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The Global-Air Cargo Market size is estimated to grow at a CAGR of 5.32% between 2022 and 2027. The size of the market is forecast to increase by 19.52 million tons. The growth of the market depends on several factors, including the increase in e-commerce sales to boost the air cargo market, the growing demand from APAC, and the rising demand from just-in-time manufacturers.
This air cargo market analysis report extensively covers market segmentation by end-user (manufacturing, FMCG and retail, pharmaceuticals and chemicals, and other industries), type (belly cargo, freighter), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
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The increase in e-commerce sales to boost the market is notably driving the market growth, although factors such as the expected rise in jet fuel prices may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Air cargo business opportunities such as the increase in e-commerce sales to boost the air cargo market are the key factor driving the global air cargo market growth. One of the major factors driving the growth of the global air cargo 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 air cargo services to deliver their products to customers on time, due to which the rise in e-commerce is driving the air cargo 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 cargo, 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 for air cargo services.
The expected rise in demand for temperature-sensitive products will fuel the global air cargo equipment market growth. 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 air cargo industry must overcome certain challenges, such as inadequate expertise, insufficient infrastructure, ill-equipped facilities, and increasing regulations. It was observed that the air cargo 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 global air cargo market for temperature-sensitive products in the future.
The expected rise in jet fuel prices is a major challenge to the global air cargo market growth. Companies operating in the global air cargo market are sensitive to rising fuel prices, which is one of the important and major operating costs for vendors in the global air cargo 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 in the near future. 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, air cargo companies need to adjust their budgets accordingly. If more funding is channelled 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 global air cargo market.
Our analysis of the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The 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 Air Cargo Market Customer Landscape
Vendors 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. Also, under this segment, the company offers services such as transporting customer cargo.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, 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 cargo 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 and continued to grow by 2021. Several automotive components manufacturing companies prefer air cargo transport services as they provide fast and damage-free delivery. Therefore, the increase in the import and export of vehicles and associated spare parts are anticipated to drive the global air cargo market during the forecast period. Furthermore, our 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.
The growth of this segment is primarily attributed to the increasing adoption of Air Cargo services, which is driven by an increase in the global demand for the Air Cargo Industry.
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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 cargo 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 labour in APAC countries, such as China, India, Vietnam, and Thailand.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 led to a decline in demand for air cargo services in APAC. The COVID-19-related lockdowns negatively affected the movement of air cargo across many airports in India. For instance, in March 2020, passenger air services were halted in Kochi, which negatively impacted cargo movement as a significant share of air cargo was carried by commercial airlines. Also, in March 2020, the Government of India announced a ban on all international passenger flights. Hence, such factors negatively affected the air cargo market in APAC in 2020 and 2021. However, from 2021, owing to the large-scale vaccination drives, operations of various industries such as manufacturing and retail gradually resumed with a limited capacity while maintaining social distancing norms, which is expected to stabilize the growth rate of the regional air cargo market during the forecast period.
Our air cargo market analysis 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 has been segmented by end-user, type, and region.
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Air Cargo Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historical year |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.32% |
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Market growth 2023-2027 |
19.52 million tons |
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Market structure |
Fragmented |
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YoY growth (%) |
4.24 |
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Regional analysis |
APAC, North America, Europe, the Middle East and Africa, and South America |
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Performing market contribution |
APAC at 30% |
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Key consumer countries |
US, Canada, China, Japan, India, and Germany |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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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 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 |
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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. |
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Customization purview |
If our 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 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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