Airport Smart Baggage Handling Solutions Market by Product and Geography - Forecast and Analysis 2021-2025

The airport smart baggage handling solutions market share is expected to increase by USD 676.8 million from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 5.16%.

This airport smart baggage handling solutions market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers airport smart baggage handling solutions market segmentation by product (smart baggage and tracking devices and smart baggage screening devices) and geography (APAC, North America, Europe, MEA, and South America). The airport smart baggage handling solutions market report also offers information on several market vendors, including Babcock International Group Plc, BEUMER Group GmbH & Co. KG, CIMC Tianda Holdings Co. Ltd., Daifuku Co. Ltd., G&S Airport Conveyor, Leonardo Spa, Siemens AG, SITA, Vanderlande Industries BV, and WFS Global SAS among others.

What will the Airport Smart Baggage Handling Solutions Market Size be During the Forecast Period?

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Airport Smart Baggage Handling Solutions Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The development of smart airports is notably driving the airport smart baggage handling solutions market growth, although factors such as high cost associated with SBH solutions may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the airport smart baggage handling solutions industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Airport Smart Baggage Handling Solutions Market Driver

The rising development of smart airports is one of the key drivers expected to trigger the airport smart baggage handling solutions market growth. The rising popularity of Airport 2.0, coupled with the growing investments in technological advances, has led to the joint proposal of the smart airport concept by the IATA and ACI. This facilitates the seamless exchange of information between airport operators, airlines, and passengers and can increase the efficiency and profitability of the stakeholders during volatile economic conditions. Under the Airport 3.0 approach, all systems are integrated into one single digital grid, which allows sharing of real-time information and deep cross-silo collaboration. This enhances operational efficiencies and offers a superior passenger experience and uninterrupted delivery of an array of personalized services. Smart airport terminals are developed around a single converged IP platform that enables high-speed broadband traffic across the aerodrome. By allowing real-time data exchange and airport-wide integration, smart airports significantly improve their operational efficiencies, passenger services, and security capabilities. Increased demand for air travel has made the regulatory authorities, including ICAO, IATA, Federal Aviation Administration, European Aviation Safety Agency, Civil Aviation Safety Authority, and the EU, encourage the development of smart airports. Such an approach will minimize the risks and limit the inconvenience to passengers, thus enabling safer flight and airport operations.

Key Airport Smart Baggage Handling Solutions Market Trend

 

The emergence of robotic baggage handling systems is one of the key airport smart baggage handling solutions market trends. With growing passenger traffic and baggage volume, the rate of baggage mishandling is also expected to rise. This is one of the most common struggle points in the travel industry. To reduce passenger discomfort and baggage mishandling, airlines and airport operators are focusing on innovative baggage handling technologies. Public organizations such as the IATA are also focusing on reducing aircraft delays while offering effective travel experiences. Hence, airlines are trending toward the implementation of loT in baggage handling to reduce the incidents of lost baggage. The airlines, along with other stakeholders, benefit from the transparency and gain control over each stage of the baggage journey. This helps to offer customers high value-added service by avoiding baggage fraud. Airlines are also focusing on reducing lost luggage incidents by investing in various technologies for tracking passenger baggage throughout the entire journey. In addition, airlines are integrating smart technology for cargo. As a result, cargo unit load devices have become more intelligent and deliver real-time tracking data for air cargo. In the future, smart bags with embedded chips will be designed, which will automatically notify airlines about the current location of the baggage, along with the checkpoints crossed. Such new technological developments will minimize baggage handling while reducing manual intervention. 

