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The airport handling services market is estimated to grow at a CAGR of 6.8% between 2022 and 2027. The size of the market is forecast to increase by USD 56.02 billion. The growth of the market depends on several factors, including increasing infrastructure developments in the aviation industry, growing demand for outsourced ground handling services, and a rise in the number of airline passengers.
This report extensively covers market segmentation by type (international and domestic), service (GSHS and CHS), 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.
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The growing demand for outsourced ground handling services is notably driving the market growth, although factors such as the increasing number of HSR projects may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for outsourced ground handling services is notably driving the airport ground handling services market growth. To reduce aircraft delays and maintenance costs it is very important to maintain an airport's operational efficiency. Airlines are focusing on their core competencies to reduce the overall operational cost and enhance service efficiency. Hence, airlines' propensity to outsource non-core activities such as ground handling and baggage handling is increasing. Ground handling companies are collaborating with small airline companies with a huge number of local air passengers. This allows the vendors to operate as independent companies and offers ground-handling services to other airline companies too.
Outsourced ground handling services include baggage handling, cargo handling, and gate services. In 2017, Alaska Airlines offered its baggage handling contract to McGee Air Services, an independent subsidiary of Alaska Airlines, formed in 2016. Such outsourcing activities by airlines are expected to drive the global airport ground handling services market during the forecast period.
Collective pooling of airside equipment is an emerging trend in the airport ground handling services market. To provide different airport services the vendors require ground-handling equipment. The airport ground support equipment is usually leased or owned by the ground handlers and stored at the airport terminals. It may happen that at a given point in time, the number of pieces of equipment stored at the terminal is much more than the actual requirement, which can lead to a cost burden for the vendors. Therefore, the airlines, airports, and ground handlers are taking initiatives to ensure cost and capacity-efficient airport operations.
Airports have introduced a new concept of collective pooling of airside equipment to increase their efficiency. A few of the various benefits of collective pooling of airside equipment include the reduction in storage, optimum utilization of equipment, reduction in expenditure on maintenance and purchasing of equipment, and others. Therefore, such factors will fuel the airport ground handling services market growth during the forecast period.
An increasing number of HSR projects is a major challenge impeding the airport ground handling services market growth. Airport infrastructure in emerging economies is often not well-developed. As a result, rail transportation plays an important role in such countries. Furthermore, some countries such as Japan, China, France, Spain, Italy, South Korea, and Germany offer high-speed train networks. Hence, many travelers prefer these high-speed trains as they are often economical, faster than short-haul flights, as well as easier and quicker to board compared with flights.
Furthermore, another major advantage of HSR projects over air travel is the high frequency of service. Many other countries are initiating HSR projects to improve infrastructure and connectivity while offering low-cost travel services. Hence, the customer inclination toward the high-speed rail and the development of HSR networks by countries are expected to hinder the market during the forecast period.
The report includes the adoption lifecycle of the airport ground handling services market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Airport Handling Services 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.
Alliance Ground International - The company focuses on offering cargo handling services. The key offerings of the company include airport handling services such as security arrangements.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 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 market share growth by the international segment will be significant during the forecast period. In contrast to domestic services, international airport handling services manage aircraft and services from all over the world.
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The international segment was valued at USD 70.57 billion in 2017 and continued to grow until 2021. International airport handling services range from ground handling to cargo handling and include commercial baggage services, ticketing, gate assistance, and many more. Due to an increase in the number of airports and airlines, as well as an increase in air travel spending, the international airport handling services sector, which currently holds the biggest market share, is predicted to maintain its dominance over the projected period. Therefore, the segment is projected to grow during the forecast period.
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APAC is estimated to contribute 51% to the growth of the global airport ground handling services market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC holds the largest market share and is expected to record the highest growth during the forecast period. The increasing preference for air travel in APAC is triggering the demand for such services to enhance the efficiency at airports. Moreover, governments are also initiating development projects in APAC for the capacity expansion of existing airports and the development of new airports. This has created many opportunities for both regional and global service providers. These players are offering advanced and technology-equipped services to secure contracts with the airports in APAC. Therefore, these factors will boost the regional airport ground handling services market growth during the forecast period.
The COVID-19 outbreak in 2020 negatively affected the growth of the market in APAC. However, the lockdown restrictions were lifted in 2021 owing to large-scale vaccination drives across the region, which resumed the movement of passengers and air travel. Moreover, the operations in the end-user industries of handling and lifting baggage and cargo, such as construction, food and beverages, aviation, and others, have resumed, increasing the demand for these services across the region. Therefore, such factors are expected to drive the regional airport ground handling services market during the forecast period.
Technavio categorizes the global airport handling services market as a part of the global airport services market within the transportation market. The parent global airport services market covers revenue generated by the operators of airports and companies providing related services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts airport ground handling services market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Airport Handling Services Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.8% |
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Market growth 2023-2027 |
USD 56.02 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.23 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 51% |
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Key countries |
US, China, Japan, France, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AHS Aviation Handling Services GmbH, Air General Inc., Airport Nuremberg GmbH, Alliance Ground International, Ana Holdings Inc., Avia Solutions Group PLC, Aviapartner, Celebi Hava Servisi AS, Fraport Group, Japan Airlines Co. Ltd., John Menzies plc, Prime Flight Aviation Services, Qatar Aviation Services, Sats Ltd., Signature Aviation Ltd., Swissport International AG, TAV AIRPORTS HOLDING, The Emirates Group, Universal Weather and Aviation Inc., and Worldwide Flight Services Bangkok Air Ground Handling 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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 Service
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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