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Airport Baggage Handling Systems Market Analysis

The Airport Baggage Handling Systems Market size is estimated at USD 2.24 billion in 2024, and is expected to reach USD 3.99 billion by 2029, growing at a CAGR of 12.22% during the forecast period (2024-2029).

The airport baggage handling systems market has been driven by the growth in the number of air passenger traffic in recent years. The modernization of new airports and technological advancements have been fueling the market's growth. The increasing focus on improving operational efficiency at airports is expected to lead the market's growth over the coming years.

Technological advancements such as robot utilization for baggage handling processes and endeavors, including establishing new airports and expanding existing terminals, are expected to result in a positive outlook for the market.

The renovation of baggage handling systems at various airports will also lead to growth in the market. In addition, most global airport authorities are now investing in renewing airport infrastructure to offer better comfort and baggage handling experience. According to the International Air Transport Association (IATA), the global adoption of RFID can help the aviation industry save billions of dollars over the coming years.

The aviation industry needs to be technologically updated to utilize its maximum potential. The check-in process during peak traveling consumes most of the time and is exhausting for passengers. Automated kiosks, remote queue management systems, and remote check-ins may make this process more convenient, which is expected to fuel the market's growth in the coming years.

Baggage mishandling had been a significant challenge for aviation authorities earlier. However, a growing focus on better baggage tracking procedures and the introduction of the recent IATA's Resolution 753, which requires airlines to track bags at the four main touchpoints (make-up, loading, transfer, and arrival) across the journey, have helped reduce the number of mishandled bags over the last few years. Companies have been investing in developing better baggage-tracking technologies to obtain the data to comply with Resolution 753. Such investments are expected to drive the market's growth over the coming years.

Airport Baggage Handling Systems Industry Segmentation

A baggage handling system, or BHS, is a type of conveyor system installed in an airport that enables the transportation of passenger baggage from ticket counter areas to the area where the baggage is loaded onto the aircraft. BHS helps transport checked baggage, which is unloaded from the aircraft to the baggage claim area.

The airport baggage handling systems market is segmented by airport capacity and geography. By airport capacity, the market is segmented into up to 15 million, 15-25 million, 25-40 million, and above 40 million. The report also covers the sizes and forecasts for the airport baggage handling system market in major countries across different regions. For these segments, the market size is provided in terms of value (USD).