Emerging and developing markets in the Asia Pacific region witnessed the highest number of passengers travelling through airports in 2018, attributable to the growing tourism and commerce in this region. Passenger traffic has continued to be resilient, registering annual growth rates above historical averages, supported by the reduced price of travel and increase in the middle-class population in the developing markets. The rise in passenger traffic contributes significantly to the growth of the aircraft ground support equipment market.
On the back of these factors, the aircraft ground support equipment market is estimated to exhibit a CAGR of 6% during the forecast period of 2019-2027.
“After sales support and maintenance of spare parts of aircraft ground support equipment is anticipated to play a vital role to ensure efficient working, as the overall replacement cost of the equipment is anticipated to remain very high. Manufacturers can focus on providing after sales support services in order to maintain long term relationships with end users, and to gain substantial profits,” says an FMI analyst.
Key Takeaways of Aircraft Ground Support Equipment Market Study
For More Detailed Insights on Aircraft Ground Support Equipment Market
- Substantial changes in the aircraft ground support equipment have been witnessed with focus on the fuel consumption, safety, and comfort. Few of these changes comprise the reduction of the fuel consumption and emissions on the ground, loading, and unloading of passengers, freight, and luggage. Furthermore, the rising demand for more efficient and effective infrastructure aircraft ground support equipment to support the overall management of the operations, apart from loading and unloading, is expected to propel growth of the market.
- Increase in cargo shipments due to JIT (Just in Time) inventory strategy adopted by most of the industry players has also increased e-Commerce sales. Aircraft ground support equipment facilities are used to meet the rising demand for faster and more effective cargo shipment globally. This is anticipated to be the driving force for the growth of the aircraft ground support equipment market in the foreseeable future.
- Manufacturers of electric aircraft ground support equipment are anticipated to benefit from fuel diversification, as manufacturers of conventional aircraft ground support equipment are extremely exposed to price volatility of petroleum. Low-end torque with start/stops is another factor that contributes to the growing demand for aircraft ground support equipment.
- By equipment type, the aircraft service segment is anticipated to remain dominant in the aircraft ground support equipment market, followed by cargo loading and passenger services. The aircraft service segment is also anticipated to register relatively high growth, supported by the rising demand for refuelers and air start units during the forecast period.
- North America is anticipated to be the major contributor to the growth of global aircraft ground support equipment market, on the back of the improved production capabilities and capacities of manufacturers in this region. Growing adoption of electric and hybrid vehicles boosts the development of the electric aircraft ground support equipment market.
Aircraft Ground Support Equipment Market: Participant Insights
Tier-I players, including JBGT Corporation, Air T, Inc., Textron, Inc., China International Marine Containers (Group) Co., Ltd., and Weihai Guangtai Airport Equipment Co., Ltd., are anticipated to account for ~21% of the market share. Tier-II players are estimated to account for ~48% of the total market share and include Cavotec SA, ALVEST Group, Mulag Fahrzeugwerk Heinz Wössner GmbH u. Co. KG, Tronair, Inc., and Lektro Inc.
The rise in demand for travel in the Asia Pacific region is anticipated to influence players to gradually improve their presence in this region, especially in India.
Aircraft Ground Support Equipment Market: Future Outlook
Augmented incline towards electric ground support equipment along with advanced features for supporting numerous functions are anticipated to continue to be the prime driver for the growth of the aircraft ground support equipment market. Manufacturers strive to make further high-quality lightweight equipment, with a focus on long-term contracts with OEMs to supply batteries as per requirements.
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