Aircraft Ground Handling System Market Analysis

Aircraft Ground Handling System Market Analysis

Cargo handling accounted for around 40% aircraft ground handling system market size in year 2018 owing to the increasing air freight demand across the globe. For instance, in 2017, according to International Air Transport Association (IATA), the global air freight demand measured in FTKs (freight tonne kilometres) grew over 9% as compared to over 3.5% in year 2016. Moreover, as per the Airport Council International, in 2017, the air cargo volumes at global 20 busiest airports grew by over 6% as compared to year 2016. The combined cargo volume handled by these airports was around 50 million metric tons and represented the global air cargo volume over 41%.
 

Increasing passenger and freight traffic are expected to drive the commercial aviation segment demand. Also, increasing geopolitical instability will drive the requirements for expansion of national security aircraft fleets, inadvertently driving the aircraft ground handling system market. This has led to significant increase in the overall aircraft production backlogs for major manufacturing companies. For instance, in 2018, according to airbus, the commercial aircraft backlog reached over 7,577 units as compared to around 7,265 units for year 2017.
 

North America dominates the aircraft ground handling system market owing to the presence of many equipment manufacturers and service providers. Rising focus on operational efficiency and satisfying the ever-growing demand of air passengers will fuel the business growth. Busiest airports in the region includes Atlanta International Airport and Los Angeles International Airport, these are also among the top five busiest airports across the globe. Industrial participants are engaged in strategic investments for expanding their service operations for gaining competitive edge. For instance, in November 2018, dnata announced the expansion of services at Los Angeles International airport by providing high quality and reliable ground handling and cargo services.
 

Europe aircraft ground handling system market led by Germany, France, the UK, and Russia will witness a significant growth during the forecast timeframe. Buoyant economic conditions coupled with reduced flight fares are the key drivers in the region. Technological advancements in the industry with the implementation of sensors, tow-less tractors, and baggage management systems to ensure operational safety will further boost the industry growth. In addition, airport privatization with increasing investments from the private sector will support the business growth.
 

Asia Pacific is projected to hold over 25% revenue share by 2025 owing to an increase in travel route options and regional economic expansion. New developments such as liberalization in multiple nations including India and China are continuously improving the global airport ground handling activities. Large population existing in the region is significantly contributing to the regional revenue generation owing to enhanced tourism activities.
 

Increasing number of air commuters in countries such as Mexico and Brazil are driving the Latin America aircraft ground handling system market size. The region has hosted major sports events including the FIFA World Cup and Olympics, resulting in a significant aviation industry growth. The Middle East & Africa will register a steady growth over the study period owing to the regulations associated with an efficient and secure equipment.