France, Overseas France, and French Speaking Africa Airport Baggage Handling System Market Statistics 2031-
The France, Overseas France, and French speaking Africa airport baggage handling system market was valued at $325.5 million in 2021 and is projected to reach $620.6 million in 2031, registering a CAGR of 6.8% from 2022 to 2031.
An airport baggage-handling system is used to transfer bags from the check-in area to the departure gate, from one gate to another during transfers, and from the arrival gate to the baggage-claim area. It also assists in managing bags stored in an Early Bag Storage system or other types of buffers and transports them to the departure gate.
It is also used for sortation, which is the process of identifying a bag and the information associated with it, to determine where the bag should be directed within the system. The baggage handling system uses various technologies such as barcode scanners and RFID sensors for the processing. Installation of a new baggage handling system considers speed, baggage types, throughput capacity, and tracking speed. Market players are introducing modern and well-developed conveyors systems to combine cost efficient baggage handling systems with low energy consumption, easy maintenance, and reliable operations.
The adoption of airport baggage handling system is expected to increase owing to increase in air traffic. Renewal and redevelopment of existing airports along with greater need to improve operational efficiency drives the growth of the market. However, high initial and maintenance costs associated with baggage handling systems, and high consequences of system failure are factors expected to hamper the growth of the market. Moreover, greater adoption of automation technologies, and technological advancements are expected to offer numerous growth opportunities during the forecast period.
The France, Overseas France, and French speaking Africa airport baggage handling system market is segmented on the basis of type, service, technology, airport class, and country. By type, it is segmented into conveyors and destination coded vehicles. By service, it is classified into assisted service and self-service. By technology, it is categorized into barcode and RFID. By airport class, it is segmented into class A, class B, and class C. By country, the market is analyzed across France, Overseas France, and French speaking Africa.
There is surge in expansion plans for airports and the government in France is investing in baggage handling systems due to a high number of baggage mishandling cases. France invests in airport solutions that can efficiently scan large volumes of baggage. Moreover, several baggage handling system providers in France are investing in improving customer service and developing technology. Such factors are expected to boost the growth of the market during the forecast period.
The rate of air passenger traffic is constantly increasing in France owing to the development of medium and small-sized airports. An increase in airport development with numerous major construction projects to cater to the rise in passenger numbers is expected to drive the growth of the market. For instance, in January 2019, a terminal expansion project at Marseille Provence International Airport was introduced. The terminal expansion project was aimed at increasing the passenger handling capacity of terminal 1 from 8 million to 12 million, thus, increasing the airport's total passenger capacity to 16 million.
Moreover, there is a rise in the introduction of optimized and streamlined baggage handling system at airports to increase operational efficiency. For instance, in March 2021, Alstef Group provided EUROAIRPORT Basel-Mulhouse-Freiburg with a new baggage handling system that aims to reduce maintenance as well as operating costs. In addition, airports prioritize and install baggage handling system to reduce departure baggage handling time, and improve process efficiency, passenger experience, and safety, which is expected to drive the growth of the market.
Some leading companies profiled in the report comprise Alstef Group, The Beumer Group GmbH & Co. KG, Siemens AG, Vanderlande Industries B.V., ALFYMA, SITA, Daifuku Co., Ltd., ALPHA-CIM, Fives Group, and Matrex Airport. The leading companies are adopting strategies such as product launch, collaboration, and contracts to strengthen their market position. In June 2022, Alstef Group collaborated with SITA for launch of Swift Drop, a self-bag drop solution designed to significantly speed up the experience of checking-in own bag. In April 2022, Alstef Group was selected by Nice Côte d’Azur Airport to handle the renovation of the baggage handling system for T2.1 (2.1 Terminal).
Destination Coded Vehicle is projected as the most lucrative segment
In March 2022, Siemens Logistics launched a product for automatic unloading of goods from unit load devices (ULDs). A powerful chip device allows VarioTip to empty up to 20 of his ULDs (approximately 800 bags) per hour in arrival and transfer zones. In August 2021, Siemens Logistics launched a new version of Baggage 360, baggage handling and airport operations software. It provides airports, airlines and ground handlers with real-time baggage flow forecasts, interactive maps showing all airport movements, resource planning and simulation tools.
Rise in air-traffic
The rise in aviation traffic is attributed to a variety of factors. The primary reason is population and economic expansion, which is being fueled by rise in travel and tourism. By 2035, the global economy is projected to increase by 3% annually, while aviation traffic is projected to grow by an average of 6% annually. The second development element is introducing low-cost airlines with competitive rates on well-travelled routes. They play a significant role in the intensification of air traffic in Europe; at present, they account for more than 40% of Europe's and 25% of traffic globally. By encouraging international airlines to lower ticket rates, these businesses significantly influence airline prices. As consumers attempt to make up for two years of missed travel possibilities, the aviation industry has witnessed the long-anticipated rise in reservations with the relaxation of numerous border restrictions.
According to the Union of French and Associated Francophone Airports, the French airports welcomed 90.67 million commercial passengers in 2021 (1.11 aircraft movements) as compared to more than 214 million in 2019 and 70 million in 2020. At the European level, according to ACI Europe (Council of International Airports), in 2021, traffic was down by 59.0% (-64.6% for EU members and -34.4% for non-members) as compared to 2019. The two Parisian airports maintained their lead with respectively 26.19 million passengers for Charles-de-Gaulle and 15.72 million for Orly, which is almost half of the total French traffic.
Airports and airlines are investing in baggage handling systems to cater to the increase in number of air passengers. This also helps enhance passenger experience and airport operations, which will in turn drive the growth of the airport handling system market.
