Smart Baggage Handling Systems Market to Grow with 13.6% CAGR during the Forecast Period from 2019 to 2027

According to a new market research report published by Credence Research “Smart Baggage Handling Systems Market (By End-use (Airport, Railway Station, Sea Ports and Others (Bus Stations, Commercial Complexes etc.)), By Functionality (Sorting, Conveying, Tracking and Tracing, and Diverting), By Technology (Bar Code and Radio Frequency Identification (RFID)) By Geography (North America, Europe, Asia Pacific, and Rest of the World) – Growth, Future Prospects and Competitive Analysis, 2019 – 2027”, the overall smart baggage handling system market worldwide was valued at US$ 1.20 Bn in 2018 and is set to grow with 13.6% CAGR during the forecast period.

Market Insights

Growing travel and tourism industry for leisure as well as business purpose is giving boost to the smart baggage handling systems market worldwide. According to the World Bank, international tourism reached 1.34 Bn arrivals in 2017 and is showing no signs of slowing down. To increase the operational efficiency at airports and railway stations, innovative technologies such as Internet of Things (IoT), machine-to-machine solutions, and cloud-based baggage handling systems have been introduced. Modernization of existing airports & railway stations and rise in the development of new airports are other major growth factors for the market. As a consequence of these factors, we are expecting the smart baggage handling system market to show tremendous growth during the forecast period.

Based on end-use, the airport segment was the largest value contributing segment in the global smart baggage handling systems market in 2018.  The segment garnered over 70% of the market share in the same year. According to the ‘Airports Council International (ACI)’, in 2017, airports worldwide accommodated over 8.2 Bn passengers and around 118 Mn tons of cargo. To handle huge amount of cargo and passenger traffic and improve customer experience at airports, smart baggage handling system have been installed at airports. According to the International Air Transport Association (IATA), the average year on year growth for air passenger traffic worldwide is expected to augment by over 3.5% between 2014 and2034. Therefore, we are expecting the airport segment to remain the largest value contributing segment throughout the forecast period.

Based on geography, in 2018, North America was the largest region, accounting for more than 40% of the overall market revenue worldwide. The dominance can be largely credited to the rise in construction of new airports and huge investments made by the Governments in airport infrastructure modernization. In 2018, U.S. Department of Transportation announced that for airports infrastructure development, they will be investing US$ 677.0 Bn for 214 airports in 43 states. For advanced baggage handling system in North America, airport authorities and air carriers are collaborating. For instance, in 2017, Delta Airlines announced to invest US$ 12 Bn for airport infrastructure over the period of five years in collaboration with airport authorities. As a result, we expect the North America to register strong and steady growth throughout the forecast period.

In a bid to leverage technology expertise, major companies are focusing on various strategies such as mergers & acquisitions, partnership and collaborations among others. For instance, in February 2019, Vanderlande Industries partnered with Airport Authority Hong Kong (AAHK). Vanderlande Industries will develop and apply autonomous vehicle technology for baggage handling systems at Hong Kong International Airport. This technology helps in improving efficiency, quality and flexibility for baggage handling systems.


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