Global Cargo Handling Services Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

Airports investing in enhancing their existing ground handling systems

The Global Cargo Handling Services Market is estimated to be USD 32.56 Bn in 2023 and is expected to reach USD 43 Bn by 2028 growing at a CAGR of 5.72%.

Cargo handling services include a wide range of activities to facilitate cargo movement from one point to another. Organizations such as commercial enterprises, government agencies, and port authorities can provide cargo-handling services. Depending on the type of cargo, mode of transportation, and legal environment in which the cargo is handled, the specific services provided and how they are delivered may differ. Cargo handling services are an important part of the worldwide supply chain. They are critical to the efficient and timely movement of goods worldwide. Cargo handling services can also significantly impact the local economy, generating jobs and revenue for both businesses and governments.

Low-cost carriers have grown dramatically in recent years because of global urbanization and increased economic activity. Furthermore, increased travel and tourist demand, as well as the ease of travel, drive market expansion. Rising demand for low-cost airlines is expected to accelerate the development of low-cost airports and facilitate the introduction of new airports and cargo-handling services. ICRA figures indicate domestic aviation passengers increased by 67% in October 2021. Domestic air travelers in the United States totaled 51.7 million in May 2021, representing a 561% increase over the same month the previous year (7.8 million). Russia's S7 Airlines aims to join the market with low-cost carriers. The debut flight of Russia's new low-cost carrier is scheduled for July 2022. S7 Airlines, a low-cost carrier, plans to have around 20 planes in its fleet by 2024. Furthermore, Canada plans to launch Lynx Air, a new ultra-low-cost airline, in 2022. As a result, there is a growing need for low-cost airlines.

However, the market is constrained since airlines have a significant number of high-quality airport system implementations and a variety of approaches to improve consumer travel experiences in the shortest possible time. The primary focus is on cargo handling services. However, updating antiquated airport systems is a costly task. Ground processing equipment has a product life of 6 to 9 years and must be replaced once that time has passed. As a result of the initial investment and limited life of airport ground processing equipment, market growth will be limited.

The advancements in cargo handling are projected to provide profitable opportunities for the market. The increased use of workflow automation is driving expansion in cargo services, and this element has created significant lucrative prospective opportunities for the business throughout the forecast period. The failure of existing systems to digitalize the physical process results in a mismatch between digital and physical information, resulting in a gap in achieving operational efficiency. Manufacturers are focusing hard on digitalizing solutions to provide market growth opportunities.

• The surge in cargo accidents around the world has had a substantial impact on the cargo handling sector's growth. This factor is projected to challenge the cargo-handling equipment market throughout the forecast period.

Market Segmentations

• The Global Cargo Handling Services Market is segmented based on Service, Airport, Infrastructure Type, and Geography.
• By Service, the market is classified into Baggage Handling, Passenger Handling, Cargo And Mail Handling, Aircraft Handling, Ramp Handling, and Others.
• The Passenger Handling segment dominated the market. Passenger service expedites the passage of passengers from check-in to boarding.
• By Airport, the market is classified into Domestic and International.
• Domestic aviation capacity expansion will likely boost segment growth as tourism, business, and other industries thrive. According to the World Airport Transport Service, domestic passenger traffic will expand at a CAGR of 10% between 2022 and 2029. Increased air traffic in emerging nations like China and India will boost market expansion.
• By Infrastructure Type, the market is classified into Greenfield Airport and Brownfield.
• The Greenfield airport category is predicted to grow quickly. The growing number of Greenfield airport expansions in many countries would drive segment growth. In addition, there is a significant increase in demand for smart airport infrastructure. As a result, higher growth rates are forecasted over the forecast period. For example, Beijing Daxing International Airport in China will open in September 2019. The Bogaplum Greenfield Airport in India will open in 2022.
• By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
• The market for airport ground and cargo handling services in the United States was the largest. This growth is due to the presence of most airports, a strong aviation industry, and increased airport upgrade spending.

Recent Development

• Havaş acquired MZLZ Ground Handling Services to work at Zagreb Airport (ZAG). With this new arrangement, Zagreb has become the 31st air terminal in Havaş's portfolio. Havaş has announced that it will start providing airport services in Zagreb, Croatia. - February 2022
• Miles & More and Fraport signed a strategic partnership. The air terminal administrator at Frankfurt Airport plays an important role in the airport's reliability program. Fraport AG will be a primary partner of Miles & More and subsequently will be a co-distributor of the Honors Program at Germany's largest aviation hub. - January 2022

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are Worldwide Flight Services, Fraport, Airport Associates, Qatar Aviation Services, etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of the Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)

Competitive Quadrant

The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Cargo Handling Services Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development, and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Cargo Handling Services Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Cargo Handling Services Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter's 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report also includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report also contains the competitive analysis using Positioning Quadrants, the Proprietary competitive positioning tool.

Report Highlights

• A complete analysis of the market, including parent industry
• Important market dynamics and trends
• Market segmentation
• Historical, current, and projected size of the market based on value and volume
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market