The America airport ground handling systems market is expected to exhibit a growth rate of more than 6% during the forecast period.
- The growth in air passenger and cargo traffic in the region is propelling the demand for efficient ground handling systems in the region. According to ICAO, in 2018, the revenue passenger-kilometres (RPK) in North America and Latin America grew by 4.7% and 7.7% respectively. The freight tonne-kilometres grew by 5.9% and 6% in North and Latin America.
- The development of new airports and the expansion of existing ones is significantly driving the market growth in the region. Projects such as the Baltimore-Washington International airport expansion project, New Sao Paulo airport project, etc. are expected to generate a high demand for ground support equipment in the region.
- Owing to the stringent emission norms and regulations, demand for electric ground handling systems is on the rise. Airports in the region are rapidly adopting equipment such as electric tugs, electric tractors and this factor is significantly driving the market growth for airport ground handling systems.
Key Market Trends
Cargo and Baggage Handling Systems Segment to Exhibit Significant Growth in the Coming Years
The rise in air passenger traffic, e-commerce, industrial development in the region is expected to propel the demand for baggage and cargo handling systems in the region. In 2019, the North American region witnessed a growth of 3.8% in air traffic. Many airports in the region are operating close to their maximum passenger and baggage handling capacity and this factor is propelling the need for deployment of new advanced and efficient systems capable of reducing lead time and bottlenecks. In 2019, Miami International Airport unveiled its new USD 324 million completely automated baggage handling system. The new system is twice as efficient as the previous system and can screen 7000 bags per hour. It has 12 CTX 9800 explosives detection systems, 9 miles long conveyer belt, 18,000 square foot of baggage reconciliation area which is the largest installation of automated guided vehicle technology in the world and 102 mobile inspection units. In the Latin America region, countries such as Brazil have witnessed a growth in air cargo owing to the new routes opened by freighters from Asia, and North America. In 2018, Brazil's Sao Paulo Airport saw a 35% growth in the total share of full cargo flights. The aforementioned factors and instances are propelling the market for cargo and baggage handling systems in the region.
The United States to Exhibit the Highest Growth Rate During the Forecast Period
The United States is witnessing a rise in air passenger travel and the country is investing heavily in the development and implementation of digitalized technologies for baggage, cargo and passenger handling. In 2019, the number of air passengers traveling to or from the United States was close to 250 million, a huge leap from nearly 166 million passengers in 2011. The main focus of airports in the region is to reduce the operational lead time and facility expansion. In 2018, Terminal F of Hartsfield-Jackson Atlanta International Airport became the first biometric screening terminal in the United States, facilitating facial recognition for check in, security check and boarding. The development of airports and terminal expansion projects is also driving the demand for airport grounf handling systems in the country.In February 2020, John F. Kennedy International Airport got approval worth USD 3.8 billion for the expansion of its busiest terminal. In 2017, LEKTRO, Inc. delivered the 5000th aircraft tug to American Airlines at Los Angeles International Airport (LAX). The tug, a model AP8950SDB-AL-250, is the Oregon based company’s largest pushback offering, capable of handling aircraft up to 280,000 pounds. The new units replace several American Airlines' conventional diesel tractors. The aforementioned developments, factors, and instances in the region are driving the market growth for airport ground hadling systems in the country.
The airport ground handling systems market in the America region is fragmented with several players. Some of the prominent players in the market are Textron Ground Support Equipment Inc., BEUMER Group, Mototok International GmbH, and ADELTE Group SL among others. The market for ground handling systems in the region is expected to exhibit a good growth rate during the forecast period owing to the aviation infrastructure development, and technological enhancement. The development of eco-friendly products by the companies will allow them to capture higher market share owing to trends of green airports.
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