Smart Baggage Handling System Market analysis report by Future Market Insights shows that global sales of Smart Baggage Handling System Market in 2021 was held at USD 3.8 Billion. The projected market growth during 2022 is expected to be 19.9%. Radio Frequency Identification (RFID) component is expected to be the highest revenue-generating segment, projected to grow at a CAGR of around 21.8% during 2022 to 2032.
| Attributes | Details |
|---|---|
| Global Smart Baggage Handling System Market Size (2022) | USD 4.6 Billion |
| Global Smart Baggage Handling System Market Size (2032) | USD 27.9 Billion |
| Global Smart Baggage Handling System Market CAGR (2022 to 2032) | 19.9% |
| USA Smart Baggage Handling System Market Size (2032) | USD 11.3 Billion |
| Key Companies Covered | SITA; Vanderlande Industries Private Limited; Diafuku Co.; Siemens Group; Beumer Group; Smiths Detection; Fives Group; Glidepath Group; Aversan Inc.; Babcock Airports Ltd. |
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As per the Smart Baggage Handling System Market research by Future Market Insights - a market research and competitive intelligence provider, historically, from 2015 to 2021, market value of the Smart Baggage Handling System Market increased at around 19.9% CAGR.
A considerable growth in the number of passengers, an expansion in airport operating efficiency, and developments in intermodal transportation are the main forces driving the expansion of the smart baggage handling system industry.
The increasing frequency of terrorist attacks or global terrorism at airports as well as railway stations, the increased emphasis on the installation of technically sophisticated scanners, the growth and expansion of the security and surveillance industry, particularly in developing economies, and rising public expenditure for the fast evolution of intermodal transportation systems are the key factors driving the growth of the smart baggage handling system market.
The smart baggage handling systems market is the system established at trains and airports that oversee transporting luggage from the check-in area to the loading area aboard aircraft, airplanes, or railways. Smart baggage handling technologies oversee monitoring baggage weight, scanning luggage for security, and automatically reading bag data. Increased investment in R&D operations, as well as an increase in the number of people traveling by air daily, will drive up market value. Rising public safety procedures, along with growing smart city initiatives or infrastructure development projects, will generate attractive growth prospects for the industry.
The expansion of the travel and tourism industry, as well as the increasing incidents of luggage mismanagement or misplacing, will drive market growth. The increasing proliferation of the internet of things & linked gadgets will pave the way for market expansion.
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During the projected period, North America Smart Baggage Handling System Market is projected to hold the largest global share, with a size of over USD 15 Billion.
North America is expected to grow rapidly owing to several airport expansion proposals in the United States and Canada. Since North America tops the baggage mishandling incidents, government officials have taken steps to spend on luggage handling equipment. The number of luggage mishandling incidents can be reduced by deploying large-capacity baggage handling devices. Furthermore, the large number of people traveling on voyages within the area has increased demand throughout North America.
Also, Asia-Pacific smart baggage handling systems industry is best positioned to grow in the coming years. This is due to factors such as increasing air passenger traffic, an increase in cruise tourists, and impending airport redevelopment projects. Moreover, investments in rail networks and the country’s economic growth have increased the demand for such systems. Furthermore, countries such as India, Japan and China are seeing an increase in the number of people traveling by sea and air.
This is due to the fact that the government is substantially investing in technological development and forming partnerships to gain a competitive benefit in the industry. For example, the Airport Authority of India (AAI) purchased CTX 9800DSi higher-speed explosive detection systems (EDS) in May 2018 to hold baggage screening at nine Indian airports. This partnership with Smiths Detection Group Co. Ltd. was valued at around USD 50 Million.
The United States is expected to account for the highest market share of USD 11.3 Billion by the end of 2032 with an expected CAGR of 21.7% by the end of 2032. The federal government of the United States recently invested around USD 3.7 Billion in airport infrastructure. This involves the deployment of high-capacity mechanized baggage handling equipment to meet the demand to handle enormous volumes of varied sizes of bags.
Air carriers and airport authorities are collaborating to install innovative baggage handling technologies across North America. For example, Delta Airlines spent USD 442.3 Billion in May 2015 to add face recognition for travelers utilizing self-service luggage drop systems at Atlanta International Airport.
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Radio Frequency Identification segment is forecasted to grow at the highest CAGR of around 21.8% during 2022-2032. RFID decreases luggage mistreatment by nearly 20%, resulting in an improved passenger experience. It is a simple technique to get baggage improper handling track records to comply with IATA Resolution 753. RFID technology is being invested in by key airline corporations to provide passengers with a better traveling experience. For example, Delta Airlines invested around USD 50 Million in May 2016 to deploy RFID luggage tracking equipment at 344 stations across the globe.
Moreover, Indian Railways in February 2020, put RFID technology on lines to track the whereabouts of rolling equipment, freight vehicles, and passenger coaches. Since it is used by most of the airlines worldwide, barcode technology is likely to have the largest market share. Barcodes are inexpensive and straightforward to use. However, only a few airports can handle both barcode and RFID-tagged luggage as a hybrid solution. A hybrid approach provides a greater scan rate than either technology alone. RFID deployment via a hybrid solution might be the first step toward completing RFID implementation.
