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Air Cargo Market to Expand at a CAGR of 4.9% by 2025, Due to Growing Effective Options for Goods Transportation, Noted TMR
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According to TMR, the global air cargo market is assessed to expand at an impressive CAGR of 4.9% over the forecast period from 2017 to 2025. With this vigorous CAGR, the market is expected to attain a value of US$130.12 bn by 2025-end. Based on the type, the air freight segment dominated the global air cargo market and is expected to retain its dominance over the forecast period. The market is estimated to account for major market by end of the forecast period and is estimated to collect revenue of nearly US$98.81 bn by 2020-end. Based on the end-user, the pharmaceuticals and healthcare segment accounted for a leading share and is expected to remain the dominant segment in the air cargo market by the end of the forecast period. Regionally, Asia Pacific dominated the market and the region is expected to expand with the most lucrative growth rate over the forecast period.
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Transportation of goods from one destination to another through air is a basic idea of air cargo. Growing demand for the transportation of goods is driving the growth of the global air cargo market. Further, implementation of favorable policies and strategies such as 'Open Skies' is encouraging growth of the market too. Open skies are international policies, which liberalize the rules present in the aviation industry and impact favorably on growth of the air cargo market. Moreover, growing support from the government in the form of these policies is resulting in creation of numerous opportunities for growth of the air cargo market in the coming future.
Additionally, air transport has been considered effective for shipping perishable, pharmaceutical products, and important chemicals. It offers the benefits such as timely delivery and temperature-controlled transportation for most goods. In addition, a growing reliance and capability of investing more for adopting air cargo services is occurring all over the globe, which is propelling growth of the air cargo market.
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Despite these factors, rising prices of aviation fuel coupled with political instability in numerous countries are restraining growth of the market to some extent. Nonetheless, growing demand for quick and prominent shipping methods across the globe due to expanding the e-commerce sector is offering numerous growth opportunities. Further, the emergence of just-in-time (JIT) manufacturers is encouraging the manufacture of goods just before shipping it, thus facilitating timely delivery. This system reduces the cost of the inventory and improves operation efficacy. This current trend in the market is boosting the air cargo market and is expected to remain the same in the forthcoming years. Additionally, it is expected to create lucrative opportunities for the growth of the global air cargo market in the years to come.
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This information is encompassed in t he report by TMR, titled, "Air Cargo Market (Type - Air Freight and Air Mail; Service - Express, Regular), End User - Consumer Electronics, Retail, Third Party Logistics, Food and Beverages, Pharmaceuticals and Healthcare; Destination - Domestic and International) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2025."
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