Ground Handling Systems Market (2023 - 2030)

Ground Handling Systems Market Summary

The global ground handling systems market size was valued at USD 4.33 billion in 2022 and is projected to reach USD 8.71 billion by 2030, growing at a CAGR of 9.0% from 2023 to 2030. Increasing globalization has significantly increased global air traffic, which in turn has elevated the importance of ground support operations at airports.

Air travel has gained prominence due to decreasing airfares, growing aircraft fleets, enhanced facilities, and the luxury associated with it. It has extended the growth in ground support services that play a key role in offering the convenience of travel to passengers.

Airport operators and airline companies across the globe are increasingly using sophisticated technologies to streamline every aspect of ground handling (GH) operations. On account of frequent innovations in robotics, digital communications, and other innovative technologies, airports have many options to improve this aspect of airport operations which is under intense scrutiny.

Airport authorities across the globe are moving away from fuel-burning ground movements to electric propulsion wherever feasible. Various airline GH service providers are developing electric and biogas fuel-powered towing vehicles for aircraft allowing engines to remain powered off until the aircraft is at the runway’s head.

The industry incorporates considerable opportunities for future growth owing to the increasing number of operational airports and flights across the globe. Rapid technological advancements and developments in using alternative fuel for handling equipment and vehicles are presumed to provide considerable opportunities for industry growth. However, operations optimization during peak time is anticipated to challenge industry growth over the forecast period.

Type Insights

Based on type, the market is segmented into aircraft handling, baggage & cargo handling, and passenger handling. The aircraft handling segment accounted for the largest revenue share of nearly 38.9% in 2022. The increasing global air passenger traffic is a major factor driving the demand for aircraft handling services. With more people traveling by air, there is a greater need for efficient and timely aircraft handling during ground operations. Additionally, the growth of the e-commerce industry has led to a rise in air cargo transportation, further driving the demand for aircraft handling services.

Furthermore, the focus on improving operational efficiency and reducing turnaround time at airports is another driver for the growth of the Aircraft Handling segment. Airlines and airports continuously strive to enhance their operational capabilities and provide a seamless travel experience to passengers. Efficient aircraft handling is crucial in achieving these objectives by minimizing delays, optimizing resource allocation, and streamlining processes.

The baggage & cargo handling segment is estimated to register the fastest CAGR of 9.7% over the forecast period. Baggage and cargo support equipment includes carts, tractors, loaders, trailers, and container loaders. Several factors, such as customer satisfaction, enhancement of aircraft turnaround time, improvement of airport efficiency, modernization of airports, and increased air travel, have driven the growth of the baggage and cargo support equipment segment.

Component Insights

Based on component, the market is segmented into equipment and service. The equipment segment accounted for the largest revenue share of over 96.1% in 2022. The aviation industry is increasingly conscious of its environmental footprint and strives to reduce carbon emissions and minimize waste. As a result, there is a demand for eco-friendly equipment that incorporates energy-efficient technologies, utilizes sustainable materials, and reduces noise pollution. Airport operators and airlines actively seek ground handling equipment that aligns with their sustainability goals, driving innovation and investment in eco-friendly solutions.

The service segment is estimated to register the fastest CAGR of 14.8% over the forecast period. The growing focus on enhancing the passenger experience drives the demand for high-quality ground handling services. Airlines and airports increasingly invest in services prioritizing passenger comfort, convenience, and safety. It includes efficient check-in processes, streamlined baggage handling, and improved customer service, all of which fall under the service segment of the ground handling system market.

Regional Insights

North America dominated the market and accounted for the largest revenue share of nearly 32.9% in 2022. The region has many major airports and airlines, leading to high demand for efficient ground-handling services. Additionally, North America is a popular destination for both domestic and international travel, resulting in increased air traffic and the need for streamlined ground operations. The growing air travel trend and the rise of low-cost carriers further propel the demand for ground-handling services.

Moreover, technological advancements play a crucial role in market growth. Adopting automated systems and robotics in ground handling operations improves efficiency, reduces turnaround time, and enhances safety. It has led to increased investments in advanced ground-handling equipment and technologies by North American airport authorities and ground-handling service providers.

Asia Pacific is expected to register the highest CAGR of 10.8% over the forecast period. Hong Kong, Mumbai, Malaysia, and Singapore are the region’s key airports, where most business jet movements occur. These airports are presumed to expand gradually due to the growing traffic. Poised to witness significant growth over the forecast period, China and India are envisioned to witness an increase in domestic traveling due to growth in urbanization and population.

Key Companies & Market Share Insights

The market is highly competitive, and the players are undertaking strategies such as forecast launches, acquisitions, and collaborations to increase their global reach. For instance, in February 2023, Skyway partnered with Moonware to expedite the preparation of ground infrastructure for advanced aerial mobility. Skyway specializes in air traffic navigation and vertiport airspace management, while Moonware utilizes AI-powered software and autonomous ground vehicles for automated aviation ground operations. This strategic partnership aims to seamlessly integrate ground operations into UATM systems, resulting in a streamlined airside workflow and enhanced navigation services from start to finish. By expanding their operation offerings for next-generation facilities, Skyway’s vertiport development department seeks to provide a reliable infrastructure for Urban Air Mobility while delivering the next level of automated traffic services to airline operators. The following are some of the major participants in the global ground handling systems market:

• aerohandling

• Alvest

• Flughafen München GmbH

• Aviation Services International Group

• Aviapartner

• BGS

• Queensland Airports Limited

• Cavotec SA

• Çelebi Aviation

• dnata

• Aeroservices

• SATS Ltd

• PrimeFlight Aviation Services

• Oceania Aviation

• Menzies Aviation Limited

• Mallaghan

• JBT

• IMAI AERO-EQUIPMENT MFG.CO., LTD.

• HAVAŞ

Recent Developments

• In May 2023, Menzies Aviation Limited and i6 Group Ltd expanded their partnership and services to four additional airports in England. The collaboration aims to implement innovative fuel management technologies such as Fusion6 and Reconcile6. These technologies offer various benefits, including cost savings, enhanced safety, and real-time fueling information and management.

• In May 2023, Menzies Aviation Limited and MYAirline announced a joint venture to set up a ground operations firm in Malaysia. Menzies would offer Kuala Lumpur International Airport ground services, primarily catering to MYAirline at Terminal 2. This strategic decision allows MYAirline to maintain its commitment to provide cost-effective travel options and help to keep fares inexpensive for its valued consumers.

• In October 2022, UL LLC launched a new service that evaluates the compliance of lithium-ion battery-powered aviation ground handling tools with the UL 5840:2022 Standard. This standard assists customers in accelerating the use of battery-powered equipment, achieving lowered carbon emission targets, and qualifying for incentives. UL LLC is assisting the aviation sector in shifting to electric ground support equipment by addressing the safety issues of lithium batteries in aviation equipment, which is critical for meeting carbon emission reduction targets.

• In September 2022, dnata collaborated with AeroVect to develop and test automated ground support systems. Up to 100 dnata baggage and freight tractors were outfitted for tests with AeroVect driver automation software. With this collaboration, dnata was the first global operator to utilize automated ground support systems on a broad scale.

• In May 2022, Flight Consulting Group (FCG) partnered with General Aviation Service (GAS) to establish a network of ground handling stations throughout Spain. This collaboration aims to enhance FCG OPS’s services by proactively seeking opportunities to improve customer experiences. With the support of GAS, FCG OPS can now offer a comprehensive range of ground handling services in Spain, including aircraft handling, refueling, flight permit acquisition, and travel services.

Ground Handling Systems Market