A market research firm is projecting the baggage handling market will exceed $9 billion by the year 2020.
The firm, MarketsandMarkets, published the report titled Commercial Baggage Handling System Market by Airport Class (A, B, C), Identification Technology (Barcode, RFID), Service (Self-Service, Assisted-Service), Type (Conveyors, Destination-Coded Vehicles), Efficiency, Geography - Global Forecast to 2020, it is projected to reach $9.36 billion by 2020, at a compound annual growth rate (CAGR) of 7.72 percent during the given forecast period.
The firm says factors, such as the increase in air travel by people all over the world, modernization of airports, enhancement of airports’ efficiency and customer satisfaction, and improvement of aircraft turnaround time, and others, drive the baggage handling system market. On the other hand, the say factors like complex architecture and high level of initial investment, are restricting the growth of this market. However, an increase in the passenger and cargo traffic with a limited airport space provides new growth opportunities for the market players.
As of 2015, North America is estimated to hold the largest market share of the baggage handling system market, in terms of the overall revenue; it is followed by Europe. The Asia-Pacific region is expected to show a substantial growth at the highest CAGR of 8.26 percent during the forecast period, owing to the rise in construction of new airports and increasing passenger traffic in emerging economies, such as China and India. Latin America and Africa are also showing good growth prospects, and therefore, they could provide investment opportunities for the major market players in the next five years, according to the firm.
The report also draws the competitive landscape of the baggage handling system market, providing an in-depth comparative analysis of the technological and marketing strategies that the key players are adopting to gain an edge over their competitors. The key strategies followed by most companies in the baggage handling system market are new product development, providing customized solutions and mergers and acquisitions.
