgence in international travel. Global air traffic has reached 68.7% of pre-pandemic levels, with international traffic soaring by 325.8% since May 2021. Hence, the surge in air traffic is poised to be a driving force behind the airport baggage handling systems market's growth.

The expanding tourism sector is anticipated to drive the growth of the airport baggage handling system market in the coming years. Tourism is a cultural, social, and economic phenomenon that involves individuals traveling to countries or locations outside their usual environment for personal, business, or professional purposes. Airport baggage handling systems play a crucial role in the tourism sector by ensuring the efficient and secure processing of passenger luggage, improving the overall travel experience, and facilitating seamless airport operations. For example, in May 2023, UN Tourism, a Spain-based specialized agency of the United Nations that promotes accessible tourism worldwide, reported that international arrivals in the first quarter of 2023 reached 80% of pre-pandemic levels. Approximately 235 million tourists traveled internationally during the first three months, more than double the number from the same period in 2022. Therefore, the growing tourism sector is fueling the growth of the airport baggage handling system market.

The integration of advanced technologies is a prominent trend shaping the airport baggage handling system market. Key market players and airports are actively incorporating cutting-edge solutions like near-field communication (NFC) and radio frequency identification (RFID) into baggage handling systems to enable automated check-in and luggage services. Notably, Delhi Airport introduced BAGG TRAX, leveraging RFID-enabled tagging technology in June 2022. This innovation allows real-time tracking of passenger baggage throughout the transfer process. Upon registration, these tags are placed on check-in luggage, providing travelers with updates on their mobile devices regarding their baggage's arrival and collection at the designated belt. This innovative system is expected to significantly reduce the occurrences of lost or delayed baggage, which currently incur substantial annual costs for airlines.

Major companies in the Airport Baggage Handling System market are concentrating on innovations aimed at reducing errors and minimizing the risk of loss or damage during transit. Error reduction involves identifying, analyzing, and implementing strategies to minimize mistakes or inaccuracies across various systems, processes, or operations. For example, in January 2022, Delhi's Indira Gandhi International Airport, an international airport in India, introduced a new high-speed luggage handling system at Terminal 1 to enhance its baggage processing capabilities. The newly integrated cart system installed at Terminal 1 significantly boosts the efficiency of passenger baggage handling, with a capacity to process up to 6,000 bags per hour at a speed of 2.1 meters per second, greatly improving upon the previous method. By employing radio frequency identification technology, the system ensures precise baggage sorting while reducing the risk of loss or damage. Additionally, the design allows each bag to remain securely within its tray throughout transit, thereby enhancing the overall passenger experience.

In August 2022, Belt Power LLC, a United States-based wholesaler and distributor specializing in conveyor belts and their components, completed the acquisition of Engineered Components, Inc.'s assets for an undisclosed sum. This strategic acquisition is set to expedite Belt Power's organic growth strategy within a rapidly evolving industry, bolstering its national expertise in the material handling sector. Engineered Components, Inc. is a US-based provider known for its expertise in postal and mail handling systems, large-scale package handling facilities, and comprehensive solutions dedicated to baggage handling systems.

Major companies operating in the airport baggage handling system market are Beumer Group, Daifuku Co. Ltd., Fives SA, G&S Airport Conveyor, Glidepath Limited, Grenzebach Maschinenbau GmbH, Logplan LLC, Pteris Global Limited, Siemens AG, Vanderlande Industries BV, SITA AG, BCS Group, Ansir Systems, Babcock International Group, Leonardo SpA, Airport Equipment Services Pte. Ltd., ALPHA-CIM Baggage, Alstef Automation S.A., Ammeraal BelTech, Aversan Inc., BB Computerteknik AS, BDP International, CASSIOLI Group, CIMC-TianDa Airport Support Ltd., Dalmec Industrial Manipulators India, LAS-1 Ltd., Logan Teleflex UK Ltd., Losch Airport Service GmbH, Matrex India Pvt. Ltd., Siemens Logistics GmbH.

North America was the largest region in the airport baggage handling system market in 2024. The regions covered in the airport baggage handling system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the airport baggage handling system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The airport baggage handling system is a comprehensive set of procedures and inspections designed to facilitate the efficient transfer of bags within an airport. This process involves utilizing a conveyor belt system to move bags, counting and weighing them, balancing loads, screening for security, and automatically scanning bag information.

The main product types of airport baggage handling systems include conveyors and destination-coded vehicles. Conveyors are mechanical handling devices that automate the movement of loads and materials within a space. In the context of airport baggage handling, conveyors are instrumental in transporting passenger bags from check-in to the check-out point, providing solutions for check-in, screening and load, conveying and sorting, unload and reclaim. The technologies incorporated in these systems include barcodes and RFID (radio frequency identification), which find applications in airports, railways, marine transport, and other relevant sectors.

The airport baggage handling system market research report is one of a series of new reports that provides airport baggage handling system market statistics, including airport baggage handling system industry global market size, regional shares, competitors with an airport baggage handling system market share, detailed airport baggage handling system market segments, market trends and opportunities, and any further data you may need to thrive in the airport baggage handling system industry. This airport baggage handling system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The airport baggage handling system market consists of revenues earned by entities by providing security-related luggage screening, load balance, volume control, and bag tracking. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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