Global air cargo market to grow 4.9 percent to $130 billion by 2025: Report
January 4, 2018: E-commerce is fast reshaping the logistics industry. In today's globally connected world, there is a growing demand for swift and ready access of goods across the world.
Although land and ship cargo transportation still remain as favourable options, hitherto transferring goods by air is considered as the quickest and unhindered mode of transportation as it offers the facility to track and trace shipments, besides monitor delivery status from departure to arrival.
In a recent report released by Market Research Hub (MRH) titled %u2018Air Cargo Market-Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017- 2025' revealed that the market is expected to grow at a steady pace in couple of years.
As per the study, the global air cargo market is expected be valued at $130.12 billion by the end of 2025. Similarly, the global market is expected to well up at a CAGR of 4.9 percent between 2017 and 2025.
A detailed survey was conducted in a number of regions, including North America, Europe, South America, Asia-Pacific, the Middle East and Africa. The research suggested that the global air cargo market is highly fragmented. With a strong presence of combination airlines, chartered services and all-cargo airlines, the overall market continues to face several tough competitions.
Currently, air transport mode is preferred by companies across the globe for various products, such as perishables, chemicals, and valuables. Despite being costlier mode of transportation compared to other mode of transportation like land and sea, it takes less time.
In terms of geography, the research estimated that Asia Pacific would remain as the largest market in the future as it is expected to surge at a CAGR of 5.3 percent between 2017 and 2025.
Growing demand for online retail stores, especially fashion stores and rising demand for the just-in-time production of goods are anticipated to fuel a strong growth of the market in the APAC region.
The report further indicated that the global e-commerce market is expected to double during the forecast period, thus offering growth opportunities for the air express industry. Recent linkage between e-tailers and carriers highlight the rise in overseas logistics, as online shopping is fostering demand for shipping orders worldwide.