Market Trends of Airport Ground Handling Systems Industry
This section covers the major market trends shaping the Airport Ground Handling Systems Market according to our research experts:
Aircraft Handling Segment Held Highest Shares in the Market
The aircraft handling segment currently dominates the market and is expected to continue its dominance during the forecast period. The segment includes refuelers, tugs and tractors, lavatory service vehicles, deicers, ground power units, pre-conditioned air units, fuel trucks, and other ground handling systems in airports.
An increase in expenditure in the aviation sector, construction of new airports, and rising spending on enhancing airport operations from various countries drive the growth of the market. Following the pandemic, various airports around the world are robustly investing in the enhancement of their existing ground handling systems with the introduction of new equipment for their efficient operation. The current trend of using GSE with low emissions rates and creating green airports has been gaining popularity over the years. Therefore, the companies are working on developing new electric aircraft handling solutions that work efficiently with low emissions.
In October 2021, Toyota Material Handling, a subsidiary of Toyota Motor Corp, introduced a new all-electric towing tractor (3TE25) for airport operations that will replace the current heavy-duty range. The new towing EV has similar towing capabilities as the conventionally powered towing tractors, with a loading capacity of about 27,000 kg. Such development of new equipment, as well as investments in the procurement of aircraft handling equipment, is anticipated to propel the growth of the segment during the forecast period.
North America Region is Expected to Witness Highest Growth During the Forecast Period
The North American region is expected to witness the highest growth during the forecast period. This is due to the rapid recovery of the aviation industry from the COVID-19 pandemic impact along with investments of the civil aviation authority and airport operators in the region in the expansion of airports as well as the development of ground handling equipment modernization.
The Federal Aviation Administration (FAA) provided various funds to the airports in the United States to introduce electric ground support vehicles in the coming years. In October 2022, FAA, the largest United States transportation agency, awarded more than USD 27 million to help a dozen airports to purchase zero-emission buses, charging stations, and other equipment used to service planes at gates.
Also, in addition to the ground handling systems, the airports are investing in the development of infrastructure to ease the induction of electric ground vehicles. As a part of the new terminal building project at Kansas City International Airport, the Kansas City Aviation Department announced its plan to invest in the first wireless vehicle charging system installed at the United States airport. The technology is expected to extend the range of its electric buses without installing a charging station or taking buses out of service for charging. Momentum Dynamics will supply the charging solution and is expected to be installed by 2023. Such initiatives and growing demand for enhancing ground handling operations will drive market growth in the region during the forecast period.
