The Global Air Cargo Services Market is estimated to be USD 62.97 Bn in 2023 and is expected to reach USD 86.31 Bn by 2028 growing at a CAGR of 6.51%.Increasing need to transport high-value and time-sensitive products, such as electronics, pharmaceuticals, perishables, and auto parts
Air freight is a transportation that uses aircraft to carry high-speed shipments over great distances. Air freight contributes to global economic development because the global economy relies on the ability to promptly convey valuable and superior quality products to consumers worldwide. Vaccines are typically transported by airplane because of the high delivery speeds and temperature-sensitive areas onboard planes, allowing them to reach their desired destination in time to be effective.
E-commerce is driving the worldwide air freight market's growth rate, which is expected to be about 20% by 2020. Compared to 2019, the average transaction volume via e-commerce climbed by over 70% in 2020. Global e-commerce reached USD 876 billion in the first quarter of 2021, up nearly 30% from the previous year, according to Adobe's 2021 Digital Economy Index. Due to the potential in the air freight industry created by e-commerce and digitization, many merchants digitalized their company activities by 20% to compete in the market.
Global importers and exporters prefer air freight to deliver goods fast and safely. Although ocean freight accounts for almost 90% of deliveries, air freight expedites delivery; for example, it reduces the time it takes to deliver freight from the United States to China from approximately 20 to 30 days by the ocean to just 3 days via air. However, air freight is quite expensive. According to the World Bank, the cost of air freight is around 4-5 times that of road freight and 12-16 times that of ocean freight.
However, the market has an opportunity because vaccination programs, according to the World Health Organisation, help avoid over 3 million child deaths each year. Air freight is important in delivering temperature-sensitive drugs in the best possible circumstances using cutting-edge techniques and technologies. Although air freight accounts for about 1% of total freight activities by weight, and shipping things via aircraft is highly expensive, it is a valuable form of transit for jewelry, perishable items, medications, expensive electronic equipment, and others.
- One of the most difficult problems for Air Cargo Services is competition from other modes of transportation such as sea, road, and rail. Air cargo has high operating expenses and narrow margins, and competition from other transportation modes can pressure the business to keep prices low.
Market Segmentations
- The Global Air Cargo Services Market is segmented based on Service Type, Type, Destination, End-User, and Geography.
- By Service Type, the market is classified into Express and Regular.
- The regular sector generates the market's biggest revenue. The expansion of air freight fleets in various locations. Most cargo aircraft operators have increased their investments to expand their air cargo aircraft fleets.
- By Type, the market is classified into Air Mail and Air Freight.
- The air freight segment dominated the market, holding the largest market share. Air freight is carrying products by an airline, either commercial or charter. Express shipping is becoming more popular in air freight as the demand for speedy delivery grows. Air freight benefits small and medium-sized businesses by allowing them to participate in international trade promptly and efficiently. Third-party logistics providers provide the most dependable and cost-effective air freight services for corporate, individual parcel, or shipment delivery.
- By Destination, the market is classified into Domestic and International.
- International holds the largest share of the market. This section entails the movement of products across countries. International air freight is frequently used to transfer commodities from one section of the world to another, such as Europe to Asia or North America to South America. International air freight is one of the main categories of the air cargo market, characterized by high-volume, high-value shipments.
- By End-User, the market is classified into Consumer Electronics, Retail, Third third-party logistics, Food & Beverages, Pharmaceuticals & Healthcare, and Other End Users.
- The Third Party Logistics segment holds the largest share of the market. This segment involves the transportation of goods for businesses that outsource their logistics and transportation activities to a third-party provider. The third-party logistics segment is characterized by high-volume, high-value shipments and is one of the largest segments of the air cargo market.
- By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
- Americas has the largest market share. The rise of air cargo operations across different regions to meet the increasing need for international logistics and transportation of goods and services primarily drives demand for air cargo.
Recent Development
- IAG Cargo expanded its business in Asia Pacific capacity with a restart between London and Tokyo operations, operated daily on British Airways Boeing 787-8 and 787-9 wide-body aircraft. It also provides the movement of pharmaceuticals, electronics, automotive goods, and dried Japanese food. - November 2022
- DHL Express continued to strengthen its global aviation network by purchasing eight additional Boeing 777 Freighters. - December 2021
Company Profiles
The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are Express Air Freight, FedEx, Hellman Worldwide Logistics, Kintetsu World Express, etc.Countries Studied
- America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of the Americas)
- Europe (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
- Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
- Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)
Competitive Quadrant
The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.Ansoff Analysis
- The report presents a detailed Ansoff matrix analysis for the Global Air Cargo Services Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
- The publisher analyses the Global Air Cargo Services Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
- Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.
Why buy this report?
- The report offers a comprehensive evaluation of the Global Air Cargo Services Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
- The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
- Excel data sheet for the market size will also be provided with the report.
- The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
- The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
- The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
- The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors.
- The report offers customized research - tailored uniquely to our customers with a quick turnaround time. We offer a 15% customization option at no extra charge to all our clients for any of our syndicated reports.
Report Highlights
- A complete analysis of the market, including the parent industry
- Important market dynamics and trends
- Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
- Market segmentation
- Competitive Analysis: Comparative analysis of competitor
- Historical, current, and projected size of the market based on value and volume
- Market size of the US states
- Market shares and strategies of key players
- Recommendations to companies for strengthening their foothold in the market
Table of Contents
1 Report Description
2 Research Methodology
3 Executive Summary
4 Market Dynamics
5 Market Analysis
6 Global Air Cargo Services Market, By Service Type
7 Global Air Cargo Services Market, By Type
8 Global Air Cargo Services Market, By Destination
9 Global Air Cargo Services Market, By End-User
10 Americas' Air Cargo Services Market
11 Europe's Air Cargo Services Market
12 Middle East and Africa's Air Cargo Services Market
13 APAC's Air Cargo Services Market
14 Competitive Landscape
15 Company Profiles
16 Appendix
Companies Mentioned
- Able Aerospace Services Inc.
- Air Cargo Carriers, LLC
- ATA Freight
- BCR Australia Pty. Ltd.
- Cargolux Airlines International SA
- Cathay Pacific Airways Ltd.
- China Airlines Cargo
- Coyote Logistics
- DHL Aviation
- Emirates SkyCargo
- Expeditors International of Washington, Inc.
- Express Air Freight
- FedEx Corp.
- Hellman Worldwide Logistics
- Lufthansa Cargo Ag
- Nippon Express
- Quehenberger Logistics
- Singapore Airlines Cargo
- UKR SHIPPING LLC
- UPS Airlines
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 201 |
| Published | February 2024 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value ( USD | $ 62.97 Billion |
| Forecasted Market Value ( USD | $ 86.31 Billion |
| Compound Annual Growth Rate | 6.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 20 |
