Middle East Ground Support Equipment Market Size, Share & COVID-19 Impact Analysis, By Type (Tugs & Tractors, Pushback Tractors, Passenger Boarding Lift & Steps, Belt Loader, Hi-Lift Loader, De/Anti Icing Vehicle, Water Service Vehicle, Lavatory Service Vehicle, and Others) By Power Source (Non-Electric GSE, Electric GSE, Hybrid GSE, Fuel Cell Vehicle, and Advanced GSE) By Ownership (New Sales, Used Sales, and Rental/ Lease), and Regional Forecast, 2023-2031

Middle East region is constituted under the Rest of the World region in the global ground support equipment market. The market in the Middle East is estimated to rise at a CAGR of 6.77% during the forecast period. The global ground support equipment market is projected to grow from USD 7.14 billion in 2022 to USD 13.32 billion by 2031.

The growing development of international and domestic airports in the region and increased investments and R&D for introducing new services propel the market growth. Additionally, increasing tourism in the Middle East also drives the market growth. For instance, in November 2022, Celebi Tanzania Airport Services Limited, a subsidiary of Çelebi Aviation, entered a new agreement with flydubai, a Dubai-based aviation services company, to provide ground handling services in Tanzania. The services will be applied to Dar-es-salaam in Tanzania. Similar efforts from leading players will accelerate the Middle East ground support equipment market growth during the forecast period.

LATEST TRENDS

Digitization of Ground Handling Systems to Offer New Growth Opportunities for Ground Support Equipment Market

The growing emphasis by authorities on the digitization and modernization of ground handling systems to improve overall safety, efficiency, and reliability of ground operations is anticipated to propel the market growth. Technological advancements in mechatronics, robotics, electrical and mechanical innovations are anticipated to play a major role in increasing the effectiveness and efficiency of ground-handling operations in the region. For instance, in October 2022, Qatar Airways Cargo partnered with Siemens Logistics and Qatar Aviation Services (QAS) to sign an MOU to accentuate and cooperate in digitizing cargo handling processes. The project will use the latest data analytics and predictive maintenance applications.  

DRIVING FACTORS

Increased use and Demand for Air Freight and Post-Pandemic Travel to Accelerate Market Growth  

A critical factor driving the market growth is a rise in the demand for air freight. Air freight has continued to experience advantages such as the fastest delivery, high levels of security, and reduced risk of damage and theft in recent years. The demand is constantly growing—reliable departure and arrival times and low premiums. Additionally, ease in restrictions after a decrease in the COVID-19 virus has enabled people globally to travel more compared to the pre-pandemic period considering the uncertainties of life. Hence an increase in travel & tourism in the region is expected to expand the Middle East ground support equipment market share in the forecast period.

RESTRAINING FACTORS

High Cost of Procurement and Maintenance of GSEs to Limit the Market Growth

Despite increasing demand and adoption, the high cost of procurement and maintenance of ground support equipment is expected to limit market growth in the forecast period. The ground support equipment is costly to procure, in addition to the complexities involved and the various permits the government needs. Since procurement is a lengthy process, demand for the GSEs is also limited to the amount of orders suppliers get. Furthermore, in the Middle East region, an absence of key market players to supply adequate GSEs is expected to limit the market growth in the forecast period. However, the region's governments have started taking initiatives to uplift companies manufacturing ground support equipment. For instance, In January 2020, SATS Saudi Arabia won a 25-year cargo terminal concession in King Khalid International Airport, Riyadh, Saudi Arabia, and construction of which will take place over two phases, with the first phase expected to be completed in mid-2022. Upon full completion, the cargo terminal can handle up to 600,000 metric tons of cargo annually.

KEY INDUSTRY PLAYERS

Regarding the competitive landscape, Dnata is the key player in the Middle East market, owing to a strong market presence and active involvement in R&D investments to accelerate service launches and approvals in the forecast period. Other prominent players, such as Kalmar Motor AB and TLD, are also leading the market due to their strong distribution network and diverse aesthetic indications for their product portfolio. Some of the other major players are Cavotec SA, Mallaghan, and others. These companies are focused on strengthening their product portfolio and distribution network through strategic collaboration and partnerships to increase their market share in the Middle East market.

LIST OF KEY COMPANIES PROFILED:

• DENGE - Ground Support Equipment Manufacturer (GSE) (Turkey)


• High Dam (Saudi Arabia)


• Excel Industries (UAE)


• Guangtai (China)


• JBT (U.S.)


• Siemens AG (Germany)


• Cavotec SA (Switzerland)


• Dnata (UAE)     

KEY INDUSTRY DEVELOPMENTS:

• September 2022: Etihad Cargo, a Middle East-based company, joined Tica’s BlueSky program for sustainability verification. Etihad Cargo is the first ever Middle Eastern company to succeed in the pilot program, where the company is one of the first participants in the program’s live operations.


• May 2022: Dnata, an Emirates Group subsidiary, unveiled a target to replace all available vehicles, GSE and diesel units, with electric ones to reduce general costs, carbon emissions and maintenance costs. Dnata has set up an e-Apron sustainability zone at the airport show at Dubai World Trade Centre (DWTC), allowing electric & hybrid GSE manufacturers to showcase their innovations.


• October 2021: Qatar Airways Cargo, a Qatar-based air cargo company, partnered with SAL Saudi Logistics services to provide comprehensive ground support and logistics support services. The support services are expected to be provided at Saudi Arabia’s main airports in- Dammam, Riyadh, Medina, and Jeddah.

REPORT COVERAGE

The market report provides quantitative and qualitative insights into the market and a detailed analysis of the Middle East market size & growth rate. Along with the Middle East ground support equipment market size forecast, the research report provides an elaborative analysis of the competitive landscape and market dynamics. Different key insights presented in the report are overview of the number of airports, an overview of price analysis of types of services, an overview of the regulatory scenario by key countries, pipeline analysis, new product launches, key industry developments – mergers, acquisitions & partnerships and, the impact of COVID-19 on the market.