The global air cargo market is expected to grow from US$ 130.19 billion in 2021 to US$ 223.29 billion by 2028; it is estimated to grow at a CAGR of 8.0% from 2021 to 2028.
Online retailing attracts more prospective customers than brick and mortar based competitors due to the global scale of the internet. In addition, e-commerce market players opt from a variety of logistics options such as the surface transport and air transport, to deliver packages to their customers. Therefore, as the global e-commerce market is heating up, varying buying patterns and trends have been observed in different countries of the regions. Majority of the purchase is influenced by the demographics of the country such as the percentage of youth population indulging in e-commerce activity, the economy of the country, age group interested in e-commerce, and the level of awareness in the country. Thus, e-commerce is a future growth driver for the air cargo industry, as online shopping is boosting the demand for parcel delivery services worldwide. Air cargo is well-positioned to serve their needs and deliver their goods globally with speed, efficiency, and reliability. The fast-growing cross-border e-commerce market remains a key driver in addition to rising domestic volumes sent by large and small e-retailers.
Air cargo is important for the e-commerce ecosystem in order to manage the transportation of goods globally. Air cargo service providers deliver upgraded technology, flexibility & scalability, and efficiency & specialization in the e-commerce business. There are numerous benefits pertaining to the e-commerce and they can get fulfilled if the company delivers to customers on time. Thus, several organizations such as international Air Transport Associations (IATA), International Federation of Freight Forwarders Associations (FIATA), Universal Postal Union (UPU), and World Customs Organizations (WCO) are engaged in improving air cargo services, owing to the growing adoption of e-commerce. According to the IATA, in 2019, e-commerce represented around 15% of air cargo volumes owing to continuous spread of the COVID-19. The IATA assists the air cargo industry to capitalize on the growth of e-commerce. IATA also ensures that the air cargo industry has the correct global framework to offer the right logistics solutions for the e-commerce industry. Online shoppers are now purchasing frequently, and cross-border e-commerce volumes are growing. Customers’ expectations are similar for domestic and cross border e-commerce. Therefore, the demand for air cargo is expected to surge during the forecast period with rising number of online customers and increasing cross border sales.
Impact of COVID-19 Pandemic on North America Air Cargo Market
North America is engaging in development and adoption of new technologies due to favorable government policies to boost innovation and strengthen the infrastructure capabilities. The Canadian government is anticipated to aid the sector, including financial support to airlines. In addition, the US Government has vastly supported its airlines during the crisis, and there are still hopes for a second support package. According to the statistics by the International Air Transport Association (IATA), the industry-wide cargo ton-kilometres (CTKs), the month-on-month CTKs showed the fastest growth since May, at 3.7% in 2020. The rebound of the industry rebound is largely driven by North American airlines. North American airlines also performed strongly in September 2020. This can be attributed to the increasing Asia–North America trade lanes due to strong demand for goods manufactured in Asia from domestic markets in the US. Moreover, the domestic market in North America has been significantly outperforming the region’s international routes due to the rising popularity of e-commerce since Q2 of 2020 when the country went into strict lockdown. Hence, the air cargo market in the region has been positively influenced by the pandemic.
The overall air cargo market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the air cargo market with respect to all the segments. It also provides the overview and forecast for the global air cargo market based on all the segmentation provided with respect to five major regions?North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the air cargo market. Major players operating in the global air cargo market include ANA Cargo; Cargolux; Cathay Pacific Airways Limited; DHL International GmbH (Deutsche Post DHL Group); Emirates SkyCargo; Etihad Cargo; FedEx Corporation; United Parcel Service of America, Inc.; Zela Aviation The Air Charter Company; and Lufthansa Cargo AG.