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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.
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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 integrate a unified IP platform, facilitating high-speed broadband traffic across the aerodrome. This infrastructure enables real-time data exchange and comprehensive airport-wide integration, significantly enhancing operational efficiencies, passenger services, and security capabilities.
With the growing demand for air travel, regulatory bodies such as ICAO, IATA, FAA, EASA, CASA, and the EU are actively promoting the development of smart airports. These initiatives aim to minimize risks and improve the overall passenger experience by leveraging advanced technologies and digital solutions. In parallel, the market for commercial aircraft Electronic Flight Bag Systems (EFB) is expanding, supporting efficient flight operations through digital tools that provide pilots with critical information such as navigational charts, operational manuals, weather updates, and real-time data. EFB systems enhance decision-making and contribute to safer flight and airport operations within the integrated smart airport environment.
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 USD10 and USD50 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.
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.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
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.
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:
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Product
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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