Self-service is projected as the most lucrative segment
Greater need to improve operational efficiency
The check-in process during peak travelling times generally consumes most of the time and is exhausting for the passengers. This process can be made convenient by using automated kiosk, remote queue management system, and remote check-ins. Similarly, other technologies used in the baggage handling systems such as radio-frequency identification (RFID) and near field communication (NFC) are successfully implemented in numerous airports for automated check-in services.
IATA Resolution 753 on baggage tracking enables airlines to address the challenge of baggage mishandling by implementing cross-industry tracking for every baggage journey. Baggage Tracking is part of the IATA End to End baggage program that aims to improve efficiencies in baggage handling operations to meet the changing demands of passengers as the air transport industry is set to double in size by 2035.
According to Resolution 753, which was implemented in June 2018, airlines must track baggage at four key points in the baggage journey, which include passenger handover to airline, loading to the aircraft, delivery to the transfer area, and return to the passenger. The airlines are required to share the tracking information with their interline journey partners as needed.
According to SITA, between 2007 and 2020, the mishandling rate per thousand passengers has reduced by 81%, from 18.88 bags to 3.5 bags. The air transport industry’s annual bill for mishandled bags was $600 million in 2020, an 85% decrease from $4.2 billion in 2007.
RFID is projected as the most lucrative segment
High upfront and maintenance cost of Baggage Handling System (BHS)
The initial investment for the construction of a baggage handling system is high due to complex infrastructure. The overall cost for the functioning of a baggage handling system is high due to various cost factors. Firstly, the cost of the complete system is high as numerous parts are used for the construction of a baggage handling system such as conveyor belts, RFID sensors, X-ray screening machine, and others. In addition, the operational and maintenance services of the BHS add on to the basic cost of the system, which comprises cost of maintenance, staffing, and electricity.
Number of airports in French speaking Africa have comparatively smaller terminals, which limits the installation of a baggage handling system. In addition, labor cost for manual baggage handling is affordable in areas having relatively smaller airports than building a whole new baggage handling system. These factors hamper the airport baggage handling market to a certain extent.
By Airport Class
Class A is projected as the most lucrative segment
Utilization of automation solutions
Moving baggage manually to and from the airport terminal to the aircraft is time-consuming, costly, and labor-intensive. Automating check-in conveyors, baggage screening, sortation, make-up and reclaim is proven to improve process efficiency, passenger experience and safety. The efficiency of baggage handling has a great impact on the entire airport operation, as delayed baggage can affect aircraft turnaround time, reduce minimum connection time, affect gate management and airport capacity utilization.
COVID-19 Impact Analysis
The COVID-19 had a major impact in changing consumer dynamics. Unlike pre-COVID phase, where end users valued human interaction, currently consumers prefer having human-machine interface or automated processes. In the future, all passenger operations from check-in to boarding the plane, are expected to be handled by the passengers through self-service solutions and automation. This is anticipated to increase non-aeronautical revenue, reduce operational costs, and improve resource utilization.
Overseas France would exhibit the highest CAGR of 8.0% during 2022-2031.
KEY BENEFITS FOR STAKEHOLDERS
- This study presents the analytical depiction of the France, Overseas France, and French speaking Africa airport baggage handling system market analysis along with the current trends and future estimations to depict imminent investment pockets.
- The overall France, Overseas France, and French speaking Africa airport baggage handling system market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the France, Overseas France, and French speaking Africa airport baggage handling system market with a detailed impact analysis.
- The current France, Overseas France, and French speaking Africa airport baggage handling system market is quantitatively analyzed from 2021 to 2031 to benchmark financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
France, Overseas France, and French Speaking Africa Airport Baggage Handling System Market Report Highlights
By Airport Class
Key Market Players
Matrex Airport, Siemens AG, Fives Group, Daifuku Co., Ltd., Beumer Group GmbH & Co. KG, SITA, ALFYMA, Alstef Group, ALPHA-CIM, Vanderlande Industries B.V.
The France, Overseas France, and French speaking Africa baggage handling system market is expected to witness growth, owing to increase in spending on construction of airports, growth in demand for automated airport solutions, and increase in demand for passenger capacity. Digitalization is increasingly being adopted as a key factor to accelerate the recovery of the airport sector. Personalizing the passenger experience will be in focus over the next few years and providing remote self-services that allow passengers to be travel-ready will be essential.
Digital changes made before and during the pandemic are here to stay and the airport industry will continue to improve operations with increased data capabilities. Vast quantities of data are available at airports but continue to be an underused asset. Increased use of data science and advanced analytics will allow airports to capture substantial performance improvements and create greater value for customers.
There has been greater focus on sustainability over the years. Digitalization can ensure that the recovery progresses sustainably, saving resources and minimizing excess emissions. Airports are expected to be prioritizing technology to support sustainable infrastructure, smart building technology, automation, and energy savings. According to SITA’s Air Transport IT Trends 2021, airports see digitalization of their operations as a way to navigate recovery from the pandemic, reduce costs and provide a simplified passenger experience. In 2021, 81% of airports expected their absolute IT spend to remain stable or increase in 2022.
As a response to COVID-19, airports planned to postpone, reduce or defer investment and limit spending only for essential projects. Europe’s airports have experienced reduction in capital expenditure of around $7.5 billion over the last two years. Despite financial restraints, it is essential for airports to maintain their critical infrastructural developments to recover lost revenue. Several airports sacrifice their baggage handling system functionality to save costs. However, airport IT and baggage handling are the most essential elements within the airport.