PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1494925
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1494925
According to Stratistics MRC, the Global Airport Ground and Cargo Handling Services Market is accounted for $44.7 billion in 2024 and is expected to reach $92.2 billion by 2030 growing at a CAGR of 12.8% during the forecast period. Airport ground and cargo handling services refer to the comprehensive range of operations and activities performed at airports to facilitate aircraft movements, passenger processing, and cargo handling. These services include baggage handling, passenger check-in, aircraft loading and unloading, cargo warehousing, catering, refueling, aircraft maintenance, and other support functions essential for efficient air transportation operations.
According to the Federal Aviation Administration (FAA) 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.
Increase in air traffic
The increase in air traffic is a significant driver for the airport ground and cargo handling services market. As global air travel becomes more affordable and accessible, the number of passengers and flights continues to rise. This surge in air traffic necessitates efficient ground and cargo handling services to manage the increased volume of passengers, baggage, and cargo. The expansion of airport infrastructure and the introduction of new routes further fuel the demand for these services, driving market growth.
High operational costs
High operational costs pose a significant restraint to the airport ground and cargo handling services market. The costs associated with maintaining and upgrading ground handling equipment, training personnel, and adhering to stringent regulatory standards can be substantial. Additionally, fluctuating fuel prices and labor costs add to the financial burden on service providers. These high operational expenses can limit profitability and hinder the ability of companies to invest in new technologies and expand their service offerings.
Expansion of e-commerce
The expansion of e-commerce presents a substantial opportunity for the airport ground and cargo handling services market. The rapid growth of online shopping has led to an increase in air cargo volumes, as businesses seek faster delivery times for their products. This surge in air freight demand drives the need for efficient cargo handling services at airports. Service providers can capitalize on this trend by investing in advanced cargo handling technologies and infrastructure to enhance efficiency and meet the growing needs of the e-commerce sector.
Security concerns
Security concerns pose a significant threat to the airport ground and cargo handling services market. The need to ensure the safety and security of passengers, baggage, and cargo is paramount, and any lapses can have severe consequences. Stringent security regulations and the constant threat of terrorism require service providers to invest heavily in security measures and technologies. These investments can be costly and complex, potentially impacting the profitability and operational efficiency of ground and cargo handling services.
The Covid-19 pandemic had a profound impact on the airport ground and cargo handling services market. The sharp decline in air travel due to lockdowns and travel restrictions led to a significant reduction in passenger and cargo volumes. This downturn resulted in substantial revenue losses for service providers. However, the pandemic also highlighted the importance of efficient cargo handling for essential goods, leading to increased investments in automation and digital solutions to enhance operational resilience and efficiency.
The passenger handling segment is expected to be the largest during the forecast period
The passenger handling segment is expected to dominate the airport ground and cargo handling services market due to the critical role it plays in ensuring smooth and efficient passenger flow through airports. This segment includes services such as check-in, boarding, baggage handling, and assistance with immigration and customs procedures. The increasing number of air travelers and the emphasis on enhancing passenger experience drive the demand for comprehensive passenger handling services, making it the largest segment in the market.
The domestic airports segment is expected to have the highest CAGR during the forecast period
The domestic airports segment is projected to have the highest CAGR in the airport ground and cargo handling services market. The growth of domestic air travel, particularly in emerging economies, is driving the demand for efficient ground handling services at domestic airports. Investments in airport infrastructure, the introduction of new domestic routes, and the rising number of domestic passengers contribute to the rapid growth of this segment. Service providers are focusing on enhancing operational efficiency and passenger experience at domestic airports to capitalize on this trend.
The European region is positioned to dominate the airport ground and cargo handling services market due to its well-established aviation infrastructure and high air traffic volumes. Major airports in countries like the UK, Germany, and France serve as key hubs for international travel and cargo transport. The presence of leading service providers and continuous investments in airport modernization and expansion further bolster Europe's dominant market share. The region's focus on enhancing passenger experience and operational efficiency drives the demand for ground and cargo handling services.
The Asia Pacific region anticipates rapid growth in the airport ground and cargo handling services market, driven by increasing air travel, rising disposable incomes, and expanding middle-class populations. Countries like China, India, and Japan are investing heavily in airport infrastructure to accommodate the growing number of passengers and cargo volumes. The region's booming e-commerce sector and the development of new airports in smaller cities further contribute to the high CAGR. Technological advancements and the adoption of automation in ground handling operations also support market growth in Asia Pacific.
Key players in the market
Some of the key players in Airport Ground and Cargo Handling Services Market include Swissport International AG, Worldwide Flight Services (WFS), Menzies Aviation, dnata, SATS Ltd., DHL Aviation, FedEx Express, UPS Airlines, Lufthansa Cargo AG, Air France-KLM Cargo, Qatar Airways Cargo, Emirates SkyCargo, Cathay Pacific Cargo, Korean Air Cargo, China Airlines Cargo, Singapore Airlines Cargo, Turkish Cargo, Japan Airlines Cargo, British Airways World Cargo, and American Airlines Cargo.
In April 2024, Scandinavian Airlines (SAS) has awarded a cargo handling contract to Worldwide Flight Services (WFS) at a fourth major airport gateway in North America. The new three-year agreement will see WFS, a member of SATS Group, handle cargo onboard SAS flights to and from Boston. The airline now offers daily Airbus A350 flights between the New England city and the Danish capital, Copenhagen.
In Mar 2024, Swissport International AG has been selected by Vietnamese low-cost carrier Vietjet Air to provide a wide range of airport ground services. Swissport will also support and advise Vietjet Air in developing state-of-the-art air cargo handling services as well as managing air cargo centers to the highest international standards. A memorandum of understanding between Swissport International AG and Vietjet Air was witnessed this week at the Vietnam-Australia Business Forum in Melbourne, Australia.
In Mar 2024, Belgrade Airport, powered by VINCI Airports, announces Menzies Aviation, a leading service partner to the world's airports and airlines, has started providing full ground handling services at Belgrade Nikola Tesla Airport. From 5 March 2024, the aviation services provider will provide ramp handling and baggage, de-icing and passenger services. It will also provide PRM services and air cargo services. The contract will see Belgrade Airport transfer all ground handling service contracts to Menzies Aviation, subject to partner airlines consent.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.