Trends and challenges in the GSE market through 2030

 

 

 

 

Fuelled by increasing air travel demand, global connectivity and fleet modernisation, the Ground Support Equipment (GSE) market has seen a significant resurgence in recent years. As the backbone of airport operations, GSE ensures the safe, timely, and efficient handling of aircraft on the ground, covering everything from towing and refuelling to baggage handling and aircraft servicing. 

 

In this blog, leading UK manufacturer of ground support equipment, Newbow Aerospace, explores the current state of the aviation GSE market, key trends driving growth and the challenges that could shape the industry over the next five years. 

 

Firstly, some context. According to industry reports, in 2025, the global GSE market is projected to reach almost $10 billion, up from $9.14 billion in 2024. This reflects a compound annual growth rate (CAGR) of 8.9%, which is projected by 6-8% over the next five years, reaching a market value of $11.5 billion by 2030. 

 

Whilst North America currently holds the largest market share, due to its extensive network of large-scale international airports and established aviation infrastructure the APAC region (Asia-Pacific) is emerging as the fastest-growing, propelled by expanding middle-class demographics, budget airline growth, and large-scale airport projects in countries like India, China, and Indonesia. The Middle East too, is experiencing major growth with projects including Saudia Technic’s ‘MRO Village’ in Saudi Arabia poised to position the region as a global aviation hub. 

 

 

Overall, there are a number of factors in play that are driving this upward trend, including the following: 

 

 Expansion of airport infrastructure in emerging markets, as above 

 Modernisation of global airline fleet 

 Investment in equipment upgrades delayed during pandemic 

 Surge in global air travel and cargo volumes 

 Rising investments in airport automation and modernisation 

 Environmental regulations pushing for sustainable, electric GSE 

 

The global shift toward sustainability in aviation is reshaping the GSE landscape. Airports and airlines are under increasing pressure to reduce carbon emissions, both in the air and on the ground. For example, battery-powered tugs, e-buses, and belt loaders are gradually replacing diesel-powered legacy equipment, often with the support of Government subsidies and state-funded ‘green airport’ initiatives. Airports such as Amsterdam Schiphol and Oslo Airport are leading the charge in this area, with objectives to achieve zero-emission ground operations by the end of the decade. 

 

GSE manufacturers are also striving to meet growing customer demands for more sustainable equipment and Newbow Aerospace, which has just celebrated 60 years of trading, is certainly at the forefront of this momentum with its own developments in the use of solar power. 

 

Newbow was the first to launch a wheel and brake change trailer that features a roof-mounted solar panel, which powers internal and external LED lighting. Initially designed for Aer Lingus to enhance its night-time line maintenance operation, Newbow’s unique Solar XL trailer eliminates tow vehicle dependency and the task of coupling and de-coupling the electrics, thanks to its on-demand renewable power. It features twin 7W internal roof mounted LED strip lights, delivering 12 hours of continuous operation from a single 130W roof mounted solar panel. 

 

Automation too, is revolutionizing how airports function. From autonomous baggage tugs and cargo loaders to AI-driven aircraft maintenance alerts, ‘smart GSE’ is improving efficiency and helping to reduce incidents of human error, as well as cutting labour costs. Such innovations not only enhance safety and reduce downtime but also align with the broader trend towards greater airport digitization. 

 

To further reduce costs and improve operational flexibility, some airports are turning to modular, multi-use GSE. For instance, aircraft tow tractors that can handle different plane sizes or mobile ground power units (GPUs) that are compatible with various aircraft types. This modular approach allows smaller airports and operators in particular, to scale more efficiently and reduce capital expenditure. 

 

 

Over the next five years, trends would indicate that there will be more widespread electrification of ground fleets at major airports world-wide, complemented by further integration of AI and predictive analytics for real-time equipment management. Additionally, we can expect to see more use of interoperable platforms for GSE fleet operations. 

 

As regards financing, growth in the availability of public-private partnerships to fund infrastructure and sustainability projects is likely to stimulate investment in GSE products. 

 

From a regional perspective, Western Europe’s GSE market is expected to grow significantly, driven by fleet modernization and sustainability mandates from Governments. Electrification will dominate investment in the pursuit of carbon reduction policies. 

 

North America is likely to remain the largest market for GSE globally, due to its extensive airport infrastructure and high air traffic volume. The region’s focus will be on integrating autonomous systems and enhancing cargo handling capabilities. 

 

The Middle East and Asia-Pacific will continue to see rapid growth due to expanding air travel demand with investments focusing on modernizing fleets to cater for increasing passenger numbers. In Saudi Arabia and the UAE, a key driver is the ambition to position the region as a global hub for aircraft maintenance. 

 

Regulatory bodies like the International Air Transport Association (IATA) and Airports Council International (ACI) are also expected to play a key role in setting global standards and encouraging sustainable practices. 

 

Whilst the outlook is promising for the next few years, the GSE market faces some hurdles, that could impact on the growth trajectory. 

 

 

Making the switch to electric and automated GSE involves significant upfront investment. Many small to mid-sized airports and ground handling companies struggle to justify this level of investment. Although Government subsidies and leasing models are helping bridge the gap, affordability remains a key issue, particularly in smaller, developing countries. 

 

 

Electric GSE adoption is tied to the availability of charging infrastructure. Older airports often lack the necessary electrical capacity or design to support GSE deployment. Installing charging stations, upgrading power grids and ensuring compatibility with equipment requires time, stakeholder buy-in and capital investment. 

 

 

The global supply chain remains fragile due to the lingering effects of the pandemic, conflict in Ukraine and Middle East, as well as other geo-political tensions related to the USA’s foreign tariff policies. These factors continue to cause delays in the delivery of critical components like batteries, microchips and motors, which have hampered production timelines for electric and smart GSE. Additionally, many OEMs (original equipment manufacturers) are grappling with rising raw material costs, which are being passed on to buyers. 

 

In response, Newbow Aerospace already has 99% of its supply chain based within 100 miles of its factory in the UK, which insulates the business. It also has a strategy of dual sourcing certain components, in order to alleviate long lead-times, which does not fit the company’s business model for delivering fast turnaround of projects. 

 

 

Operating and maintaining next-gen GSE requires specialized training but the aviation sector is facing a labour crunch, with shortages in technicians, engineers and operators. This skills gap could slow the adoption of smart technologies and increase downtime due to improper handling or maintenance. 

 

 

The aviation GSE market is entering a dynamic period of growth and innovation, driven by environmental concerns, technological progress and evolving air travel demands. As a result, GSE is no longer a behind-the-scenes component, it’s now a strategic priority for airports and airlines alike. 

 

While challenges around cost, infrastructure, and workforce readiness remain, the long-term trajectory points toward smarter, greener and more efficient ground operations. For stakeholders across the aviation ecosystem, staying ahead of these trends will be essential to maintaining operational excellence and meeting sustainability targets. 

 

For its part, Newbow Aerospace expects to see a significant rise in demand for GSE that incorporates lightweight, flexible solar panels, to help airlines, MROs and airport ground handling provides to deliver more sustainable ramp operations. 

 

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