Air Cargo Market is Projected to Grow by 2025

posted on 13th March 2020 by Eddie Saunders
Air Cargo Market is Projected to Grow by 2025

The recent strong upturn in the air cargo market is driven by three key elements: synchronized global economic expansion, increased industrial output, and world trade growth.

The air cargo market is segmented into service, component, and end-user. Based on service, the market is further classified into express and regular. Based on the component, the market is split into air freight and airmail. And by the end-user, the market is classified as Consumer Electronics, Food and Beverages, Pharmaceuticals and Healthcare, Retail, Third Party Logistics, Chemicals and Manufacturing. 

The global air cargo market is highly competitive and is marked by the presence of a large number of international and regional players. The market has witnessed increased competition between vendors based on the pricing model, differentiation of technology, brand name, service quality, product differentiation, and technical expertise.

Global Air Cargo Market to grow from USD 92,812.56 Million in 2018 to USD 183,804.57 Million by 2025, at a Compound Annual Growth Rate (CAGR) of 10.25%.

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  • The rising e-commerce has put sales channels under pressure for faster delivery and an efficient supply chain. This scenario provides opportunities for the distribution and warehousing facilities of third parties to integrate with the air e-commerce system. Owing to the continued growth in online shopping, many third-party logistics (3PLs) are offering more multimodal services, which include air cargo service as a critical mode of transportation. In addition, growth in overall cross-border e-commerce is expected to fuel demand for the air cargo market.
  • In general, products transported by air, such as time-sensitive perishables and high-value materials, including computers, consumer electronics, and pharmaceuticals, are among the fastest-growing trade flows in the world. This increase in demand for these products has in-turn, increased air cargo market growth.
  • In developed countries, dedicated air cargo terminals are being designed in tandem with the increased air cargo volume to speed up the air cargo screening process and efficiently manage security threats. On the other hand, with the aid of advanced air cargo screening systems, new freight terminals are increasingly being used, thereby triggering the expansion of the air cargo market.

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  • During the forecast period, North America is predicted to be the fastest-growing regional market. The increasing US economy and high disposable per capita income are driving the region’s business growth.