The Conveying segment of the smart baggage handling system market is forecasted to grow at the highest CAGR of around 20.5% during 2022-2032. The exponential expansion in domestic and international air and sea passenger capacity has prompted baggage handling system makers to look for methods to improve current smart baggage handling technologies. According to the Société Internationale de Télécommunications Aéronautiques (SITA), the rate of luggage mishandling decreased in 2018, as compared to 2015 due to an increase in automation shown in increased usage of conveyor baggage handling systems (BHS).
Few of the top smart baggage handling systems companies control a large portion of the overall sales. These firms, which hold a sizable portion of the industry, are concentrating on growing their clientele internationally. The key players in smart baggage handling systems market are utilizing strategic innovations and teamwork projects to boost their market shares as well as profitability. Some of recent market developments are as follows:
In July 2021, SITA, the worldwide air transport IT supplier, announced the takeover of Safety Line S.A.S., a Paris-based start-up focusing on digital solutions of aviation safety and efficiency. This takeover will expand SITA's Digital Day during Operation offering, assisting airlines in driving greater economies and fuel savings on the aircraft whilst taking instant and long-term efforts to minimize their carbon impact.
Considering air transport accounts for around 3% of global carbon emissions, airlines are under increasing pressure to cut their overall emissions. Simultaneously, the COVID-19 epidemic necessitates airlines to make their aircraft operations leaner, particularly by decreasing costly fuel usage. Safety Line has effectively used predictive analytics to improve aeroplane operations, adding significantly to SITA's existing offering. SITA will speed the implementation of sustainable technologies that can be combined with its existing portfolio of airline and airport solutions due to this purchase.
In April 2019, Daifuku Co., Limited, a Japanese material handling equipment provider, has paid an undisclosed price for Hyderabad-based warehouse automation firm Vega Conveyors and Automation. Vega becomes a 100% subsidiary of Daifuku following the acquisition, even though its promoter, Srinivas Garimella, will continue to lead the firm as a part of the agreement, which includes an earn-out arrangement. Earn-out is a price structure in which a portion of the purchased price is determined by the success of the firm after the acquisition.
In June 2020, Smiths Detection, a provider of detection and screening technologies, announced the acquisition of PathSensors, a premier bio-technology solutions and environmental-testing firm. Smith’s Detection's sensing capabilities throughout the CBRNE (biological, chemical, radiological, nuclear, and explosive) spectrum will be expanded due to the purchase, allowing the company to respond promptly to emerging threats.
PathSensors offers high-speed, very sensitive pathogen detection and biothreat solutions, as well as a proven approach for diagnosing biological hazards in minutes. The company's client base is like Smiths Detection's for chemical-threat detection, but it also allows for development into adjacent areas such as food and farming security.
Similarly, recent developments related to companies’ Smart Baggage Handling System Market have been tracked by the team at Future Market Insights, which are available in the full report.
The global Smart Baggage Handling System Market is worth more than USD 3.8 Billion at present.
The value of Smart Baggage Handling System Market is projected to increase at a CAGR of around 19.9% during 2022 – 2032.
The value of Smart Baggage Handling System Market increased at a CAGR of around 20.4% during 2016 – 2021.
The implementation of smart airports and the development of hyper-personalized smart devices are the primary factors driving the growth of the smart baggage handling system industry.
The market for Smart Baggage Handling System in US is projected to expand at a CAGR of around 21.7% during 2022 – 2032.
1. Preface 2. Assumptions and Research Methodology 3. Executive Summary: Global Smart Baggage Handling System Market 4. Market Overview 5. Global Smart Baggage Handling System Market Analysis and Forecasts, By Type of Transportation 5.1. Airport 5.1.1. International 5.1.2. Domestic 5.2. Railway Station 6. Global Smart Baggage Handling System Market Analysis and Forecasts, By Technology 6.1. Barcode System 6.2. Radio Frequency Identification (RFID) 7. Global Smart Baggage Handling System Market Analysis and Forecasts, By Solution 7.1. Sorting 7.2. Conveying 7.3. Tracking and Tracing 7.4. Diverting 7.5. Other 8. Global Smart Baggage Handling System Market Analysis and Forecasts, By Region 8.1. North America 8.2. Europe 8.3. Asia Pacific 8.4. Middle East and Africa 8.5. South America 9. North America Smart Baggage Handling System Market Analysis and Forecast 10. Europe Smart Baggage Handling System Market Analysis and Forecast 11. Asia Pacific Smart Baggage Handling System Market Analysis and Forecast 12. Middle East and Africa (MEA) Smart Baggage Handling System Market Analysis and Forecast 13. South America Smart Baggage Handling System Market Analysis and Forecast 14. Competition Landscape 14.1. SITA 14.2. Daifuku Web 14.3. Siemens Group 14.4. Vanderlande Industries 14.5. Beumer Group 14.6. Fives Group 14.7. Pteris Global Limited 14.8. G&S Airport Conveyor 14.9. Scarabee Systems & Technology B.V. 14.10. Alstef Automation S.A. 15. Key Takeaways
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