Airport Baggage Handling System Market Report and Forecast 2025-2034

The global airport baggage handling system market size is projected to grow at a CAGR of 8.42% between 2025 and 2034.

An airport baggage handling system is a complex network of conveyor belts, scanners, sorting machines, and other equipment that transports the luggage of passengers from the check-in counters to the aircraft and vice versa. The system also ensures the security and tracking of the baggage throughout the journey.

The global airport baggage handling system market is driven by several factors, such as the increasing air traffic, the need for efficient and reliable baggage handling systems, the demand for enhanced passenger convenience and safety, and the adoption of advanced technologies such as artificial intelligence, robotics, and biometrics. Intelligently designed, efficient, and high-speed baggage handling systems enable airports to enhance their baggage handling capabilities and overall service towards airlines and commuters.

Key Trends and Developments

Increasing demand for efficient baggage handling, adoption of robotic technologies, and high integration of cloud computing in baggage handling systems are boosting the airport baggage handling system market growth

Global Airport Baggage Handling System Market Trends

Increasing passenger activity, the need to implement and sustain stringent security measures, and investments towards modernisation of airports and expansion of operations are expected to be drivers of the airport baggage handling system market growth.

Over the last decade, airport baggage handling systems have undergone significant change. Wholly automatic systems armed with modern computer-regulated and managed technologies have replaced manual sorting machines and equipment. These changes have occurred in response to enhanced security measures that have led to passenger/baggage reconciliation through the course of their stay at the terminal, and the necessity of checking hold luggage in its entirety for potentially dangerous material. Another factor promoting the airport baggage handling system market development is construction of hub airports with several terminals interconnected by underground conveyor belts to create unique systems capable of managing thousands of units of luggage every hour.

Furthermore, investments in systems enabling expansion and modernisation of airport operations are likely to stimulate the airport baggage handling system market value. Companies are making significant investments to reduce operating costs, optimise operations, expand, and develop capabilities to meet future requirements. For example, in June 2021, BEUMER Group was selected by airport operator Avinor to devise, integrate, and operate a new baggage handling system to replace the standing system at Oslo Airport by 2024. The baggage handling system integrated modern technology that would enable Oslo Airport to carry out data-driven decisions. A CrisBag tote-based baggage handling system would be delivered as an end-to-end solution for the entire baggage handling process.

Market Segmentation

Global Airport Baggage Handling System Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Conveyors
• Destination Coded Vehicles
• Others

Market Breakup by Technology

• RFID
• Barcode
• Others

Market Breakup by Airport Class

• Class A
• Class B
• Class C

Market Breakup by Service

• Self-Service
• Assisted Service
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Conveyors are expected to hold a significant airport baggage handling system market share because of their wide use in airports

In types of baggage handling systems, conveyors segment is anticipated to lead the airport baggage handling market share in the forecast period. Conveyors are the most widely used type of airport baggage handling system, as they can transport luggage from check-in to security screening, sorting, loading, and unloading. Conveyors can be belts, rollers, or tray systems, depending on the size and shape of the baggage. They are also used to connect different terminals or buildings within an airport.

Destination coded vehicles (DCVs), on the other hand, are automated guided vehicles that transport baggage in individual carts along a track system. The adoption of DCVs is increasing and can affect the airport baggage handling systems market size in future as DCVs offer higher speed, accuracy, and flexibility than conveyors, as they can bypass congested areas and deliver luggage directly to the destination. They also reduce the risk of baggage loss, damage, or theft, as they eliminate the need for manual handling, which, in turn, increases the demand for airport baggage handling systems.

Adoption of RFID as baggage operations technology has led to market growth because it improves security and reduces labour costs

RFID (radio-frequency identification) technology is expected to witness a higher growth rate in the airport baggage handling system market, as it offers advantages such as higher accuracy, reduced mishandling, and improved security. Compared to barcodes, RFID tags have a larger data storage capacity and can be read at a distance without requiring direct line of sight. Moreover, RFID technology can help reduce labour costs, enhance customer satisfaction, and generate additional revenues for airlines. According to statistics, the global adoption of RFID technology for baggage tracking has significantly increased. Some of the major airports that have implemented RFID technology for baggage handling are Las Vegas McCarran International Airport, Indira Gandhi International Airport, Hong Kong International Airport, and Milano Malpensa Airport.

