The Asia-Pacific Airport Ground Handling Systems market is anticipated to grow at a CAGR of 9% during the forecast period.
- The growth in air passenger traffic has made the airlines to expand their fleet size to cater to the rising demand for air travel. This resulted in increased frequency of flights or aircraft movements, which is expected to increase the demand for airport ground handling systems, so as to support ground operations.
- The privatisation of airports in emerging countries like India and Japan is anticipated to increase the investments into the procurement of advanced ground handling systems to cater to the growing passenger traffic. Therefore, the privatisation of airports is expected to propel the growth of the market in the coming years.
- The incorporation of advanced technology for airport handling with systems like electric aircraft tugs, fueling automation systems, and augmented reality (AR) glasses for ramp handling operations among others is expected to generate demand for airport ground handling systems in the future.
- Owing to the stringent safety, security and emission norms and regulation is propelling the growth of the market. The market is witnessing the innovations in recyclability, portability of equipment, transformation of gasoline and diesel powered ground support equipment to electric and hybrid powered fleet, etc.
Key Market Trends
The Aircraft Handling Segment is Anticipated to Have the Growth Rate During the Forecast Period
The aircraft handling segment is expected to have the highest growth during the forecast period mainly due to the growing fleet of aircraft which has increased the flight movements in the airports of the Asia-Pacific region. Also, the current trend of using GSE (ground support equipment) that have low emissions rates and create green airports has been gaining popularity over the years. ITW GSE is one of the leading manufacturers of GPUs to the aviation industry that is reliable and most cost-efficient ground support equipment. The company has developed ITW GSE 5400 gasoline-powered GPU that runs at a variable speed to reduce NOx and other emissions at the airport. 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, As of October 2019, New Delhi Airport in India plans to deploy the semi-robotic Taxibot aircraft tow vehicle in the coming months. The airport plans to deploy about 15 Taxibots in the next four years. Integration of such innovations into the airport operations will enhance the performance of the airport operations and thereby propelling the demand for aircraft handling systems during the forecast period.
China to Exhibit the Highest Growth Rate 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. According to IATA, China is expected to become the largest aviation market by 2022. According to the Civil Aviation Administration of China’s Civil Aviation Development 13th Five-Year Plan, the country plans to build 74 new civil airports by 2020, taking the total to 260, up from 175 in 2010. This amounts to construction of more than eight new airports per year to cope with the surge in passengers. Also, with growth in e-commerce in the country, China is witnessing robust growth in cargo and freighter transport, which is anticipated to propel the demand for cargo handling system demand in the country. However, due to the current on-going trade war between China and the United States is anticipated to hamper 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 the growth in passenger handling segment during the forecast period.
The Asia-Pacific Airport Ground Handling Systems Market is slightly fragmented with the presence of numerous local and international ground handling systems manufacturers in the region. The prominent players in the market are John Bean Technologies Corporation, ADELTE Group S.L., Cavotec SA, Mototek International GmbH and Tronair Inc. The growth of the companies is dependent on contracts from various airports in the Asia-Pacific region. For instance, in March 2020, Cavotec received two contracts to provide ground support equipment (GSE) and fuelling systems from Chengdu Tianfu International Airport and Beijing Capital International Airport. The orders were of worth USD 3.29 million. The development of eco-friendly and low emission products as well as the advanced ramp and passenger handling systems by the manufacturers will allow them to expand their presence in the market and increase their market share in the coming years.
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