Researchers see $130bn air cargo market by 2025
06 / 12 / 2017
The global air cargo market could be worth over $130bn by 2025, according to New York-based market intelligence firm, Transparency Market Research (TMR).
In its new report, TMR predicted that the global market will show steady growth of 4.9% a year, with the pharmaceuticals and healthcare segment expected to be particularly strong. Asia Pacific is expected to remain the largest market in the coming years, it adds, growing by 5.3% between 2017 and 2025.
The report observed however that global air cargo is highly fragmented, split between combination airlines, charter operators and all-cargo airlines.
However, Open Skies policies have had a positive impact, making for smoother global trade. Moreover, air transport is preferred for its speed by shippers of products such as perishables, chemicals, and valuables.
TMR sees the global e-commerce market more than doubling during the forecast period, presenting the air express sector with growth opportunities. Recent associations between e-tailers and carriers indicates the rise in overseas logistics, as online shopping encourages demand for shipping orders worldwide, it says.
Meanwhile, the growing pharmaceuticals and healthcare sector is also projected to make a generous contribution to soaring air cargo revenues. Rising demand for time-sensitive goods is anticipated to boost the need for efficient air cargo networks, as can been seen in areas affected by natural calamities and in war zones.
Possible restraints on growth include political instability in many countries, which could in turn impede open skies policies and hamper trade and other activities.
At the same time, the soaring cost of aviation fuel will have a direct impact on the cost of air freight. “However, the booming e-commerce businesses that are opening up opportunities for international trade are expected to offer the global market a fair chance to prosper against all odds,” said TMR.
It also expects leading industry players to open operations in uncharted areas to increase their revenues in the coming years. Keeping air cargo charges as reasonable as possible to earn wider consumer base will also be an important strategy, TMR predicted.