The global commercial airports baggage handling system market is expected to be driven by increasing requirement for operational efficiency at airports. The system is an integral part of logistics which ensures timely and efficient delivery of baggage or goods.
Growth of commercial aviation is due to increased growth of international trade, changes in the government mandates and policies, rise in tourism level and impact of foreign direct investments (FDI) in the aviation sector play a significant role in determining the industry trajectory.
These factors have resulted in increased competition among the commercial aviation companies both from manufacturer and supplier side. A smart-designed luggage handling system helps to improve passenger convenience thereby reducing the aircraft turnaround time. This system includes conveyors, identification devices, screening devices, sorting devices, and destination-coded vehicles.
Increasing air passenger traffic, establishment of newer airports with better management technologies and operational methods, and modernization of existing airports is also expected to complement growth over the forecast period.
A baggage handling system performs tasks including movement of baggage from check in points to loading in the cart of the aircraft. In case of transit flights, the systems tasks include movement of luggage between two aircrafts and moving luggage from inbound aircraft to the claim section.
Advanced BHS perform luggage screening, sorting and tagging there by reducing chances of theft and misplacement. Accuracy in baggage handling and reduction in error scope shall have a positive impact on the overall industry growth.
Complex architecture of BHS and high initial investments are major issues surrounding industry participants and consumers alike. Costs associated with maintenance and energy, also manpower establishment with adequate skill to operate BHS are other minor challenges for the industry, and their impact varies across regions.
The global market for baggage handling system is segmented into five major classifications such as airport class, identification technology, service type, BHS type and efficiency. On the basis of identification technology, the industry can be segmented into barcode and RFID. While on the basis of service, the industry is classified into self-service bag check in and assisted type bag check in. RFID is a relatively newer technology compared to barcodes and enables in identification on the location baggage is placed in. Compared to barcode systems, which primarily tag and store information regarding baggage, an RFID tag acts as a tracker thereby minimizing incidences such as misplacement and theft.
BHS with efficiency above 6000 baggage processing capacity is expected to account for over 50% of the overall market over the forecast period. Increasing footfall at airports, increased passenger traffic and prevalence of commercial airliners has led to greater capacity at airports, thereby driving the segment growth.
As of 2015, North America region had the highest market share in terms of revenue. Scale of domestic and international air traffic in the region compared to others is the major determinant for the region’s dominance. North America was followed by Europe, which is characterized by inbound international traffic and intra-continental transit.
Asia Pacific is expected to register tremendous growth due to increasing air passenger traffic and rapidly evolving public transportation scenario in China, India, and Southeast Asia. Increasing tourism, improved connectively to western regions and a robust domestic aviation industry shall all act favorably towards the region’s growth.
The competitive landscape of the market shows an increased competition among the existing players and low entry level barriers. Due to increased demand from several dimensions existing players have strategized for long term sustainability through new product development, providing customized solutions, and M&As. It can be inferred that many brown field and green field airport expansions and constructions are expected to trigger humongous opportunities for industry participants. Key players operating globally include Siemens AG, Vanderlande Industries, Daifuku Company Ltd., Pteris Global Limited, Beumer Group, Grenzebach Maschinenbau GmbH, BCS group, Logplan Llc, G&S airport conveyor and Fives Group.
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