Air Cargo Market Size is expected to reach USD 130.18 Billion by 2030, registering a CAGR of 4.9 % during 2020-2030.
Air Cargo Market Overview
Air Cargo Market Size Anticipated to Reach at USD 130.19 Billion by 2030, Attaining a CAGR Of 4.9 %by 2020 and 2030
The air cargo business has been witnessing notable transformation with respect to technology, evolving from the use of traditional mainframe systems to highly adaptable and advanced interfaces deployed for processes including networking planning, revenue accounting, flight operations, and more. Besides, the escalating use of robotics, cool-chain tech, artificial intelligence (AI), automated systems, deep learning, Big Data, augmented & virtual reality and IoT across numerous operations enhance the air cargo industry size worldwide.
Quicker transportation of shipments in comparison with other logistics solutions combined with the surging prevalence of the consolidated airfreight service will be huge opportunities for the air cargo market. With that said, the significant costs related to air cargo solutions could be a major hindrance for the worldwide market in the years to come. However, the surging transportation of high-value items, including jewellery, electronics, perishables, and pharmaceuticals, should enhance the industry growth rate in the following years. On top of that, with airlines developing facilities to handle chilled and frozen products with freighter and chilled storage capacity and the emergence of temperature-controlled packing methods, the worldwide market is bound to perform extremely well in the future.
Covid-19 Analysis of the Air Cargo Market
The pandemic has suspended global imports and imports as a part of the restrictions to curb the positivity rate of the pandemic, which had an impact on the air cargo market operations, as well. Due to the pandemic, businesses had a hard time adjusting to the new entrants. The government is increasing its investment to help global air cargo operations to bounce back and, thus, help the market recover the losses and add to the huge profit margins by the end of the forecast period in 2025.
Based on Pelican Bio Thermal’s 2019 Biopharma Cold Chain Logistics Survey, 30 out of the top 50 global biopharmaceutical productions will witness the growing requirement for cold-chain handling by the end of 2022. Air cargo service providers are making important strides in this technology to fulfil the demand of the growing market operations. These factors are backed by the growth of the e-commerce sector that will present the market with growth prospects related to the future. The increased imports and exports will also enhance the Air Cargo Market operations during the ongoing forecast period.
Air cargo flights make use of crude oil. The rise in the price of crude oil prices is likely to hamper global market operations during the forecast period that ends in 2025. Also, there is a high cost that is associated with the delivery of products through air cargo which might further create challenges for the global growth of the market as per the predictions laid down by the market experts for the forecast period. Crude oil is expensive, so there is a requirement for high investment and infrastructure to make judicious use of the same. All these factors are likely to present issues for the market’s expected value as predicted by market experts and industry leaders.
68% of the whole chunk of biotech products are recognized as temperature-sensitive. Further, the announcement made by Maren regarding the clinical home healthcare services inclusive of clinical drug storage, biologic sample collection, direct-to-patient delivery, and others like central pharmacy, home care, and nursing services has positive attributes in store for the global market during the forecast period that ends in 2025. The pharmaceutical companies are growing, and so is their dependence on air cargo as a part of transportation. The rising demand is anticipating an increase in the production of new products. These products are making an entry into the market on an everyday basis. Also, the airlines are known to be making use of advanced cool chain solutions that will be well-placed to take the utmost advantage as the sector will be growing in the ongoing forecast period that ends in 2025.
The global air cargo market is divided across the globe based on the type, services, destination, end-users, and region.
Based on the Type
Based on the by-type segmentation, the Air Cargo Market is further divided into airmail and air freight. The largest market share is held by the air freight type, and hence it dominated the market in 2018.
Based on the Service
The market has been divided all across the globe based on the service into normal service and express service. The largest market share in the global market was held by the express service in 2018. It is expected to dominate the market in the current period, as well.
Based on the Destination
The Air Cargo Market segmentation based on the destination is further bifurcated into the international market and domestic market. The largest market share in the global market was held by the domestic market in 2018.
Based on the End-Users
The end-user segmentation for the global Air Cargo Market is sub-segmented into the automotive sector, consumer electronics, pharmaceutical and healthcare, food and beverages, retail, and others. The pharmaceutical and healthcare sector holds the largest market share and hence dominated the market in 2018.
Based on the Region
The market has been divided into the global market based on the region into the North American region, Asia-Pacific region, European region, Latin American region, and the Middle East and African region.
