Asia-Pacific Airport Ground Handling Systems Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Asia-Pacific Airport Ground Handling Systems Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Asia-Pacific Airport Ground Handling Systems Market size is estimated at USD 1.64 billion in 2023, and is expected to reach USD 3.07 billion by 2028, growing at a CAGR of 13.36% during the forecast period (2023-2028).

The COVID-19 pandemic had a significant impact on the aviation industry across Asia-Pacific. The government imposed strict regulations to control the spread of coronavirus, which led to disruptions in supply chains, the shutdown of manufacturing plants, labor shortages, and others. The reduced air traffic led to a substantial decline in the demand for airport ground handling systems, thereby hindering market growth during the pandemic. However, the market showcased a strong recovery from the second half of the year 2020 due to the removal of travel restrictions and a subsequent increase in air passenger traffic and cargo volumes alike.

Airlines are attempting to expand their fleets as more people are flying and more goods are shipping by air. This has led to more planes moving around, which has increased the need for airport ground handling systems to help with ground operations. Also, when airports in developing countries like India and Japan are privatized, more money is likely to be spent on buying advanced ground handling systems to handle the growing number of passengers. Because of this, privatizing airports is likely to help the market grow in the coming years.

The market is seeing improvements in how equipment can be recycled and moved, and gasoline- and diesel-powered ground-support equipment is being turned into electric and hybrid-powered fleets. The incorporation of advanced technology for airport ground handling systems, like electric aircraft tugs, fueling automation systems, and augmented reality (AR) glasses for ramp handling operations, is expected to have a significant impact on the demand for and adoption patterns for airport ground handling systems in the future.

Asia-Pacific Airport Ground Handling Systems Market Trends

Aircraft Handling Segment to Witness Highest Growth During the Forecast Period

The aircraft handling segment is anticipated to register the highest CAGR during the forecast period due to fleet expansion being undertaken by airlines in the region, which has increased flight movements at airports in Asia-Pacific. Also, the trend of using GSE (ground support equipment) that has low emissions rates and creates green airports has been gaining popularity over the years. ITW GSE is one of the leading manufacturers of ground power units (GPUs) in the aviation industry. It offers reliable and the most cost-efficient ground support equipment. The company developed an ITW GSE 5400 gasoline-powered GPU that runs at a variable speed to reduce NOx and other emissions at airports. Similarly, aircraft pushback tugs and towing vehicles are undergoing modernization, such as electrification and autonomous driving, to reduce ground emissions, occupational hazards, and operational lead times. For instance, in August 2022, Air BP, the international aviation fuel products and services provider, introduced a next-generation new model all-electric refueler for customers lifting Jet-A1 at Brisbane Airport in Australia.

China is Projected to Show Significant Growth During the Forecast Period

China is anticipated to register the highest growth rate during the forecast period. This is mainly due to the increasing investments in airport infrastructure in China to cater to the growing passenger traffic and aircraft movements in the country. In 2020, China was anticipated to become the world's largest aviation market by seat capacity. Furthermore, the Civil Aviation Administration of China (CAAC) is planning to construct 216 new airports by 2035 to fulfill the rising demand for air travel. An increasing number of air passengers, rising investments in airport infrastructure, and the growing procurement of commercial aircraft drove market growth across the country. For instance, in July 2022, Airbus signed a contract with four Chinese airlines for 292 single-aisle A320 aircraft. The value of the contract was USD 37 billion.

Also, as e-commerce grows in China, cargo and freight transport are growing quickly, which is expected to boost the demand for cargo handling systems in the country. But the trade war between China and the US, which is still going on, is likely to slow this growth. In addition to this, China is a global leader in vehicle electrification and has the largest electric bus fleet in the world. The rise in demand for electric airport shuttle buses is expected to drive growth in the passenger handling segment of the market in China during the forecast period.

Asia-Pacific Airport Ground Handling Systems Industry Overview

There are a lot of local and international manufacturers of airport ground handling systems in the Asia-Pacific region, so the market is a little bit split up. The prominent players in the market are John Bean Technologies Corporation, ADELTE Group S.L., Cavotec SA, Mototek International GmbH, and Tronair Inc. Contracts with different airports in the Asia-Pacific region are important to the growth of businesses. For example, Australia's OEM Group bought AMS GSE, a global provider of ground support equipment, in March 2021. AMS GSE has patented designs specializing in manufacturing aircraft passenger access boarding stairs, baggage trollies, assisted passenger access lifts (DPLs), and de-icing units. The development of eco-friendly and low-emission products, as well as advanced ramp and passenger handling systems by manufacturers, may allow them to expand their presence in the market and increase their market shares in the coming years.

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