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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 growth of e-commerce has significantly contributed to the expansion of the market, with increased demand for quick and reliable delivery services.
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The industry plays a crucial role in global trade, connecting businesses and consumers across the world. Air cargo is known for its speed and efficiency in delivering time-sensitive and high-value goods. Major airlines and dedicated carriers operate extensive networks to transport freight globally.
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
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
Afklcargo - 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 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.
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.
The market operates on a robust capacity foundation, with forwarders and travelers benefiting from a unified platform for booking. Amidst the availability of air seats, destinations like Ukraine witness a surge in demand, bolstered by the convenience of hotels and rental cars through platforms like Kayak and Priceline. As an explosive surge in online shopping reshapes the market's future trajectory, volume in international e-commerce becomes the global norm. Convenience and transparency drive digital transactions, prompting dedicated air cargo services to meet Projections. With mobile device ownership on the rise, marketplace expansions and strategic partnerships with Rivo and Trexity elevate cargo prospects.
Further, despite challenges like operational efficiency and shipment visibility, the market remains adaptable, leveraging cutting-edge technologies and robust infrastructures. Air Canada Cargo leads with its e-commerce-focused delivery division, while Partner airlines like Central Airlines and YunExpress expand services. Freighter flights play a pivotal role in international e-commerce, aligning with global commerce and consumer preferences. With advancements in Cross-border trade and freighter aircraft, the market anticipates sustained growth amidst evolving global economy dynamics and changing consumer behaviors.
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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