Asia Pacific dominates the global air cargo market, followed by Europe. The growth in Asia Pacific region is highly influenced by the burgeoning e-commerce market in the developing economies of the region, as well as, the presence of strong manufacturing sector. The strong e-commerce sector of the region has resulted in increased cross-border e-commerce sales. For instance, air cargo hubs are becoming gradually important for the e-commerce growth, as e-commerce giants, integrators as well as carriers are strengthening their package sorting and automation competences, coupled with expanding networks with an aim to acquire a larger portion of the growing demand.
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Figure: Exhibit: Asia Air cargo Market by End-user
With the constant increase in the demand for air cargo, several players operating in the supply chain are significantly investing to efficiently compete in the market. Moreover, with the growing demand for air cargo from the pharmaceutical industry, the market players are making necessary strides in technology to cope up the fast-growing pharmaceuticals market demand. Some of the key players operating in the air cargo market includes FedEx Express, UPS Airlines, DHL Aviation, Emirates, Cathay Pacific Airways, Korean Air Cargo, Lufthansa, Singapore Airlines Cargo, China Airlines, British Airways, Cargolux, ANA CARGO, and Zela Aviation The Air Charter Company among others.
Although global economic growth is estimated to surge in aggregate during the forecast period, this covers a broad range in regional as well as country-level performance. Economic activity in the developed economies is anticipated to grow at a similar pace as they were during the past five years, with moderate slowdowns in the US and Japan, being compensated by sturdier growth in the Eurozone. The latter is expected to support incoming demand for air cargo into Europe on the major trade lanes between North America and Asia.
Moreover, airports is the ASEAN countries are amongst the fastest growing globally, with shifting of manufacturing facilities into the region. This shift is attributed to increasing manufacturing costs in China, and concerns related to unstable trade relations between the US and China. ASEAN economic ministers have also signed an agreement for supporting the acceleration of cross-border e-commerce among ASEAN members. With the expected growth in ASEAN air cargo market, Turkish Cargo announced addition of freighter routes to Vietnam from Europe to its flight network. For this, the company acquired three of the freighters since 2017. Southeast Asia is a promising region for the air cargo market however, there are concerns among the air cargo operators related to the bandwidth the region can deliver for freighter operations if the economies do not adequately develop their infrastructure and policies.
Flourishing e-Commerce industry worldwide is expected to fuel the growth of air cargo market
The services provided by air cargo firms to e-commerce business are data management, real-time tracking, safe transportation, reduced time, and others. There are numerous benefits related to e-commerce and it can get fulfilled if the company deliver to its customer on time. The air cargo plays a key role in the e-commerce ecosystem. With the increasing number of online customers and increasing cross border sales, the demand for air cargo is expected to surge during the forecast period.
High air cargo growth opportunity in ASEAN market
Many air cargo carriers are capitalizing on the sturdy growth in Asia Pacific, particularly Southeast Asian countries including Vietnam, Cambodia, and Indonesia. These countries are witnessing high growth due to a considerable relocation of manufacturing from China to these countries. Moreover, governments of economies in the Asia Pacific region are investing in building logistics hub such as KLIA Aeropolis in Malaysia. Further, countries such as Vietnam is a major agro-forestry-fisher exporter. Emirates SkyCargo, a Dubai based carrier stated that the volume of fruit exports from Vietnam to Dubai has increased significantly during the past few years. With the increasing volume of exports, in 2018 the Emirates SkyCargo signed an MoU with the Investment and Tourism Promotion Centre of Ho Chi Minh City, Vietnam to cooperatively explore opportunities for promoting trade to and from Vietnam.
The global air cargo market by end-user was led by others sector. Other segment includes engineering & manufacturing technology equipment, chemical, and energy sector. The increasing industrialization and globalization have created a significant demand for industrial equipment across the globe. The government initiatives such as FDI, Export Oriented Unit (EOU) Scheme, NAFTA, and others are positively impacting the air cargo market, globally. The increasing demand for low-cost transportation, fast delivery, cross border business is significantly driving the global air cargo market.
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The report segments the global air cargo market as follows:
Global Air Cargo Market – By Type
- Air Mail
- Air Freight
Global Air Cargo Market – By Service
Global Air Cargo Market – By End-user
- Pharmaceutical & Healthcare
- Food & Beverage
- Consumer Electronics
Global Air Cargo Market – By Geography
- North America
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