Air Cargo Market to Grow with a CAGR of 5.80% Globally through to 2028
The Global Air Cargo Market is primarily driven by two major
factors. Firstly, the growth of e-commerce, with the rising demand for online
shopping and express delivery services, fuels the need for swift and efficient
air cargo transportation. Secondly, the expansion of global trade and
increasing supply chain globalization play a pivotal role in driving air cargo
demand, especially for the expedited transport of goods across international
borders, highlighting the market's importance in facilitating the global
economy.
According to TechSci Research report, “Global Air
Cargo Market - Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global Air Cargo Market stood at USD 144 Billion
in 2022 and is anticipated to grow with a CAGR of 5.80% in the forecast period,
2024-2028. The
global air cargo market is currently experiencing a period of significant
growth, driven by several key factors. Firstly, the increasing prevalence of
e-commerce has sparked a surge in demand for fast and reliable transport of
goods. As consumers continue to embrace online shopping, the need for efficient
logistics solutions to ensure timely deliveries across vast distances has
become more pressing than ever before. This trend is expected to continue as
e-commerce continues to grow and evolve, with advancements in technology and
infrastructure further fueling the expansion of the air cargo industry.
Moreover, globalization has played a
crucial role in the growth of the air cargo market. With businesses expanding
their operations globally, there is a greater need for efficient and timely
transportation of goods to different parts of the world. Air cargo offers the
advantage of speed, allowing businesses to quickly ship products to
international markets, thereby reducing lead times and increasing customer
satisfaction.
Additionally, the COVID-19 pandemic has
accelerated the demand for air cargo services. As many countries implemented
restrictions on travel and transportation, air cargo emerged as a vital
lifeline for the delivery of essential goods, including medical supplies and
equipment. The resilience and adaptability demonstrated by the air cargo
industry during this challenging time have further solidified its importance
and potential for growth.
In conclusion, the global air cargo
market is witnessing remarkable growth, driven by factors such as the rise of
e-commerce, globalization, and the impact of the COVID-19 pandemic. As the
world becomes increasingly interconnected, the demand for efficient and
reliable air cargo services will continue to rise, presenting opportunities and
challenges for industry players to innovate and meet the evolving needs of
customers worldwide.
Secondly, the process of globalization
has created an interconnected world with an interdependent economy. As
businesses expand their operations internationally, the movement of goods via
air cargo has become vital for maintaining supply chains and facilitating
global trade. The ability to transport goods quickly and efficiently by air has
opened up new opportunities for businesses to access markets worldwide,
enabling them to reach customers in a timely manner and expand their reach
beyond borders.
Furthermore, the COVID-19 pandemic has
caused short-term disruptions to the air cargo market. However, as the world
gradually recovers from the impacts of the pandemic, the market is expected to
continue its expansion in the long term. The importance of the air cargo
industry in facilitating the flow of essential goods and medical supplies
during the crisis has further highlighted its resilience and potential for
growth. This, in turn, has generated increased interest in the industry from
investors and policymakers alike.
Considering these factors, the air cargo
industry presents an exciting and promising area for continued study and
investment. The evolving trends in e-commerce, globalization, and the need for
rapid deliveries make it a dynamic sector with ample opportunities for
innovation and development. As technology and logistics continue to advance,
the air cargo market is poised to play a crucial role in shaping the future of
global trade and commerce, enabling businesses to connect with customers
worldwide and contribute to economic growth on a global scale.
Browse over market data Figures spread through XX Pages and an in-depth TOC on "Global Air Cargo Market”
The Global Air Cargo Market is a critical component of
the international logistics and supply chain industry, facilitating the
movement of goods by air between countries and continents. It plays a pivotal
role in the global economy, supporting various sectors ranging from e-commerce
and pharmaceuticals to perishable goods and industrial equipment. The market is
characterized by evolving trends and challenges, all of which influence its
operations and future trajectory.
One prominent trend in the Global Air Cargo Market is
the increasing emphasis on digitization and data-driven operations. Airlines
and cargo companies are embracing advanced technologies, such as Internet of
Things (IoT) devices and sensors, to monitor cargo conditions in real time.
These technologies provide valuable data on factors like temperature, humidity,
and security. Enhanced tracking systems offer end-to-end visibility and
transparency, allowing companies to optimize their operations and make data-driven
decisions. Predictive analytics based on this data help anticipate changes in
demand and adjust cargo schedules, enhancing operational efficiency and
customer service.
The growth of e-commerce and changing consumer
behavior is another significant trend. The rise of online shopping has driven a
surge in demand for efficient and timely delivery of goods. As a result,
airlines and cargo companies are dedicating cargo space and flights
specifically for e-commerce shipments. Strategically located logistics hubs and
fulfillment centers near airports expedite the flow of e-commerce goods.
Additionally, last-mile delivery solutions are in focus, including innovative
methods like drones and autonomous vehicles, addressing the need for efficient
final-mile delivery in the e-commerce era.
Sustainability and environmental responsibility have
become increasingly important in the air cargo industry. With environmental
concerns and regulatory pressures on the rise, airlines and cargo companies are
committed to reducing their carbon footprint and adopting greener practices.
