FELTON, California, March 14, 2019 /PRNewswire/ -- The global air cargo market size is anticipated to reach USD 135.9 billion FTK by 2025. This is attributed to the increasing penetration of digital technology in the retail industry resulting in a paradigm shift in consumer buying patterns and their expectations. This in turn has led to the substantial growth of the market.
There has been tremendous growth in internet retail sales in the past few years with an annual growth rate of more than 17%. This growth has rendered a positive outlook for the market. Also, rising cross border e-commerce coupled with increasing domestic volumes of large and small e-retailers will further create a lot of growth opportunities in the coming years.
According to the International Air Transport Association (IATA), in the year 2017, the market reported double the annual growth when compared to the previous year. The industry outperformed worldwide in both the segment cargo capacity as well as the passenger demand. There is continuous development in yields, loading factor and revenue. The air cargo business is very competitive in nature, but it has experienced significant development in terms of growth and revenue in the year 2017.
The power of the U.S. economy and the high disposable income and spending have supported the increasing demand for air cargo since last few years, which is benefiting the U.S carrier. The U.S. industry is managing the demand with strategic capacity planning of new routes.
Browse full research report with TOC on "Air Cargo Market Size And Forecast By Component Type (Air Freight, Air Mail), Service (Express, Regular), And Trend Analysis, 2019 - 2025" at: https://www.hexaresearch.com/press-release/global-air-cargo-market
Air freight is the major segment which is driving the growth of market. This segment is growing with a CAGR of around 3.2% from 2017 to 2025. The reason for the growth of this market is due to high demand for air cargo. The players in this market also offer stable pricing even during the peak seasons the suppliers go for ad hoc booking. There are many advantages with regards to this market for example, when there is set flight scheduling delivery beforehand there is consistency in the supply chain process and timely delivery.
APAC market is leading the air cargo industry with more than 35% of global share. The region is expected to grow gradually to gain more market share in coming years. The growth of this region is supported with factors such as increasing demand over online retail stores, especially for garments and accessories. Another additional factor to this is the growing demand for timely delivery of products without any risk for the product damage and theft.
Some of the key players operating in the global air cargo industry are Cathay Pacific Cargo, FedEx Express, DHL Aviation, UPS Airlines, China Airlines Cargo, Lufthansa Cargo, Cargolux, Korean Air Caro, Singapore Airlines Cargo, and Emirates, SkyCargo. Market players are focusing on offering lucrative services to lure and widen their customer base. For instance, DHL express have come up with new cargo service for health care industry shippers, who are operating in Latin America and the U.S. to meet the delay at Brazilian airport.
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Hexa Research has segmented the air cargo market report based on component type, service and region: -
Segmentation by Component Type
- Air Freight
- Air Mail
Segmentation by Service
Segmentation by Region
- North America
- Asia Pacific
- South Korea
- Middle East & Africa
- Central & South America
Key players analyzed
- FedEx Express
- UPS Airlines
- DHL Aviation
- Cathay Pacific Cargo
- China Airlines Cargo
- Korean Air Caro
- Lufthansa Cargo
- Singapore Airlines Cargo
- Emirates SkyCargo
About Hexa Research
Hexa Research is a market research and consulting organization, offering industry reports, custom research and consulting services to a host of key industries across the globe. We offer comprehensive business intelligence in the form of industry reports which help our clients obtain clarity about their business environment and enable them to undertake strategic growth initiatives.
SOURCE Hexa Research