Expanding Airport Infrastructure in Southeast Asia Expected to Provide Growth Opportunities for Asia Pacific Air Cargo Market during 2022–2028
According to our latest market study on "Asia Pacific Air Cargo Market Forecast to 2028 – COVID-19 Impact and Analysis – by Type, Services, and End User," the market is expected to grow from US$ 38,355.21 million in 2022 to US$ 59,298.21 million by 2028; it is estimated to grow at a CAGR of 7.3% from 2022 to 2028.
Air cargo or air freight is a mode of transportation that delivers fast-speed shipments through aircraft for longer distances. Air cargo is the conveyance or transportation of goods by an aircraft that transfers express shipments worldwide. Air transport services, such as air mail, air freight, and air express, are the most valuable. Air cargo also flies in the same gateway as commercial or passenger airlines; it contributes to the development of the economy worldwide as the economy relies on the capability to transport valuable and superior quality products to consumers worldwide. The air cargo industry has changed considerably over the past few decades. Further, innovative logistics and supply chain concepts established on low-fuel costs and labor costs emerged with trends in just-in-time production and end-point manufacturing assembly destination. Moreover, a surge in need for expeditious shipping and control and transparency has been noticed with the decreasing new product shelf-life, such as consumer electronics, thereby driving the Asia Pacific air cargo market growth.
In 2022, China is expected to dominate the market in terms of Asia Pacific air cargo market share. China has become the world’s leading manufacturing center, with industries producing commodities such as computing equipment, electronic gadgets, apparel, and others. Most of the produced goods are exported and transported by air. The rapid increase in air trade with other countries in Asia Pacific, North America, and Europe is a key driver for the growth of the China’s domestic air cargo market. The types of goods transported by China vary by region. For instance, in southeastern provinces such as Pearl River Delta, air cargo contains home electronics, apparel, light industrial product, telecommunication equipment, and others. From the eastern provinces, goods transported are apparel, perishable foods, textiles, and others. Precision instruments, electronics, and others are primary commodities in the northern areas. In the western provinces, cashmere, industrial equipment, pharmaceuticals, and others are primary commodities. According to the Civil Aviation Administration of China (CAAC), China's air freight volumes recovered to around pre-pandemic levels in January. The CAAC stated the volume of cargo and mail moved by air in January 2022 was ~654,000 tonnes, or 97.3% of the amount recorded in the same month in 2019. Further, in June 2022, SF Airlines, a China-based company, increased its freighter fleet to 72 aircraft. According to Xinhua, China's national news agency, the cargo airline recently put a 767-300BCF cargo plane into service. This is the second cargo to enter the fleet in June by SF airlines. In May 2022, the airline received its 70th aircraft. The cargo airline added four freighters to its fleet in the first half of this year, including three 767-300BCFs and one 757-200F. The airline has been growing its transport capacity and air-route network to provide efficient and stable transportation services for a wide range of products, particularly fresh agricultural items. SF Airlines is also co-developing a massive 2.4-million-ton cargo airport in Ezhou, which will connect its regional and international flights to Asia Pacific, Europe, and the US. Thus, increasing the number of aircraft in cargo service will boost the Asia Pacific air cargo market size during the forecast period. A few of the players operating in the air cargo market in China include China Airlines; China Cargo Airlines; China Southern Airlines Company Limited; Air China Cargo Co., Ltd.; S.F. Express; and EVA Airways.
According to the market research study, India is expected to witness the highest CAGR during the forecast period. As per the latest available data from the Airports Authority of India (AAI), cargo shipments at Indian airports increased by 29% to 264,510 tons in August 2021; however, this is still less than 289,470 tons of cargo that were moved in August 2019, and it has driven the air cargo market growth in India during 2021. During the COVID-19 pandemic, airlines reconfigured a portion of their aircraft to fulfill cargo demand amid a significant decline in passenger traffic. IndiGo and SpiceJet have dedicated freight carriers, while others commonly transport cargo on the aircraft’s belly. IndiGo is also preparing to take delivery of four Airbus A321ceo aircraft, each of which will be transformed from a passenger jet to a full freighter configuration. IndiGo's cargo revenue increased by 9.6% in the fiscal year 2021. Therefore, the need for air cargo services during the pandemic was high, which boosted the growth of the Asia Pacific air cargo market size.
The Asia Pacific air cargo market is segmented into type, services, and end user. Based on component, the market is bifurcated into air mail and air cargo. Based on services, the Asia Pacific air cargo market is divided into express and regular. Based on end user, the Asia Pacific air cargo market is segmented into retail, pharmaceutical and healthcare, food and beverage, consumer electronics, automotive, and others.
DHL International, Emirates SkyCargo, Korean Air, Cathay Pacific, and Etihad Cargo are a few key players profiled during the study on the Asia Pacific air cargo market. Several other major market players were studied and analyzed during this market research study to get a holistic view of the market and its ecosystem. The air cargo market report provides detailed market insights, which helps the key players strategize their growth.
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