Southeast Asian GSE market could be worth $1.2bn by 2027

Southeast Asian GSE market could be worth $1.2bn by 2027
ITW GSE says operators in the region are looking to replace old GSE after having postponed procurement through the pandemic (Image credit: @vaalaa/Adobe Stock)

The ASEAN ground support equipment market is projected to grow to a value of US$1.2bn by 2027, according to a study by Allied Market Research (AMR).

The forecast for growth suggests the region’s GSE market will prosper from a CAGR (compound annual growth rate) of 9.8 per cent from 2020 to 2027.

AMR suggests the market’s value in 2018 was $674mn – projecting significant growth through the nine-year period to 2027.

ASEAN (Association of Southeast Asian Nations) members include Vietnam, Thailand, Singapore, the Philippines, Myanmar, Malaysia, Laos, Indonesia, Cambodia and Brunei.

Indonesia, the Philippines and Malaysia currently dominate the Southeast Asian GSE market, according to AMR.

But the research company predicts that, through the forecast period, Vietnam’s GSE industry will grow at a higher CAGR.

Increasing air traffic and cargo, airports’ focus on enhancing operational efficiency, improved service standards and GSE leasing are all poised to improve the region’s GSE market value.

Allied Market Research does however suggest that expensive investments in purchasing equipment will impact market growth.

Manufacturers Textron GSE, ITW GSE, JBT AeroTech, Weihai Guangtai and Tronair were identified as industry key players.

Steven Ng, sales director for the Asia-Pacific region at ITW GSE, told Airside: “Since 2019 many ground handling companies, airlines and airports have postponed the procurement of GSE.

“At the same time, many airport development plans have been delayed. Fortunately, we now see a significant increase in both air travel and air cargo movement.

“This means that ground handling companies and airlines are now looking at replacing their ageing fleet of ground support equipment to meet the new demand,” Ng continued.

“The number and scale of airports is rapidly increasing, and we see increased focus on environmental awareness, which drives the need for sustainable ground support equipment solutions.

The sales director added that stricter emissions regulations are driving a shift towards electric ground power units and pre-conditioned air units to align with global sustainability objectives.