Drivers of the Radio Frequency Identification (RFID) Baggage Handling System (BHS) Market from 2026 to 2030

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TBRC's Radio Frequency Identification (RFID) Baggage Handling System (BHS) Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, February 26, 2026 /EINPresswire.com/ -- "The Radio Frequency Identification (RFID) Baggage Handling System (BHS) market is gaining significant traction as airports worldwide push for more efficient and reliable baggage management solutions. With increasing air travel and technological advancements, this market is set to witness steady growth in the coming years. Let’s delve into the market’s size, growth drivers, key trends, and regional dynamics shaping its future.

Steady Market Expansion in RFID Baggage Handling Systems
The RFID baggage handling system market has experienced robust growth recently, expanding from $2.11 billion in 2025 to an anticipated $2.28 billion in 2026. This represents a healthy compound annual growth rate (CAGR) of 8.1%. The upward trend over the past years is largely fueled by increasing global air passenger traffic, the rollout of new airport infrastructure projects, a pressing need to minimize baggage mishandling, advances in airport automation, and early adoption of RFID technologies for tracking purposes.

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Forecasted Growth and Market Outlook up to 2030
Looking ahead, the RFID baggage handling system market is projected to maintain strong momentum, reaching $3.14 billion by 2030 with a CAGR of 8.3%. This anticipated growth is driven by the rise of smart airport initiatives, growing passenger expectations for seamless travel experiences, expansion in international air travel, increasing investment in airport digital transformation, and the evolution of automated logistics and tracking solutions. Key trends during this period will include widespread adoption of fully automated baggage handling, integration of real-time tracking platforms, advancements in intelligent sorting and routing systems, growing use of cloud-based baggage management, and improvements in security screening and lost baggage recovery.

Understanding RFID Baggage Handling Systems and Their Benefits
RFID baggage handling systems utilize RFID tags and readers to automate the identification and tracking of luggage throughout the airport handling process. These systems offer real-time visibility of baggage movement from check-in through aircraft loading and arrival. By improving the accuracy and efficiency of baggage tracking, RFID technology reduces mishandling incidents, streamlines operations, and enhances passenger satisfaction with reliable baggage delivery.

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How Rising Air Passenger Traffic is Fueling RFID BHS Market Demand
One of the primary forces behind the RFID baggage handling system market’s growth is the steady increase in air passenger traffic globally. This term refers to the number of passengers transported via air travel within a given timeframe, typically annually. The surge in air travel is largely attributed to the expansion of low-cost carriers, which have made flying more affordable and accessible, encouraging more frequent travel for both leisure and business. RFID baggage handling systems play a crucial role in managing this growing passenger volume by boosting the efficiency and durability of airport transit infrastructure. For instance, according to the International Air Transport Association (IATA), in 2024 Canada’s air transport sector handled approximately 876 million passengers, marking a 5.2% rise over the previous year. This growth in passenger numbers is a key factor driving demand for RFID baggage handling technologies.

Regional Dynamics Highlighting North America and Asia-Pacific Growth
In terms of regional market share, North America held the largest portion of the RFID baggage handling system market in 2025. However, the Asia-Pacific region is expected to emerge as the fastest-growing market segment over the forecast period. The comprehensive market analysis covers regions such as Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, providing a broad view of global trends and regional performance.

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