DUBLIN–(BUSINESS WIRE)–The “Ground and Cargo Handling Services Market – Global Outlook & Forecast 2023-2028” report has been added to ResearchAndMarkets.com’s offering.
The global ground and cargo handling services market is expected to reach a value of $43.8 billion by 2028 from $31.5 billion in 2022, growing at a CAGR of 5.65% from 2022 to 2028.
Airports are actively planning modernization plans and investing in mega airport modernization projects to improve their infrastructure and services. For instance, the Sapa Domestic Airport Development project involves the construction of an airport to handle 3 million passengers per annum on 371ha of land in Lao Cai, Vietnam.
The project starts in 2022 and is expected to be completed in 2030. The construction of various airports requires ground and cargo handling systems for several purposes, such as baggage & luggage handling, thereby supporting the growth of the global ground and cargo handling services market. Furthermore, the transportation of temperature-sensitive goods such as drugs, chemicals, and medicines has also increased demand for cargo transportation services.
Booming Air Travel
The aviation industry is witnessing an upcoming trend of larger airplanes, longer air routes, and lower ticket prices than ever. The airlines are including newer airplanes and investing heavily to enhance the customer experience and make air travel more comfortable. Further, according to the World Travel & Tourism Council, the travel industry accounted for 10.3% of the global GDP (USD 9.6 Trillion).
Further, in 2021, Travel & Tourism’s contribution to GDP increased by USD 1 trillion (+21.7% rise) in 2021 to reach USD 5.8 trillion, while the sector’s share of the whole economy increased from 5.3% in 2020 to 6.1% in 2021. Additionally, the sector saw a recovery of 18.2 million jobs, representing an increase of 6.7%. Hence, the rising global travel is expected to surge airline services, thereby supporting the demand for the global ground and cargo handling services market.
INSIGHTS BY SERVICE
Ground handling services dominate the global ground and cargo handling services market owing to the increasing number of scheduled passengers. In 2021, the total number of expected passengers traveling by airlines worldwide reached an estimated 22.2 million. The handling of passengers and their baggage remains the largest revenue segment for service providers.
Moreover, the growth in scheduled international passengers, the development of new airports, and an increase in airport retrofitting activities are expected to boost the ground handling segment. However, the rising air freight is expected to raise the demand for cargo handling services.
The cargo handling market is expected to witness the highest growth rate of over 5% in the service type segment during the forecast period. Cargo handling services are usually outsourced by airlines, which deal with freight transportation by air.
INSIGHTS BY AIRLINE
Passenger airlines are dominating the global ground and cargo handling services market share. As passenger airlines carry the most significant number of passengers and baggage, they are the primary revenue generators for service providers.
One of the factors driving revenue generation is the ongoing trend of combination airlines. Most airlines are primarily passenger airlines; however, they partner with several e-commerce companies to offer belly cargo space to carry express shipments, including perishable items and time-sensitive and temperature-controlled products.
North America dominates the global ground and cargo handling services market due to its well-developed airports with state-of-the-art infrastructure to accommodate many passengers. North American airports have seen a surge of investment in new cargo handling and air logistics capacity. Rising freighter traffic and congestion at the main hubs provide a particular boost for second-tier and cargo-focused airports.
Further, many major hub airports are also expanding their facilities after the strong performance of cargo has highlighted the potential for logistics investments and the shortcomings of some of these airports’ cargo facilities and infrastructure. For instance, Realterm, the parent of air cargo facility developer Aeroterm, is preparing for more cargo projects.
The global ground and cargo handling services market is highly concentrated, with many local and international players. The competition among these players is intense, and the industry witnesses both monopoly and fair competition. Entry to the market is generally based on regulations set by airport managing authorities.
State or federal governments often place entry barriers for multinational ground and cargo-handling service-providing companies to safeguard local airline subsidiaries. Some vendors in the global ground and cargo handling services market are Swissport, Dnata, Menzies Aviation, and Worldwide Flight Services.
Key Company Profiles
- Menzies Aviation
- Worldwide Flight Services (WFS)
Other Prominent Vendors
- Bird Group Aviation
- Celebi Aviation
- BBA Aviation
- Glamco Aviation
- PrimeFlight Aviation Services
- Transworld Aviation
- Qatar Aviation Services
- Jardine Aviation Services
- POS Aviation
- Goldair Handling
- Aeromexico Services
- Airline Assistance Switzerland
|No. of Pages||268|
|Forecast Period||2022 – 2028|
|Estimated Market Value (USD) in 2022||$31500 Million|
|Forecasted Market Value (USD) by 2028||$43801.08 Million|
|Compound Annual Growth Rate||5.6%|
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
4.4 Market Segmentation
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Premium Insights
7.2 Future Market Opportunities & Growth Enablers
7.2.1 Expansion of the Aviation Industry
7.2.2 Booming Global Air Travel
7.3 Segmentation Analysis
7.4 Geographical Analysis
7.5 Competitive Landscape
8.2 Regional Air Cargo Performance
8.3 Top Five Global Leading Airlines in 2022
8.3.1 American Airlines
8.3.2 Delta Air Lines
8.3.3 United Airlines
8.3.4 Southwest Airlines
8.4 Key Global Air Cargo Trends
8.4.1 Air Cargo Capacity Restrictions Due to Russia & Ukraine Airspace Closures
8.4.2 New Capacity Hampered by Extended Waiting Times for P2F Conversions
8.4.3 Elevated Air Freight Rates
8.5 Impact of Russia-Ukraine War on Aviation Industry
8.6 Global Economic Improvements to Aid Market Growth
9 Market Opportunities & Trends
9.1 Innovations in Ground & Cargo Handling Systems
9.2 Rise in Number of Air Freight
9.3 Expansion of Aviation Industry
10 Market Growth Enablers
10.1 Booming Global Air Travel & Freight Industry
10.2 Increase in Airline Fleet
10.3 Focus on Reduction of Airline Tat
11 Market Restraints
11.1 Financial Stress on Airlines & Volatility in Fuel Prices
11.2 Lack of Skilled Workforce
11.3 Disruptions in Airport Operations
11.3.2 Disease Outbreaks & Natural Disasters
12 Market Landscape
12.1 Market Overview
12.2 Five Forces Analysis
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Ground Handling
13.4 Cargo Handling
14.1 Market Snapshot & Growth Engine
14.2 Market Overview
14.3 Passenger Airline
14.4 Cargo Airline
14.5 Charter Airline
15.1 Market Snapshot & Growth Engine
15.2 Geographic Overview
For more information about this report visit https://www.researchandmarkets.com/r/vwmb35
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