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The Air Cargo Market size is estimated to grow by 19.52 million tons at a CAGR of 5.32% between 2022 and 2027. The market is experiencing robust growth, propelled largely by the exponential rise of e-commerce worldwide. The surge in online shopping has led to a substantial increase in demand for efficient and timely delivery services, driving the need for air cargo transportation. As consumers increasingly seek quick and reliable shipping options, air cargo emerges as a preferred choice due to its speed and global reach. This trend has spurred investments in air cargo infrastructure and technologies to meet the escalating demand for fast and seamless delivery solutions. This market research and growth report includes key information on drivers, trends, and challenges during the forecasted period.
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The market witnesses a diverse array of sectors relying on its services, including consumer electronics, food and beverages, and healthcare solutions provided by companies like Pelican Bio Thermal. Traditional mainframe systems have evolved with advanced interfaces, enhancing networking planning and revenue accounting in the industry. Flight operations and cost management remain pivotal as air cargo continues to play a crucial role in the efficient transportation of goods across the globe, ensuring the integrity of cool chain solutions vital for perishable items.
The market integrates advanced technologies like robotics, artificial intelligence (AI), and deep learning into its operations, optimizing efficiency and reliability. With cool-chain tech and automated systems, it ensures the safe transport of perishables, pharmaceuticals, and chilled/frozen products. Airlines and freighters play a pivotal role, bolstered by chilled storage capacity and solutions from industry leaders like Pelican Bio Thermal. From consumer electronics to food and beverages, it caters to diverse sectors including retail and healthcare. Moreover, innovations in networking planning, revenue accounting, and flight operations streamline processes while reducing costs, meeting the demand for secure and efficient air cargo services.
Air cargo business opportunities such as the increase in e-commerce sales to boost the market are the key factor driving the market. One of the major factors driving the growth of the market is the rise in e-commerce sales due to the increasing number of online sellers and the rising number of online shoppers. Online sellers require services to deliver their products to customers on time, due to which the rise in e-commerce is driving the market. For example, though e-commerce had been on the rise even prior to the COVID-19 pandemic, the outbreak led consumers to rely more on online shopping and doorstep deliveries.
According to the UK's Logistics Report 2021, online sales averaged 28.1% of retail sales in 2020, which is a significant increase when compared with 19.2% in 2019. In order to compel the government to take action regarding the future of air freight, Logistics UK collaborated with Aberdeen Standard Investment's Airport Industrial Property Unit Trust (AIPUT). Hence, the expected rise in e-commerce sales during the forecast period is expected to spur the demand.
The expected rise in demand for temperature-sensitive products will fuel the global market growth and trends. Transporting and handling temperature-sensitive products gives rise to both challenges and opportunities for all cold chain industry stakeholders. Businesses, such as pharmaceutical companies, are dependent on air transport for the speedy delivery of high-value, time-sensitive, and temperature-controlled products. However, the industry must overcome certain challenges, such as inadequate expertise, insufficient infrastructure, ill-equipped facilities, and increasing regulations. It was observed that the market share in global pharmaceutical product transport is declining considerably.
The industry has recognized the need to build a network of certified pharmaceutical trade lanes that meet consistent standards and guarantee product integrity. As a result, the IATA took a step to support the air transport industry to comply with the requirements of pharmaceutical manufacturers. The CEIV Pharma certification addresses the industry's need for more compliance, security, safety, and efficiency by forming a globally recognized pharmaceutical product handling certification. This new system of certification through CEIV Pharma, which allows more pharmaceutical companies to transport their shipments via air, will drive the market for temperature-sensitive products in the future.
The expected rise in jet fuel prices is a major challenge to market growth. Companies operating in the market are sensitive to rising fuel prices, which is one of the important and major operating costs for vendors in the market. The decline in the prices of crude oil was attributed to the surplus because of increased production by countries such as Russia and Canada and the removal of sanctions on Iran. Moreover, the US increased its production of oil due to the use of fracking technology. However, this surplus is expected to slow down shortly. In addition, it is estimated that the cost of crude oil will increase during the forecast period.
