Baggage Handling System: Introduction
- A Baggage Handling System (BHS) is a sort of airport conveyor system that delivers checked luggage from ticket counters to locations where it can be loaded onto airplanes. A BHS also transfers checked baggage from planes to baggage claims or to a location where the suitcase can be loaded onto another plane. When an airline agent or self-check system assigns a tag with a unique ten-digit barcode to a bag, it is recorded into the baggage handling system.
- Airlines are also embedding RFID chips into bag tags to track luggage in real-time and reduce the number of mishandled bags. The baggage is subsequently scanned and sorted by the airline by the BHS. The bags would then be directed into the baggage handling area by a series of diverters along the conveyor belt.
Key Drivers of Global Baggage Handling System Market:
- Increased emphasis on enhancing airport operating efficiency, rising air passenger numbers, and substantial innovations in multimodal transportation are primary factors driving the baggage handling system market. Airport renovation is a major industry trend worldwide. A majority of airport authorities are investing in airport infrastructure renewal to provide passengers with a better level of comfort and baggage management. Furthermore, the use of technologies, such as radio-frequency identification (RFID) and destination-coded vehicle system (DCV), is further boosting the market. All these factors propel the baggage handling system market across the globe.
- The number of passengers travelling via airways has been increasing for the last few years. For instance, according to data provided by The World Bank Group, the total scheduled traffic carried by all air carriers worldwide for both international and domestic increased. Moreover, international air traffic is expected to roughly double from 2016 to 2035. Airports and airlines are investing heavily in baggage handling technology owing to an increase in number of air passengers. This also helps enhance passenger experience and airport operations, which in turn drive the global baggage handling system market.
- Consistent rise in number of airport terminals and renovation of existing airport infrastructure further boost the baggage handling system market. The primary reason for such renovation or modernization is because the technologies that are used are gradually becoming obsolete. Rise in the frequency of passengers also boosts renovation and modernization. Additionally, the modernization of airports helps cater to the present and future requirements of passengers.
RFID technology for baggage handling system to offer attractive opportunities
- RFID minimizes baggage maltreatment by over 20%, resulting in a more pleasant passenger experience. It is a simple method to obtain luggage mishandling track records in order to comply with IATA Resolution 753. Major airlines are investing in RFID technology in order to provide customers with a better travel experience. Adoption of RFID technology is projected to expand at a rapid pace owing to the cost-effectiveness and dependability of technology in enhancing the baggage handling process.
High upfront and maintenance cost of baggage handling system (BHS) to hamper market
- High initial investment, due to the usage of conveyor belts, RFID sensors, X-ray screening machine, and inflated cost of a baggage handling system hamper the market. Furthermore, operational and maintenance services of the BHS add to the basic cost of the system, which include cost of maintenance, staffing, and electricity.
- Several developing nations have comparatively smaller terminals, which limits the installation of a baggage handling system. Moreover, labor cost for manual baggage handling is affordable for developing countries with relatively smaller airports. These factors also hamper the global baggage handling market to a certain extent.
Asia Pacific to hold significant share of global baggage handling system market
- The baggage handling system market in Asia Pacific is expected to expand significantly owing to an increase in government investment in infrastructure. In Asia Pacific, China is estimated to dominate the market owing to a rise in air passenger traffic in the country. The Government of India announced plans to construct 100 new airports with an investment of USD 60 billion, which is stipulated to create significantly opportunity for the baggage handling system market in India.
Key Players Operating in Global Market:
The global baggage handling system market is highly fragmented with top manufacturers across the global market. A few of the key players operating and potential in the global baggage handling system market are:
- Aversan Inc.
- Beumer Group GmbH & Co. KG
- Babcock Airports Ltd.
- BCS Group
- Daifuku Co., Ltd.
- Fives Group
- Glidepath Group
- G&S Airport Conveyor
- Grenzebach Maschinenbau GmbH
- Logplan LLC.
- Pteris Global Limited
- Siemens AG
- Vanderlande Industries B.V.
Global Baggage Handling System Market: Research Scope
Global Baggage Handling System Market, by Mode of Transport
Global Baggage Handling System Market, by Tracking Technology
- Barcode System
- RFID System
Global Baggage Handling System Market, by Check-in Service Type
- Assisted Service
Global Baggage Handling System Market, by Type
- Destination Coded Vehicle (DCV)
Global Baggage Handling System Market, by Solution
- Check-in, Screening, and Loading
- Conveying and Sorting
- Unloading and Reclaim
Global Baggage Handling System Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.