Middle-East and Africa Airport Ground Handling Systems - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2029

The Middle-East and Africa Airport Ground Handling Systems Market size is estimated at USD 237.92 million in 2024, and is expected to reach USD 395.70 million by 2029, growing at a CAGR of 10.71% during the forecast period (2024-2029).

The ongoing construction and expansion activities related to several airports in the Middle East are expected to generate significant demand for ground-handling systems in the coming years. Also, countries in Africa have plans to enhance the passenger and cargo handling capacity of airports. This is likely to propel the growth of the market during the forecast period.

The growing emphasis on the modernization of ground handling systems to improve the reliability, safety, and efficiency of ground operations and aircraft handling is expected to propel the market in the years to come. Advancements in mechatronics and robotics, along with electrical and mechanical innovations, are expected to play a vital role in increasing the efficiency of ground handling operations in the airports in the region.

However, the inherent reluctance the adoption of new technologies among prospective customers and the high costs involved in procurement may prove to be challenging for the equipment suppliers in terms of pitching their innovative products in these turbulent seasons post-pandemic due to failing economies, rising inflation and a supply shortage. These factors may result in delays in the procurement of advanced systems, which may hamper the growth of the market during the forecast period.

MEA Airport Ground Handling Systems Market Trends

Passenger handling segment to grow registering the highest CAGR

In the Middle East and Africa, the number of people opting for air travel increased in the past few years. The increase in passenger traffic resulted in an increase in pressure on airports and airlines to opt for advanced ground handling infrastructure that can enhance their ground operations and support their motive of reducing aircraft turnaround time. For instance, the Sharjah Airport in UAE recorded a 24.4 percent year-on-year surge in traffic to seven million passengers in the first half of 2023. The airport is embarking on a major expansion project aimed at increasing its passenger handling capacity to 20 million within a few years. Correspondingly, airports are procuring an array of ground handling systems to facilitate the quick and smooth flow of passengers, baggage, and cargo, thereby increasing the efficiency of the airports. In Dubai International Airport, the ground handling service provider, dnata, replaced many of its ramp vehicles, GSEs, and forklifts with hybrid or electric alternatives that help extend life cycles, decrease engine emissions, and reduce waste. Such developments are expected to enhance the market prospects during the forecast period.

Saudi Arabia is Expected to Show Significant Growth in the Market

The Saudi Arabian airport ground handling systems market will showcase significant growth during the forecast period. The growth is attributed to the increasing passenger air traffic and growing spending on airport modernization programs. The Saudi Arabian government announced its ambitious plan to become a global transportation and logistics hub by 2030, aiming for more than 360 million annual passenger traffic. Saudi Arabia has 35 airports across the country, including six international and 29 domestic airports. King Abdulaziz International Airport in Jeddah, King Khaled International Airport in Riyadh, King Fahd International Airport in Ad Dammam, Prince Mohammad Bin Abdulaziz Airport in Medina, and Gassim Airport in Mulayda are the five busiest airports in Saudi Arabia. In recent years, Saudi Arabia's aviation industry has significantly grown. In Q1 2022, Saudi Arabia recorded passenger traffic of 5.1 million, operated more than 40,000 flights, and registered an increase of 44% compared to Q1 2021. The increased passenger traffic is primarily attributed to the numerous entertainment and cultural events like Riyadh Season, which resulted in surging air traffic. Saudi Arabia plans to host at least 300 million passengers and 5 million tons of freight by 2030. This leads to growing investment in airport infrastructure, new aircraft procurement contracts, and modernization of the existing aircraft fleets. In April 2023, Saudi Arabia announced that it plans to tender four new airport projects under the Public-Private Partnership (PPP) model as part of a bigger pipeline of 200 privatization and PPP projects across 17 sectors announced by the National Centre for Privatisation and PPP (NCP). Such developments will propel the growth of the market in Saudi Arabia.

MEA Airport Ground Handling Systems Industry Overview

The Middle East and Africa airport ground handling market is fragmented, with several players accounting for significant amounts of shares in the market. Siemens AG, Cavotec SA, Alvest SAS, Usimat-series, and Ersel Banca Privata S.p.A. are some of the prominent players in the market. Ground handling systems manufacturers are focusing on increasing their sales in the region, as the demand for new equipment is increasing simultaneously with the growing airport infrastructure investments in the region. These players are investing heavily in research and development of future technologies to reduce the efforts of the ground support staff. Also, several players are focusing on the development of zero-emission ground-handling vehicles, which is expected to generate new opportunities for the players during the forecast period in the region.

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