Airport Ground and Cargo Handling Services Market | 2031

Report Description

Airport Ground and Cargo Handling Services Market Outlook 2031

The global airport ground and cargo handling services market size was valued at USD 35.4 billion in 2023 and is likely to reach USD 87.7 billion by 2031, expanding at a CAGR of 10.8% during 2023 – 2031. The growth of the market is attributed to the rising demand for robust ground handling services to ensure smooth airport operations.

Increasing number of air travelers leads to a high number of flights and passengers, boosting the demand for ground handling services to manage aircraft and assist passengers efficiently. Additionally, the utilization of baggage and cargo services helps reduce the time planes spend on the ground and stick to their schedules better.

• As per the report published by the Bureau of Transportation on March 16, 2023, the US airlines carried approximately 853 million passengers in 2022.

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Airport ground and cargo handling services are essential operations that ensure the smooth and efficient movement of goods at an airport. Ground handling services include a wide range of activities, such as aircraft marshaling, baggage handling, passenger boarding, and fueling. On the other hand, cargo handling services involve loading and unloading cargo from aircraft and storing cargo in warehouses.

The research reports find that the COVID-19 pandemic hampered the market. During the pandemic government organizations imposed strict rules on travel restrictions, which reduced the demand for air travelling. This decreased in the need for ground handling services related to passenger flights.

• According to the report published by the US Government Accountability Office on October 21, 2021, states that during the pandemic air passenger traffic declined 96% in April 2020, as compared to that in April 2019.

Artificial Intelligence (AI) Impact on Airport Ground and Cargo Handling Services Market

Emergence of artificial intelligence is expected to propel the market. AI-driven technologies are being used to optimize various aspects of ground handling, such as baggage and cargo tracking and maintenance of ground support equipment. Moreover, AI-enabled robotics and automation are streamlining cargo handling processes by minimizing the risk of human error for quick and secure cargo operations.

Airport Ground and Cargo Handling Services Market Dynamics

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Major Drivers

Growing investment in airport infrastructure expansion and modernization is expected to drive the market. New runways, terminals, and cargo areas are being built to accommodate the vast number of air-traveling passengers. These investments facilitate the growing demand for robust ground-handling services to ensure smooth airport operations. Moreover, increasing government support to improve and update old and airport infrastructures is propelling the market.

• As per the report published by the Federal Aviation Administration (FAA) on February 27, 2023, stating that to improve the airports of all shapes and sizes in the US to manage the growing air traffic, it is awarding around USD 1 billion for President Biden’s Bipartisan Infrastructure Law. This investment is expected to help meet the increasing demand for air travel by investing in large security checkpoints, new baggage systems, and improved ground transportation.

Existing Restraints

Limited equipment and high operational risks are expected to hinder the market. Ground processing equipment, such as baggage conveyors, tugs, and cargo loaders, have a finite operational life. Over time, they undergo wear and tear, requiring high maintenance and replacements which are costly. Moreover, operational risks caused by various factors, including adverse weather conditions, human errors, or technical malfunctions further hamper the market.

Emerging Opportunities

Growing adoption of advanced technology is expected to create immense opportunities for the players competing in the market. These technologies enhance operational efficiency, accuracy, and passenger experience. Service providers are leveraging these innovations to streamline processes, reduce costs, and stay competitive. Moreover, the integration of digital solutions, including online booking platforms, and mobile applications is fueling the market.

Scope of the Airport Ground and Cargo Handling Services Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Airport Ground and Cargo Handling Services Market Segment Insights

Service Analysis

Based on service, the airport ground and cargo handling services market is divided into cargo & mail handling, passenger handling, aircraft handling, baggage handling, ramp handling, and others. The passenger handling segment is expected to hold a major market revenue share during the forecast period due to the increasing number of air travelers. This surge is creating substantial demand for passenger handling services. Moreover, airports and airlines focus on improving passenger experience further boosting the demand for efficient passenger handling services.

The cargo & mail handling segment is expected to expand at a significant CAGR during the forecast period owing to the expansion of global trade necessitating efficient cargo and mail handling services. Cargo and mail handling services are important for facilitating the smooth flow of goods across borders and between countries. Additionally, the rapid growth of the e-commerce industry is propelling the need for efficient cargo handling to transport goods.

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Airport Type Analysis

On the basis of airport type, the market is classified as international and domestic. The international segment is anticipated to register robust growth during the forecast period due to the rise in international air traveling passengers. International airports connect various countries and regions, facilitating the movement of passengers and goods across borders. This increasing need for global connectivity is fueling the growth of the passenger and cargo handling services market.

Infrastructure Type Analysis

In terms of infrastructure type, the airport ground and cargo handling services market is fragmented into brownfield airport and greenfield airport. The brownfield airport segment is expected to hold a key market share during the projected period due to its location advantage. This makes brownfield airports crucial access points for domestic and international travel and trade, which contributes to the high demand for handling services.

The green field segment is projected to register a considerable CAGR during the forecast period, as these airports are purposefully designed and constructed with modern and efficient cargo-handling infrastructure. This planned approach ensures that the airport is equipped to handle large volumes of cargo and goods. Moreover, the integration of smart ground and cargo handling services in green field airports further boosts the market.

Regional Outlook

In terms of region, the global airport ground and cargo handling services market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the global market due to the high volume of domestic and international air travelers.

Major cities, including New York, Los Angeles, and Chicago, in the US, serve as critical transit points for passengers. This substantial passenger volume generates a constant need for efficient passenger handling services.

• According to the Bureau of Transportation Statistics report released on March 16, 2023, the number of passengers served by the US airlines increased by 194 million in 2022 as compared to those in 2021. In 2022, the airlines carried approximately 853 million passengers.

The market in Asia Pacific is anticipated to expand at a rapid pace in the coming years, as this region is experiencing a robust economic expansion, leading to increased business activities, tourism, and trade. This economic growth generates a high demand for passenger and cargo handling services at smart airports. Additionally, rising investments in airport infrastructure development facilitate market growth in this region.

• According to the report published on April 5, 2023, Asia Pacific spent approximately USD 227 million, making it the highest spender on airport construction in March 2022.

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