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Air Cargo Market: Structure and Overview of Key Market Forces Propelling Market

Press Release   •   Jan 17, 2018 04:25 EST

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%.

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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.

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.

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.

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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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