With passenger numbers expected to exceed 4.7 billion in 2025, legacy baggage systems are overwhelmed, causing annual losses of approximately USD 5 billion due to mishandled luggage. Automated BHS decouples passenger growth from operational failures, protecting airline profitability and improving efficiency.
Chicago, Feb. 10, 2026 (GLOBE NEWSWIRE) — The global airport baggage handling systems market was valued at 7.63 billion in 2024 and is expected to reach US$ 13.64 billion by 2033, growing at a CAGR of 6.67% from 2025 to 2033.
The global aviation industry is currently navigating a period of unprecedented operational pressure, where the demand for robust airport baggage handling systems is no longer driven solely by modernization but by necessity. The primary catalyst is the relentless surge in global passenger flow. As of 2025, passenger numbers are stabilizing well above pre-pandemic levels, with industry data estimating annual travelers at approximately 4.7 billion. This trajectory in the airport baggage handling systems is set to steepen, with projections indicating a potential doubling of traffic by 2040. This massive influx of humanity brings luggage billions of checked items that must be screened, sorted, and loaded with precision.
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Automation Becomes the Only Solution to Decouple Passenger Growth from Operational Failure
When this volume overwhelms legacy infrastructure, the financial consequences are severe. The industry currently loses approximately USD 5 billion annually due to baggage mishandling. While the global mishandling rate hovers around 6.9 bags per 1,000 passengers, the cost of rectifying these errors, tracing, delivering, and compensating averages USD 100 per bag in the airport baggage handling systems. This operational bleed is unsustainable for airlines operating on razor-thin margins. Consequently, the demand for BHS is rising rapidly because it is the only physical mechanism capable of decoupling passenger growth from operational failure. Airlines and airports are investing not just to move bags, but to protect their bottom line against this multi-billion dollar liability.
Construction Boom Fuels BHS Demand Across New Terminals
To accommodate this passenger surge, the physical footprint of global aviation is expanding, though the growth is unevenly distributed. Currently, there are about 4,000 to 5,000 airports handling scheduled commercial traffic globally, within a broader network of more than 41,000 airfields in the airport baggage handling systems market. However, the critical metric for the airport baggage handling systems is the construction of “mega-hubs” and regional connectors. By 2035, the number of commercial airports requiring automated baggage systems is anticipated to grow significantly, propelled primarily by emerging markets.
This infrastructure boom is creating a bifurcated demand for baggage systems. In mature markets like North America and Europe, the airport count is relatively stable, so the demand is driven by the complex “brownfield” modernization of existing terminals, ripping out 1990s technology to install modern scanners within tight basements.
In contrast, Asia-Pacific and the Middle East are leading the “greenfield” charge in the airport baggage handling systems market. Countries in these regions are building entirely new cities of aviation, requiring massive, blank-slate BHS installations. This growth in airport numbers directly correlates to BHS demand; every new terminal requires a sorting loop, screening matrix, and makeup carousel, fueling a construction pipeline that extends well into the next decade.
Siemens Secures Major 140 km Conveyor Contract at Madrid-Barajas Airport
Conventional belt conveyors command a dominant 72.9% revenue share of the airport baggage handling systems market because they offer the most cost-effective lifecycle for high-volume baggage transport. Unlike complex Destination Coded Vehicles (DCVs), belt conveyors use standard components that simplify maintenance procurement for airport operators. The airport baggage handling systems market witnessed Siemens Logistics securing a major contract in 2025 to maintain 140 kilometers of conveyor belts at Adolfo Suárez Madrid-Barajas Airport. Operational data from Chicago O’Hare’s Terminal 3 upgrade confirms the installation of 14,361 linear feet of new conveyor lines to handle increased domestic loads. Facilities prioritize these friction-drive systems because they eliminate the need for managing thousands of individual carrier totes while ensuring continuous flow.
Vanderlande’s 2025 project at Poland’s CPK Airport involves a massive network of conveyors stretching over 16 kilometers. The airport baggage handling systems market favors this technology for its ability to manage heavy peaks without the software latency often found in carrier-based systems. Palma de Mallorca Airport renewed maintenance for its 10-kilometer conveyor network to ensure uninterrupted summer holiday operations. Toronto City Airport’s 2025 upgrade specifically utilizes new transfer line conveyors to facilitate U.S. CBP preclearance. Also, belt systems allow for immediate manual intervention during jams, unlike enclosed DCV tracks. Daifuku’s recent work at Denver International involved demoing 3,738 feet of old belts to optimize throughput flow.
Independent Carrier Systems (ICS) Offer Lucrative Opportunities in APAC
Asia Pacific commands the undisputed leadership position in the airport baggage handling systems market, propelled by a sheer volume of greenfield construction that dwarfs the rest of the world combined. The region is currently absorbing more than 40 percent of global passenger traffic growth, necessitating the construction of high-throughput “aviation cities” rather than simple terminals. China’s relentless push under its “Four-Horizontal” network plan and India’s UDAN scheme are fueling a construction pipeline where scalability is the primary design criterion.
Unlike the West, where retrofitting is common, the APAC airport baggage handling systems market offers vendors the lucrative opportunity to install massive, end-to-end Independent Carrier Systems (ICS) in blank-slate basements. Regional dominance is reinforced by the heavy footprint of Daifuku and increasing market penetration by Vanderlande, both competing to service hubs like Singapore Changi and Mumbai, which demand sorting speeds exceeding 10 meters per second to manage unprecedented connection volumes.
Airport Baggage Handling Systems Market Major Players:
- Beumer Group
- Daifuku Co. Ltd.
- Fives Group
- G&S Airport Conveyor
- Glidepath Group
- Grenzebach Group
- Logplan LLC
- Pteris Global Limited (CIMC Group)
- Siemens AG
- Vanderlande Industries B.V.
- Other Prominent Players
Key Market Segmentation:
By Type
- Conveyor
- Destination Coded Vehicle (DCV)
By Solution
- Security Screening Systems
- Transportation, Sortation, and Storage Systems
- Reclaim Systems
By Airport Class
- Class A
- Class B
- Class C
- Others
By Tracking Technology
- Barcode System
- RFID System
By Check-in Service Type
- Assisted Service
- Self-Service
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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