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The airport handling services market size is forecast to increase by USD 62.5 billion at a CAGR of 7.1% between 2023 and 2028. Increasing infrastructure developments, such as the construction of new airports and expansion of existing facilities, are essential for accommodating the growing number of airline passengers and improving operational efficiency. The growing demand for outsourced ground handling services is driven by airlines looking to reduce costs and improve service quality. Additionally, the rise in the number of airline passengers, fueled by increasing travel demand and expanding aviation networks, is driving market growth in the aviation sector. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
Market Forecast 2024-2028
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The market is evolving rapidly with the adoption of IoT and advanced technologies in ground handling. Companies like Celebi Aviation are leading this transformation with innovations like the Nimbus gateway, enhancing efficiency and passenger experience. With the growth in passenger traffic and aircraft movements, there's a rising demand for ground support systems and new-generation equipment. The trend towards electric ground handling equipment and automation systems is reducing the industry's carbon footprint. As airports expand and privatize, the need for efficient ground handling, including services like marshaling, servicing, and cleaning, becomes increasingly crucial. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for outsourced ground handling services is notably driving the market growth. To enhance operational efficiency and reduce aircraft delays and maintenance costs, maintaining an airport's operational efficiency is crucial. Airlines are increasingly focusing on their core competencies to reduce overall operational costs and improve service efficiency. This has led to a growing trend of airlines outsourcing non-core activities such as ground handling and baggage handling.
Ground handling companies are forming partnerships with smaller airline companies that have a significant number of local air passengers. This collaboration allows these companies to operate independently and provide ground-handling services to other airline companies as well. This trend is supported by the adoption of new-generation ground support systems and automation systems, which are essential for the efficient handling of airlines, passengers, and aircraft. Additionally, the construction of new airports and the expansion of existing airports are further driving the demand for ground handling services. Outsourced ground handling services typically include baggage handling, cargo handling, and gate services. For example, in 2017, Alaska Airlines outsourced its baggage handling contract to McGee Air Services, an independent subsidiary of Alaska Airlines established in 2016. Such outsourcing practices by airlines are expected to propel the global airport ground handling services market during the forecast period.
Collective pooling of airside equipment is an emerging trend in the market. To provide different airport services the companies require ground-handling equipment. The airport ground support equipment is usually leased or owned by the ground handlers and stored at the airport terminals. It may happen that at a given point in time, the number of pieces of equipment stored at the terminal is much more than the actual requirement, which can lead to a cost burden for the companies. Therefore, the airlines, airports, and ground handlers are taking initiatives to ensure cost and capacity-efficient airport operations.
Airports have introduced a new concept of collective pooling of airside equipment to increase their efficiency. A few of the various benefits of collective pooling of airside equipment include the reduction in storage, optimum utilization of equipment, reduction in expenditure on maintenance and purchasing of equipment, and others. Therefore, such factors will fuel the airport ground handling services market growth during the forecast period.
An increasing number of HSR projects is a major challenge impeding the market growth. Airport infrastructure in emerging economies is often not well-developed. As a result, rail transportation plays an important role in such countries. Furthermore, some countries such as Japan, China, France, Spain, Italy, South Korea, and Germany offer high-speed train networks. Hence, many travelers prefer these high-speed trains as they are often economical, faster than short-haul flights, as well as easier and quicker to board compared with flights.
Furthermore, another major advantage of HSR projects over air travel is the high frequency of service. Many other countries are initiating HSR projects to improve infrastructure and connectivity while offering low-cost travel services. Hence, the customer inclination toward high-speed rail and the development of HSR networks by countries are expected to hinder the market during the forecast period.
The market share growth by the international segment will be significant during the forecast period. In contrast to domestic services, international services manage aircraft and services from all over the world.
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The international segment was valued at USD 74.8 billion in 2018. International services range from ground handling to cargo handling and include commercial baggage services, ticketing, gate assistance, and many more. Due to an increase in the number of airports and airlines, as well as an increase in air travel spending, the international sector, which currently holds the biggest market share, is predicted to maintain its dominance over the projected period. Therefore, the segment is projected to grow during the forecast period.
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APAC is estimated to contribute 53% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
APAC holds the largest market share and is expected to record the highest growth during the forecast period. The increasing preference for air travel in APAC is triggering the demand for such services to enhance the efficiency at airports. Moreover, governments are also initiating development projects in APAC for the capacity expansion of existing airports and the development of new airports. This has created many opportunities for both regional and global service providers. These players are offering advanced and technology-equipped services to secure contracts with the airports in APAC. Therefore, these factors will boost the regional airport ground handling services market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alliance Ground International - The company focuses on offering cargo handling services. The key offerings of the company include airport handling services such as security arrangements.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
AHS Aviation Handling Services GmbH, Air General Inc., Airport Nuremberg GmbH, Alliance Ground International, Ana Holdings Inc., Avia Solutions Group PLC, Aviapartner, Celebi Hava Servisi AS, Fraport Group, Japan Airlines Co. Ltd., Menzies Aviation Ltd., Prime Flight Aviation Services, Qatar Aviation Services, Sats Ltd., Signature Aviation Ltd., Swissport International AG, TAV Airports Holding, The Emirates Group, Universal Weather and Aviation Inc., and Bangkok Flight Services
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is a dynamic sector encompassing various aspects of airport operations. It involves aircraft handling and passenger handling services, as well as ground power units and lavatory service vehicles. The market is influenced by factors such as airport construction and expansion projects, driven by the need to modernize and meet the growing demands of air traffic. Capital costs for infrastructure development, along with regulations from entities like the FAA and IATA, shape the market landscape. The marekt landscape depends on the Capital cost, FAA (Federal Aviation Administration), Global airport ground handling market, Global Airport Handling Services Market, GSE (Ground Support Equipment), IATA (International Air Transport Association), Tugs and tractors. The rise of e-commerce and the push for sustainability with zero-emission buses, charging stations, and fuel trucks are also significant trends.
The market is a critical component of the aviation industry, encompassing a range of services vital for smooth airport operations. Ground handling services, including ramp handling, fuel supply, and catering, are essential for aircraft turnaround and passenger services. Deicers and pre-conditioned air units ensure safe and comfortable operations in various weather conditions. Ground Support Equipment (GSE), such as refuelers and tugs play a crucial role in aircraft movement and maintenance. The market is also influenced by regulatory bodies like the FAA and IATA, along with trends such as modernization and privatization of airports. The integration of IoT (Internet of Things) is enhancing operational efficiency and passenger experience.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.1% |
Market growth 2024-2028 |
USD 62.5 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.48 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, Japan, France, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AHS Aviation Handling Services GmbH, Air General Inc., Airport Nuremberg GmbH, Alliance Ground International, Ana Holdings Inc., Avia Solutions Group PLC, Aviapartner, Celebi Hava Servisi AS, Fraport Group, Japan Airlines Co. Ltd., Menzies Aviation Ltd., Prime Flight Aviation Services, Qatar Aviation Services, Sats Ltd., Signature Aviation Ltd., Swissport International AG, TAV Airports Holding, The Emirates Group, Universal Weather and Aviation Inc., and Bangkok Flight Services |
Market dynamics |
Parent market analysis, market growth and forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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