A report by Allied Market Research (AMR) has estimated the global airport baggage handling system market to be more than $14.5m by 2025.
The projections would represent a growth in CAGR (compound annual growth rate) of 6.7% from 2018 to 2025. AMR valued the market at just over $8.5m in 2017.
The report says that North America currently dominates the market, followed by Europe.
It also showed that in 2017, the U.S. dominated the North America market accounting for more than one third of the share of the total revenue, and is expected to maintain its dominant position by 2025. Meanwhile, the United Kingdom led overall in Europe.
AMR reported that Class A airports generated nearly half of the total market revenue in 2017, owing to the high preference for this class.
Meanwhile, it estimated that Class A airports would maintain their lead position during the forecast period.
However, the report’s estimates show that Class B airports would register the highest CAGR of 7.7% from 2018 to 2025, owing to rise in the number of domestic airports – meanwhile, Class C airports are projected to grow at a steady rate during the forecast period.
As for assisted service, the market research company’s findings were that it accounted for 90% of total revenue in 2017 as it is a globally adopted method of assistance for passengers, especially non-frequent flyers.
Throughout the forecast period, it is projected that self-service will grow at the fastest CAGR of 8.3% from 2018 to 2025 due to high efficiency, less waiting time, and large number of self-service counters.
Meanwhile, it was found that conveyers contributed more than two thirds of the total revenue in 2017, as it is the most commonly used traditional method of carrying baggage of various sizes and shapes. AMR’s forecast suggests conveyers would maintain their lead by 2025.
According to AMR: “The global airport baggage handling system market is driven by anticipated growth in air travel [and] modernisation of new airports and technological advancements fuel the market growth.
“However, high upfront and maintenance costs of baggage handling systems and high consequences of system failure impede the growth of the market.
“Furthermore, utilisation of robotisation in the airports is expected to present lucrative growth opportunities for the market in the coming years.”
The market research firm identified Siemens AG, Beumer Group and G&S Airport Conveyor – and others – as some of the “key players” in the market.