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The airport ground support equipment market is estimated to grow at a CAGR of 4.27% between 2022 and 2027. The size of the market is forecast to increase by USD 1630.63 million. The growth of the market depends on several factors, including the rise in construction and upgradation of airports, the growing construction of cargo terminals, and the modernization of airport GSE.
This report extensively covers market segmentation by type (powered airport GSE and non-powered GSE) and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global airport ground support equipment market as a part of the Airport Services & within the global Industrials industry. The parent, global aerospace and defense market covers products and companies engaged in the production of aerial platforms used under commercial and general aviation; defense platforms used under naval, land, and air domains; arms and ammunition; defense electronics; defense logistics equipment; and space platforms, equipment, and launch vehicles. The aerospace and defense market also encompasses maintenance, overhaul, and repair (MRO) activities related to commercial and general aviation and defense sectors. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rise in the construction and upgrades of airports is notably driving the airport ground support equipment market growth, although factors such as the cost pressure on airport GSE manufacturers may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Key Airport Ground Support Equipment Market Driver
The rise in the construction and upgrades of airports is a key factor driving the global airport ground support equipment (GSE) market growth. Economic development in emerging economies such as India, China, and Indonesia has been the primary driver for the increase in the number of air passengers over the years. In 2019, the global number of air passengers recorded an increase of about 4% from that in 2018. In addition, the growth of tourism across the world has increased the number of air passengers globally. Countries such as Spain, China, Italy, the UK, Germany, and Thailand observed an increase in the number of tourist arrivals in 2019. Such an increase in the number of international tourists has surged investments in new airport construction and upgrades. Airport GSE is necessary for effective airport operations. With the proliferation of passengers traveling by air, the demand for airport GSE has increased as it facilitates efficient airport operations. Such investments in airports provide significant growth opportunities for vendors in the global airport GSE market during the forecast period.
Key Airport Ground Support Equipment Market Trend
The growing adoption of GSE pooling will fuel the global airport ground support equipment (GSE) market growth. Rising air passenger traffic and the demand for stress-free, on-time performance are compelling airports and commercial airline operators to ensure that their services are effective and cost- and capacity-efficient. GSE pooling is an efficient ground-handling procedure adopted by airport operators to increase efficiency and reduce costs. Additionally, due to the variations in the peak requirements of airlines and handlers, the volume of airport GSE stored at a terminal is higher than what is actually needed at any given time. All this equipment takes up a lot of unwanted space at airport terminals, which impacts the efficiency of airport operations. Hence, prominent airports across the world are adopting the GSE pooling concept. Technavio expects the popularity of GSE pooling to grow across the world as the rising air traffic is leading to a shortage of space at airport terminals. However, the adoption of advanced airport GSE will grow as efficiency is a paramount factor in GSE pooling, which may drive revenue growth in the market in focus during the forecast period.
Key Airport Ground Support Equipment Market Challenge
The cost pressure on airport GSE manufacturers is a major challenge to the global airport ground support equipment (GSE) market growth. Currently, airport component manufacturers face challenges in manufacturing high-quality components at lower costs. Hence, airport GSE manufacturers must seek out growth strategies to be profitable in this difficult yet attractive market. Intense competition among manufacturers and surging consumer demand make it necessary for OEMs to operate within stringent cost parameters while remaining profitable. Additionally, as the supply base is small due to consolidation, suppliers diversify by manufacturing different components. This diversification is capital-intensive and comes with new requirements, such as the design and development of new parts. Hence, suppliers find it difficult to keep costs low. Such factors are expected to hinder the growth of the market in focus during the forecast period.
