The global airportground and cargo handling services market size is projected to reach USD25.27 billion in 2028. The rising incorporation of artificial intelligence (AI)in security systems is set to affect growth positively. Such systems would helpin reducing check-in times. In November 2020, DUBZcollaborated withEmirates to provide home check-in services to passengers. It would helpthem to complete their baggage disinfection, home check-in, and PCR tests. Thisinformation is published by Fortune Business Insights™ in a new report, titled,“Airport Ground andCargo HandlingServices Market, 2021-2028.” The report further states that the marketstood at USD 19.20 billion in 2020. It is set to exhibit a CAGR of 7.0% in theforecast period between 2021-2028.
AirportHandling and Beta Trans Join Hands to Provide Cargo Services at MXP
In February 2021, Beta Trans and Airport Handlingpartneredup to supply a full range of cargo services to customers at Milan MalpensaAirport (MXP). Both companies will provide high-quality road feeder,warehousing, cargo handling, and safe ramp services. Such unique initiatives byprominent companies would spur the demand for airport ground and cargo handlingservices.
Rising Needto Minimize Active Fleet Size May Hinder Growth amidCOVID-19 Pandemic
The COVID-19 pandemic has compelled airportauthorities to lower their variable costs by minimizing investments in airportservices, delaying capital expenditures, addressing employment costs, and terminatinginfrastructure projects. The severe impact of the pandemic is thereforeresulting in the restructuring of operational facilities to lower the overallexpenses of airports. Numerous airlines are nowadays aiming to minimize costsby reducing the size of their active fleet. These factors are set to hamper thedemand for ground and cargo handling services.
ReportCoverage-
This research report containsaccurate informationrelatedto changes in material usage, new product launches, and technologicaladvancements. It provides dynamics of thisindustry based on multiple factors,such as opportunities, challenges, drivers, and hindrances. At the same time,it will offer a complete insight from the supply side respondents related tomarket share, distribution, and size.
Drivers& Restraints-
Increasing Urbanizationand High Demand for Domestic Flights to Aid Growth
Low-cost airlines are experiencing rapid growthin recent years because of the increasing economic activities and urbanization.Also, the surging ease of travel and expansion of travel & tourism acrossthe globe would accelerate the airport ground and cargo handling servicesmarket growth in the near future. Additionally, the high demand for domesticflights and increasing affluence of the middle-class in emerging economies arelikely to aid growth. However, ground handling equipment has a lifespan ofaround 6 to 9 years. This factor may restrain growth.
Segments-
Domestic SegmentHeld 51.17% Share in 2020 Fueled by Rising Air Traffic
By services, the market for airport ground &cargohandling servicesis segregated into passenger handling, baggage handling, cargoand mail handling, aircraft handling, ramp handling, and others.Based on theinfrastructure type, it is divided into greenfield airports and brownfieldairports. Below is a brief note on the airport type criterion:
· By Airport Type: The market isbifurcated into international and domestic. Out of these, the domestic segmentearned 51.17% in terms of the marketshare in 2020. It is anticipated to retain its dominant position throughout theforthcoming years on account of the increasing air traffic in India and China.
RegionalInsights-
IncreasingInternational & Domestic Passengers to Favor Growth in Asia Pacific
· North America:In 2020, theregion generated USD 5.43 billionin terms of revenue. The increasing expenditure on airport modernization andthe presence of the highest number of airports would propel growth in theregion. Coupled with this, the expansion of the aviation industry would spur thedemand for airport ground and cargo handling services.
· Europe: The region wouldgrow moderately backed by the surging investments in the aviation sector andrising number of air travelers in France, Germany, and the U.K.
· Asia Pacific: It would showcasethe highest growth fueled by the increasing number of upcoming airport projectsand rising number of domestic& international passengers. The AirportsAuthority of India (AAI), for instance, started the construction of a newgreenfield airport in Arunachal Pradesh in December 2020.
CompetitiveLandscape-
Key PlayersAim to Sign New Contracts to Offer Their In-house Arline Services
The global market is fragmented with numerouscompanies, such as Swissport International AG, Fraport AG, and Dnata. They aremajorly focusing on delivering cost-effective services, such as catering,passenger handling, ramp handling, and baggage handling. Some of the others aretrying to win new contracts from other companies to provide their services.Below are the two latest industry developments:
· November 2020:Lima AirportPartners (LAP) signed a USD 450 millionagreement for initiating an airsidedevelopment programat Jorge Chávez International Airport in Peru.
· May 2018:ACCIONAsigned anew contract with AerolíneasArgentinasto cover every operation at Santiago deChile airport.It would strengthen the company’s position in Chile and wouldbroaden its airport business.
A list ofreputed airport ground andcargo handling servicesproviders operating in themarket:
· Dnata (The UAE)
· Menzies Aviation (Scotland)
· Çelebi Ground Handling (Turkey)
· Aviapartner Group (Belgium)
· Swissport International AG (Switzerland)
· Worldwide Flight Services (France)
· Fraport AG (Germany)
· Airport Associates (Iceland)
· Qatar Aviation Services (Qatar)
· AirPart GmbH (Germany)
· Havas Ground Handling Co. (Turkey)
· DAL Global Services, LLC (The U.S.)
Information Source:
https://www.fortunebusinessinsights.com/airport-ground-and-cargo-handling-services-market-105327
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