Airport baggage handling system (BHS) transports checked luggage to the correct location in the airport. This system depends on the development of airline and airport facilities. The airport baggage handling systems market is highly dynamic and is aiming at impressive growth in the near course of time. A lot of efforts and advancements are required from the airlines as well as airport authorities in order to run smooth and effective handling processes of baggage. Growing demand from different parts of the world is also a reflection of the increased air traffic and changing lifestyle of the emerging regions. According to the expert market researchers, the global market is anticipated to witness impressive growth in the next few years to come. This growth is directed from the changing demand patterns and technological advancements in the global market.
Airport BHS Market – Drivers & Restraints
Analysis of the industry drivers and restraints helps the research experts to draw a clear picture about the projected growth and business opportunities in the global market. According to them, the three major driving factors for the baggage handling systems market include
- Soaring growth rate of air travel across the world
- Renovation and expansion plans at domestic and international airports
- Technological advancements and innovative systems for effective baggage handling
However, there are a few issues restraining the growth rate of the BHS market. These restraining factors include high rate of initial investment, lack of cheap labor, and existing baggage handling systems. Poor quality and time movement are also some of the major challenges for the global market. Lack of efficiency during peak or non-peak hours and claims of mishandled baggage are essential factors hindering the overall growth of the market. Baggage theft is also a crucial cause of concern for most of the airports that need immediate address in order to achieve the desired revenue.
Segmentation in BHS Market
Customers seek rapid departure and check-in at an airport and Lengthy and mishandled baggage claim facilities hinder this wish. In order to maintain high degree of customer satisfaction, airport and airline authorities are taking special efforts to resolve any issues related to baggage handling systems. In order to understand the basic trends in the market on global scale, researchers segment the global airport baggage handling systems market on the basis of the types of sorting systems, belts, and demand recorded across different geographic regions. The types of sorting systems include RFID, barcode and vacuum systems. Types of belts include vertical, angular and flat belts. On the basis of geographic regions, the global market is divided into North America, Asia Pacific, Europe, Middle East and Africa, and Latin America.
What to Expect in Future – Forecasting Reports
Latest market research reports about the baggage handling systems market claim that the industry is poised to make steady growth. During the next few years, the BHS market is expected to grow at a CAGR of 7% by 2020. At the projected compound annual growth rate, the global industry is estimated to reach $37.86 billion by the end of the year 2020. In 2013, the marked was estimated to be worth $23.31 billion. According to the research, European airlines have made solid progress in the baggage handling systems in the past few years. This growth is evident in technological advancements and reduced mishandling rate. Increasing keenness of the passengers in using the latest systems is encouraging businesses in the emerging markets like Asia Pacific, Latin America and Middle East and Africa.