Market Insights
The defense ground support equipment’s market was estimated at US$ 524.3 million in 2021 and is expected to grow at a CAGR of 2.4% during 2022-2028 to reach US$ 618.9 Million in 2028.
The ground support equipment is utilized for several support operation among aircraft landing and take-off. To offer safe functions of aircraft on ground, that include ground power supply, cargo handling, ammunition handling, moving heavy equipment and aircraft towing the defense ground support equipment’s are being utilized. These equipment’s are one of vital elements to assist in numerous services of aircraft throughout regular checks and making aircraft combat ready. The defense ground support equipment has developed with the growth of new gen aircraft technology. Market players are investing in R&D activities for delivering more advanced equipment and offering technologically advanced equipment for the next-generation combat aircraft.
Ground support equipment are majorly used in military cargo and transport aircrafts such as Aeritalia G.222, Airbus A310 MRTT, Airbus A330 MRTT, Alenia C-27J Spartan, Avro York, Boeing C-108 Flying Fortress, British Aerospace 125, etc. Increasing contracts, partnerships and agreements for the development and delivery of military cargo and transport aircrafts is one of the major factors that is expected to contribute towards the growth of global military cargo service market during the forecast period.
Military aircraft service deals with the adoption of ground support equipment in different types of military aircrafts such as combat and non-combat aircrafts. Ground support equipment such as ground power units, airfield power supply solutions, loading and transporting equipment, converters, conveyors, pushback tractors, fuel trucks, hydrant trucks, etc. are majorly used in military aircraft services to support aircraft operations such as ground power operations, aircraft mobility, etc.
COVID-19 epidemic has witnessed low impact on defense ground support equipment market. Defense projects are vital to national security and budget for such defense projects had been allotted earlier to the epidemic. Consequently, the need for defense ground support equipment is suspect to be impacted through epidemic. Nevertheless, numerous governments have ordered to temporarily shut down manufacturing plants and postpone production activities to reduce the outbreak of COVID-19. The postponed resuming of closed manufacturing plants affected in a decreased production of defense ground support equipment worldwide. Therefore, the market is expected to go through temporary interruption in production, delivery, and demand of equipment during COVID-19 pandemic. Increasing military expenditure with large investments in developing countries such as India, China, and Japan are pushing market growth.
The technological innovation for the advancement of defense ground support equipment with investment in R&D by market players are expected to strengthen the market development. Government organizations and agencies across countries are involved in authorizing tactical contracts with market players to offer ground support equipment.
Several investments in the defense industry have been directed at the defense ground support equipment’s in recent years, which would boost the overall market. Some of them are:
- As per Stockholm International Peace Research Institute, in April 2022, global military expenditure rose from 0.7% in 2021, which is expected to reach $2,113 billion. The 5 largest defense spenders in 2021 were the United States, the United Kingdom, India, China, and Russia, accounting for around 62% of total expenditure.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), from April 2020 – June 2021, the Foreign Direct Investment (FDI) equity flow in the Indian Defense sector was valued at $10.15 million.
Segment Analysis
Based on the equipment type, the market is bifurcated into Air Conditioning Unit (ACU), Air Start Unit (ASU), Deicers, Ground Power Unit (GPU), Tow Tractor. The ground power unit are expected to remain the biggest market for defense ground support equipment’s in the forecast period. Rising procurement of technologically advanced combat aircraft and increasing geopolitical tension, strengthening the demand for ground power unit, thus boosting the huge growth prospectus in the global market. Moreover, with the increasing terror threats and border disputes, the demand for defense ground support equipment’s is expected to intensify.
Based on the aircraft, the market is segmented as fixed special mission aircraft, transport aircraft and fighter jet. The fighter jet accounts for the largest market share in 2021, with the increasing demand for defense ground support equipment’s as increasing focus to strengthen the military aircraft strengths by countries such as India, China and others. The increasing geopolitical tension with bordering nations such as Pakistan and China and rising defense budget is encouraging the market growth. For Instance, as of 2018,
‘ India has a fleet strength of more than 2,000 military aircraft consist of 77 special mission aircraft, 694 combat aircraft and 248 transport aircraft.
In terms of regions, North America is likely to maintain its leading position in the defense ground support equipment’s market throughout the forecast period. The North America ground support equipment market will be on the surging trend owing to the government investment to enhance airport infrastructure, technological advancements along with the growing air traffic. Furthermore, technological advancements are also expected to supplement the growth of the defense ground support equipment market in United States over the forecast period. As per the official website of the Avro GSE (North America) in July 2018, the company has launched a new line of powered equipment. This new GSE is not only modern also efficient and green and equipped with a fleet management system. Avro’s new GSE range includes several models of baggage tractor, an aircraft pushback tractor, a belt loader, and other equipment. Also, the equipment’s are equipped with the Avro care programme that is designed to enhance operations by helping to avoid unscheduled downtime through malfunctioning equipment or poor operator behavior. As a result, the deployment of new and advanced ground support equipment would increase in United States, thereby supplementing the growth of the defense ground support equipment market over the forecast period.
Concurrently, Asia Pacific is expected to witness the highest growth rate in the global defense ground support equipment’s market during the forecast period. The key factors responsible for the swift growth are increased demand for defense ground support equipment’s by the military and a rise in overall military expenditure (especially in China and India). The increased defense and individual spending on security in countries such as China and India inject huge growth prospectus for the defense ground support equipment’s market in the Asia Pacific region.
Key Players
There is stiff competition in the defense ground support equipment’s market. The growth of the companies is directly dependent on the industry conditions and government support. These companies differentiate their defense ground support equipment’s offerings based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:
- In June 2019, Germany, Spain and France, has entered into an agreement was prepared named as Future Combat Air System (FCAS) which was intended to be effective by 2040.
- In July 2018, the UK introduced a tactical coalition with Sweden, followed by the Italy participation for the advancement of next-gen fighter jets in the Tempest combat aircraft program.
The overall competitive landscape has been affected due to these mergers and acquisitions. The following are the major players in the defense ground support equipment’s market:
- Cavotec SA
- Enersys
- RASAKTI
- Guinault
- Atec Inc
- MAK Controls & Systems Pvt Ltd
- TLD (Alvest Group)
- ITW GSE
Research Methodology
This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both the qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
- Market trend and forecast analysis
- Market segment trend and forecast
- Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
- Attractive market segments and associated growth opportunities
- Emerging trends
- Strategic growth opportunities for the existing and new players
- Key success factors
