Get a Comprehensive Overview of the Airport Ground Handling Market Report Prepared by P&S Intelligence, Segmented by Service (Passenger Handling, Cargo handling, Ramp Handling), Airport Type (International, Domestic), Service Provider (Independent Service Providers, Airlines and Airports), and Geographic Regions. This Report Provides Insights From 2017 to 2030.
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Airport Ground Handling Market Analysis
The size of the global airport ground handling market was around USD 34.5 billion in 2023, and it is expected to reach USD 64.2 billion by 2030, advancing at a CAGR of 9.4% over the forecast period (2024 and 2030). One of the major factors supporting the growth is the increment in the number of airports, both domestic and international.
This market report covers services such as cargo handling, passenger handling, baggage handling, ramp services, and aircraft cleaning, provided to support and assist aircraft operations. The profitability of this sector depends on the efficiency and quality of the services provided.
Over the past few years, due to the development of the infrastructure, the air connectivity of newly developed smart cities to metro cities has become easier. Therefore, there has been an increase in the number of airports worldwide to accommodate the rising passenger and cargo traffic owing to the globalization of air travel and an ensuing increase in air traffic.
Airport Ground Handling Market Trends & Drivers
Use of Innovative and Sustainable Solutions
The use of modern technologies, such as robotics and digital communications, leads to the efficient and smooth ground handling of cargo, aircraft, and passengers.
Ground handling service providers and airlines are turning to biogas and electric vehicles to tow aircraft at the runway head, in order to reduce the carbon footprint.
Expansion and Modernization of Airports
As new smart cities and business hubs develop, airports are constructed in cities that previously lacked air connectivity. Thus, new routes emerge, which creates an opportunity for airlines and the airport ground handling market to expand.
Similarly, the modernization and expansion of existing airports allow market players to expand across the globe. New terminals and runways are being constructed to accommodate an increase in passengers and flights, necessitating efficient ground handling.
Airlines and air transport hubs are focusing on enhancing the overall passenger experience. This is driving the demand for best-in-class ground handling services, including seamless baggage handling, fast check-ins, and on-time take-offs and landings.
High Capital Cost
Airport ground handling involves huge capital investment to purchase the necessary equipment, such as baggage handling systems, aircraft towing tractors, cargo loaders, and ground support equipment. Significant numbers of staff members are also required to handle the diverse operations.
Additionally, the cost of constructing and maintaining facilities such as passenger lounges, cargo terminals, and baggage handling areas is rather high. For the utmost customer comfort and smooth operations, a significant amount of money is needed for training the hired personnel. Therefore, the overall high capital investment is expected to restrain the growth of the market.
In-Depth Segmentation Analysis
Service Insights
Passenger handling is the largest category, holding a share of around 50% in 2023, primarily due to the growth of the tourism industry. Therefore, new air routes are being designed, and many domestic airports are being transformed into international airports by connecting them with some famous overseas tourist destinations.
Whereas, cargo handling is set to be the fastest-growing category, at a CAGR of 9.7%, during 2024–2030. For faster and more efficient shipping, e-commerce giants are turning to air cargo, which, in turn, increases the workload on airports.
Both these factors also propel the ramp handling category of the market. These operations are carried out on the ramp, which is a dedicated area near the passenger terminal where aircraft are parked, loaded, unloaded, serviced, and fueled.
The following services have been analyzed in the report:
Passenger Handling (Largest Category)
Cargo Handling (Fastest-Growing Category)
Ramp Handling
Airport Type Insights
The international bifurcation held the larger share, of around 70%, in 2023. International Airports are busier than purely domestic ones since they handle international as well as domestic departures and arrivals. Airport authorities have to maintain a higher degree of smooth functionality while offering utmost comfort to passengers, to justify the exponentially high prices of air travel.
The domestic category will witness faster growth, advancing at a CAGR of 9.7%, during 2024–2030. Different countries are developing and transforming cities into smart cities and connecting them directly via air with metro and business hubs.