This trend involves the adoption of more fuel-efficient aircraft, exploration
of alternative fuels, and development of electric and hybrid propulsion
systems. Companies are also engaging in emissions reduction programs and carbon
offset projects to mitigate their environmental impact. These sustainability
efforts enhance reputation, reduce operating costs through fuel savings, and
comply with evolving environmental regulations.
Cargo diversification and the provision of specialized
services is another emerging trend. Cargo companies are expanding their
portfolios to transport a wider range of goods, including high-value and
time-sensitive products like pharmaceuticals, perishables, and electronics.
This diversification requires specialized handling procedures, equipment, and
temperature-controlled facilities. Offering specialized services, such as cold
chain logistics for pharmaceuticals and fresh produce, has become a competitive
differentiator. Companies that provide these services attract customers who
require precise temperature control and security for their cargo.
Diversification not only opens new revenue streams but also enhances industry
resilience by reducing dependence on specific sectors subject to economic
fluctuations.
Global trade dynamics and trade route adjustments
significantly influence the air cargo industry. Factors like trade tensions,
trade agreements, and shifts in manufacturing locations impact cargo flows and
demand for airfreight services. The flexibility of air cargo positions it as a
key player in adapting to changing trade patterns. Airlines and cargo companies
must monitor and respond to shifts in global trade routes and market demand.
They must be agile in adjusting their services to accommodate changing trade
dynamics. Economic and geopolitical factors, such as trade disputes or
sanctions, can affect cargo volume and market conditions.
In the Global Air Cargo Market, several challenges
coexist alongside these trends. One of the foremost challenges is capacity
constraints and supply chain disruptions. The COVID-19 pandemic exacerbated
capacity issues as the sudden reduction in passenger flights, which often carry
cargo in their belly, disrupted the availability of air cargo capacity. While
demand for airfreight surged for medical supplies and e-commerce goods,
capacity limitations led to soaring airfreight rates and operational disruptions.
Companies faced delays and disruptions in their supply chains, emphasizing the
importance of supply chain resilience and dedicated freighter aircraft.
Regulatory complexity and compliance present another
major challenge. The air cargo industry operates in a highly regulated
environment with numerous rules, standards, and security protocols governing
cargo operations. Achieving regulatory compliance requires significant
administrative efforts and resources, including personnel and systems for
managing documentation, security checks, and airworthiness standards.
Non-compliance can result in severe penalties and operational disruptions,
making it imperative for companies to invest in compliance-related efforts.
Security threats and cargo safety are a pressing
challenge in the air cargo industry. Ensuring the security and safety of cargo
is paramount, given potential threats such as terrorism and the misuse of air
cargo for illicit activities. Cargo companies must implement robust security
measures, including the use of technology, personnel training, and
infrastructure investments. Enhancing security measures impacts operational
costs and may lead to delays in cargo handling and screening. Any security
breaches can result in operational disruptions and reputational damage for
cargo companies.
Economic volatility and pricing pressure pose ongoing
challenges. Economic conditions and market fluctuations can impact demand for
airfreight services, leading to pricing pressure that affects the
competitiveness and profitability of cargo companies. Global economic
downturns, currency fluctuations, and trade disputes can lead to economic
uncertainties and fluctuating demand. To maintain competitiveness, cargo
companies may be forced to lower their prices, impacting profitability or
leading to service reductions.
These trends and challenges collectively shape the
dynamics of the Global Air Cargo Market. The industry's ability to adapt to
changing customer expectations, embrace sustainable practices, and navigate
capacity constraints and regulatory complexities will be crucial in determining
its future success. As technology continues to drive digitization and
data-driven operations, the industry may witness further advancements in areas
like predictive analytics and environmental sustainability, solidifying its role
as a cornerstone of global trade and logistics.
Major companies operating in Global Air Cargo Market
are:
- FedEx
(Federal Express) Corporation
- United Parcel Service Inc.
- The Emirates Group
- Cathay Pacific Airways
Limited
- Cargolux
Airlines International SA
- China
Airlines Ltd
- Japan Airlines Co. Ltd
- Qatar Airways Company QCSC
- Deutsche Lufthansa AG
- All Nippon Airways Co. Ltd
(ANA)
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“The Global Air
Cargo Market is a vital pillar of the international logistics industry, facilitating
the swift and efficient transportation of goods by air across borders. This
dynamic market is characterized by a series of influential trends and complex
challenges. Key trends include the digitization of operations, the exponential
growth of e-commerce, sustainability efforts, cargo diversification, and
adaptation to shifting trade dynamics. Challenges encompass capacity
constraints, regulatory complexities, security threats, economic volatility,
and environmental concerns. Navigating these trends and challenges is essential
for the industry's continued growth and resilience in an ever-evolving global
trade landscape.” said Mr. Karan Chechi, Research Director with TechSci
Research, a research-based management consulting firm.
“Air Cargo Market – Global Industry Size, Share, Trends, Opportunity,
and Forecast, Segmented By Service (Forwarding,
Airlines, Mail, and Others), By Destination (Domestic and International), By
Carrier Type (Belly Cargo and Freighter), By Region, Competition, 2018-2028”, has evaluated the future growth potential of Global Air Cargo Market
and provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Air Cargo Market.
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