Market Trends of Airport Ground Handling Systems Industry
The Aircraft Handling Segment is Expected to Witness Significant Growth During the Forecast Period
The aircraft handling segment dominates the market and is expected to maintain its lead in the years ahead. This segment covers a spectrum of services, from refuelers and tugs to lavatory service vehicles and deicers, all vital for smooth airport operations. It also includes ground power units, pre-conditioned air units, fuel trucks, and other critical ground handling systems.
Airport revenues have increased in recent years, prompting a shift toward more advanced cargo handling systems. With these increased revenues, airports are allocating funds for infrastructure upgrades, which may enhance operational efficiency and improve safety standards.
On a global scale, aviation is experiencing a surge in expenditure, with many countries focusing on new airport constructions and enhancing existing operations. Post-pandemic, airports across the world prioritized upgrading their ground handling systems, often opting for newer, more efficient equipment. There is a noticeable shift toward environmentally friendly practices, with rising demand for low-emission ground support equipment (GSE) and the emergence of 'green' airports. In response, companies are actively developing electric aircraft handling solutions that are both eco-friendly and efficient.
Illustrating this trend, in February 2024, the Federal Aviation Administration (FAA) announced grants nearing USD 1 billion to improve 114 US airports. These investments are designed to enhance the passenger experience, covering upgrades such as new baggage systems, expanded security checkpoints, and a modernization push for aging terminal infrastructure and ground transportation facilities. With these advancements and the increased investments in aircraft handling equipment, the segment is set for substantial growth in the foreseeable future.
North America is Expected to Witness Highest Growth During the Forecast Period
During the forecast period, North America is set for substantial growth, buoyed by the Federal Aviation Administration's (FAA) allocation of funds to US airports to adopt electric ground support vehicles. In 2023, US airlines saw a remarkable resurgence, catering to 862.8 million passengers on both domestic and international routes, rebounding from pandemic-induced setbacks. Data from the US Bureau of Transportation Statistics (BTS) underscored a particularly strong performance. In May 2023, the US airlines transported 81.8 million passengers, including 10.4 million international travelers, marking a 7.7% increase in enplanements from the previous year.
Moreover, airports are bolstering their infrastructure to accommodate electric ground vehicles in tandem with ground handling systems. As part of the new terminal project at Kansas City International Airport, the Kansas City Aviation Department revealed plans for the first wireless vehicle charging system at a US airport. This cutting-edge technology is designed to enhance the range of electric buses, negating the necessity for dedicated charging stations or disrupting bus services for recharging. With such forward-looking initiatives and a growing appetite for enhanced ground-handling operations, the region's market is on track for acceleration.
