Baggage Handling System Market Anticipated to Grow at 7.8% CAGR Through 2029: Industry Report

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The Business Research Company’s Baggage Handling System Global Market Report 2025 - Market Size, Trends, And Global Forecast 2025-2034

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How Big Is The Baggage Handling System Market In 2025?
In recent years, there has been a significant increase in the size of the baggage handling system market. Its growth is projected to escalate from $10.31 billion in 2024 to $11.13 billion in 2025, reflecting a compound annual growth rate (CAGR) of 7.9%. This growth during the historical period is a result of various factors such as an upsurge in air passenger traffic, a growing need for cohesive travel experiences, increased capital investment from airport authorities, the pursuit for adaptable and expansive baggage handling solutions, as well as an increase in financial allocations for airport extensions.

Anticipated robust growth in the coming years suggests that the baggage handling system market will reach a valuation of $15.02 billion by 2029, with a compound annual growth rate (CAGR) of 7.8%. One can attribute this growth during the predicted timeframe to factors such as escalating air passenger traffic, increasing need for real-time tracking, the rising use of RFID technology, burgeoning e-commerce and cargo volumes, and the demand for cloud-based solutions. Furthermore, the forecast period will see significant trends such as developments in automated sorting and loading systems, the application of AI and machine learning, incorporation of IoT devices for real-time tracking, adoption of cloud-based platforms for data storage and scrutiny, and the use of biometric scanning.

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What Are The Key Driving Factors For The Growth Of The Baggage Handling System Market?
The growth of the baggage handling system market is projected to be driven by the surge in the tourism industry. The tourism sector comprises businesses and services for travelers and tourists such as transport, accommodation, points of interest, and hospitality. Factors like improved infrastructure, economic expansion, increased disposable income, globalization, and easy accessibility to travel information are stimulating the growth of the tourism industry. Baggage handling systems play a crucial role in promoting tourism by managing travelers' luggage efficiently, ensuring a hassle-free travel experience and boosting satisfaction and operational efficiency of travel service providers. For example, the Croatian Bureau of Statistics, a government agency based in Croatia, reported in 2023 that commercial accommodation establishments recorded 17.8 million tourist arrivals and 90.0 million overnight stays in 2022. This represents a 39.1% and 28.3% increase compared to 2021, respectively. Thus, the growth in the tourism industry is serving as a catalyst for the expanding baggage handling system market.

Who Are The Key Players In The Baggage Handling System Industry?
Major players in the Baggage Handling System include:

• Siemens AG
• Babcock International Group PLC
• Daifuku Co. Ltd.
• Vanderlande Industries B.V.
• Fives Group
• SICK AG
• BEUMER Group
• SITA
• INFORM SOFTWARE
• Interroll Group

What Are The Key Trends Shaping The Baggage Handling System Industry?
Leading firms in the baggage handling system industry are innovating new technologies such as enhanced automation solutions, aiming to increase the speed and precision of baggage handling. These solutions improve the system’s efficiency, accuracy, capacity, security, and cut labor expenses, thereby enhancing the overall passenger experience. For instance, in July 2022, Beumer Group GmbH & Co. KG, based in Germany, unveiled its advanced automation solutions in the form of Next-Gen Line Sorter and Pouch Systems. The BG Line Sorter amalgamates the simplicity of a conventional line sorter and the efficiency of a high-speed cross-belt sorter. Its modular structure maximizes space in the distribution center and its highly durable belts offer exceedingly low maintenance. The BG Pouch System is a versatile sortation system capable of buffering, sorting, sequencing, and managing item returns with a bare minimum of manual touchpoints.

What Segments Are Covered In The Baggage Handling System Market Report?
The baggage handling systemmarket covered in this report is segmented –

1) By Type: Destination Coded Vehicle (DCV), Conveyor
2) By Technology: Radio-Frequency Identification (RFID), Barcode
3) By Mode: Airport, Railway, Marine
4) By Application: Check-In Systems, Security Screening Systems, Sorting Systems, Transfer Systems, Arrival And Reclaim Systems

Subsegments:
1) By Destination Coded Vehicle (DCV): Automated DCV System, Semi-Automated DCV System
2) By Conveyor: Belt Conveyor, Gravity Roller Conveyor, Powered Roller Conveyor, Spiral Conveyor, Tilt Tray Conveyor

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Which Region Is Expected To Lead The Baggage Handling System Market By 2025?
In 2024, the Asia-Pacific region dominated the market for baggage handling systems. It is projected that North America will experience the most rapid growth in the coming years. The report on the baggage handling system market includes the following regions: Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

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