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The global ground support equipment market size was valued at USD 4.07 billion in 2021. The market is projected to grow from USD 4.23 billion in 2022 to USD 7.82 billion by 2030, exhibiting a CAGR of 7.97% during the forecast period. The global COVID-19 impact has been unprecedented and staggering, with ground support equipment experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -27.14% in 2020 as compared to 2019.
Ground Support Equipment (GSE) is normally used at airports to provide service to the aircraft between flights. This equipment is mainly used to support safe operations of the aircraft before taking off and after landing at the airport. GSE especially involves various ground power operations such as aircraft mobility, cargo, and passenger loading operations.
The key services of ground support equipment consist of towing airplanes, refueling, freight carts, portable water storage, de-icing, cleaning, fire-fighting, passenger service, lavatory waste tank drainage, and emergency services. This equipment supports airport operation, especially for aircraft on the apron side called the terminal's service area.
A significant increase in air traffic and cargo transportation is the major factor driving the market's growth. In February 2020, the Long Beach airport in California installed 15 electric power chargers for its equipment and reduced emissions. The airport now uses electricity to power 100% of its commercial gates and further estimates that it will lower its nitrogen oxide emissions by almost 2,000 pounds a year by 2023.
Aviation Industry Faced Unmatched Challenges Due to COVID-19 Pandemic
Air carriers across the globe have faced extreme financial pressures and have cut capacity at unparalleled rates due to a smaller number of passengers. Some airlines have shut down completely; a portion of these may never return.
According to the International Air Transport Association (IATA), 1.8 billion passengers flew in 2020, a decrease of 60.2% compared to 4.5 billion air travelers in 2019.
According to the IATA report, the aviation industry net losses are expected to reduce to USD 11.6 billion in 2022, which was USD 51.8 billion loss in 2021. The net FY 2020 loss estimates have been revised to USD 137.7 billion. Thus, the total aviation industry losses in 2020-2022 will reach USD 201 billion.
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Emission Control Regulations for GSEs to Drive Market Growth
The aviation sector is continuously focusing on the adoption of greener products. Regulatory authorities are constantly working on implementing guidelines toward eco-friendly processes and technologies. The increasing awareness about environmental concerns is likely to create a huge demand for greener and eco-friendly Aircraft Ground Support Equipment (AGSE) in the aviation industry.
Such initiatives by the key players backed by stringent emission control regulations will propel the ground support equipment market growth during the forecast period.
Increase in Popularity of Used and Refurbished Products to Accelerate Growth
Major airlines focus on the modernization and upgrades of ground support equipment. Airport GSE businesses are paying attention to refurbishing old equipment to increase lifespan and add upgrades that help save costs. For instance, the London Luton airport uses a revolutionary system of collective pooling of ground support type of equipments such as aircraft stairs, belt loaders, and others. This saves significant cost, reduces congestion, and improves aircraft turnaround & overall delays.
Growing Air Traffic and Cargo Transportation to Boost Market Growth
An increase in air traffic and cargo transportation has contributed to the market growth. Furthermore, airports' rising adoption of next-generation GSE propels the market worldwide. According to the International Air Transport Association (IATA) report data, the global air freight markets showed the demand for air cargo increased by 18.7% in 2021 as compared to 2020.
Furthermore, the IATA’s 20-year air passenger forecast shows that the number of air travelers could double to 8.2 billion by the end of 2037. Thus, a surge in air travel is anticipated to drive the market growth.
Increasing Focus on Enhancement of Operational Efficiency to Augment Growth
Airports are continuously improving to increase their operational efficiency and decrease turnaround time. The development of underground GSE has helped reduce operational time and equipment congestion in airports.
For instance, airports in the Caribbean and Latin America have adopted Collaborative Decision-Making (CDM) tools to improve operational efficiency since June 2019. The CDM tool works on real-time information exchange that enhances the predictability of operations by increasing situational awareness and enhancing planning quality. The adoption of advanced GSE drives the growth of the market.
Inadequate Airport Infrastructure for Charging Electric GSE to Hamper Market Growth
There has been an increased use of electric GSE to reduce non-aircraft exhaust emissions at airports. However, lack of charging infrastructure for electric products is the major factor that hampers the market growth. Besides, the high acquisition cost of electric products and the limited life span of most of the equipment that requires continuous replacement are some restraining factors for the market growth.
Hi-lift Loader Segment to Gain Momentum Due to Growing Air Freight Transportation
Based on type, the market is segmented into pushback tractors, tugs & tractors, passenger boarding lifts & steps, hi-lift loader, de/anti-icing vehicles, belt loaders, water service vehicles, lavatory service vehicles, and others.
The Tugs & Tractors (TT) segment held the highest share in the market in 2021. The growth is attributed to the growing air traffic and rapid expansion of the aviation sector across the globe. The adoption of high-capacity towbarless tractors will drive the segment growth.
The hi-lift loader segment will witness remarkable growth during 2022-2039. The rising cargo transportation and the growing investment in research & development to develop high capacity lift loaders are likely to boost the market growth.
