PUBLISHER: The Business Research Company | PRODUCT CODE: 1435261
PUBLISHER: The Business Research Company | PRODUCT CODE: 1435261
Air cargo services represent a mode of transportation that utilizes aircraft, including planes and helicopters, to offer contract air transportation for cargo and mail over fixed international routes. This method is chosen for its capacity to efficiently deliver high-quality goods to consumers worldwide at reasonable prices.
The primary types within the air cargo services market are air mail and air freight. Airfreight involves the transportation of cargo and mail facilitated by an air carrier. The market is further segmented based on destination, distinguishing between domestic and international, and by service, categorized into express and regular. Additionally, segmentation by end-users includes consumer electronics, retail, third-party logistics, food and beverages, pharmaceuticals and healthcare, and other sectors.
The air cargo services market research report is one of a series of new reports from The Business Research Company that provides air cargo services market statistics, including air cargo transport services industry global market size, regional shares, competitors with an air cargo transport services market share, detailed air cargo transport services market segments, market trends and opportunities, and any further data you may need to thrive in the air cargo transport services industry. This air cargo transport services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.
The air cargo services market size has grown strongly in recent years. It will grow from $66.1 billion in 2023 to $70.28 billion in 2024 at a compound annual growth rate (CAGR) of 6.3%. The growth observed during the historical period can be attributed to factors such as the globalization of trade, the demand for time-sensitive shipments, the complexities of manufacturing supply chains, the transportation needs of the automotive and electronics industry, and the movement of oil and gas equipment.
The air cargo services market size is expected to see strong growth in the next few years. It will grow to $90 billion in 2028 at a compound annual growth rate (CAGR) of 6.4%. The anticipated growth in the forecast period can be attributed to factors such as evolving trade alliances, the importance of pharma cold chain logistics, customs and regulatory changes affecting cargo services, the transport of equipment related to energy transition, and the rise of space cargo and exploration activities. Major trends expected in the forecast period encompass the adoption of smart cargo tracking solutions, the integration of artificial intelligence (AI) and predictive analytics, the digitalization of cargo handling processes, increased collaboration within air cargo alliances, and the utilization of unmanned aerial vehicles (UAVs) for cargo delivery.
The air cargo services market is anticipated to experience growth, driven by the expanding automotive industry. The automotive sector, encompassing various entities engaged in motor vehicle design, manufacturing, and related activities, heavily relies on air cargo services for the timely delivery of crucial components and spare parts. This aids in minimizing production delays and supports just-in-time manufacturing processes. For instance, in December 2022, the US witnessed a 5.4% increase in light vehicle sales, reaching 1.287 billion units. The surge in truck and SUV sales by 5.3% to 1.02 billion units and a 5.7% increase in passenger car sales to 0.266 billion units further underscores the pivotal role of air cargo services in sustaining the automotive industry's growth.
The adoption of blockchain technology is gaining traction within air cargo companies to enhance operational efficiency, mitigate losses, and prevent cargo damage. This technology facilitates the digital tracking and recording of custody changes for airline cargo containers, such as Unit Load Devices (ULDs), throughout their journeys. Organizations such as the Blockchain in Transport Alliance (BiTA) advocate for standardized implementations in the logistics industry, with major players such as UPS, FedEx, DHL, and Union Pacific aligning with BiTA. Sita, an air transport communications and information technology company, estimates potential savings of $400 million annually through the use of blockchain technology in the air cargo industry.
Leading companies in the air cargo services market are strategically focusing on the introduction of logistics and delivery network cargo services to enhance their competitive position. These services encompass a spectrum of activities within the supply chain and transportation industry, involving the management, transportation, and handling of goods throughout various stages of the supply chain. In January 2023, Amazon Air, a US-based cargo airline, launched its dedicated air cargo fleet in India, becoming the first e-commerce company in the country with its air network. Utilizing the cargo capacity of two Boeing 737-800 aircraft operated by Quikjet Cargo Airlines, Amazon Air aims to expedite the shipping of goods from fulfillment centers to last-mile deliveries across key cities such as Hyderabad, Bengaluru, Delhi, and Mumbai. This strategic move is geared towards facilitating faster and more efficient delivery services.
Major companies operating in the air cargo services market report are Amazon.com Inc., China Railway Corporation, UPS Airlines, United Parcel Service Inc., Deutsche Post AG, FedEx Corporation, A.P. Moller-Mærsk A/S, United States Postal Service, American Airlines, Delta Airlines, United Airlines, Kuehne + Nagel International AG, The Emirates Group, Indian Railways, JSC Russian Railways, International Consolidated Airlines Group SA, Qatar Airways Company QCSC, LATAM Airlines, Japan Airlines Co. Ltd., Cathay Pacific Airways Limited, Cargolux Airlines International SA, China Airlines Ltd., Cargill Incorporated, Aeromexico Cargo, Gol Airlines, Azul Airlines, Magma Aviation Limited, China Airlines Cargo, South African Airways Cargo, Thai Airways Cargo
Asia-Pacific was the largest region in the air cargo services market in 2023. North America was the second largest region in the air cargo services market. The regions covered in the air cargo services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the air cargo services market report are Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa.
The air cargo services market includes revenues earned by entities by transporting goods and couriers at high speeds to enhance less time-consuming delivery without the need for warehouse and storage facilities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Air Cargo Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on air cargo services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for air cargo services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The air cargo services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.