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Reading Time: 3 minutesThe Aircraft Ground Handling System Market is set to grow from its current market value of more than $130 billion to over $190 billion by 2025; as reported in the latest study by Global Market Insights, Inc.
Improving airport infrastructure services and technological advancement to reduce the delay in operations will drive the aircraft ground handling systems market share from 2019 to 2025. The ground handling system enables airline carriers to perform their operations with minimum error and enhance on time performance.
The 5 minutes AOG time owing to delay in operations can cost large airlines up to USD 35 million loss annually. The systems help airline carriers to reduce aircraft on ground (AOG) time and minimize operational costs which will support the industry growth.
Frequent changing weather conditions and heavy snow fall in some region including North America and Europe are significantly affecting airport operations. Majority of ground handlers are using renewable energy systems including biogas snow equipment to remove snow at airports.
These systems enable ground handlers to reduce fuel dependency and reduce carbon emission footprints. These developments will support aircraft ground handling systems market growth.
The increasing adoption of internet of things (IoT) in ground support functions such as smart baggage concept enables airline operators as well as passengers to track baggage location. Smart baggage tags integrated with mobile applications help passengers to track their bags and provide information including baggage collection location and time required for its arrival.
Development of software solutions to calculate demand and supply of daily ground handling equipment in easy and cost-effective way will support aircraft ground handling systems market growth. The main requirement of ground handling operators is to calculate exact demand for serving any airline customers.
Software-based technology solutions enable operator to integrate all the information of flight schedules and airline’s database and plan day to day activities with optimum efficiency.
The airlines require innovative technologies including aircraft proximity detector (APD) that warn aircraft for upcoming obstacles owing to threat of collision with ground equipment.
Integration of these sensors in aircraft are adding more costs to airline operators. Additionally, high initial cost, expensive replacement and quality issues of system may hinder the aircraft ground handling systems market growth. The ground equipment requires high number of devices to perform various activities and add more costs for airline operators
Based on application, cargo handling segment will hold dominance in aircraft ground handling systems market over the forecast timeframe.
The dominance is attributed to increasing air cargo operation across the globe. The cargo ground handling requires various equipment including containers, lift trucks, caster bed & pallet trailers. Attractive events conducted by e-commerce such Single’s day, Big billion days demands, speedy delivery of products and air transport plays essential role in delivering of products. Additionally, growing pharmaceutical cargo activities is also generating more revenue for cargo handling operators.
Passenger handling system will showcase significant growth rate in aircraft ground handling systems market place owing to increasing air passenger traffic across the globe. Growing air travel for tourism and business activities will generate revenue for segment.
IATA forecasted air passenger traffic across the globe will reach 7.8 billion in 2036. Additionally, passenger want fast and efficient service experience which will enhance the passenger ground systems demand in near future.
North America aircraft ground handling systems market share will hold dominance over forecast timeframe. Increasing shift towards enhancing efficiency of operation demands of rising passenger traffic and infrastructural development to support cargo activity will generate more revenue. For instance, in October 2018 Edmonton International Airport (EIA) of Canada expanded their infrastructure facility to support cargo facility.
Additionally, air passenger traffic in region are stimulating the expansion of airport infrastructure and development of new airports.
Major industry participants in the aircraft ground handling systems market place includes Sats Ltd., Swissport, Celebi, Bhadra International, John Menzies PLC, Dnata, and Air+Mak. The other notable players the industry includes, Cavotec SA, CargoTec, RampSnake, PrimeFlight and JBT AeroTech. Contracts with airline operators are among the prominent strategy adopted by industry participant to increase their market share.