Catalysed by technological advancements, the increased uptake of sustainable pursuits, and shifting operational requirements, the ground support equipment (GSE) market is immersed in a period of remarkable change. Adapt GSE take a look at the prime trends and triggers reshaping the landscape of the market, alongside predictions for the years ahead.
WHAT’S TRENDING?
From prevalence to recent emergence, we can witness a series of themes in aviation GSE which are set to gain further momentum, and which the key players in the industry must be taking on-board:
- Electrification – airports are increasingly transitioning to electric-powered GSE from traditional fuel-powered units. This shift reduces greenhouse gas emissions, lowers operating costs, and contributes to quieter operations on the airport tarmac
- Automation and robotics – the adoption of automated and robotic systems in GSE is on the rise. These technologies streamline operations, enhance efficiency, and reduce the need for human intervention in repetitive tasks, thus enabling personnel to focus on higher-value activities
- Alternative fuels – there has been an enhanced exploration of alternative fuels like hydrogen and biofuels by GSE manufacturers and airport operators, aiming to align with global sustainability objectives
- Digitalisation and IoT Integration – the incorporation of IoT technology into GSE promotes advanced tracking, monitoring, and maintenance capabilities
- Data analytics – by utilising data analytics, airports and ground-handling companies can improve their operations, including maintenance schedules and workflows
- Improved safety features – future GSE models are anticipated to integrate advanced safety technologies, such as collision avoidance systems and enhanced visibility features. Ergonomic designs are also predicted to be harnessed on a greater scale
- Modular and versatile equipment – the trend towards modular and versatile GSE design allows for diverse applications and quick adaptations based on different aircraft servicing needs. This flexibility leads to a reduction in the range of equipment required at airports
- Integration with smart airports – as airports evolve into ‘smart’ hubs which utilise advanced technologies, GSE will increasingly be integrated into these systems
- Regulatory changes and standards – environmental concerns are likely to lead to stricter regulations and standards regarding emissions and fuel usage for GSE
- Training and workforce development – the increasing sophistication of GSE necessitates the evolution of workforce training programmes. Operators will need training on new technologies, updated safety protocols, and contemporary maintenance practices to maintain efficiency and ensure safe operations
IMPACT OF RUSSIA-UKRAINE WAR SCENARIO
Allied Market Research has published a report centred on a forward-thinking view of the industry, titled, ‘Ground Support Equipment Market by Type (Powered Ground Support Equipment (GSE), Non-Powered Ground Support Equipment (GSE)), by Application (Aircraft Handling, Passenger Handling, Cargo Handling), by Power Source (Electric, Non-Electric, Hybrid): Global Opportunity Analysis and Industry Forecast, 2023-2032.’
According to the report, the GSE market was valued at $8.0 billion in 2022, and is estimated to reach $14.2 billion by 2032, growing at a CAGR of 6.2 per cent from 2023-to-2032.
The report depicts that the invasion of Ukraine by Russia on 24th February 2022, triggering the Russo-Ukrainian war that began in 2014, is expected to have potential negative implications for the GSE market. The Russia-Ukraine war is expected to disrupt the global supply chain for components and equipment crucial in GSE manufacturing. Russia and Ukraine, pivotal manufacturing centres for various industries, such as aerospace and automotive sectors, provide essential components for GSE production. Disruptions in manufacturing facilities, transportation networks, and logistics routes in these countries may result in delays in GSE equipment production and delivery.
In addition, instability in the region may cause fluctuations in raw material and commodity prices used in GSE manufacturing. Heightened geopolitical tensions can induce market uncertainties, leading to increased material costs and impacting the production expenses of GSE manufacturers, therefore resulting in elevated prices for GSE equipment, affecting both profitability and affordability for buyers.
POWERED GSE SEGMENT TO MAINTAIN ITS LEADERSHIP STATUS
The report further outlines that by type, the powered GSE segment held the highest market share in 2022, accounting for more than three-fifths of the global GSE market revenue, and is estimated to maintain its leadership status during the forecast period, as there is demand for powered GSE to handle the higher workload efficiently, with the increase in volume of air traffic and cargo.
Moreover, the powered GSE segment is projected to attain the highest CAGR of 6.5 per cent from 2023-to-2032, owing to the development of more efficient and environmentally-friendly powered GSE with the advancement in technology.
By application, the aircraft-handling segment held the highest market share in 2022, accounting for more than two-fifths of the global GSE market revenue and is estimated to maintain its leadership status during the forecast period as efficient aircraft handling services demand increases at airports to manage the higher volume of arrivals, departure due to the rise in air travel. However, the cargo-handling segment is projected to attain the highest CAGR of 7.4 per cent from 2023-to-2032, owing to the exponential growth of e-commerce. The non-electric segment is predicted to maintain its lead position during the forecast period.
By power source, the non-electric segment accounted for the largest share in 2022, accounting for nearly three-quarters of the global GSE market revenue and is estimated to maintain its lead status during the forecast period as the non-electric GSE provides benefits, such as lower upfront costs, high longer operating ranges. However, the electric segment is projected to attain the highest CAGR of 8.9 per cent from 2023-to-2032, with the increase in focus to decrease carbon footprint and comply with environmental regulations.
NORTH AMERICA TO MAINTAIN ITS DOMINANCE BY 2032
Region-wise, North America held the highest market share in terms of revenue in 2022, accounting for more than two-fifths of the GSE market revenue and is likely to dominate the market during the forecast period, attributed to consistent demand for GSE in North America to support airport operations, including aircraft-handling, cargo-handling, and passenger services. However, the Asia-Pacific region is expected to witness the fastest CAGR of 7.9 per cent from 2023-to-2032, due to the expansion of air travel, cargo transportation, and infrastructure development.
For more information about the Allied Market Research report – and to read it in full – visit www.alliedmarketresearch.com/ground-support-equipment-market.
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