According to the new research report published by The Insight Partners on "Air Cargo Market Forecast to 2028 - COVID-19 Impact and Global Analysis," the market is expected to grow at a CAGR of 5.9% from 2022 to 2028 to reach US$ 175.24 billion by 2028.
ANA Cargo Inc., Cargolux, Cathay Pacific Airways Limited, DHL International GmbH, and Emirates SkyCargo are among the major air cargo market players offering air freight services. These air cargo market players transport cargo for industries such as retail, pharmaceuticals and healthcare, food & beverages, consumer electronics, and automotive. Moreover, several air freight operators across Europe are focusing on the expansion of their respective cargo aircraft fleets to cater to the rising air freight volume across different regions. For instance, in October 2022, Cargolux placed an order for 10 Boeing B777-8F freighters and six options to replace its older quadjet aircraft fleet. Further, Cathay Pacific Airways Limited also transports live animals from one location to another. In January 2022, Geodis expanded its Asia Pacific airfreight network through cooperation with Malaysia's Air Asia X, following rising volumes and a continued lack of belly-hold capacity across the region. The initial term of the agreement was expected to last for six months, starting on January 20, 2022, with potential extensions beyond that. In accordance with the contract, AAX will provide frequent, dedicated scheduled cargo flights between Kuala Lumpur (Malaysia) and Hong Kong, Chennai (India), Shanghai (China), and Sydney (Australia). The COVID-19 pandemic has resulted in stringent travel restrictions across the world; therefore, many airlines have converted their passenger aircraft into air cargo shipping aircraft. This had bolstered the demand for air freight during the FY 2020-2021. Therefore, the expansion of the airfreight network across different regions is driving the air freight segment in the air cargo market.
The air cargo market size is derived on the basis of type, services, and end user. Based on type, the market is bifurcated into air mail and air freight. Based on services, the market is bifurcated into express and regular. Based on end user, the market is segmented into retail, pharmaceutical & healthcare, food & beverage, consumer electronics, automotive, and others.
Key Findings of Study:
The global air cargo market size is derived on the basis of five major regions-North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America. APAC led the global air cargo market with a revenue share of ~31.4% in 2021. The dominance of the APAC air cargo market is attributed to the growth of e-commerce in countries such as China and India and the presence of technologically advanced industries in China and Japan. In addition, the increased adoption of Industry 4.0, along with rising advancements in manufacturing and machinery tools, is propelling the air cargo market growth. Furthermore, the willingness to invest in advanced components by the manufacturing industries is supporting the growth of the global air cargo market.
The COVID-19 outbreak has positively affected the overall growth rate of the air cargo operations in 2020, as a majority of airlines have converted their passenger aircraft into cargo aircraft owing to an increasing supply of vaccinations both internationally and domestically. Furthermore, as per IATA, the global air cargo market growth declined in 2019 due to the slowed growth of global trade, i.e., ~0.9%. The underperformance of the air cargo sector occurred due to reduced GDP growth in manufacturing-intensive economies. Further, according to IATA, the air cargo industry is recovering owing to businesses restocking at the start of the economic upturn. Also, in 2021, the passenger fleet had a slow return with limited growth of cargo capacity.
Contact Us
Contact Person: Sameer Joshi
Phone: +1-646-491-9876
Email Id: sales@premiummarketinsights.com