Key Airport Ground Support Equipment Market Customer Landscape
Our analysis of the Lifecycle of the Global airport ground support equipment market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, Canada, China, Germany, and the UK. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Airport Ground Support Equipment Market Customer Landscape
Vendors 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
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The aircraft GSE market share growth by the powered airport GSE segment will be significant during the forecast period. The powered airport GSE segment accounts for the major share of the global airport GSE market. The segment includes towing tractors, lifts and loaders, ground power units, refuelers, buses, air start units, portable water trucks, lavatory service vehicles, catering vehicles, and de-icing vehicles. The adoption of powered airport GSE is expected to increase during the forecast period, as it is easy to use and contributes significantly to the efficiency and productivity of airport operations. The increasing air traffic and cargo transportation activities worldwide are the major driver for the growing adoption of powered airport GSE. This is driving the growth of the powered airport GSE segment of the global airport GSE market.
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The Powered airport GSE segment showed a gradual increase in market share from USD 4,691.58 million in 2017 and continued to grow by 2021. Advancements in the fuel efficiency and safety of powered airport GSE are resulting in improved air quality in airports and are making airports less hazardous than before. Commercial airline and airport operators are shifting from traditional diesel-powered airport GSE to electricity-powered airport GSE. The Birmingham-Shuttlesworth International Airport (BHM) plans to install 27 electric charging stations on its premises to support electricity-powered airport GSE. The national and international initiatives toward making airports environment-friendly are leading to the adoption of electricity-powered airport GSE. This is driving the growth of the powered airport GSE segment of the global airport GSE market. The demand for regional airline services is constantly growing due to the commercialization of new routes and point-to-point connections. Owing to factors such as low operating costs and enhanced flexibility, the adoption of regional aircraft by airline operators is increasing. The commercialization of new routes will lead to a rise in the adoption of powered airport GSE in regional airports as the need for convenience and efficiency will increase at these airports during the forecast period. This is driving the growth of the powered airport GSE segment of the global airport GSE market. Furthermore, our report provides a brief analysis of historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of aircraft GSE, which is driven by an increase in the global demand for the airport ground support equipment industry.
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North America is projected to contribute 31% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is mature and is predominantly supported by the robust aviation base in North American countries, particularly in the US. The presence of various notable players across the aircraft manufacturing supply chain supports aircraft and airport GSE manufacturing activities across North America. Also, the recovery of the US economy has resulted in increased domestic air travel, which has contributed significantly to the demand for airport GSE.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The COVID-19 pandemic led to a decline in demand for airport GSE in North America. In 2020, spending by airport authorities on the installation of GSE witnessed an immediate decline owing to the outbreak of the COVID-19 pandemic. To contain the spread of the disease, governments of most countries in the region-imposed lockdowns and travel restrictions. Due to this, the number of passengers at airports declined significantly from the beginning of 2020. As of May 2020, the market for new and used GSE in the US was extremely subdued, with little to no activity due to the halt in airline operations. The passenger counts in the US decreased by more than 96% since March 1, 2020, as nationwide stay-at-home orders were issued. However, lockdown restrictions were lifted in a significant number of countries in the region in 2021 as a result of large-scale vaccination drives, allowing the resumption of various national and international flights in North America. This generated more airport traffic in this region in 2021. As a result of these factors, the demand for airport GSE is likely to rise, significantly boosting the growth of the regional market during the forecast period.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, power rating, and region.
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Airport Ground Support Equipment Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2022 |
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Historical year |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.27% |
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Market growth 2023-2027 |
$1630.63 million |
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Market structure |
Fragmented |
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YoY growth (%) |
3.28 |
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Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
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Performing market contribution |
North America at 31% |
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Key consumer countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
AERO Specialties Inc., Aeroservices Ltd., Alvest SAS, Avia Equipment Pte Ltd., Cavotec SA, China International Marine Containers Group Ltd., Curtis Instruments Inc., ITW GSE ApS, John Bean Technologies Corp., Kalmar Motor AB, Mallaghan GA Inc., MULAG Fahrzeugwerk GmBH u Co. KG, Rheinmetall AG, Sojitz Aerospace Corp., STANGCO Industrial Equipment Inc., Swati Airport Support Services Pvt. Ltd., TCR International N.V., Textron Inc., Tronair Inc., Vestergaard Co., and Weihai Guangtai Airport Equipment Co. Ltd |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our 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 Power Rating
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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