Aircraft Ground Handling System Market Size

Aircraft Ground Handling System Market Size

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

Factors such as to avoid delays caused by aircraft, baggage safety & security along with reduced ground time for ensuring operational efficiency are driving aircraft ground handling system market. Rising air traffic across the globe has led to increase in flight iterations which has resulted in demand for efficient and effective customer services. As per analysis, global aviation industry is valued more than USD 35 billion in profits in 2018, up from USD 8.5 billion in 2011. Between 2017 and 2036, the number of airline passengers is expected to grow at 5%. Considering present trends, passenger numbers could double to 8.2 billion in 2036. Such an increase in air traffic is anticipated to demand for improved capacity of ground handling staff and services, thereby enhancing the forecasts of GSE suppliers and vendors.

Airports are undergoing continuous upgradation to enhance infrastructure and improve customer experience. Low commodity price, stable GDP growth and strong passenger demand are the other significant factors stimulating industry growth. In addition, improvement in airport infrastructure, growth in aviation sector and shifting trends for replacement of conventional systems in the aircraft with advanced efficient system is propelling product demand. Also, rising per capita disposable income mostly in emerging nations in conjunction with reducing air fares is positively influencing the aircraft ground handling system market penetration over the study timeframe.
 

Additionally, the airport operators are adopting innovative technologies and advancement to ensure minimum error and maximum profits. For instance, in October 2016, according to CAPA, the Airports Corporation of Vietnam (ACV) has allocated over USD 16 billion to improve passenger terminal capacity and parking spaces for attracting tourists across the globe. This has further resulted supply chain participants to focus on improve ramp safety to boost the aircraft industry growth. Airport operators are conducting multiple programs for staff training with advanced instruments and systems. For instance, in May 2017, the International Air Transport Association (IATA) introduced RampVR, a first virtual reality training platform for aircraft ground handling operations in Bangkok, providing a positive outlook for the aircraft ground handling system market proliferation.
 

Challenges such as changing consumer behaviour, increasing demand for quality services along with initial setup cost may hamper industry growth. The demand for a sturdy infrastructure owing to the rising flight travel is the key challenge faced by airliners. Huge investment for heavy cargo and airplane handling system could further act as a restraint to the aircraft ground handling system market growth. An average handling equipment has a product lifespan of around six-nine years and requires replacement after a time period. Absence of sensors in handling systems will lead to collision with aircraft resulting in significant losses. The implementation of sensors including aircraft proximity detectors ensures effective operations and avoids collisions, will support the market growth.