Air Cargo Market Analysis

Air Cargo Market Analysis

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The express air cargo market size was reached USD 90 billion in 2022 and will observe around 5.5% CAGR during the forecast timeline. The growth in e-commerce has created a high demand for air freight services. Online retailers prefer fast & reliable deliveries to meet customer demands. An express air freight helps e-commerce companies in offering fast delivery options, thereby ensuring timely & efficient deliveries. As the business becomes more global, the supply chain becomes more complex and spreads across different countries.
 

Air delivery services play an important role in optimizing the global supply chain by enabling the quick & efficient movement of goods between different regions. This allows businesses to simplify operations, reduce lead times, and improve overall energy efficiency. In addition, express air cargo services offer businesses a competitive advantage by providing faster deliveries and acquiring unique market positions.

The international air cargo market dominated over 60% of revenue share in 2022, due to the growing need to transport goods across borders. Air services provide fast & efficient transportation for international shipments, enabling businesses to access global markets and meet customer needs. The rising use of e-commerce platforms and the popularity of online cross-border transactions have fueled the growth of international shipping. Customers can now buy products from anywhere in the world, thereby increasing the demand for international shipping services. Air cargo contribute greatly in the fast & reliable transportation of these goods across borders, thereby driving cross-border trading activities.

The air cargo market size from retail & e-commerce segment was surpassed USD 55 billion in 2022 and is set to expand at 5.5% CAGR through 2032. Retailers, especially in the e-commerce space, aim to expand their customer base beyond the domestic market. Air cargo is a reliable & efficient means of transportation to reach customers all over the world. Using air services, retailers can offer products to customers in different regions and also open new markets, thus leading to the air cargo market demand. The demand for air freight services is also increasing as retailers and e-commerce companies prioritize the consumer demand for fast deliveries.

Asia Pacific air cargo market share hold more than 30% in 2022, owing to the economic growth and increasing consumer demand for convenient products. The Asia Pacific region is home to some of the world's largest economies that have registered economic growth in recent years. This growth leads to rising air cargo market demand and an increase in the purchasing power of consumers.
 

The growing middle-class population and the increasing use of e-commerce platforms have led to the rising demand for air services to meet the product needs. The establishment of trade agreements and free trade zones in Asia Pacific has encouraged international trade and investments. These agreements promote trade liberalization, reduce trade barriers, simplify customs procedures, and make it easier for businesses to engage in cross-border trade. Air services play an important role in supporting the movement of goods under these agreements, thereby leading to economic growth.