Market Trends of Middle-East and Africa Airport Baggage Handling Systems Industry
This section covers the major market trends shaping the MEA Airport Baggage Handling Systems Market according to our research experts:
New Airport Development will Generate Demand for Advanced Baggage Handling Systems
According to IATA, the air passenger traffic is expected to grow with a significant rate of over 4% till 2037 for the Middle-East and Africa region. The airport construction and development is witnessing a significant growth due its proximity with significant markets such as Europe and Indian subcontinent. The growth in Middle-East is also fueled by the favorable environment for domestic carriers such as Emirates Airlines, Etihad Airways, Saudi Arabian Airlines, Qatar Airways, etc. which has led to the investments in cities such as Abu Dhabi, Doha, Dubai, etc. and made them a major aviation hub. Airport developments are taking place in smaller countries as well in the Middle-East and Africa region. Tunisia has invested USD 840 million in the development of a new airport scheduled to be completed by 2030. Kuwait has also invested USD 4.3 billion in development of new terminals and new international airport. In Africa, Addis Ababa, Johannesburg, Dakar Blaise Diagne, Cape Town and other hub airports are being upgraded to enhance the customer quality service and passenger handling capacity. Such developments will simultaneously drive the growth of the airport baggage handling systems market.
Saudi Arabia to Exhibit the Highest Growth Rate During the Forecast Period
The Middle-Eastern region accounts for 152 airport construction projects, worth about USD 58 billion, of which, Saudi Arabia accounts for the largest share. Major airport projects such as the new Taif International Airport (expected time of opening is December 2020), capacity expansion of King Khalid International Airport, etc. is propelling the growth of the aviation industry in Saudi Arabia. Unified Model Projects, approved by GACA aims at the construction of several airports in Saudi Arabia to increase the connectivity and decrease the pressure of major hub airports. Al-Jouf International Airport is one such airport under the Unified Model Project, construction of which began in September 2019 and the expected date of completion is early 2022. Such projects will generate demand for new baggage handling systems. The baggage handling systems market will also be propelled by the technological development initiatives undertaken by organizations such as Technical Development For Contracting that runs the installation of baggage handling systems operations for GACA's 5 Airport project.
