The global ground and cargo handling services market has been witnessing continuous growth in the last few decades. The global air cargo tonnage grew by 25% in 2019 compared to 2010. Also, air tonnage is growing at a higher rate and is likely to maintain its growth in the coming years, according to IATA.
The booming e-commerce industry and the increasing number of people ordering merchandise via online platforms are strengthening freight services. Hence, the growing tonnage of freight through passenger airlines is boding well for the ground and cargo handling services market.
The ground handling services market is expected to grow at a CAGR of over 6% and is likely to account for an incremental revenue of $1.84 billion during the forecast period. The growth in scheduled international passengers, the development of new airports, and an increase in retrofitting activities at airports are expected to boost the ground handling segment.
North America leads the passenger and baggage handling service market due to the presence of several international as well as domestic airports. The cargo handling services segment is expected to grow at a CAGR of over 6% during the forecast period.
According to IATA, the global demand for air freight increased by approximately 3% in 2018. Airlines are also focusing on carrying more freight in their bellies. Europe leads the freight handling market, followed by North America.
Cargo airlines primarily focus on carrying the air freight from one place to another both on domestic and international routes. APAC is the largest export center for air freight and western countries remain the largest importer. Europe and APAC constitute high revenues due to currency valuation and the presence of several busiest cargo airports.
Europe dominates the global ground and cargo handling services market. The region has well-developed airports with state-of-the-art infrastructure.
North America is one of the largest markets for ground and cargo handling services. The ground and cargo handling services market in North America is expected to grow at a CAGR of over 5% during the forecast period.
Source : Various Agencies