When it comes to regional segmentation of the air cargo market, the report studies prominent regions, viz. the North American region, Asia-Pacific region, European region, Latin American region, and the Middle East and African region. Being the fastest-growing region, the largest market share in the global market is held by the Asia-Pacific region, owing to the increasing growth of the e-commerce industry in countries like India, Australia, and China.
The second-largest market share in the global market is held by the North American region owing to the presence of various market key players driving the market demand to this region. Moreover, an increase in per capita disposable income is another factor that drives market demand.
The third-largest market share in the global market operations is to be held by the European region. The main reason behind this is the presence of well-established technologically advanced infrastructure that drives the market demand in this region.
The Latin American region and the Middle East and African region hold the least market share. There is a presence of low infrastructure in both of these regions. Low per capita disposable income is another contributing factor that restricts the Air Cargo growth in these regions.
The most prominent major key players in the air cargo market globally are mentioned below:
Qatar Airways (Qatar)
Etihad Airways (UAE)
International Consolidated Airlines Group, SA (UK)
All Nippon Airways Co., Ltd (Japan)
Deutsche Lufthansa AG (Germany)
Japan Airlines (Japan)
The Emirates Group (UAE)
Singapore Airlines (Singapore)
Korean Air (South Korea)
China Eastern Airlines Corporation Limited (China)
Cathay Pacific Airways Limited (Hong Kong)
DHL International GmbH (Germany)
United Parcel Service of America, Inc. (US)
These major key players use various strategies to sustain their market position in the air cargo market in the global market by going for mergers, and acquisitions, collaborating, setting up a new joint venture, establishing a partnership, developing a new product line, innovation in the existing product, developing a new production process, and many others to expand their customer base in the untapped market of the Air cargo all across the globe.
AP Moller-Maersk AS will be paying around USD 1.6 billion for the acquisition of Pilot Freight, a first, middle & last mile solutions developer with a focus on the bulky and big air freight segment. Maersk is one of the biggest container shipping firms in the world, shipping almost 12 million containers every year, with extensive services, including air freight, inland shipping, ocean transport, and intercontinental rail.
Flexport places an advanced purchase order for Natilus’s two large-scale cargo UAV designs, which is the 100t pitting cargo drone technology that could give competition to traditional aircraft. The company is working on developing the first-ever purpose-designed autonomous aircraft to be used for air freight transport.
This global air cargo market research report consists of the following elements mentioned below:
COVID 19 Analysis
This market research report contains factors that drive the growth of the air cargo Industry in the Worldwlide, along with the factors that restrict its growth in the global market. The technical analysis during the forecasted period is mentioned. The impact of COVID-19 on the air cargo market all across the globe is mentioned. The future growth rate in the air cargo market during the forecasted period is estimated and mentioned.
Regulatory Bodies, Research Institutes
Air Cargo Companies
Information Technology Companies
|Market Size||2030: USD 130.19 Billion|
|(CAGR)||4.9 % CAGR (2020-2030)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Growth Factors, Competitive Landscape, and Trends|
|Segments Covered||By Type, Service, Destination, End User and Region|
|Geographies Covered||Europe, North America, Asia-Pacific, and the Rest of the World (RoW)|
|Key Vendors||Qatar Airways (Qatar),Etihad Airways (UAE),International Consolidated Airlines Group, SA (UK),,All Nippon Airways Co., Ltd (Japan),,Deutsche Lufthansa AG (Germany),,Japan Airlines (Japan),,The Emirates Group (UAE),Singapore Airlines (Singapore),Cargolux (Luxembourg),,Korean|
|Key Market Opportunities||The rising demand is anticipating an increase in the production of new products|
|Key Market Drivers||Growth of the e-commerce sector that will present the market|
Global air cargo market is estimated to expand at a CAGR of 4.9% by 2030.
Qatar Airways (Qatar),Etihad Airways (UAE),International Consolidated Airlines Group, SA (UK),All Nippon Airways Co., Ltd (Japan),Deutsche Lufthansa AG (Germany),Japan Airlines (Japan),The Emirates Group (UAE),Singapore Airlines (Singapore),Cargolux (Luxembourg),Korean Air (South Korea),China Eastern Airlines Corporation Limited (China),Cathay Pacific Airways Limited (Hong Kong),DHL International GmbH (Germany),United Parcel Service of America, Inc. (US),FedEx (US)
Global air cargo market is segmented into type, service, destination, end-user, and region.
Global air cargo market is estimated to be hampered by the associated expenses and the increasing crude oil prices.