AIR CARGO MARKET REPORT OVERVIEW
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The global air cargo market size was USD 82.57 billion in 2022 and is projected to touch USD 111.81 billion by 2028, exhibiting a CAGR of 4.0% during the forecast period.
The sudden spike in CAGR is attributable to the air cargo market growth and demand returning to pre-pandemic levels once the pandemic is over. The global COVID-19 pandemic has been unprecedented and staggering, with air cargo experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Air cargo is any goods or property that can be carried in any aircraft. It is a mode of transportation that delivers fast-speed shipments through aircrafts. It is one of the fastest modes of air transportation. Growing popularity of air freight services and advances in air freight business is propelling the use of such cargos for transportation.
Market progression for air cargo is being driven due to transportation of temperature-sensitive goods such as pharmaceuticals, chemicals, drugs, and other goods. Introduction of new and transforming technologies is expected to change the scenario of air freight business. Need for fast shipments and logistics is projected to drive demand. Escalating focus on supply chain optimization to propel demand for air cargos. Improvement in air freight routes in different countries is anticipated to drive demand for the service. Robust demand from medical equipment and pharmaceuticals is expected to augment market growth.
COVID-19 Impact: Cessation of Trade Activities to Hinder Market Growth
The effects of the COVID-19 pandemic are already being felt on a global level, the air cargo market was considerably influenced. The outbreak of COVID-19 had a negative impact on several markets. Various countries went into lockdown. With sudden pandemic, all kinds of businesses observed disruptions. The pandemic of COVID-19 affected the demand for air transportation. Due to a halt on global import and export activities, affected the economic activities during the pandemic hindered market growth during the pandemic. Strict rules and regulations imposed by the government have impacted the transportation activities worldwide. But during the pandemic, pharmaceuticals and healthcare products were transported by the means of air transportation. This created the demand in the air freight business.
LATEST TRENDS
"Advanced Technologies in Air Freight Business to Fuel Market Development"
The global air cargo market growth is estimated to experience growth due to integration of new and advanced technologies in air freight business. Air freight business is integrating transforming technology by adopting more advanced interface and removing the use of old mainframes systems. Modernization in the air freight by integration of new technologies such as machine learning, artificial intelligence (AI), and analytics. Rising usage of cool-chain technology, Big Data, Deep Learning, and virtual and augmented reality. This is expected to enable fast deliveries and logistic solutions. Automation of various operations is expected to automate various operations which expected to augment growth in the market. Such integration of new trends in revenue operations service is estimated to pose prospects for market growth during the forecast period.
AIR CARGO MARKET SEGMENTATION
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- By Type
Based on type; the market is divided into air mail and air freight.
Air freight is expected to be the leading part of the type segment.
- By Application
Based on application; the market is divided into retail, food and beverages, pharmaceuticals and healthcare, consumer electronics, and third party logistics.
Pharmaceuticals and Healthcare is expected to be the leading part of the application segment.
DRIVING FACTORS
"Benefits of the Air Transportation to Boost Market Growth "
Delivery done through air cargo is one of the fastest modes of transportation. Other modes of transportation such as rail, water, and road take up too much time to deliver items. They take usually take weeks or days to deliver the products whereas air transportation does it in hours. Such benefits are projected to drive air cargo market growth. Presence of less stock of goods for unloading compared to cargo ships. It is one of the fastest and safest modes of transportation. Clearance is much quicker and it requires less local warehousing. This approach is one of the safest modes among all the other modes as it requires least amount of handling and safety protocols. Such various benefits of the service are anticipated to provide lucrative opportunities for air cargo market.
"Focus on Optimization of Supply Chains to Magnify Service Demand"
With emphasis on supply chain transformation and optimization is expected to experience market growth over forecast period. The market is driven by diversifications in logistics which is done by various companies to curb risks. Robust growth in e-commerce channels and rising demand for fast delivery is propelling the need to have optimized supply chains. This is expected to drive market growth for air cargo. Airline companies are also extending their end-to-end services and air freight is being used as one of the omnichannel.
RESTRAINING FACTORS
"High Costs to Impede Service Demand "
There are a number of factors that can induce the growth of the air cargo market. High costs associated with air freight solutions can cause hindrance in market growth. Air freight delivery charge high either by volume or weight. Therefore, high costs associated with the air freight is expected to restrict and limit the market growth.
AIR CARGO MARKET REGIONAL INSIGHTS
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"North America to Govern the Market Share Owing to Development of Air Transportation Infrastructure "
North America holds the largest part in the global air cargo market share due to favorable government policies and technologies to boost strengthen the infrastructure capabilities of air transportation. Presence of large scaled organizations in the region is estimated to generate rewarding opportunities in the market. Financial support and initiatives by the government is anticipated to drive market expansion. Increasing presence of e-commerce channels and websites that promise fast delivery is anticipated to facilitate market progress. Focus on optimization of supply chains by the air freight companies is estimated to drive market growth in the region.
KEY INDUSTRY PLAYERS
"Market Players to Boost Market Growth"
The report delivers information about the list of market players and their operations in the industry. The information is collected and reported with proper research, technological developments, acquisitions, mergers, expanding production lines, and partnerships. Other aspects examined for this market include companies producing and introducing new products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.
List of Market Players Profiled
- China Airlines Cargo (China)
- FedEx Express (U.S.)
- UPS Airlines (U.S.)
- Cathay Pacific Cargo (Hong Kong)
- DHL Aviation (Bahrain)
- Korean Air Caro (South Korea)
- Cargolux (Luxembourg)
- Lufthansa Cargo (Germany)
- Singapore Airlines Cargo (Singapore)
- Emirates SkyCargo (Dubai)
- Air Freight and Air Mail (Cuba)
REPORT COVERAGE
This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.
| REPORT COVERAGE | DETAILS |
|---|---|
| Market Size Value In | US$ 82.57 Billion in 2022 |
| Market Size Value By | US$ 111.81 Billion by 2028 |
| Growth Rate | CAGR of 4% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2021 |
| Historical Data Available | Yes |
| Segments Covered | Type & Application |
| Regional Scope | Global |
Frequently Asked Questions
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What value is the air cargo market expected to touch by 2028?
The global air cargo market is expected to reach USD 111.81 billion by 2028.
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What CAGR is the air cargo market expected to exhibit by 2028?
The air cargo market is expected to exhibit a CAGR of 4.0% by 2028.
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Which are the driving factors of the air cargo market?
Drivers of this air cargo market are benefits of the air transportation and focus on optimization of supply chains.
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Which are the top companies operating in the air cargo market?
China Airlines Cargo, FedEx Express, UPS Airlines, Cathay Pacific Cargo, DHL Aviation, Korean Air Caro, Cargolux, Lufthansa Cargo, Singapore Airlines Cargo, Emirates SkyCargo, and Air Freight and Air Mail are key companies operating in the air cargo market.