Key Airport Smart Baggage Handling Solutions Market Challenge

The high cost associated with SBH solutions is a major hindrance to the airport smart baggage handling solutions market growth. With the growing focus on enhancing SBH solutions, airlines are investing in smart baggage tags and baggage tracking devices. These baggage solutions are highly expensive, which restricts many airlines and airports from using them. The price of a smart tag varies between $10 and $50 per tag, while RFID tags are much more expensive and require RFID reading devices. Despite their high prices, these systems are steadily capturing the baggage market owing to their advantages over the existing baggage handling solutions. Due to the implementation of loT-enabled solutions, sensors, beacons, and wearables will start transmitting and interpreting information. This will require superior IT analysis to procure the appropriate architecture to monitor crucial components, such as the middleware platform, that will manage messages generated rapidly and in high volumes. At present, there s a gap between the required loT value and the available infrastructure. The aviation industry still requires the implementation of smart machine learning algorithms to generate value from loT technologies. These can derive insight from sensor data and propose actions in real-time. The process of transforming into an IoT ecosystem will increase cost associations for airline operators. After installation, they also require maintenance. As protocols tend to keep changing, interoperability costs will also play a significant role.

This airport smart baggage handling solutions market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global airport smart baggage handling solutions (SBH) market as a part of the global airport services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the airport smart baggage handling solutions market during the forecast period.

Who are the Major Airport Smart Baggage Handling Solutions Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

• Babcock International Group Plc
• BEUMER Group GmbH & Co. KG
• CIMC Tianda Holdings Co. Ltd.
• Daifuku Co. Ltd.
• G&S Airport Conveyor
• Leonardo Spa
• Siemens AG
• SITA
• Vanderlande Industries BV
• WFS Global SAS

 

This statistical study of the airport smart baggage handling solutions market encompasses successful business strategies deployed by the key vendors. The airport smart baggage handling solutions market is fragmented and the vendors are deploying growth strategies such as innovation and competitive pricing to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The airport smart baggage handling solutions market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Airport Smart Baggage Handling Solutions Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the airport smart baggage handling solutions market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the airport services market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

 

Which are the Key Regions for Airport Smart Baggage Handling Solutions Market?

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39% of the market’s growth will originate from APAC during the forecast period. China and Japan are the key markets for the airport smart baggage handling solutions market in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The growing passenger traffic and airport upgrades will facilitate the airport smart baggage handling solutions market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Product Segments in the Airport Smart Baggage Handling Solutions Market?

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The airport smart baggage handling solutions market share growth in the smart baggage and tracking devices segment will be significant during the forecast period. Smart baggage management refers to the tracking of bags using a range of radio-frequency identification (RFID) tags, Global Positioning System (GPS)-enabled devices, Wi-Fi, cellular baggage tags, and baggage tracking devices. These electronic tags are deployed across the baggage ecosystem in smart luggage, airport luggage carts, smart tags, and permanent and reusable bag tags. Travel bag manufacturers have also introduced many innovations to their products. The growing need for trackable luggage has created the scope for new start-ups and established companies to develop smart luggage that can be integrated with SIM cards, Wi-Fi hotspots, Bluetooth, and GPS. These factors are expected to drive the airport smart baggage handling market share growth by the smart baggage and tracking devices segment significantly during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the airport smart baggage handling solutions market size and actionable market insights on post COVID-19 impact on each segment.

 

Airport Smart Baggage Handling Solutions Market Scope
Report Coverage	Details
Page number	120
Base year	2020
Forecast period	2021-2025
Growth momentum & CAGR	Accelerate at a CAGR of 5.16%
Market growth 2021-2025	$ 676.8 million
Market structure	Fragmented
YoY growth (%)	3.15
Regional analysis	APAC, North America, Europe, MEA, and South America
Performing market contribution	APAC at 39%
Key consumer countries	US, China, Japan, France, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Babcock International Group Plc, BEUMER Group GmbH & Co. KG, CIMC Tianda Holdings Co. Ltd., Daifuku Co. Ltd., G&S Airport Conveyor, Leonardo Spa, Siemens AG, SITA, Vanderlande Industries BV, and WFS Global SAS
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Airport Smart Baggage Handling Solutions Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive airport smart baggage handling solutions market growth during the next five years
• Precise estimation of the airport smart baggage handling solutions market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the airport smart baggage handling solutions industry across APAC, North America, Europe, MEA, and South America
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of airport smart baggage handling solutions market vendors

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