SAN FRANCISCO - The global ground handling system market size is expected to reach USD 189.09 billion by 2022, according to a new report by Grand View Research, Inc.
The substantial growth prospects of the aircraft ground handling system market can be attributed to a global increase in the passenger and cargo air traffic. Support by several governments worldwide and the local airport authorities are also stimulating the industry growth. Aviation and local airport authorities regulate the operations of handling equipment related to the safety of airliners, passengers, and the cargo to be transported.
The multi-billion-dollar expansion of airline fleets and airports globally has set off significant growth prospects for the aircraft handling industry players. Both, airlines operators and airports are focused on procuring and implementing advanced technologies to meet the rising air traffic and ensuring greater profitability, performance, and efficiency amidst stiff competition.
An emerging trend in the industry is the use of renewable energy sources to power equipment. Biogas-powered snow removal equipment, which is an eco-friendly approach, is being developed increasingly to carry out snow removal at airports. Furthermore, with the integration of IT in ground support operations, companies are increasingly developing innovative ground support software to address the specific needs of handlers.
However, high initial and replacement costs for such equipment are presumed to challenge market growth over the forecast period. Advanced and innovative ground support equipment that is sustainable is comparatively expensive and cuts into the profit share of major commercial airline companies.
Further key findings from the report suggest:
- Aircraft support equipment accounted for over40% of the overall market share in 2014 and is poised for significant growth over the next seven years. The growth in this segment can be attributed to increasing global airline fleets at the airport, and increased prominence of air travel.
- Baggage and cargo handling service segment is anticipated to witness substantial growth over the forecast period, growing at a CAGR of over 10% from 2015 to 2022. The growth in baggage and cargo support service is dependent upon the increase in the number of commuters using air travel, and an increase in air cargo transport.
- Projected to grow at an estimated CAGR of over 10%, from 2015 to 2022,ramp support service is expected to witness significant growth over the next seven years. The growth in ramp handling service segment can be attributed to increasing demand for passenger movement, aircraft towing, parking assistance, and aircraft marshaling.
- The ground handling system market in Asia Pacific accounted for over 25% of the overall market share in 2014 and is presumed to witness significant levels of growth over the forecast period. India and China are expected to incorporate considerable opportunities for regional industry growth, due to increasing urbanization, large population, eventually leading to extensive domestic traveling.
- The Middle East regional market is presumed to witness substantial growth over the forecast period, growing at a CAGR of close to 9% from 2015 to 2022. The region incorporates significant growth potential owing to a surge in aviation activities in the form of expansion, modernization, and domestic air travel.
North America ground handling system market by service, 2012-2022, (USD Billion)