Global Baggage Handling Market research Report, 2024-29

Market Dynamic

Market Drivers • Adoption of Automation and Smart Solutions : Automation has become a significant driver for the baggage handling market as airports seek ways to reduce manual labor, enhance accuracy, and increase operational speed. Automated systems such as self-service kiosks, bag drop stations, and automated sortation systems help speed up baggage processing. These systems also improve accuracy by minimizing human error, increasing customer satisfaction by reducing wait times. The adoption of smart baggage tracking technologies, powered by IoT and AI, also ensures that luggage can be tracked in real time, enhancing both security and operational efficiency. Market Challenges • Maintenance and System Downtime : Baggage handling systems require regular maintenance to ensure they operate at peak efficiency. System failures, whether due to mechanical issues or software glitches, can lead to delays and passenger dissatisfaction. Extended downtimes for repair or maintenance work can disrupt airport operations, especially in busy hubs. The cost of ensuring that baggage handling systems remain operational, especially in large airports with complex infrastructure, can be a significant burden, further exacerbating the challenge of maintaining a smooth operation. • Operational Bottlenecks and Delays : Despite the technological advancements in baggage handling systems, operational bottlenecks and delays are still a prevalent issue, especially during peak travel periods. Unexpected baggage mishandling, failures in automated systems, and delays in baggage sorting or loading can lead to longer wait times for passengers. These delays can negatively affect the overall passenger experience, creating dissatisfaction and damaging the reputation of airlines and airports. Mitigating these issues requires constant monitoring, system improvements, and adaptive solutions to maintain efficient baggage processing under varying conditions. Market Trends • Integration of Biometrics for Seamless Baggage Handling : Biometric technologies, such as facial recognition and fingerprint scanning, are being integrated into baggage handling systems to enhance security and passenger convenience. By linking passenger identities with their baggage, airports can improve the accuracy of luggage tracking and reduce the risk of mishandling. This trend is part of a broader movement towards creating seamless, touchless travel experiences, where biometric authentication speeds up check-ins, baggage drop-offs, and security checks. The adoption of biometrics in baggage handling systems is expected to continue growing as airports aim to provide a more efficient and secure passenger journey.

Key Development

• In May 2023, in Bulgaria, Sofia Airport has recently awarded Alstef Group a contract worth USD 11 million. Under this agreement, Alstef Group will be responsible for providing, installing, and maintaining a state-of-the-art baggage handling system (BHS). Notably, the airport witnessed a significant surge in passenger numbers in 2022, serving close to 6 million travelers. • In February 2023, Alstef Group and Edmonton International Airport (YEG) in Canada have teamed up to modernize the airport's baggage system. The project focuses on enhancing the baggage handling system (BHS), starting with the replacement of outdated control equipment and the addition of new bag-tag readers. This comprehensive initiative includes the overhaul of the airport's existing baggage handling infrastructure and improved operational technical support. • In November 2022, Siemens announced that the company will provide baggage handling system for Noida Airport. They will design, supply, install, commission and maintain the baggage handling system for NIA's Terminal One.