In 2023, Indira Gandhi International Airport (IGI) operator Delhi International Airport Limited (DIAL) in India commenced the installation of an integrated high-speed cart system (ICS) with integrated RFID technology at the airport’s Terminal 1 to offer a superior passenger baggage experience. The installation of the system brought consistency to the baggage handling process at the airport. Such developments contribute to airport baggage handling system market expansion.

However, the barcode technology is the most widely used technology for baggage handling at airports, as it is relatively cheaper and easier to implement than RFID technology. Barcode technology involves attaching a printed label with a unique barcode to each bag and scanning it at various checkpoints throughout the baggage handling process. According to the airport baggage handling system market analysis, barcode technology has some limitations, such as low readability, susceptibility to damage, and need for manual intervention. Some of the major airports that use barcode technology for baggage handling are London Heathrow Airport, Singapore Changi Airport, and Tokyo Haneda Airport.

Competitive Landscape

Market players are introducing novel technologies to improve passenger experience and to stay ahead in the competition

Other key players in the airport baggage handling system market include Vanderlande Industries B.V., BEUMER Group, and G&S Airport Conveyer, among others.

Global Airport Baggage Handling System Market Analysis by Region

North America holds a dominant position as the region has a high demand for baggage handling systems in its well-developed aviation infrastructure

North America is the largest regional market for airport baggage handling systems as the region has a well-developed aviation infrastructure and is home to some of the busiest airports in the world, such as Atlanta, Los Angeles, Chicago, New York, and Dallas. The region also witnesses high investments in upgrading and expanding existing airports, as well as developing new ones, to meet the growing demand for air travel. Moreover, the region is a hub for technological innovation and adoption of advanced baggage handling solutions, such as RFID tags, biometrics, and robotics, to enhance operational efficiency and security.

According to the airport baggage handling system market report, Europe holds the second-largest regional share. This region also has a mature and stable aviation sector, with some of the leading airlines and airports operating in the region, such as Air France, British Airways, London Heathrow, Paris Charles de Gaulle, and Frankfurt. The region also follows stringent regulations and standards for baggage handling systems, such as ECAC Standard 3, which mandates the use of explosive detection systems for screening checked baggage. Furthermore, the region is investing in modernising and expanding its airport infrastructure to cope with the increasing air passenger traffic and enhance customer experience.

Additionally, Asia Pacific airport baggage handling system market is growing and is expected to register a promising CAGR during the forecast period. The region is witnessing a rapid growth in air passenger traffic, especially in countries such as China, India, Indonesia, Thailand, and Vietnam, owing to the rising disposable income, urbanisation, and rapid increase in tourism sector. The region is also undergoing a massive expansion and development of its airport infrastructure, with several new greenfield and brownfield projects underway, such as Beijing Daxing, Mumbai, Noida, Bangkok Suvarnabhumi, and Jakarta Soekarno-Hatta airports. Additionally, the region is adopting advanced technologies and solutions for baggage handling systems, such as artificial intelligence, cloud computing, and internet of things, to improve operational efficiency and customer satisfaction.

Middle East and African region have an emerging baggage handling systems market because the region has a fast-growing aviation sector, with some of the leading airlines and airports operating in the region, such as Emirates, Qatar Airways, Etihad, Dubai, Abu Dhabi, and Doha. The region is also developing and expanding its airport infrastructure, with several ambitious projects underway or planned, such as Dubai’s Al Maktoum, Istanbul New Airport, and Cairo New Capital. Moreover, the region is adopting cutting-edge technologies and solutions for baggage handling systems, such as RFID tracking, robotic assistance, and blockchain, to improve reliability and transparency. These factors can collectively increase the airport baggage handling system market size in the region.