Baggage Handling System Market Report 2024

The baggage handling system market size has grown strongly in recent years. It will grow from $9.56 billion in 2023 to $10.31 billion in 2024 at a compound annual growth rate (CAGR) of 7.9%. The growth observed in the historical period can be explained by several factors, the rise in air passenger traffic, increasing demand for smooth travel experiences, heightened investments by airport authorities, the need for adaptable and scalable baggage handling solutions, and the growing investments in airport expansion projects.

The baggage handling system market size is expected to see strong growth in the next few years. It will grow to $14.14 billion in 2028 at a compound annual growth rate (CAGR) of 8.2%. The forecasted growth can be attributed to several factors include the increase in air passenger traffic, rising demand for real-time tracking, greater adoption of RFID technology, expanding e-commerce and cargo volumes, and the need for cloud-based solutions. Key trends expected in the forecast period include advancements in automated sorting and loading systems, the integration of AI and machine learning, the incorporation of IoT devices for real-time monitoring, adoption of cloud-based platforms for data storage and analysis, and the implementation of biometric scanning.

The projected growth of the baggage handling system market is expected to be driven by the expansion of the tourism industry. This sector encompasses various services for travelers, including transportation, accommodations, attractions, and hospitality. Growth in tourism is spurred by improved infrastructure, economic expansion, increasing disposable incomes, globalization, and enhanced accessibility to travel information. Baggage handling systems play a crucial role in supporting tourism by efficiently managing luggage, thereby ensuring a seamless travel experience for tourists and enhancing satisfaction and operational efficiency for travel service providers. For example, in 2023, according to the Croatian Bureau of Statistics, commercial accommodation establishments in Croatia experienced significant growth, with 17.8 million tourist arrivals and 90 million overnight stays in 2022, marking respective increases of 39.1% and 28.3% compared to 2021. Thus, the expansion of the tourism industry is a key driver of growth in the baggage handling system market.

Leading companies in the baggage handling system market are actively developing cutting-edge technologies, such as advanced automation solutions, aimed at enhancing the speed and precision of baggage handling operations. These innovations not only bolster efficiency, accuracy, and capacity but also bolster security measures, reduce labor costs, and elevate the overall passenger experience. For example, Beumer Group GmbH & Co. KG, headquartered in Germany, introduced its Next-Gen Line Sorter and Pouch Systems in July 2022. The BG Line Sorter merges the simplicity of a traditional line sorter with the handling capabilities of a high-speed cross-belt sorter, offering a modular design that optimizes space in distribution centers. Featuring highly durable belts, it ensures minimal maintenance requirements. Meanwhile, the BG Pouch System serves as a versatile single-sortation solution capable of buffering, sorting, sequencing, and managing item returns with minimal manual intervention.

In August 2022, Belt Power LLC, a company based in the United States specializing in baggage handling systems, acquired Engineered Components Inc. for an undisclosed sum. This acquisition aims to enhance Belt Power's proficiency in material handling and stimulate its organic growth. By integrating Engineered Components Inc., Belt Power extends its footprint within airports, postal services, and package handling centers. Engineered Components Inc., also based in the US, specializes in providing solutions for baggage handling systems.

Major companies operating in the baggage handling system market are Siemens AG, Babcock International Group PLC, Daifuku Co. Ltd., Vanderlande Industries B.V., Fives Group, SICK AG, BEUMER Group, SITA, INFORM SOFTWARE, Interroll Group, Smiths Detection Group Limited, Grenzebach Maschinenbau GmbH, Pteris Global Limited, Alstef Group, Cassioli Srl, ULMA Handling Systems, G&S Airport Conveyor, Logplan LLC, Ansir Systems, Matrex, Kinematik SA Machinery Manufacturing.

Asia-Pacific was the largest region in the baggage handling system market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the baggage handling system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the baggage handling system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A baggage handling system (BHS) is an automated system utilized in airports to efficiently transport checked luggage from check-in counters to the aircraft, optimizing efficiency, minimizing mishandling, and ensuring prompt and accurate delivery to and from the aircraft. The primary goal of a baggage handling system is to streamline the check-in and baggage retrieval processes, enhance passenger experience, and ensure efficient delivery of luggage to its intended destination.

There are two main types of baggage handling systems, destination coded vehicles (DCVs) and conveyors. DCVs are automated vehicles within airport baggage handling systems that transport luggage to specific destinations within the airport, such as sorting areas or directly to the correct aircraft. These systems employ various technologies including radio-frequency identification (RFID) and barcode scanning for applications across airport check-in, security screening, sorting, transfer, and baggage reclaim systems in airport, railway, and marine environments.

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

The baggage handling system market consists of revenues earned by entities by providing services such as design and consultation, installation and integration, maintenance and repair, security screening, and automation and control systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The baggage handling system market also includes sales of sorters, scanners, RFID readers, automated guided vehicles (AGVs), and baggage carousels. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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