Europe Air Cargo Market is expected to reach US$ 43.29 Billion by 2028

Rapid Adoption of E-Commerce Platforms to Provide Growth Opportunities for Europe Air Cargo Market During 2022–2028

According to our latest market study on "Europe Air Cargo Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Type, Service, and End User," the market is expected to grow from US$ 30.27 billion in 2022 to US$ 43.29 billion by 2028; it is estimated to grow at a CAGR of 6.1% from 2022 to 2028.

Air cargo is a transportation mode of delivering fast-speed shipments through aircraft for longer distances. Air cargo or air freight is the conveyance or transportation of goods by an aircraft when transferring express shipments across the world. Air transport services, including airmail, air freight, and air express, are the most valuable type of service. Air cargo also flies in the same gateway as commercial or passenger airlines and contributes to the development of the economy worldwide as the economy relies on the capability to transport valuable and superior quality products rapidly to consumers worldwide. The air cargo industry have changed considerably over the past few decades. Moreover, there is a surge in demand for expeditious shipping and control, as well as transparency, with the decreasing new product shelf-life, such as consumer electronics, which is driving the Europe air cargo market growth.

Europe Air Cargo Market — by Country, 2022

In the present scenario, consumers are inclining toward online shopping (e-commerce), which has resulted in increased cross-border sales, thereby boosting the Europe air cargo market. In addition, the provision of air cargo, including faster delivery speed and high investments by governments of various European countries in favor of air cargo, fuels the growth of the Europe air cargo market. However, presently overcapacity and complexities of temperature-sensitive products such as difficulty in temperature-sensitive cargo operations are a few of the key challenges faced by the air cargo industry in Europe.

With the constant increase in the demand for air cargo, several players operating in the supply chain such as DHL Express, FedEx, Cargolux, and Singapore Airlines are significantly investing to compete in the Europe air cargo market. For instance, in May 2022, to deploy five Boeing 777 freighters, DHL Express and Singapore Airlines (SIA) signed a Crew and Maintenance agreement (CM). The DHL Express partnership represents a "further step" in expanding its intercontinental aviation network to satisfy customer demand in quickly expanding international express shipping markets. Such instances have been catalyzing the air cargo market growth across Europe.

Moreover, with the growing demand for air cargo from the pharmaceutical industry, the air cargo market players are making necessary technological strides to cope with the fast-growing demand for pharmaceuticals. For instance, in January 2019, an airport-to-airport (A2A) pharmaceutical corridor was established between Brussels Airport and Hong Kong International Airport to provide services to fulfill the demands of pharmaceutical shipments. The two airports collaborated with the pharmaceutical industry. The aerospace industry aims to provide the necessary services and standards for better handling of temperature-sensitive pharmaceutical products. Both airports have earned the Centre of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification from the International Air Transport Association (IATA), which guarantees that airport cargo service providers can handle pharmaceutical shipments under strict guidelines. The industry recently made new developments in monitoring temperature-sensitive goods on the land and air. Thus, the factors mentioned above are driving the Europe air cargo market growth.

The Europe air cargo market ecosystem involves the physical and documentary movement of freight from the origin (forwarder) to the destination (consignee). The flows are always indistinguishable; however, the agents involved in the process could be different. Air freight forwarders perform many of the same responsibilities as air freight consolidators, with the exception that smaller forwarders may co-load with others rather than undertake their consolidations. The air freight forwarder is a shipper to the airlines. An air freight forwarder is classified as an indirect air carrier; however, several air freight forwarders own and operate their aircraft. A forwarder will ensure that products are entered in advance and that all necessary paperwork is completed for efficient operations.

Customers cannot afford to pay delays or additional expenses from airlines when transporting goods by air. A reputable freight forwarder will monitor the entire process, track shipments, reduce delays, and communicate with customs and airlines on their behalf. Airport cargo and ramp handling workers can prepare air cargo for flight after accepting ready-for-carry shipments. The products in transit must be received and re-screened for security. Transit cargo refers to items left on aircraft while in transit. These transit goods must be subjected to security procedures, including x-ray and Explosive Trace Detection (ETD) screening, by cargo and ground handling services. A thorough examination of the e-AWB, cargo integrity, and component count is performed. Once the pre-plan details are received from the carrier, a build-up plan is prepared, indicating the details regarding whether air cargo is built for flight, and this information is sent to the warehouse.

The Europe air cargo market size is segmented on the basis of type, service, end user, and country. In terms of type, the Europe air cargo market is bifurcated into air mail and air freight. Based on service, the Europe air cargo market is bifurcated into express and regular. Based on end user, the Europe air cargo market is segmented into retail, pharmaceutical and healthcare, food and beverage, consumer electronics, automotive, and others. By country, the Europe air cargo market is primarily segmented into France, Germany, the UK, Italy, Russia, and the Rest of Europe.

Turkish Cargo, DHL International, Air France KLM Martinair Cargo, United Parcel Services Inc, and FedEx Corporation are a few key Europe air cargo market players profiled during the study. Several other major companies were studied and analyzed during this research study to get a holistic view of the Europe air cargo market size and its ecosystem. The market report provides detailed market insights, which helps the Europe air cargo market players strategize their growth.

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