Market Trends of Middle-East And Africa Airport Baggage Handling Systems Industry
Above 40 Million Segment is Anticipated to Grow with the Highest CAGR During the Forecast Period
The above 40 million segment is expected to show significant growth during the forecast period. The main factors that are attributable to such growth include the increasing number of air passengers and growing spending on airport construction projects within these airports.
During the first half of 2023, Dubai International Airport announced that they have welcomed 41.6 million passengers, and this has exceeded 2019 figures owing to a strong recovery from the global pandemic. According to Dubai International Airport, the figures present a 49.1 percent increase in passenger numbers in the first quarter, compared with 27.9 million in 2022. Currently, Dubai International Airport has become one of the busiest airports in the world.
In terms of airport terminal expansion projects, Dubai International Airport is witnessing significant growth owing to a boom in air passenger traffic. For instance, in 2023, Dubai International Airport will undergo a revamp, which will likely continue for the next 5-7 years, and this will lead to DXB handling up to 120 million annual passengers within the next 15 years. Thus, all the above factors will play a crucial role in market growth for the above 40 million segments during the forecast period.
Saudi Arabia Will Showcase Remarkable Growth During the Forecast Period
Saudi Arabia is projected to show the highest growth during the forecast period. An increasing number of airport construction projects, rising air traffic, and rising airport modernization programs in Saudi Arabia drive the growth of the market.
Saudi Arabia, currently, is witnessing an increase in the number of air passenger traffic within the region. According to the data presented by the General Authority for Statistics (GASTAT), airports across the Saudi Arabian region received 88 million passengers in 2022. Moreover, according to GASTAT, Jeddah’s King Abdulaziz International Airport saw the most passengers, with nearly 32 million passengers recorded in 2022. Furthermore, Riyadh’s King Khalid International Airport ranked second with approximately 27 million passengers, followed by King Fahd International Airport in Dammam, with 10 million passengers.
Furthermore, the Saudi Arabian government is undertaking a massive airport expansion and upgrade program to serve 330 million travelers by 2030 through USD 147 billion in investments that will likely support USD 82.3 billion of GDP by 2037. Moreover, airport developments in Saudi Arabia in recent years have been witnessing significant growth in order to achieve the Saudi Vision of 2030. Additionally, in 2023, Jeddah Airports Company is planning to transform King Abdulaziz International Airport (KAIA) into one of the world’s largest airports with a USD 31 billion expansion plan that will increase its capacity to 114 million passengers a year. Hence, growing air traffic leads to rising expenditure on the construction of new airports and airport modernization programs, which in turn creates demand for new airport baggage handling systems in the coming years.
