Global Airport Baggage Handling System Market Worth $14,509.9 Million in 2025 | CAGR: 6.7%

Press Release

The global airport baggage handling systems market was valued at $8,504.2 million in 2017, and is projected to reach $14,509.9 million by 2025, growing at a CAGR of 6.7% from 2018 to 2025.

At present, North America dominates the market, followed by Europe. In 2017, the U.S. dominated the North America market, and UK led the overall market in Europe. On the other hand, in the Asia-Pacific region, China dominates the market.

Increase in air travel, modernization of airports, and technological advancements, such as RFID tags and NFC, drive the growth of the global airport baggage handling systems market. However, high upfront & maintenance cost of baggage handling systems and high consequences of system failure impede the market growth. On the contrary, utilization of robotization in the airports baggage handling process is expected to create lucrative opportunities for the key players operating in this market.

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Considering the airport class category, in terms of revenue, the class A segment dominated the global airport baggage handling systems market in 2017. By service, the assisted service segment is anticipated to dominate the market throughout the forecast period.

Top Impacting Factors

Anticipated growth in air travel

In the recent years, there is an increase in the number of passengers travelling via airways. For instance, according to data provided by The World Bank Group, the total scheduled traffic carried by all air carriers worldwide for both international and domestic increased from 2.9 billion in 2012 to 3.4 billion in 2017 growing at a CAGR of 7%. Also, the international air traffic is expected to roughly double from 2016 to 2035. Airports and airlines invest heavily in baggage handling technology with the increase in number of air passengers. This also helps cater passenger experience and airport operations, which in turn drive the growth of the global airport handling system market.

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Renewal of Airports

The continuous rise in number of airport terminals and renovation of the existing airport infrastructure drive the airport baggage handling system market. The primary reason for such renovation or modernization is due to the technologies used that are gradually becoming obsolete. The rise in the frequency of passengers also boosts the renovation and modernization. In addition, the modernization of airports help meet present and future requirements of the passengers. For instance, in March 2018, the Chicago City Council’s Aviation Committee raised $8.7 billion investment for the expansion of the Chicago’s O’Hare international airport. Moreover, airline operators are adding on to new destinations, which in turn boosts the baggage handling systems. In addition to the existing operators, the demand for additional baggage handling system is expected to increase. For instance, in 2017, Zoom Air was launched in India with its operations that started from February 2017 with its routes limited within Indian cities.

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