The baggage handling system market is estimated to be USD 7.5 billion in 2020 and projected to reach USD 10.3 billion by 2025, at a CAGR of 6.6%. The demand for baggage handling systems is driven by the growing cruise industry, expansion of airports, and focus on customer satisfaction. Additionally, significant government focus on intermodal transport will accelerate the growth of the baggage handling system market.
Delivering the passenger’s baggage at the right time and right destination without damage is a key function of the baggage handling system. The current challenges faced by baggage handling system industry are baggage mishandling and timely and efficient delivery of baggage. Baggage mishandling can lead to customer dissatisfaction. In response to that, International Air Transport Association (IATA) and baggage handling system suppliers are working toward implementation of effective baggage tracking system. For instance, from June 2018, all IATA members should comply with a Resolution 753 on baggage tracking. IATA Resolution 753 encourages airlines to implement tracking solutions to cover every single baggage journey to ensure a more comprehensive tracking system across the industry and reduce the number of mishandling incidents. Such norms are expected to create significant opportunities for manufactures to invest in RFID technology. Hence, Resolution 753 is expected to change the business landscape of baggage handling systems and projected to create substantial opportunities for baggage handling system manufacturers to serve this high growing market of baggage handling at airports, marine, and railways.
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The railway segment is estimated to be the fastest growing segment during the forecast period. Growing metro projects have raised the demand for efficient passenger baggage handling systems. For instance, in 2017, the EU made a huge investment worth USD 41.8 billion to construct a world-class railway infrastructure that will increase the capacity and sustainability of the European railways. Advanced technologies such as Kiosk by SITA and SIBAG Smart by Siemens have already been implemented in the railway industry. For instance, Siemens has implemented a baggage handling system at Delhi Metro to bridge the gap between Delhi airport and metro stations. Hence, it would be very important for baggage handling system suppliers to collaborate with metro authorities and regional players to develop advanced baggage handling systems for the railway industry.
Self-service is estimated to be the fastest growing segment in the baggage handling system market, by check-in service type. Innovative self-service bag check-in solutions have been developed to enhance the passenger experience. With implementation of self-service bag check-in systems, a larger capacity for check-in is available to the passengers, thereby providing a higher operational efficiency of airports. It also helps reduce queuing at the assisted service check-in counters resulting in improved efficiency for the airline and the airport. Hence, growing trend of self-service check-in in Europe and Americas is expected to create significant opportunities for baggage handling system and service providers to create advanced check-in services.
In terms of geographic coverage, the baggage handling system market has been segmented into 4 regions, namely, Americas, Asia Oceania, Europe, and the Middle East and Africa (MEA). MEA is expected to record the highest growth rate during the forecast period due to the increasing government investments in airport infrastructure, rising demand for air travel in neighboring regions, such as Asia Oceania and Europe, expansion of trade and tourism, and centrality of the region in the global trade network. For instance, the FIFA World Cup in 2022 is scheduled to take place in Qatar, and the country has undertaken several infrastructural development projects to cater to the global audience. This would create significant opportunities for global baggage handling system suppliers and local MEA players to serve the growing MEA baggage handling system market in near future.
Baggage Handling System Market by Mode (Airport, Marine, Rail), Solution (Check-In, Screening & Load, Conveying & Sorting, Unload & Reclaim), Check-In (Assisted, Self), Conveying (Conveyor, DCV), Tracking (Barcode, RFID), Region - Global Forecast to 2025
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