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.
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%. 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.
Read On For More On 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.
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. Over the last few years, food industry have changed the way they used to work earlier, now as the approach is different toward the food processing, companies are looking for cost controlled, energy efficient along with quality and efficiency. This is the main objective of air cargo market. Furthermore, the growing pharmaceuticals and healthcare sector is also projected to make a generous contribution to the soaring revenue of the global air cargo market. Rising demand for time-sensitive goods is anticipated to spike the need for efficient air cargo networks. This can been seen in areas that are affected by natural calamities and in war zones.
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