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Air Cargo Market Projected to Reach US$130.12 bn by 2025

Air Cargo Market Projected to Reach US$130.12 bn by 2025

Transparency Market Research observes the global air cargo market is highly fragmented. With a strong presence of combination airlines, chartered services, and all-cargo airlines the overall market faces some tough competition. Some of the leading players in the global air cargo market are Cathay Pacific Cargo, DHL Aviation, FedEx Express, and UPS Airlines. Players are expected to open operations in uncharted areas to increase their revenues in the coming years. Furthermore, keeping the air cargo charges as reasonable as possible to earn wider consumer base will also be an important strategy of these players.

According to the research report, the global air cargo market is projected to be worth US$130.12 bn by the end of 2025. All throughout 2025, the global market is expected to exhibit a steady CAGR of 4.9%. From an end user perspective, the pharmaceuticals and healthcare segment is expected to show tremendous growth. Geographically, Asia Pacific is expected to remain the largest market in the coming years as it surges at a CAGR of 5.3% between 2017 and 2025.
air cargo market

Open Skies Policies to Consistently Boost Air Cargo Market

Initiation of the “Open Skies” policy has had a positive impact on the global market. The primary objective of this policy is liberalization of rules for aviation markets around the globe and minimum government intervention. The trade, and import-export of goods and products can be smoother by adopting ‘open skies’ policy. Air cargo (shipment of product/goods) is preferred by companies to deliver the shipments on time to the end user. Air transport mode is preferred by companies for various products such as perishables, chemicals, and valuables as air cargo, though costlier than other mode of transportation, takes less time as compared to other modes.

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The global e-commerce market is expected to expand more than double during the forecast period, thus presenting the air express industry with the growth opportunities. Recent associations between e-tailers and carriers indicates the rise in overseas logistics, as online shopping encourages demand for shipping orders worldwide. Over the last few years, food industry have changed the way they used to work earlier, now as the approach is different toward the food processing, companies are looking for cost controlled, energy efficient along with quality and efficiency. This is the main objective of air cargo market. Furthermore, the growing pharmaceuticals and healthcare sector is also projected to make a generous contribution to the soaring revenue of the global air cargo market. Rising demand for time-sensitive goods is anticipated to spike the need for efficient air cargo networks. This can been seen in areas that are affected by natural calamities and in war zones.

Political Volatility to Act as a Major Challenge

Political instability in multiple countries of the world is likely to be a restraint for the global air cargo market. The tumultuous situation of the government creates an impediment in the open skies policies, hampering trade and other activities. At the same time, the soaring cost of aviation fuel, which has a direct impact on the cost of moving air freight has been identified as a key restraint in the overall market. However, the booming e-commerce businesses that are opening up opportunities for international trade are expected to offer the global market a fair chance to prosper against all odds.

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This review is based on Transparency Market Research’s report, titled “Air Cargo Market (Type – Air Freight and Air Mail; Service – Express, Regular), End User – Consumer Electronics, Retail, Third Party Logistics, Food and Beverages, Pharmaceuticals and Healthcare; Destination – Domestic and International) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017 – 2025”.

Air Cargo Market

By Component

Air Freight
Air Mail

By service

Express
Regular

By End-user

Consumer Electronics
Retail
Third Party Logistics
Food and beverages
Pharmaceuticals and healthcare
Others

By Destination

Domestic
International

About US
Transparency Market Research (TMR) is a next-generation provider of syndicated research, customized research, and consulting services. TMR’s global and regional market intelligence coverage includes industries such as pharmaceutical, chemicals and materials, technology and media, food and beverages, and consumer goods, among others. Each TMR research report provides clients with a 360-degree view of the market with statistical forecasts, competitive landscape, detailed segmentation, key trends, and strategic recommendations.

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