The prices of jet fuel are expected to rise, as it is derived from crude oil. Hence, companies need to adjust their budgets accordingly. If more funding is channeled toward fuel, less will be available for overall growth. Hence, balancing the rise in the cost of jet fuel would be a challenge for companies operating in the market.
Our market growth analysis report includes the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The market trends and analysis report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, Canada, China, Japan, India, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Customer Landscape
In the end-user segment of the market, the air cargo business relies heavily on technological advancements to streamline operations and meet the demands of various industries. Robotics, automated systems, and artificial intelligence (AI) play pivotal roles in enhancing efficiency and accuracy in cargo handling processes. Deep learning algorithms and big data analytics enable better decision-making and optimization of routes and schedules. Augmented reality facilitates training and maintenance tasks, ensuring smooth operations across the supply chain. Electronics, perishables, and pharmaceuticals represent key commodities transported via air cargo, highlighting the importance of cool-chain technologies and chilled storage capacity in preserving product integrity. With the continuous evolution of technology, the air cargo industry remains committed to delivering goods swiftly and securely to destinations worldwide.
The market share growth by the manufacturing segment will be significant during the forecast period. The manufacturing industry has the highest market value because of the automotive industry, which is a part of the manufacturing industry. Air freight companies are flying out cars for various companies.
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The manufacturing segment showed a gradual increase in the market share with 19.58 million tons in 2017. Several automotive components manufacturing companies prefer air transport services as they provide fast and damage-free delivery. Therefore, the increase in the import and export of vehicles and associated spare parts is anticipated to drive the market during the forecast period. Furthermore, our market research and growth report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.
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APAC is projected to contribute 30% of market growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Air transport services from APAC to countries from North America are expected to grow as various raw materials are shipped from APAC, where raw materials are available at a lower cost than in other regions of the world. This is because of the lower cost of manufacturing and labor in APAC countries, such as China, India, Vietnam, and Thailand.
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 offers air cargo services such as small and urgent shipments and others.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including :
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market is experiencing a technological transformation, driven by innovations in robotics, artificial intelligence (AI), and automated systems. These advancements enhance efficiency and accuracy in logistics operations, particularly with the integration of cool-chain tech to preserve perishable goods during transit. Big Data analytics enable real-time monitoring and optimization of cargo routes, while augmented reality interfaces revolutionize freight handling processes. Companies like Pelican Bio Thermal cater to the growing demand for chilled and frozen products, offering specialized solutions for maintaining temperature-sensitive items. The market also witnesses developments in electronic systems and deep learning algorithms, enhancing traditional mainframe systems in network planning and revenue accounting for freighters. As the demand for air cargo grows across sectors like consumer electronics and food and beverages, the industry continues to invest in cool chain solutions and advanced technologies to meet evolving market demands. In the realm of home care and nursing services, meticulous networking planning is essential.
The market is propelled by advancements in technology, with virtual reality and IoT revolutionizing logistics solutions. Services like consolidated airfreight service cater to diverse cargo needs, including high-value items like jewelry and perishables such as biotech products. Companies like Maren specialize in chilled storage capacity, ensuring the safe transportation of temperature-sensitive goods. Different service levels, including normal service and express service, accommodate varying delivery requirements. Advanced interfaces and meticulous network planning optimize flight operations, while cold-chain handling maintains product integrity throughout transit. Challenges like restraints in labor markets are mitigated through technology analysis, ensuring efficient operations in both international and domestic markets. Factors like oil prices and refinery capacity impact market dynamics, shaping the future of the air cargo industry.
Our market growth and forecasting report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Air Cargo Market Scope |
|
Market Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.32% |
Market growth 2023-2027 |
19.52 million tons |
Market structure |
Fragmented |
YoY growth (%) |
4.24 |
Regional analysis |
APAC, North America, Europe, the Middle East and Africa, and South America |
Performing market contribution |
APAC at 30% |
Key consumer countries |
US, Canada, China, Japan, India, and Germany |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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 Southern Airlines Co. 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 |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market analysis and report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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