Baggage Handling System Market Report 2026

The baggage handling system market size has grown strongly in recent years. It will grow from $11.13 billion in 2025 to $12.02 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to expansion of global air passenger traffic, modernization of airport infrastructure, rising baggage volume per passenger, adoption of conveyor-based handling systems, increased airport capacity investments.

The baggage handling system market size is expected to see strong growth in the next few years. It will grow to $16.07 billion in 2030 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to increasing investments in smart airport projects, rising focus on contactless passenger processing, expansion of multimodal transport hubs, growing adoption of predictive maintenance systems, increasing demand for scalable baggage solutions. Major trends in the forecast period include increasing deployment of fully automated baggage systems, rising adoption of rfid-based baggage tracking, growing integration of ai-driven sorting technologies, expansion of high-speed conveyor systems, enhanced focus on baggage handling accuracy.

The growth of the tourism industry is expected to drive the expansion of the baggage handling system market going forward. The tourism industry includes a wide range of businesses and services that serve travelers and tourists, such as transportation, accommodation, attractions, and hospitality. The expansion of the tourism industry is supported by improved infrastructure, economic development, rising disposable incomes, increasing globalization, and easier access to travel-related information. Baggage handling systems facilitate tourism by efficiently managing passenger luggage, ensuring seamless travel experiences for tourists, and enhancing satisfaction and operational efficiency for travel service providers. For instance, in February 2024, according to the United Nations World Tourism Organization (UNWTO), a Spain-based specialized agency of the United Nations, global estimates recorded 1.28 billion international tourists in 2023, representing a 34% increase compared with 2022. Therefore, the expansion of the tourism industry is driving the baggage handling system market.

Major companies operating in the baggage handling system market are concentrating on integrating digital predictive maintenance solutions such as condition monitoring platforms to improve efficiency and system reliability. Condition monitoring platforms utilize real-time operational data from sensors and analytics software to continuously evaluate the condition of baggage handling equipment, enabling capabilities such as early fault detection, performance optimization, and proactive maintenance planning. For instance, in April 2025, Siemens Logistics, a Germany-based airport logistics solutions provider, presented SmartService 360, a digital service platform developed to enhance the availability and reliability of baggage handling systems at airports, featuring real-time data collection from system components, machine-learning-based risk assessment for potential failures, and a centralized dashboard for maintenance decision support. SmartService 360 increases operational uptime, minimizes unplanned maintenance activities, and supports more efficient lifecycle management of baggage handling infrastructure.

In May 2025, Vanderlande Industries B.V., a Netherlands-based logistics technology and automation company, acquired Siemens Logistics for approximately USD 325 million (€300 million). Through this acquisition, Vanderlande aimed to expand its global airport logistics presence and reinforce its end-to-end baggage and cargo handling capabilities by incorporating Siemens Logistics’ advanced airport automation technologies and digital solutions into its existing portfolio. Siemens Logistics is a Germany-based logistics technology company that specializes in delivering airport baggage and cargo handling systems, software platforms for airport operations, and comprehensive automation solutions.

Major companies operating in the baggage handling system market are Siemens AG, Daifuku Co Ltd, Vanderlande Industries B V, Fives Group, SICK AG, BEUMER Group, SITA, INFORM SOFTWARE, Interroll Group, Smiths Detection Group Limited, Grenzebach Maschinenbau GmbH, Alstef Group, Cassioli Srl, ULMA Handling Systems, G&S Airport Conveyor, Logplan LLC, Honeywell International Inc., TGW Logistics Group GmbH, Brock Solutions, SATS Ltd, Amadeus IT Group SA, CIMC-TianDa Holdings, Leonardo S p A, Logan Teleflex, Civil Aviation Logistics Technology.

Asia-Pacific was the largest region in the baggage handling system market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the baggage handling system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the baggage handling system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The baggage handling system market consists of revenues earned by entities by providing services such as design and consultation, installation and integration, maintenance and repair, security screening, and automation and control systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The baggage handling system market also includes sales of sorters, scanners, RFID readers, automated guided vehicles (AGVs), and baggage carousels. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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