The global ground and cargo handling services market is expected to grow at a CAGR of 5.65% from 2022 to 2028

posted on 26th April 2023 by grace
The global ground and cargo handling services market is expected to grow at a CAGR of 5.65% from 2022 to 2028

New York, April 25, 2023 (GLOBE NEWSWIRE) — announces the release of the report “Ground and Cargo Handling Services Market – Global Outlook & Forecast 2023-2028” –
These services include an extensive service facilitating an aircraft flight and ground preparation or repositioning. Airports are actively planning modernization plans and investing in mega airport modernization projects to improve their infrastructure and services. For instance, the Sapa Domestic Airport Development project involves the construction of an airport to handle 3 million passengers per annum on 371ha of land in Lao Cai, Vietnam. The project starts in 2022 and is expected to be completed in 2030. The construction of various airports requires ground and cargo handling systems for several purposes, such as baggage & luggage handling, thereby supporting the growth of the global ground and cargo handling services market. Furthermore, the transportation of temperature-sensitive goods such as drugs, chemicals, and medicines has also increased demand for cargo transportation services.

The aviation industry is witnessing an upcoming trend of larger airplanes, longer air routes, and lower ticket prices than ever. The airlines are including newer airplanes and investing heavily to enhance the customer experience and make air travel more comfortable. Further, according to the World Travel & Tourism Council, the travel industry accounted for 10.3% of the global GDP (USD 9.6 Trillion). Further, in 2021, Travel & Tourism’s contribution to GDP increased by USD 1 trillion (+21.7% rise) in 2021 to reach USD 5.8 trillion, while the sector’s share of the whole economy increased from 5.3% in 2020 to 6.1% in 2021. Additionally, the sector saw a recovery of 18.2 million jobs, representing an increase of 6.7%. Hence, the rising global travel is expected to surge airline services, thereby supporting the demand for the global ground and cargo handling services market.

Ground handling services dominate the global ground and cargo handling services market owing to the increasing number of scheduled passengers. In 2021, the total number of expected passengers traveling by airlines worldwide reached an estimated 22.2 million. The handling of passengers and their baggage remains the largest revenue segment for service providers. Moreover, the growth in scheduled international passengers, the development of new airports, and an increase in airport retrofitting activities are expected to boost the ground handling segment. However, the rising air freight is expected to raise the demand for cargo handling services. The cargo handling market is expected to witness the highest growth rate of over 5% in the service type segment during the forecast period. Cargo handling services are usually outsourced by airlines, which deal with freight transportation by air.