Aircraft Ground Handling System Market size valued at over USD 130 billion in 2018 and is estimated to exhibit more than 5% CAGR from 2019 to 2025

Aircraft Ground Handling System Market Size
The size of the Aircraft Ground Handling System market was worth more than USD 130 billion in the year 2018 and is expected to grow with over 5% CAGR during the period from 2019 to 2025.

To obtain key market trends

Convenience and safety are promoting the demand for quality aircraft ground handling services. Delays and security issues can be infuriating, so airlines are seeking to enhance the experience for their customers. Air travel is increasing globally, and that translates into more flights and more travelers. In 2018, the aviation sector earned more than $35 billion in profits, an increase from $8.5 billion in 2011. By 2036, airline passengers will double to 8.2 billion. With so many more people traveling by air, airlines must try to manage the additional traffic effectively. That involves putting money into improved baggage handling equipment, security checks, and ground personnel. This need is driving up the market for ground handling companies.

Airports are seeing constant upgradation to improve infrastructure and passenger experience. Low commodity price, stable GDP growth and robust passenger demand are the other key drivers driving industry growth. Moreover, airport infrastructure improvement, aviation sector growth and changing trends for replacement of traditional systems in the aircraft with modern efficient system is driving product demand. Also, increasing per capita disposable income largely in emerging countries along with decreasing air fares is favorably impacting the aircraft ground handling system market penetration during the study period.

Aircraft Ground Handling System Market Report Attributes
Report Attribute Details
Base Year 2018
Aircraft Ground Handling System Market Size in 2018 130 Billion (USD)
Forecast Period 2019 to 2025
Forecast Period 2019 to 2025 CAGR 5%
2025 Value Projection 190 Billion (USD)
Historical Data for 2014 to 2018
No. of Pages 150
Tables, Charts & Figures 113
Segments included\tApplication and Region
What are the potential growth opportunities within this market?

Hello, listen up! Airports today are becoming incredibly intelligent with advanced high-tech technologies to ensure everything goes smoothly and they’re making a killing. In October 2016, the team over at the Airports Corporation of Vietnam (ACV) pulled off a magic trick and voila! They had more than USD 16 billion to make their airports even more desirable, with upscale new terminals and parking spaces to greet visitors from all over the globe. But hold on to your seat, there is more! This has got businessmen mulling over how to ensure that everyone stays safe when it comes to repositioning planes. They’re educating their employees with the newest and best equipment such as RampVR, which is a virtual reality boot camp for working on aircraft on the ground. So, all of this is good news for the people who keep our planes flying high!

The aviation sector is experiencing some challenges to expansion. People’s habits are shifting, and they’re demanding improved service for their money. All this complicates matters for new businesses to enter the market. Airliners also struggle with supplying the infrastructure required for all the individuals flying nowadays. Acquiring a sufficient number of heavy equipment and airport systems is extremely costly. Even the equipment that manages luggage and aircraft on the ground has some issues of its own. The majority of it has to be replaced every six to nine years, which is an enormous expense. And if sensors are not incorporated into those systems, they could crash into airplanes and do immense damage. But the industry can get past those issues by putting money into new technologies and making the equipment that it already owns better. For instance, including sensors in handling systems can avert collisions and make operations smoother.

Aircraft Ground Handling System Market Analysis
Handling of cargo was the dominant sector in the aircraft ground handling market in 2018. It represented approximately 40% of the market size due to the increasing demand for air freight globally. For instance, in 2017, the International Air Transport Association (IATA) indicated that global air freight demand (as calculated in freight tonne kilometers or FTKs) surged by more than 9%, far above the 3.5% expansion of 2016. Another pointer to such growthThe air cargo volumes for the world’s top 20 busiest airports went up by more than 6% in 2017 relative to the year before, as per the Airport Council International. Combined, these airports processed approximately 50 million metric tons of freight, accounting for over 41% of the world’s total air freight volume.

Growing passenger and freight traffic will propel the demand for the commercial aviation segment. Additionally, growing geopolitical tensions will propel the needs for national security aircraft fleet expansion, unwittingly propelling the aircraft ground handling system market. This has resulted in considerable growth in the total aircraft manufacturing backlogs for large manufacturing firms. For example, in 2018, as per airbus, commercial aircraft backlog hit more than 7,577 units compared to approximately 7,265 units for year 2017.

North America plays a leading role in the business of aircraft ground handling due to the fact that it hosts numerous firms that manufacture and maintain this equipment. Airports continually seek methods of operating more effectively and staying abreast of increasing numbers of travelers, fueling expansion in this sector. Several of the most congested airports in North America, such as Atlanta International Airport and Los Angeles International Airport, are among the world’s busiest. To remain competitive, the industry’s companies are investing in new means of enhancing their services. For instance, dnata announced in November 2018 that it would begin providing high-quality and reliable ground handling and cargo services at Los Angeles International Airport as part of its strategy to expand its business there.

Europe aircraft ground handling system market dominated by Germany, France, the UK, and Russia will experience a huge growth over the forecast period. Favorable economic situation along with decreased air fares are the major thrust factors in the region. Industry developments with the incorporation of sensors, tow-less tractors, and baggage management systems for providing operational safety will also help augment the industry growth. In addition, airport privatization with increasing investments from the private sector will support the business growth.

Asia Pacific is expected to have more than 25% revenue share by 2025 due to growing travel route choices and regional economic growth. Emerging developments like liberalization in several countries like India and China are constantly enhancing the global airport ground handling operations. High population presence in the region is playing a major role in generating regional revenues due to improved tourism activities.

Growing number of air travelers in nations like Mexico and Brazil are fueling the Latin America aircraft ground handling system market. The continent has hosted significant sports tournaments like FIFA World Cup and Olympics, which have seen the growth of a massive aviation industry. Middle East & Africa will exhibit a constant growth during the forecast period due to regulations linked with an effective and secure equipment.

Aircraft Ground Handling System Market Share

Aircraft ground handling system market is characterized as highly fragmented industry owing to the presence of multiple global as well as regional players.

• Swissport
• SATS
• John Menzies
• Bhadra
• Celebi
• Air+Mak
• Dnata

are among the prominent players. Other notable players in the industry include CargoTec, Cavotec SA, PrimeFlight, RampSnake and JBT AeroTech.

Previously, airline service providers operated the ground handling services. Liberalization has opened new opportunities and facilitated greater market access for the outsourcing vendors specializing in various areas. As of 2017, over 50% of the services are being provided by the third-party providers. In the U.S., about 65% of the industry is serviced by main airlines’ own handling companies. Each airport and country have different rules and processes for entering the industry. This provides cost-effective alternatives to small service providers to enter the industry.