Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The market for air cargo is influenced by a number of market phenomena that determine its dynamics and performance. One important factor is the global economic situation. The need for air cargo services depends on the general health of the global economy. Consequently, when economies grow, businesses expand their operations, which in turn result in more trade and need to transport goods faster thereby raising the demand for air cargo. Conversely, an economic slowdown can reduce trade activities thus affecting the demand for air freight.
Fuel costs are one major factor shaping the landscape of air cargo markets. Fuel prices have a direct impact on operational costs of cargo carriers as aviation is inherently fuel-intensive. This increases pressure on profit margins for air cargo operators during spikes in fuel prices and could result in pricing strategy adjustment or improved operating efficiency to offset increased cost implications. Conversely, reduced fuel prices can help boost profit margins and may lead to growth within the sector.
Moreover, technological advances significantly affect the air cargo market as well. Developments in aircraft design, navigation systems and cargo handling technology increase efficiency and capacity in air transport services. Modern aircraft that use less fuel will enable cargos to be transported at lower costs thereby increasing competition among carriers. Additionally, advancements in tracking and monitoring technologies improve visibility into supply chains enhancing security concerns about timeliness related to carrying out airline transportation.
Capacity constraints and demand dynamics form part of intrinsic market factors within the airfreight industry. Changes in patterns of global trade or consumer preferences directly affect volumes of goods moved by planes internationally. During peak seasons or unexpected surges in demands there might be strains on capacity on services offered by airlines leading to increased prices along with possible disruptions within supply chain processes while low demands also tend to create excess capacities which then call for competitive pricing strategies from most Air Cargo Carriers.
Environmental issues have become increasingly relevant within the field of Air Cargo Market today. In order to achieve sustainability focus by the global community, there is a growing demand for the airline industry to reduce its carbon emission. Some airlines that have chosen to use environmentally friendly practices that enhance fuel-efficient aircraft have succeeded in gaining advantages over others. Moreover, environmental concerns also influence consumer preferences and may drive up demands for eco-friendly means of transport.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2023 | USD 140.946 Billion |
| Growth Rate | (2020-2030 |
Air Cargo Market Highlights:
Global Air Cargo Market Overview
The air cargo market size was valued at USD 140.94 billion in 2023. The air cargo industry is projected to grow from USD 146.69 billion in 2024 to USD 216.29 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.97% during the forecast period (2024 - 2032).The air cargo business has been witnessing notable transformation with respect to technology, evolving from the use of traditional mainframe systems to highly adaptable and advanced interfaces deployed for processes including networking planning, revenue accounting, flight operations, and more. Besides, the escalating use of robotics, cool-chain tech, artificial intelligence (AI), automated systems, deep learning, Big Data, augmented & virtual reality and IoT across numerous operations enhance the air cargo industry size worldwide.
Quicker transportation of shipments in comparison with other logistics solutions combined with the surging prevalence of the consolidated airfreight service will be huge opportunities for the air cargo market. With that said, the significant costs related to air cargo solutions could be a major hindrance for the worldwide market in the years to come. However, the surging transportation of high-value items, including jewellery, electronics, perishables, and pharmaceuticals, should enhance the industry growth rate in the following years. On top of that, with airlines developing facilities to handle chilled and frozen products with freighter and chilled storage capacity and the emergence of temperature-controlled packaging methods, the worldwide market is bound to perform extremely well in the future.
January 2024: Global air cargo volumes defied expectations with a 10% year-on-year increase. This was attributed to concerns over Red Sea disruptions and the earlier Lunar New Year holiday, which offset the usual post-Christmas drop in e-commerce traffic.
February 2024: The strong start to the year continued with double-digit volume growth out of Asia, particularly in the traditionally slow first quarter. E-commerce remained a key driver, with some airlines reporting it contributing to over half their revenue from East Asia.
Covid-19 Analysis of the Air Cargo Market
The pandemic has suspended global imports and imports as a part of the restrictions to curb the positivity rate of the pandemic, which had an impact on the air cargo market operations, as well. Due to the pandemic, businesses had a hard time adjusting to the new entrants. The government is increasing its investment to help global air cargo operations to bounce back and, thus, help the market recover the losses and add to the huge profit margins by the end of the forecast period in 2025.
Market Dynamics
Drivers
Based on Pelican Bio Thermal’s 2019 Biopharma Cold Chain Logistics Survey, 30 out of the top 50 global biopharmaceutical productions will witness the growing requirement for cold-chain handling by the end of 2022. Air cargo service providers are making important strides in this technology to fulfil the demand of the growing market operations. These factors are backed by the growth of the e-commerce sector that will present the market with growth prospects related to the future. The increased imports and exports will also enhance the Air Cargo Market operations during the ongoing forecast period.
Restraints
Air cargo flights make use of crude oil. The rise in the price of crude oil prices is likely to hamper global market operations during the forecast period that ends in 2025. Also, there is a high cost that is associated with the delivery of products through air cargo which might further create challenges for the global growth of the market as per the predictions laid down by the market experts for the forecast period. Crude oil is expensive, so there is a requirement for high investment and infrastructure to make judicious use of the same. All these factors are likely to present issues for the market’s expected value as predicted by market experts and industry leaders.
