Baggage Handling System (BHS) Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Baggage Handling System (BHS) market size was estimated at USD 9.5 billion in 2023 and is projected to reach USD 15.3 billion in 2030 at a CAGR of 7.1% during the forecast period 2024-2030.

The Baggage Handling System (BHS) encompasses the fluidity of the vehicles, components, spare parts, and raw materials of the automotive producer in the course of automotive procurement, production, and sales. The logistics in the automotive industry encompass the management of inbound transportation of raw materials and components, the management of garage transportation during the production process, and the management of transportation of vehicles and spare parts, which includes distribution processing delivery, object purchasing, loading and unloading, storage, transportation, and information processing. Due to the rapid progression of the automotive industry, the Baggage Handling System (BHS) sector plays a crucial role in cost reduction throughout the supply chain.

The field of Baggage Handling System (BHS) is an extensively recognized and acknowledged process that is primarily concerned with the coordination and movement of a diverse range of resources. These resources may include but are not limited to equipment, inventory, and materials that are associated with finished vehicles and automotive parts. This intricate process involves the management of the flow of goods from a particular point of origin to the point of consumption, with the ultimate goal of satisfying the unique and specific requirements of customers. The management of logistics is predominantly focused on the efficient and effective management of a wide range of daily activities that are associated with the production of a company's finished goods and services. This type of management is an integral part of the supply chain management process and is responsible for planning, implementing, and controlling the efficient, effective forward, reverse flow, and storage of goods. It is a complex and multifaceted process that requires a high level of skill and expertise to ensure that the entire logistics process runs smoothly and efficiently.

The COVID-19 pandemic has resulted in a situation where automakers have been compelled to engage in a realignment of their supply chains. The primary focus of this realignment is the localization of production in order to mitigate the risk associated with the heavy reliance on a single region. It is pertinent to note that the majority of the semiconductors that are employed in the manufacture of vehicles are sourced from regions such as Taiwan and China.

Delvens Industry Expert's Standpoint

Experts in the baggage handling system market highlight several key trends driving growth and innovation. The global increase in airports, coupled with advancements in technology, is significantly transforming the industry. Automated baggage handling systems, incorporating sensors and conveyor belts, are enhancing efficiency by automating the sorting and routing of luggage. Additionally, the integration of tracking technology, like RFID, allows for real-time monitoring, reducing the incidence of lost or delayed baggage. Security remains a critical focus, with new technologies such as X-ray scanners and explosive detection devices being developed to counter the threat of terrorism. Cost considerations continue to influence market developments, with innovations aimed at reducing operational expenses. Moreover, the industry's growing attention to environmental impact is leading to the creation of more energy-efficient and eco-friendly systems. Overall, the modernization of airport infrastructure and the adoption of cutting-edge technologies are driving significant advancements in the baggage handling system market.

Market Portfolio

Key Findings

• On the basis of Type, the baggage handling system market is segmented into Conveyor and Destination Coded Vehicle (DCV). The conveyor segment is expected to dominate the market, particularly in airports with lower passenger traffic. Many Class B and Class C airports primarily use conveyor systems as their main mode of baggage transportation due to their simplicity and cost-effectiveness. These conveyors efficiently manage baggage handling needs in less busy airports, ensuring smooth operations and reliable baggage transfer.

• On the basis of Solution, the baggage handling system market is segmented into Conveying & Sorting, Check-in, Screening, Loading and Unloading, and Reclaim. The conveying and sorting segment is expected to lead the market. According to primary insights, sorting is a crucial component of the overall baggage handling system. The significant rise in domestic and international air and marine passenger volumes has driven companies to enhance existing baggage handling technologies with automated sorting solutions. This focus on improving sorting efficiency is key to addressing the growing demands of the travel industry.

• On the basis of Mode of Transport, the baggage handling system market is segmented into Airport, Railway, and Marine. The airport segment is expected to continue its dominance for the next 20-30 years. Government incentives and mandates have positioned China and India as leading players in the airport industry. Baggage handling systems at airports play a crucial role in the global economy by attracting more suppliers and manufacturers for business investments, thereby enhancing overall economic growth and development.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Asia Pacific is projected to hold the largest market share. Factors such as growing air passenger volume, upcoming airport projects, presence of cruise industry, scope for multimodal transport, economy of countries, government investments in railway, marine, and airport projects, consumer acceptance, and government regulations have triggered the demand for baggage handling systems in the region.

Regional Analysis

Asia pacific to Dominate the Market

• Asia-Pacific is poised to lead the baggage handling system market due to growing air passenger traffic, rising cruise travellers, and upcoming airport renovations. Significant investments in railway transportation and economic growth in countries like India, Singapore, Japan, China, Australia, and New Zealand are driving demand. the Airport Authority of India invested approximately USD 50 million in high-speed explosive detection systems.

• North America is expected to see strong growth due to numerous airport development plans in the U.S. and Canada and efforts to reduce baggage mishandling. YYC Calgary International Airport signed a 10-year agreement with Beumer Group for advanced baggage handling systems.

• Europe is experiencing substantial growth, with leading manufacturers like Vanderlande Industries investing strategically. For example, Vanderlande signed a 20-year agreement with Brussels Airport for system upgrades.

• Latin America and the Middle East and Africa show potential growth due to increasing tourism. Leading manufacturers are investing in these regions to enhance customer satisfaction, such as Beumer Group's USD 4.3 billion baggage-handling system at Kuwait International Airport and SITA's self-service gates at Brazilian airports.

Competitive Landscape

• Alstef Group
• Beumer Group
• Babcock International Group PLC
• Cage Inc.
• Daifuku
• DSA Detection
• Delite Systems Engineering Pvt Ltd.
• Fives Group
• Glidepath Limited
• Grenzebach Group
• G&S Airport Conveyor
• ICM Airport Technics
• Kinematik
• Logplan
• Omega Aviation Services Inc.
• Pteris Global Limited
• SICK
• SITA
• Siemens AG
• Scarabee Aviation Group B.V.
• Smiths Detection Group Ltd.
• Vanderlande Industries

Recent Developments

• Smith’s Detection, a leading global authority in security screening technology, has introduced the HI-SCAN 6040 CTiX to the Indian market. This advanced cabin baggage screening system employs Computed Tomography (CT) technology, specifically designed for passenger checkpoint scanners. The announcement aligns with the Bureau of Civil Aviation Security (BCAS) directive, which mandates the use of 3D CT technology X-ray machines at pre-departure security checkpoints in all Indian airports with annual passenger traffic exceeding five million.

• Siemens Logistics is slated to install a new outbound Baggage Handling System (BHS) at Austin-Bergstrom International Airport (ABIA) in Texas. With over two decades of experience in processing outbound passenger bags, Siemens aims to upgrade the current system to meet current industry standards. The project includes the installation of a new mainline belt conveyor, high-speed diverters for efficient sortation, and vertical sorters. Additionally, the comprehensive order covers the modernization of upper and lower-level controls across the entire system. Scheduled for completion by late 2024, this initiative underscores Siemens' commitment to enhancing baggage handling efficiency and reliability at ABIA.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
• Gain authentic and granular data access for the Baggage Handling System (BHS) Market to understand the trends and the factors involved in changing market situations.
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope