Rising Instances of Terrorist Attacks to Spur Demand for Baggage Scanners Worldwide

The global baggage scanners market is poised to reach US$ 2.68 Bn by 2026, expanding at a CAGR of 6.8% during the forecast period from 2018 to 2026. Rising incidences of terror attacks across the globe have shaken the intelligence community. In wake of growing terrorist activities and consequent safety concerns, the demand for security systems including baggage scanners has been witnessing an alarming increase over the last few years. Persistent terror threats combined with government backing to develop robust security infrastructure bodes well for the market growth. According to the latest study published in 2016 by The Institute for Economics and Peace, the annual count of terror incidences almost tripled between 2011 and 2014. With an exponential rise in power of adversaries, such instances will only increase in the coming years. Consequently, law enforcement and government agencies across the globe are upgrading their security capabilities.

Demand for Baggage Scanners to Swell at Airports

Baggage scanners deployed at airports, railway stations, seaports, border checkpoints, public gatherings, and commercial complexes ensure public safety. Along with the growing threat from terrorism, rise in drug trafficking, illegitimate arms shipping, and cross border immigration through different modes of transportation is driving demand for baggage scanners at these terminals. With several airport projects lined-up in the coming years, fresh installations of advanced security systems are expected to surge at airports. In addition, need for compliance with domestic and international aviation legislations will compel airport authorities to upgrade their existing security infrastructure, thereby driving market demand. The following figure represents expected contribution of different end-use segments to the global baggage scanners market in 2026.

Asia Pacific Expected to Witness Strong Growth

In terms of value contribution, North America comprising the U.S., Canada, and Caribbean Islands was the largest baggage scanners market worldwide in 2017. The region accounted for over one-third of the total market value in the same year. The U.S. represents the largest baggage scanners market in North America and worldwide. The dominance can be majorly credited to strict regulations and security measures implemented by the U.S. government in view of growing terrorism threats. The baggage scanners market in North America will also be benefitted from the replacement of obsolete security systems with innovative equivalents. On the other hand, growing cross-border conflicts, geopolitical tensions, and initiatives taken by the governments to upgrade security infrastructure in the region will drive Asia Pacific baggage scanners market during the forecast period. Along with Asia Pacific, Europe is also presumed to register strong growth in demand during the forecast period because of the rising terror incidences in the region. The Paris attacks at multiple public gatherings including restaurants & bars, music venues, and sports stadium has compelled the Government of France to tighten security by deploying security systems including baggage scanners at all public places. Similarly, bombings in Brussels in 2016 resulted in Belgian Government installing baggage scanners at airports and metro stations. Thus, initiatives taken by the concerned authorities to update their security portfolio in a bid to thwart terror plots and ensure homeland security will drive luggage scanner installations.

Product Innovation: Premier Business Expansion Strategy

The global baggage scanners market is technology driven and moderately fragmented. Being technology driven, the global baggage scanners market is highly competitive and characterized by the presence of large number of players. The market is in early stage of maturation and hence focus on product innovation remains the premier strategy for vendors. Vendors are focusing on developing scanners capable of being integrated with different technologies including RFID, 3D imaging, etc. On the other hand, a new entrant in the market is required to make considerable capital investment and dedicate substantial research and development budget to develop innovative solutions and sustain in the market. Small players are forming strategic alliance with the established players as the market moves towards maturity.

Some of the leading vendors profiled in the study include Adani Systems Inc., 3DX-RAY Ltd., Kapri Corp., Astrophysics Inc., MinXray, Inc., L-3 Communications Security & Detection Systems, Westminster International Ltd., OSI Systems, Inc., Smith Detection, Safran Identity & Security (Morpho Detection), Analogic Corporation, Eurologix Security, and Leidos Holdings, Inc.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Baggage Scanners market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Baggage Scanners market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Baggage Scanners market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Baggage Scanners market?
• Which is the largest regional market for Baggage Scanners market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Baggage Scanners market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Baggage Scanners market worldwide?