The passenger boarding lift & steps segment is projected to show significant growth due to increasing number of air travelers, modernization of conventional GSEs, and rising airports across the globe.
Growing Demand for Electric Vehicles Due to Green Initiatives by Governments and Airlines to Drive Segment Growth
Based on power source, the GSE market is divided into electric, non-electric, hybrid, Fuel Cell Vehicle (FCV), and advanced GSE.
The non-electric segment held the largest ground support equipment market share in 2021. The presence of non-electric equipment in airports, such as lavatory vehicles, tractors, water service vehicles, high lift loader vehicles, belt loaders, and others, contributed to the highest share in the market. The increasing demand for these vehicles due to their applications is projected to drive the segment's growth.
The electric GSE segment is anticipated to show the highest growth during the forecast period. The growth is due to the rising focus on the government’s green initiatives and increasing demand for low carbon emission products. The electric-powered GSE creates less pollution compared to old GSEs.
The FCV segment will witness significant growth during 2022-2029. Key original equipment manufacturers focus on the design and development of hydrogen fuel cells that enable airports to reduce carbon emissions to zero. Thus, many go green campaigns are expected to propel the segment growth.
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New Sales Growth Dominated the Market in 2021 Owing to Increasing Number of Airports
By ownership, the market is segmented into new sales, used sales, and rental/lease.
Among these, the new sales segment dominated the market in 2021. An increase in the number of air travelers, rising spending on airport modernization programs, and rapid expansion of the aviation sector are projected to drive the segment's growth.
The rental/lease segment is estimated to grow with the highest CAGR during the forecast period. The growth is due to the growing demand for GSEs from small airlines due to their airport operations affordability.
The used sales segment will showcase moderate growth due to increasing airport demand for refurbished equipment.
North America Ground Support Equipment Market Size, 2021 (USD Billion)
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The ground support equipment market is studied across North America, Europe, Asia Pacific, and the rest of the world.
North America dominated the market in 2021 and was valued at USD 1.32 billion. The presence of a flourished aviation industry, many airports and airlines, and rising investments in research & development of aviation GSE boost the market growth across North America. The U.S. airlines flew 28,000 flights to more than 800 airports in nearly 80 countries that connect nearly 2.5 million air travelers and transported 28,000 tons of cargo every day. Furthermore, key players, such as ITW GSE, Textron Inc., JBT Corporation, and others, drive the market growth.
Asia Pacific is estimated to have the highest growth during the forecast period. The growth is attributed to increasing investment in the aviation sector from emerging economies such as China and India. Moreover, rapid urbanization has led to the expansion of the aviation industry. COMAC, a Chinese plane manufacturer, predicts that China will become the world's largest aviation market by 2040. The country’s fleet size will reach 9,957 by 2040 and could account for nearly 22% of the global passenger aircraft fleet. Furthermore, India is planning to build 100 new airports by 2024.
Europe is projected to show significant growth due to the rising air travelers and the increasing expenditure on the aviation sector from the U.K, France, Germany, and others. In addition, key players, such as TLD, Mallaghan, MULAG Fahrzeugwerk, Cavotec SA, and others, are estimated to drive market growth across Europe.
The market in the rest of the world will witness remarkable growth during 2022-2029. The growth is due to rising air traffic and rapid expansion of the aviation sector in the Middle Eastern countries such as the UAE, Turkey, Saudi Arabia, and Israel.
Key Players are Focusing on Business Expansion through Contracts and Partnerships with Airlines
Original Equipment Manufacturers (OEMs) are focusing on business expansion through contracts with airlines of different countries. In March 2020, Cavotec SA signed two ground support equipment contracts with Chinese airports. The company will supply electrically powered systems and a range of fueling systems to Chengdu Tianfu International Airport. Additionally, the company will supply more than 100 coilers units, 400Hz connectors, and service cables at three terminals at Beijing Capital International Airport. The value of both contracts is worth USD 3.29 million.
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The market research report provides an in-depth technical analysis of the ground support equipment market and focuses on key aspects such as the leading market players, COVID-19 effect on the market, competitive landscape, and leading technological trends of the product. Besides, the report offers insights into the market trends and highlights key industry developments & trends. In addition, the report provides multiple factors that will contribute to the market growth during the forecast period.
Value (USD billion)
By Power Source
Fortune Business Insights says that the global market size was USD 4152.5 million in 2020 and is projected to reach USD 7,819.6 million by 2030.
In 2020, North America market stood at USD 1,353.7 million.
Growing at a CAGR of 7.52%, the market will exhibit steady growth in the forecast period (2021-2030).
The tugs & tractors (TT) segment is expected to be the leading segment in this market during the forecast period.
The increasing air traffic and cargo transportation is expected to propel the growth of the market.
Textron Ground Support Equipment Inc., TLD, Tronair, Kalmar Motor AB, JBT, Rheinmetall AG, ITW GSE, Cavotec SA, Guangtai, AERO SPECIALTIES INC., Mallaghan are major players in the global market.
North America dominated the market share in 2019.
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