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Baggage Accountability, Handling Efficiency, and Advanced Screening Standards Drive Market Growth
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The International Air Transport Association (IATA) has forecast passenger traffic to nearly double from 3.8 billion in 2015 to 7.2 billion by 2030. This increase will reflect in the number of checked baggage each year with forecasts pegging the number at close to 6.5 billion bags by 2030. As airport operators revise their plans and strategies to handle the growing passenger traffic, plans to handle accompanying baggage are also being revisited. Additionally, passing regulations to increase passenger safety, stop illegal trafficking, and increase accountability for passenger baggage compel operators to upgrade and revamp conventional baggage handling systems. Legacy systems are a wrench in the spokes of an industry that is transforming its IT architecture to enhance efficiency.Frost & Sullivan’s global survey of airports, assessing the current status of digital transformation programs within airports, indicates baggage handling operations as among the top 5 areas of priorities for operators where mishandled baggage is a key pain point. The research findings have been complemented with information from internally held airport databases, participation and discussions at international airport conferences, as well as a number of expert interviews with major industry suppliers.This research also tracks industry best practices and emerging trends that enable operators to combat challenges. Transition to Standard 3 screening system, priority for baggage tracking in the event of IATA R753 energy-efficient technologies, replacing TTY messages with XML, and the adoption of automated handling systems are driving investments in airside systems. Niche solutions based on emerging technology such as AI, Big Data, IoT, Blockchain and AR/VR have piqued operator interest and are being used to develop solutions such as predictive maintenance. The heavily fragmented market is vulnerable to consolidation and immense competition. Suppliers have the opportunity to expand into other material handling verticals including cargo handling. As niche solutions are being developed to cater to specific challenges, suppliers have to understand the importance of system interoperability and collaboration among various stakeholders. Operators are also keen on identifying solutions to reduce energy consumption and maintenance costs.This research prompts various opportunities of growth and emerging trends such as end-to-end baggage handling services and the importance of operational readiness and airport transport (ORAT) before commencing live operations. Operators are involving suppliers in the planning of processes and engaging in risk-sharing partnerships, requesting robust business cases and demanding service level agreements (SLAs). These investments drive opportunities for suppliers to target product development and penetrate markets focusing on challenges and requirements specific to their region.
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The Global Airport Baggage and Cargo Handling Market
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