Technology Analysis
68% of the whole chunk of biotech products are recognized as temperature-sensitive. Further, the announcement made by Maren regarding the clinical home healthcare services inclusive of clinical drug storage, biologic sample collection, direct-to-patient delivery, and others like central pharmacy, home care, and nursing services has positive attributes in store for the global market during the forecast period that ends in 2025. The pharmaceutical companies are growing, and so is their dependence on air cargo as a part of transportation. The rising demand is anticipating an increase in the production of new products. These products are making an entry into the market on an everyday basis. Also, the airlines are known to be making use of advanced cool chain solutions that will be well-placed to take the utmost advantage as the sector will be growing in the ongoing forecast period that ends in 2025.
Market Segmentation
The global air cargo market is divided across the globe based on the type, services, destination, end-users, and region.
Based on the Type
Based on the by-type segmentation, the Air Cargo Market is further divided into airmail and air freight. The largest market share is held by the air freight type, and hence it dominated the market in 2018.
Based on the Service
The market has been divided all across the globe based on the service into normal service and express service. The largest market share in the global market was held by the express service in 2018. It is expected to dominate the market in the current period, as well.
Based on the Destination
The Air Cargo Market segmentation based on the destination is further bifurcated into the international market and domestic market. The largest market share in the global market was held by the domestic market in 2018.
Based on the End-Users
The end-user segmentation for the global Air Cargo Market is sub-segmented into the automotive sector, consumer electronics, pharmaceutical and healthcare, food and beverages, retail, and others. The pharmaceutical and healthcare sector holds the largest market share and hence dominated the market in 2018.
Based on the Region
The market has been divided into the global market based on the region into the North American region, Asia-Pacific region, European region, Latin American region, and the Middle East and African region.
Regional Analysis
-
When it comes to regional segmentation of the air cargo market, the report studies prominent regions, viz. the North American region, Asia-Pacific region, European region, Latin American region, and the Middle East and African region. Being the fastest-growing region, the largest market share in the global market is held by the Asia-Pacific region, owing to the increasing growth of the e-commerce industry in countries like India, Australia, and China.
-
The second-largest market share in the global market is held by the North American region owing to the presence of various market key players driving the market demand to this region. Moreover, an increase in per capita disposable income is another factor that drives market demand.
-
The third-largest market share in the global market operations is to be held by the European region. The main reason behind this is the presence of well-established technologically advanced infrastructure that drives the market demand in this region.
-
The Latin American region and the Middle East and African region hold the least market share. There is a presence of low infrastructure in both of these regions. Low per capita disposable income is another contributing factor that restricts the Air Cargo growth in these regions.
Competitive Landscape
The most prominent major key players in the air cargo market globally are mentioned below:
-
Qatar Airways (Qatar)
-
Etihad Airways (UAE)
-
International Consolidated Airlines Group, SA (UK)
-
All Nippon Airways Co., Ltd (Japan)
-
Deutsche Lufthansa AG (Germany)
-
Japan Airlines (Japan)
-
The Emirates Group (UAE)
-
Singapore Airlines (Singapore)
-
Cargolux (Luxembourg)
-
Korean Air (South Korea)
-
China Eastern Airlines Corporation Limited (China)
-
Cathay Pacific Airways Limited (Hong Kong)
-
DHL International GmbH (Germany)
-
United Parcel Service of America, Inc. (US)
-
FedEx (US)
These major key players use various strategies to sustain their market position in the air cargo market in the global market by going for mergers, and acquisitions, collaborating, setting up a new joint venture, establishing a partnership, developing a new product line, innovation in the existing product, developing a new production process, and many others to expand their customer base in the untapped market of the Air cargo all across the globe.
Recent Developments
February 2022
AP Moller-Maersk AS will be paying around USD 1.6 billion for the acquisition of Pilot Freight, a first, middle & last mile solutions developer with a focus on the bulky and big air freight segment. Maersk is one of the biggest container shipping firms in the world, shipping almost 12 million containers every year, with extensive services, including air freight, inland shipping, ocean transport, and intercontinental rail.
February 2022
Flexport places an advanced purchase order for Natilus’s two large-scale cargo UAV designs, which is the 100t pitting cargo drone technology that could give competition to traditional aircraft. The company is working on developing the first-ever purpose-designed autonomous aircraft to be used for air freight transport.
Report Overview
This global air cargo market research report consists of the following elements mentioned below:
-
Market Overview
-
COVID 19 Analysis
-
Market Dynamics
-
Technical Analysis
-
Market Segmentation
-
Regional Analysis
-
Competitive Landscape
-
Recent Developments
This market research report contains factors that drive the growth of the air cargo Industry in the Worldwlide, along with the factors that restrict its growth in the global market. The technical analysis during the forecasted period is mentioned. The impact of COVID-19 on the air cargo market all across the globe is mentioned. The future growth rate in the air cargo market during the forecasted period is estimated and mentioned.
Intended Audience
-
Regulatory Bodies, Research Institutes
-
Air Cargo Companies
-
Government Authorities,
-
Information Technology Companies
-
Aircraft Manufacturers
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
