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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. Air cargo market growth is fueled by the burgeoning e-commerce sector and the resulting surge in demand for swift and dependable delivery services. This trend, marked by the preference for air cargo due to its speed and extensive reach, has triggered significant investments in infrastructure and technology to cater to the escalating need for efficient air freight solutions. Key drivers include the exponential rise of online shopping and the increasing consumer expectation for quick delivery. Challenges, however, include rising fuel costs and increasing competition from sea freight. This comprehensive market research and growth report delves deeper into these factors, providing valuable insights into the air cargo industry's future trajectory. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
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The relays market is crucial for the air cargo industry players, enhancing operational efficiency and safety. Key players like Worldwide Flight Services, dnata, and Virgin Atlantic Cargo rely on advanced relays for smooth operations. At hubs like Zürich Airport and Schiphol, relays are integral to Centralized Examination Station and other logistics processes. Saudia Technic and Air Charter Service also benefit from these technologies, ensuring reliable Diesel engine operations and real-time tracking with systems from BlueBox Systems. The use of relays in these applications streamlines processes, contributing to the efficiency and reliability of the global air cargo network.
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.
Moreover, 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.
Moreover, 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.
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 57.1 billion in 2018. 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 2018 to 2028.
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APAC is estimated to contribute 30% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout 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:
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
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data 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.
Cargo Shipping Market: Cargo Shipping Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, India, Germany, UK - Size and Forecast
Americas Oversized Cargo Transportation Market: Americas Oversized Cargo Transportation Market by End-user and Type - Forecast and Analysis
The relays market plays a pivotal role in enhancing the efficiency of the air cargo logistics sector, impacting global trade and travel requirements. Key air cargo industry players like FedEx Express, Delta Cargo, and DHL Global Forwarding rely on advanced relays to manage flight movements and freighter activity. The growing demand for e-commerce has intensified the need for robust air freight market analysis, with platforms like CargoAi and WebCargo utilizing Application Programming Interfaces (APIs) for real-time cargo analysis.
Moreover, the relays support the infrastructure at major hubs such as Bournemouth Airport, Nairobi, and Glasgow Prestwick Airport, enhancing region-to-region capacity and optimizing widebody passenger and freighter flights. Companies like YunExpress and Central Airlines leverage relay technologies to improve operations in special economic zones and bonded warehouses, meeting rising express and ocean freight demand. The IATA CEIV pharma certification and insights from FedEx Sustainability Insights underscore the importance of advanced relay systems in maintaining efficiency and compliance. As the air freight industry overview evolves, growing demand and air freight market trends highlight the necessity for reliable relay solutions, benefiting carriers and geographic markets globally.
In addition, the relays market is essential for optimizing the air cargo capacity and international air cargo capacity required by the travel industry practice. Key air freight market leaders like FedEx (Federal Express), DB Schenker, and Rhenus depend on advanced relays to manage Direct international flights and enhance yields on major trade lanes. Insights from the Baltic exchange airfreight index and Air Cargo News support strategic decisions in air freight market analysis. As e-commerce growth accelerates, companies like DeliverDirect navigate regulatory disputes and leverage free trade zones. Leading players such as Cargo First, European Cargo, and Menzies are at the forefront, supported by investments from private equity firms like DP World, driving innovation and efficiency in the industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.91% |
Market growth 2024-2028 |
USD 63.5 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.77 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 30% |
Key countries |
US, China, Germany, Japan, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
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, Market condition analysis for forecast period |
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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