Global Commercial Airport Baggage Handling Systems Market is expected to Showcase Rampant Growth Over 2027
Market Scenario
Market Research Future
(MRFR) predicts that the commercial airport baggage handling systems market is
projected to grow at a CAGR of more than 8% during the forecast period
(2017-2023). The airport terminal expansions coupled with new airport
construction projects across the globe drive the growth of the global market.
For instance, nations like China, Turkey, and the United Arab Emirates (UAE)
are presently undergoing multiple large airport construction projects. The
global market is also experiencing a surge in demand owing to increasing
airline passengers, airline operators, and the airport as an independent unit.
The requirement of a BHS (Baggage Handling System) is mainly driven by the need
for efficient systems, which manage the movement of airline baggage in and out
of the check-in and checkout points at the airports. The BHS is playing a
stellar role in the baggage handling procedure owing to constant developments
of new technologies and improving systems.
However, there is a
flip side to the market growth, namely mismanagement of the system that leads
to luggage to go astray. This factor potentially impedes the ongoing market
surge even during the forecast period. But, the driving factors cannot be
sidelined, such as increasing use of technology for ease of use, such as radio
frequency identification (RFID) technology. The air transport industry is able
to save lot of money and dramatically reduce mishandled baggage with the use of
RFID technology. Apart from this, market players are continuously coming up
with diverse technologies with features such as remote controlled operation,
which can be integrated with smart handheld devices or smart phones. These
technological trends massively work in favor of the market globally.
Market Segmentation
The global commercial
airport baggage handling systems market is segmented on the basis of
airport class, technology, service, and type.
By airport class, the
market is segmented on the basis of A, B, and C. By technology, the market is
segmented on the basis of barcode and RFID. The RFID technology segment is
leading the overall market in terms of revenue share. This technology is used
to scan the baggage tags to consolidate the probability of any issues; this
largely helps to generate good revenue for the aviation industry.
By service, the market
is segmented on the basis of self-service and assisted-service. The
self-service system allows the passenger to be in control of their own process
and can check-in their baggage within short time, making the system ideal for
the passenger’s needs.
By type, the market is
segmented on the basis of conveyors and destination-coded vehicles. Conveyor
System is a material handling equipment that transports large loads of luggage
from one place to another. Conveyors are in high demand in airports due to the
benefits they offer, such as low maintenance cost, increased safety, reduced
lead-time, and highly durable.
Regional Analysis
Globally, North
America is one of the largest aviation markets in the world with the market
being highly mature. It consists of many airports and has a huge volume of air
traffic. It has been estimated that the air passenger traffic in North America
is bound to increase at an annual average of 2.9% in the next 20 years. The
presumed air traffic growth coupled with the airport construction projects are
driving the growth of the commercial airport baggage handling system market in
the region. The United States (U.S) particularly had the highest number of air
passengers and aircraft movements in 2014. The country also has the largest
market for airport BHS worldwide. Moreover, increasing adoption of internet of
things (IoT) in the aviation sector is deemed to propel the market growth in
the coming years.
Global air passenger
traffic has been growing rapidly in Asia Pacific region as well, propelled by
heavy demand for air travel from emerging countries such as Indian, Japan,
China, and Thailand. The regional market players understand that a significant
number of BHS infrastructure is required to accommodate the increasing air
traffic without impacting the operational effectiveness of an airport. Taking
note of the opportunities, these players focus on installing new and efficient
BHS to ensure enhanced efficiency in baggage handling. This constant
competition amongst regional market players leads to constant technological
innovations along with intense competition, giving rise to a win-win situation
for the market players as well as the regional market.
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On the other hand, the
Europe region holds a high potential for market surge, owing to large number of
airports, massive demand for airport upgrades, and growing number of new
upcoming projects. Also, a substantial share of number of inbound and domestic
travelers in the region paves the way for opportunities to market players
looking to strengthen their position. These factors play outstanding roles in
market expansion in the region and will continue to do so in coming years.
The Middle East and
Africa markets are growing slowly owing to sluggish economic growth. However,
there is a scope for significant market growth in coming years due to emergence
of robotic baggage handling along with hyper-personalization of connected
devices, accelerated technological advancements such as use of barcoding and
RFID technology to manage the flow of the baggage. Consistent technology-based
developments give rise to market opportunities and reveal the untapped
potential the region possesses.
Key Players
Grenzebach Maschinenbau
GMBH (Germany), G&S Airport Conveyor (U.S.), Logplan LLC (U.S.), BCS Group
(New Zealand), Beumer Group (Germany), Daifuku Company Ltd (Japan), Fives Group
(France), Pteris Global Limited (Singapore), Siemens AG (Germany), Vanderlande
Industries (Netherlands) and others.
YYC Calgary
International Airport has launched a new baggage system in its domestic
terminal in Europe. One of the unique features of the new system is its ability
to track bags across the network using totes and an RFID tag. The tracking
system in it has a higher degree of accuracy in delivering baggage for the
customers, compared to other systems that are more manual and visual based.
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