The global smart baggage handling system market is currently characterized by cut-throat competition amongst a few established players. These market players are expected to keep innovating their offerings in order to retain their customer base. Furthermore, the market for smart baggage systems is huge which implies that there is tremendous scope for the market players to grow and develop. Owing to this reason, a number of new entrants are expected to be a part of the market in the coming years. This would intensify the competition and compel the market players to innovate their business strategies as well as their products. Furthermore, the researchers at Transparency Market Research (TMR) believe that collaborations would be a vital business strategy for market players in order to sustain themselves in the market and optimize their gains. The prominent market players include SITA, Vanderlande Industries, Beumer Group, Alstef Automation S.A., G&S Airport Conveyor, Fives Group, Pteris Global Limited, Daifuku Web Seimens Group, and Scarabee Systems & Technology B.V.
Transparency Market Research (TMR) published a report that estimates that the market to expand at a boisterous CAGR of 19.30% over the period from 2016 to 2025. The market value that stood at US$1,508.6 mn in 2016 is expected to elevate to US$7,210.8 mn by the end of 2025. This is an important standpoint to gauge the progress of the market over the forecast period. It is evident from the figures that the market holds immense growth potential in the coming years. Based on technology, the radio frequency identification system (RFID) is expected to capture a substantial market share over the forecast period. On a geographical footing, the market in North America is expected to exhibit a substantial growth rate due to the advent of new airports across the region. The CAGR for the market in North America over the forecast period is expected to stand at a robust figure of 20.5%.
Need to Increase Operational Efficiency of Airports Upticks Demand
Travelling has increased by leaps and bounds in recent times on account of several factors such as cross-country businesses, leisure trips, immigration, and emigration. This has escalated the need for better baggage handling systems market at airports and railways stations. Owing to this reason, the market for railway baggage systems market is expected to gain momentum in the coming times. Furthermore, the travelers are constantly on the lookout for better transit facilities so that their baggage is safely conveyed.
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This has made it important for airport authorities and railway operators to induct baggage handling systems within their framework. Reducing manual work and depending on high-end systems for sorting baggage can substantially increase the efficiency of the airports. This has also given a launch pad for the market to expand, thus, offering growth opportunities to market players. The security concerns associated with the smuggling of illegal goods or the transit of unpermitted items through trains and flights has risen the demand within the market. Apart from this, the infrastructural advancements across the globe have led to the construction of better airports and railway stations, thus, consolidating the market.
Advanced Electronic Systems to Benefit Market
The utility of radio frequency identification systems (RFID) and bar codes has also been driving the growth of the market. RFID system use electromagnetic fields to automatically obtain the electronic information stored inside tags. This eases the task of sorting the baggage and helps in smoothly conveying baggage from one point to another. Moreover, the bar codes technology also holds immense utility for the airports and railway stations, thus, propelling the demand for baggage handling systems.