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The air cargo market size is forecast to increase by USD 63.5 billion at a CAGR of 5.91% between 2023 and 2028. The market is experiencing significant growth due to several key trends and factors. The rise of e-commerce sales is driving the demand for faster and more reliable delivery services, leading to increased usage of air cargo. Additionally, the expected increase in demand for temperature-sensitive products, such as pharmaceuticals and perishables, is also contributing to market growth. However, there are challenges that the air cargo industry faces, including the potential for jet fuel price hikes, which could impact profitability. Despite these challenges, the market is expected to continue growing, driven by the need for efficient and timely delivery of goods across the globe.
The market is experiencing significant growth due to the increasing demand for fast and reliable transportation of goods, particularly in the context of global trade. The landscape of air cargo logistics is shaped by various factors, including travel requirements, flight movements, and the travel industry practice. Capacity and service are key considerations for carriers, with a focus on meeting the needs of destinations and various carrier types. Air transport research indicates that worldwide flight services play a crucial role in the air cargo industry. Growing demand for air cargo services is driving innovation in the sector, with diesel-powered aircraft and other alternative fuel solutions gaining traction. As businesses continue to seek faster and more reliable transportation options, the market is poised for continued growth. To gain a deeper understanding of this dynamic industry, consider selecting another geography for further analysis.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The manufacturing segment is estimated to witness significant growth during the forecast period. The market is a vital component of global trade, facilitating the transportation of goods across the world. Travel requirements and flight movements are key factors influencing air cargo logistics, with the travel industry practice prioritizing the efficient use of widebody passenger planes for freighter activity. Capacity in the air cargo landscape is driven by direct international flights and region-to-region capacity, with freighter flights playing a significant role in catering to the growing demand. Cargo analysis reveals that eCommerce growth, particularly in the Transpacific yields, is a major contributor to the sector's expansion.
However, regulatory disputes and the establishment of special economic zones can impact air cargo capacity and service, making it essential for carriers to adapt and innovate in the dynamic air freight market.
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The manufacturing segment accounted for USD 57.10 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Air cargo plays a crucial role in facilitating international trade, particularly in the context of free trade zones and bonded warehouses. These specialized facilities enable the storage, sorting, and distribution of goods without the imposition of customs duties, streamlining the logistics process and reducing costs for businesses. Overall, the market continues to evolve, driven by advancements in technology, increasing demand for faster delivery, and the growing importance of sustainable logistics solutions.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increase in e-commerce sales to boost air cargo market is the key driver of the market. The market is experiencing significant growth, driven primarily by the increase in e-commerce sales and the subsequent increase in the need for timely product delivery. With the rise of online sellers and the growing number of online shoppers, air cargo logistics has become an essential component of the travel industry practice. Prior to the COVID-19 pandemic, e-commerce sales accounted for an average of 19% of retail sales in many regions. However, the pandemic accelerated the shift towards online shopping, with online sales averaging 28.1% of retail sales in 2020 in the UK alone. This trend is expected to continue, leading to increased demand for air cargo capacity. The air cargo landscape is characterized by the movement of goods via freighter flights and widebody passenger aircraft.
Expected rise in demand for temperature-sensitive products is the upcoming trend in the market. The market plays a significant role in the travel requirements of various industries, particularly in the context of global trade and the logistics sector. With an increasing number of flight movements and the growing demand for air freight, the landscape of air cargo logistics is undergoing significant changes. The travel industry practice of using widebody passenger planes for freighter activity has gained popularity, leading to increased capacity and freighter flights on direct international routes. This trend is particularly noticeable in region-to-region capacity between Asia and Europe, as well as the Transpacific yields. Cargo analysis reveals that eCommerce growth is a major driver for air freight, with yields increasing in key trade lanes.
An expected rise in jet fuel prices is key challenge affecting the market growth. The market landscape is significantly influenced by travel requirements and flight movements, with air cargo logistics playing a crucial role in global trade. The travel industry practice prioritizes capacity utilization through freighter activity on direct international flights, particularly in region-to-region capacity. Widebody passenger flights are increasingly being used for air freight, with freighter-only flights also contributing significantly to cargo analysis. E-commerce growth, especially in transpacific yields, has been a major driver for the air freight sector.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Air France KLM Martinair Cargo - The company provides specialized air cargo services catering to various requirements, including expedited and small shipments.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The air cargo industry players are experiencing shifts in express and ocean freight demand, impacting international air cargo capacity across various trade lanes. The Baltic Exchange Airfreight Index provides critical insights into market trends, helping stakeholders like Air Cargo News stay informed. Key destination hubs such as Zürich Airport and Bournemouth Airport are vital for efficient logistics. Major carrier types include FedEx (Federal Express) and DHL Global Forwarding, who lead in the air freight market analysis. Integrating Application Programming Interfaces (APIs) enhances operational efficiency for companies like WebCargo and CargoAi. The air freight market leaders, including DB Schenker and Menzies, adapt to trends while ensuring compliance with standards like IATA CEIV pharma. Additionally, private equity investments continue to shape the industry's future, with companies like Air Charter Service and Virgin Atlantic Cargo poised for growth. The Centralized Examination Station and global gateways like Schiphol and Nairobi play essential roles in this dynamic landscape.
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Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.91% |
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Market growth 2024-2028 |
USD 63.5 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.77 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 30% |
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Key countries |
US, China, Germany, Japan, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Air France KLM Martinair Cargo, American Airlines Inc., Bollore Logistics, CAL Cargo Air Lines Ltd, Cargolux Airlines International SA, Cathay Pacific Airways Ltd, China Airlines Ltd., China Eastern Airlines Corp. Ltd., Delta Air Lines Inc., Deutsche Post AG, Emirates SkyCargo, Etihad Airways PJSC, Expeditors International of Washington Inc., FedEx Corp., IAG Cargo, Korean Air Lines Co. Ltd., Lufthansa Cargo, Nippon Express Holdings, Qatar Airways Cargo, Saudi Airlines Cargo Co., and Singapore Airlines Cargo |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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