Ground Support Equipment Market Size, Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Russia, China, India, Japan, Brazil, Mexico, Middle East, South Africa), Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025
Report ID: GMI3281
Ground Support Equipment Market size is set to achieve lucrative growth during the forecast period as it enables airlines to efficiently manage their daily operations for felicitating their daily routine flights journey without causing any delays. The ground support equipment is majorly focused at reducing Aircraft-On-Ground (AOG) timing significantly to improve overall flight experience. According to the Airspace Technologies, an AOG can cost up to around USD 150 thousand per hour, thereby contributing significantly towards increasing the operating expenses.
The significant growth of e-commerce along with growing requirement for speed, visibility, and high priority services are boosting the air cargo demand. For instance, according to the International Air Transport Association (IATA), in September 2018, freight volume continued showcasing an upward trend of around 2.0% growth in freight tonne kilometers (FTK) compared to the previous year. Moreover, rising demand for technologically advanced cargo handling equipment with incorporated superior temperature handling and safe transportation including cargo loaders, pallet loaders, and ULD trucks among others are further expanding the ground support equipment market size.
Ground support equipment market players are continuously investing in R&D for incorporating advanced telematics and management solutions. Moreover, the addition of RFID technologies along with connected services provide airliners and ground service handlers with real-time insights and updates on the status of the cargo handling and vehicle activities. Additionally, the advanced technologies and solutions enable players to actively engage their equipment to reduce turnaround time and improve efficiency significantly. For instance, in 2018, Honeywell in association with Pinnacle announced the expansion of its connected aircraft solutions for ground support equipment services, thereby enabling a single connected aircraft ramp solution.
Stringent regulatory norms are enabling industry players to significantly invest in efficient and greener aircraft ground support equipment (AGSE) technologies. Industry players are continuously investing in R&D and developing technologies for felicitating the development of greener AGSE for complying to the stringent emission and fuel norms. Moreover, airport authorities across the globe are focusing on replacing ageing equipment with modernized and efficient fleet to improve their business operations. For instance, in February 2018, United Airlines and the Chicago Department announced a combined investment of around USD 1.4 million for the purchase of 26 greener AGSE.
Based on the type, the ground support equipment market is bifurcated into mobile and fixed equipment. The mobile ground support equipment will showcase significant growth owing to the higher requirement for such equipment including cabin service vehicles, passenger buses, aircraft fueling trucks, and lavatory vehicles for improving in-flight experience. Moreover, increasing investments from government organizations and airport authorities for developing new infrastructure along with expansion of older airports are further boosting the segment share. For instance, in February 2019, the Ministry of Civil Aviation, India announced the initiation of seven airport infrastructure projects across the country with investments to round USD 72 million.
Based on power, the ground support equipment market share is categorized into non-electric, electric, and hybrid. The growth in the electric segment can be attributed to the benefits offered including lower noise, no emissions, and higher efficiency. Moreover, compliance to stringent regulatory norms along with reduced maintenance requirements further accentuates the segment share. Airport operators are continuously engaged in replacing their ageing fleet with advanced and efficient electric equipment, thereby expanding the segment size. For instance, in April 2019, Plug Power Inc, and Charlatte America announced the delivery of fuel cell electric cargo tuggers to the Albany International Airport for supporting FedEx cargo division.
The ground support equipment market size, based on application can be classified into aircraft handling, passenger handling, and cargo handling. The passenger handling equipment will showcase significant growth owing to increasing air passenger traffic across the globe. For instance, according to the IATA, Revenue Per Kilometers (RPK) increased by around 6.5% in February 2019, compared to the previous year. Moreover, improving infrastructure and expansion of airports are further expected to accelerate the demand for ground support equipment significantly.
North America is expected to contribute significant revenue share in the ground support equipment market size. This can be attributed to the presence of multiple airports across the region. Additionally, increasing frequency of aircraft landing and take-off operations along with increasing adoption of electric GSE in such airports for reducing carbon footprint are further expected to support the industry share over the projected timeframe.
Few of the key players operating in the ground support equipment market size include Cavotec S.A., Cobus Industries GmbH, Enersys, Gate GSE, Advanced Charging Technologies, and ITW GSE. The other notable players include JBT Corporation, Kalmar Motors, Mallaghan, Telemeter Electronic GmbH, Tug Technologies Corporation, Mulag Fahrzeugwerk, TLD, and Rheinmetall AG. Strategic long-term contacts and agreements with airport authorities are among the key strategies adopted by industry players to enhance their market share. For instance, in September 2014, JBT Corporation announced a contract worth USD 11 million for supplying a wide range of ground service equipment including expediter towbarless tractors, tempest aircraft deicing vehicles, and commander cargo loaders.
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