Market Trends of Global Non-Aeronautical Industry
This section covers the major market trends shaping the Non-Aeronautical Market according to our research experts:
Ground Handling Systems Will Showcase Significant Growth During the Forecast Period
The ground handling systems segment is estimated to show remarkable growth during the forecast period. The aircraft ground handling systems consists of equipment used to offer services to an aircraft while it is on the ground and parked at a terminal gate. The ground support equipment includes power systems, baggage handling systems, security systems, water service vehicles, and others.
An increasing number of air travelers and growing spending on the aviation sector leads to rising demand for ground handling systems. According to the International Air Transport Association report, the aviation sector witnessed a strong recovery after the pandemic. The overall number of air passengers will reach 4 billion by 2024. The report stated that in 2021, the numbers were 47% of 2019 levels. The number of air travelers is expected to improve to 83% in 2022, 94% in 2023, 103% in 2024, and 111% in 2025. This leads to growing airports, creating demand for ground handling systems. In May 2022, G3 Global Bhd, an artificial intelligence company, signed a contract worth RM118.38 million from Malaysia Airports Holdings Bhd (MAHB) to design and develop an airport-integrated security and safety system (AIS3) for the KL International Airport (KLIA) and KLIA2. Thus, the rising procurement contract of ground handling systems propels market growth.
Asia Pacific is Estimated to Show Highest Growth During the Forecast Period
Asia-Pacific is projected to show remarkable growth during the forecast period. The growth is due to rising cargo traffic, a growing number of airports, and increasing expenditure on the aviation sector from emerging economies such as China and India. In Asia-Pacific, major countries like China, India, Japan, and Singapore are planning to construct new airports and expand the existing airports. An increasing number of airports leads to rising demand for non-aeronautical services, thus driving the growth of the market.
In February 2020, the Indian government announced that 100 new airports would be built by 2024. This will create demand for food and beverage services, car rental services, baggage handling equipment, and other services. Furthermore, in June 2022, the Union Civil Aviation Minister of India announced that the country will have 33 additional cargo terminals by 2024-2025.
For instance, in November 2022, Tata Starbucks announced that it is planning to open eight airport stores across six cities in the country to expand its network. The cities are Bhubaneswar, Bengaluru, Goa, Jaipur Guwahati, and Lucknow. Furthermore, in October 2022, Smoor, the luxury chocolate brand opened a new caf茅 at the Bangalore International Airport (BAIL). Thus, rising investment in non-aeronautical services for improving passenger comfort at the airport drives market growth across the Asia Pacific.
