Airport Baggage Handling Systems Market -Segmented by Airport Capacity (Up to 15 million, 15 -25 million, 25 -40 million, 40 million +) and by Geography -Growth, Trends and Forecast (2018 -2023)
The market for airport baggage handling systems is anticipated to grow at a CAGR of about 5.55% during the forecast period. The increasing passenger traffic in developing regions coupled with increasing security concerns owing to growth in terrorist attacks as well as improving aircraft turnaround time shall drive the airport baggage handling systems in the near future.
The rising number of incidences related to terrorist acts worldwide, airports have become strict with regard to baggage security. The security process takes time and affects the overall efficiency of the baggage handling operations. This has increased the importance of state-of-the-art baggage handling systems, as most airlines are placing immense focus on the turnaround times of an aircraft, in order to increase their profits. Some airlines, like South West, routinely make turnarounds below 30 minutes, and an effective baggage handling system plays a vital role in such cases.
A modern airport baggage handling system is a complex infrastructure that consists of automated carts, conveyors, destination coded vehicles, and other various mechanisms. Moreover, new technologies, like radio frequency identification (RFID), are increasingly being used, and this is resulting in improved operational efficiencies.
Worldwide air travel has grown at a historically sharp pace over the past two decades, with a year-over-year passenger growth for the past five years, averaging at 6.2%. Low airfares, growing living standards, and a growing middle class in large emerging markets, such as China and India, are major contributors to increased air travel. The middle class in both countries, combined, grew from 80 million in 2000 to 135 million in 2016, an increase of nearly 70%. China has contributed significantly to the world traffic growth over the past decade, as its passenger growth has increased at an average rate of more than 10% per year from 2007-2017. India is expected to become the third-largest commercial aviation market by the early 2020s.
Additionally, the high economic growth in the country is fueling more than 20% passenger traffic growth per year in its domestic market. Asia-Pacific accounts for 41% of the demand, with the United States and Europe, together representing 36%, and other regions comprising of 23% of the demand for new aircraft.
While overall global economic growth has lagged in recent years, there is still an increasing trend toward air travel demand worldwide; high growth is particularly seen in developing regions, such as Asia-Pacific.
Expansion of airports in major cities, with huge passenger traffic, has created an opportunity for manufacturers to bring advanced technologies in the airport baggage-handling system. Countries, like India, the United States, China, Vietnam, Australia, and the United Kingdom have planned to expand their airports. The United States has the maximum number of airports (15,079), of which, the busiest and the second-biggest air terminal is the Hartsfield-Jackson Atlanta International Airport. Currently, Mexico city’s new international airport is expected to become the biggest airport in America and the third-largest in the world. The airport is expected to handle more than 125 million passengers, annually. The first phase of the airport, Nuevo Aeropuerto Internacional de la Ciudad de México (NAICM), is expected to begin operations by 2020, and get fully completed by 2022. The initial stage will have 96 gates and three runways other than the main terminal, and once the whole complex is complete, two more terminals and six runways will start operation simultaneously. Likewise, in June 2017, Mott MacDonald delivered a plan for the construction of Costa Rica’s New Metropolitan International Airport worth USD 3.5 billion. This new airport may replace the country’s Juan Santamaria International Airport in San José. The first stage of the project is expected to be completed by 2027, with an investment of USD 1.9 billion. The fourth and final stage is scheduled to be completed by 2047.
The Heathrow International Airport in the United Kingdom underwent expansion with a short third runway and a new passenger terminal. As the United Kingdom’s major hub, Heathrow has attracted many transfer passengers, and supports a very wide range of destinations at high frequencies; it is the world’s busiest airport based on the number of international passengers.
The Gatwick Airport has been involved in several proposals, aimed at increasing passenger capacity and relieving congestion, in Southeast England. A total of 34,235,982 passengers travel through Gatwick Airport every year. Through this expansion, it is expected that Gatwick will be able to handle extra six million passengers by 2018, and an additional airport baggage-handling system is expected to be installed in the North terminal of the airport.
The expansion of airports and establishment of new airports have resulted in a larger number of airport baggage-handling systems, thus creating opportunities for the airport baggage-handling system manufacturers.
The United States holds the largest market share in North America for baggage handling systems, followed by Canada and Mexico. The country has the majority of the airports in the region, which accounted for the highest passenger traffic of 900.6 million in 2015.
The increased traffic growth in the Asia-Pacific region is leading to an increased demand for more efficient baggage handling systems in the region.
DAIFUKU Co. Ltd. , Glidepath LLC , Siemens AG, Pteris Global Limited, Beumer A/S among others.
Jan 2018: The Beumer Group A/S have secured a contract from Finaviato in order to extend the baggage handling system, which is currently at operation at the Helsinki Airport, Finland. Moreover, in terms of the contract, the Beumer Group shall provide two energy efficient LS-400 tilt tray-sorters, a Crisbag tote-based system with in-tote screening as well as Crisbelt Conveyors from their range of products from Crisplant to the Terminal 2 of the Helsinki Airport, Finland.
Sep 2017: Beumer Group A/S have reported that they have successfully secured Phase 1 of the contract for upgrading and modernizing the automated baggage handling system in the Terminal 2 situated at the Manchester Airport. Beumer Group have also reported that they have received the contract from Manchester Airports Group (MAG) which is a airport operator based in the United Kingdom.
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