The major types of airports that require ground-handling services are listed below:
International (Larger Category)
Domestic (Faster-Growing Category)
Service Provider Insights
Independent service providers are the larger category, holding a share of around 75% in 2023. They will also be the faster-growing category, showcasing a CAGR of 9.8% during 2024-2030. Airlines and airport authorities have a lot to deal with, which is why they usually outsource ground-handling operations to independent third parties.
A large number of major airlines have not involved themselves in this business, they expect independent service providers to match their standards in terms of hygiene, comfort, and smooth service.
The following are the service providers covered in the report:
Independent Service Providers (Larger and Faster-Growing Category)
Airlines and Airports
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Geographical Analysis
North America held the largest global market share, of around 50%, in 2023. It is a major aviation hub with a total count of 14,712 airports. The U.S. annually hosts millions of travelers at its expansive network of domestic, international, and regional airports.
Asia-Pacific is set to be the fastest-growing market for ground handling services, at a CAGR of 10.0%, during 2024–2030. Countries in the region are developing economically and becoming new centers of trade, commerce, and business. Further, many manufacturing units have been set up in the Asia-Pacific region in recent times; thus, a lot of cargo needs to be flown in and out.
All major airlines have their main or regional hubs in APAC, which is a key contributing factor to the growth of the airport ground handling market in this region.
APAC also enjoys seamless air connectivity to the West, resulting in the arrival of millions of people each year for business and vacation.
Similarly, being in the middle of the Western and Eastern worlds, airports in Saudi Arabia, the U.A.E., and Qatar occupy prime positions on the list of the busiest airports worldwide. This is because major long-haul routes have a halt in the MEA region, making it a lucrative market for airport ground handling systems and services.
Europe also holds a major share of the market as it has always been a center of the aviation industry. Intra-continent air connectivity is excellent, as is the connectivity to destinations overseas, especially of the major Western European nations, such as the U.K., France, Italy, Spain, Germany, and the Netherlands.
The regions and countries analyzed for this report include:
Brazil (Largest and Fastest-Growing Country Market)
Mexico
Rest of LATAM
Middle East and Africa (MEA)
Saudi Arabia (Largest Country Market)
South Africa
U.A.E. (Fastest-Growing Country Market)
Rest of MEA
Market Nature - Consolidated
Key market players collaborate with several airlines to expand their business and provide a smooth and comfortable experience to passengers. Service providers also provide premium facilities, such as pickup from home, private lounges, and fast check-in.
Several shipment companies have partnered with airlines for air cargo, considering the growth in e-commerce, which is generating plenty of opportunities for the cargo handling market.
There is stiff competition among market key players for acquiring contracts for ground handling operations for an airline at an airport, which leads to intense bidding wars.
Top Airport Ground Handling Companies:
Swissport International AG
Dubai National Air Travel Agency
Aviapartner
Flughafen München GmbH
Çelebi Aviation
SATS Ltd.
Menzies Aviation Limited
The Emirates Group
Qatar Aviation Services
Fraport AG
AOT Ground Aviation Services Co. Ltd.
Airport Ground Handling Industry News
This sector has witnessed major collaborations between airlines, and independent service providers.
Lufthansa Group partnered with Swissport International AG to boost operational efficiency, enhance ground handling services, and improve overall passenger experience at numerous airports worldwide.
Aerocare has been acquired by Swissport International AG to solidify the latter’s presence in the Asia-Pacific region, enable the expansion of its service portfolio, and allow for smooth operations and customer services.
In May 2022, Flight Consulting Group and General Aviation Service partnered to establish a nationwide ground handling station network across Spain. This collaboration aims to enhance the former’s operating services and improve customer experiences. This collaboration includes refueling, aircraft handling, flight permit, and travel services.
In May 2023, i6 Group Ltd. and Menzies Aviation Limited expanded their services by partnering at four more airports in the U.K. This collaboration has resulted in advanced fuel management technologies, such as Reconcile6 and Fusion6, which offer real-time fueling information and management, cost savings, and enhanced safety.
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