Air Cargo Market size to grow by 19.52 million tons between 2022 and 2027, Air France KLM Martinair Cargo, American Airlines Inc. among others, identified as key vendors, Technavio

NEW YORK, March 15, 2024 /PRNewswire/ -- The air cargo market size is set to grow by 19.52 million tons from 2022 to 2027. However, the growth momentum will be progressing at a CAGR of 5.32% during the forecast period. he air cargo market is fragmented, and the vendors are seeking strong partnerships with automotive, industrial, and commercial companies to compete in the market.  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 are some of the major market participants.

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Market Drivers

• Increase in e-commerce sales to boost air cargo market
• Growing demand from APAC
• Rising demand from just-in-time manufacturers

Market Trends

• Expected rise in demand for temperature-sensitive products
• Rise in popularity of air cargo digitization
• Increased focus on autonomous vehicles in logistics sector

Market Challenges

• Expected rise in jet fuel prices
• Fluctuation in import and export levels
• Growth of seaborne trade as a substitute for air-borne trade

In addition to the forecast, the report also highlights the key opportunities by analyzing drivers, trends, and challenges for the market, download a PDF sample

Segment Analysis

• End-user 
• Manufacturing: 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.
• FMCG And Retail
• Pharmaceuticals And Chemicals
• Other Industries
• Type 
• Belly Cargo
• Freighter
• Geography 
• APAC: APAC is projected to contribute 30% of market growth by 2027. 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. 
• North America
• Europe
• Middle East And Africa
• South America

The competitive scenario categorizes companies based on various performance indicators. Some of the factors considered include the financial performance of companies, growth strategies, product innovations, new product launches, investments, and growth in market share, among others- Buy the Report

Analyst Review

The air cargo market in Russia is witnessing a remarkable surge in capacity driven by the adoption of a unified platform that connects forwarders and enhances availability of shipments. Not only is this trend impacting the movement of goods, but it's also affecting travelers with increased air seats availability. Meanwhile, neighboring Ukraine is experiencing a similar transformation in its hotels and rental cars sectors, facilitated by platforms like Kayak and Priceline.

This explosive surge in online shopping has reshaped the future trajectory of the air freight market, challenging IATA's 2021 e-commerce monitor figures and altering consumer behaviors worldwide. With a focus on global networks and adaptable capacity, the industry is embracing digitalization initiatives to enhance operational efficiency and shipment visibility during transit.

In this evolving global e-commerce landscape, strategic partnerships and cutting-edge technologies are becoming pivotal factors for anticipated growth. Air Canada Cargo and Rivo have entered a multi-year pact to bolster their e-commerce-focused delivery division. Similarly, Trexity, an on-demand delivery firm, is capitalizing on cargo prospects with a fleet expansion plan.

The first quarter of 2023 saw significant developments, with FedEx, UPS, The Emirates Group, and Cathay Pacific Airways Limited all ramping up their cargo tonne kilometers (CTKs), inching closer to pre-crisis levels. Despite challenges in profitability due to cost evolution influenced by the macroeconomic environment, including oil prices and labor markets, the air cargo industry remains integral to global commerce.

Cross-border trade continues to thrive, notably at China's Shenzhen Bao'an International Airport (SBI), a hub for cross-border e-commerce. From January to July, freighter flights surged, supporting the growth of international e-commerce. Partner airlines like Central Airlines and YunExpress bolstered operations, with additional freighter services and increased cargo volumes.

However, challenges persist in execution and capability, particularly in the time-consuming process of sourcing quotes. Third-party platforms are emerging to streamline this process, benefiting freight agents and airline partners alike.

Looking ahead, opportunities abound for logistics companies and airlines to capitalize on the value of the air cargo market, leveraging advancements in technology and strategic partnerships to drive growth and enhance efficiency in the transportation of goods on a global scale.

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Market Overview

In Russia, the air freight market is witnessing significant growth, driven by increased demand for capacity and streamlined processes through unified platforms. Forwarders are capitalizing on this trend, leveraging such platforms to optimize shipment availability and enhance logistics efficiency. With a surge in shipments, the market is witnessing a parallel rise in travelers, necessitating the management of both air cargo and passenger air seats. This dynamic landscape underscores the importance of robust infrastructure and innovative solutions to meet evolving demands. As stakeholders navigate this burgeoning sector, leveraging unified platforms becomes paramount to efficiently manage capacity, optimize shipments, and cater to the needs of both cargo and passenger segments.

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Airport Ground Support Equipment Market- The airport ground support equipment market is estimated to grow at a CAGR of 4.27% between 2022 and 2027. The size of the market is forecast to increase by USD 1630.63 million.

Urban Air Mobility (UAM) Market- The urban air mobility market is estimated to grow at a CAGR of 27.5% between 2022 and 2027. The size of the market is forecast to increase by USD 5,280.25 million.

About US
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio

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