The air cargo market size is expected to reach USD 175.24 billion; registering at a CAGR of 5.9% from 2022 to 2028, according to a new research study conducted by The Insight Partners
Expanding Airport Infrastructure to Provide Growth Opportunities for Air Cargo Market During 2022–2028
Air cargo is a transportation mode of delivering fast-speed shipments through aircraft for longer distances, generally. Air cargo contributes to the development of the economy worldwide as the global economy relies on the capability to transport valuable and superior quality products rapidly to consumers across the world. The air cargo industry has changed considerably over the past few decades. Further, innovative logistics and supply chain concepts established on low fuel costs as well as labor costs emerged with trends in just-in-time production and end-point manufacturing assembly destination. Moreover, a surge in demand for expeditious shipping and control, as well as transparency, and a decrease in new product shelf-life, such as consumer electronics, have been witnessed across the globe. Such factors have been catalyzing the growth of air cargo market size worldwide.
Air Cargo Market - by Region, 2022
Air Cargo Market Forecast to 2028 - COVID-19 Impact and Global Analysis by Type (Air Mail and Air Freight), Service (Express and Regular), and End User (Retail, Pharmaceutical & Healthcare, Food & Beverage, Consumer Electronics, Automotive, and Others)
Air Cargo Market Size, Share and Growth Report 2028
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Source: The Insight Partners Analysis
With the rapid development of connected technologies such as mobile devices, consumers’ lives have changed in many aspects, which includes their purchasing process. In the present scenario, consumers are shifting to e-commerce which has resulted in increased cross-border sales, thus boosting the air cargo market growth, as the manufacturers or sellers aim to reach the customer in a quick and less expensive manner. In addition, the provision of air cargo, including faster delivery speed and high investments by the government in favor of air cargo, also fuels the market. However, complexities in the transportation of temperature-sensitive products, and market uncertainty are a few key challenges faced by the air cargo vendors that is leading to the integration of technologies such as cold chain cooling solutions for air cargo industry and transforming the industry dynamics globally.
The air cargo industry generally competes with other transportation modes, including rail, road, and maritime. Mode mix optimization as well as the modal shift from air to low-priced or more eco-friendly maritime or rail transport has been rising in recent years. Freight forwarders provide more air/sea, air/rail, or air/road solutions that integrate to form price and total freight time flexibility. Currently, the new railway network, as well as the road-based “Silk Road” network, which connects China with Europe, is reducing the business of air and sea cargo across these regional air cargo operations and thus impacting negatively in the air cargo market growth.
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.
Cathay Pacific Cargo, United Parcel Services Inc, DHL, Lufthansa, and FEDEX Corporation are a few key air cargo market players profiled during the study of the air cargo market. Several other air cargo market players were studied and analyzed during this research study to get a holistic view of the air cargo market size and its ecosystem. The market report provides detailed market insights, which helps the players strategize their growth.
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