Air Cargo Services Market Characteristics
The air cargo transportation services market consists of sales of air cargo transportation services by entities (organizations, sole traders and partnerships) that use aircraft, such as airplanes and helicopters to provide air transportation of cargo and mail on a contract basis over fixed international routes.
Competitive Landscape of the Air Cargo Services Market
Major players in the global air cargo services market include Cathay Pacific Cargo, FedEx, The Emirates Group, United Parcel Service, and DHL Aviation.
Air Cargo Services Market Size
According to air cargo industry analysis, the air cargo services market size is expected to decline at a CAGR of more than 1% during the forecast period. The decline in the air cargo services market is due to economic slowdown in countries such as Brazil, Spain, Portugal, Ireland, Slovakia, and Russia, and changes in trade agreements between the bordering countries of North America (NAFTA agreement).
Air Cargo Services Market Segmentation
The global air cargo services market is further segmented based on type and geography.
By Type - The air cargo services market is segmented into air mail and air freight.
By Geography - The global air cargo services market is segmented into North America, South America, Asia-Pacific, Eastern Europe, Western Europe, Middle East and Africa. Among these regions, Asia-Pacific’s air cargo services market accounts for the largest share in the global air cargo services market.
Trends in the Air Cargo Services Market
Digitization of systems has gained its popularity in the cargo transportation markets by easing the documentation process and provide integration and transparency. According to The International Air Cargo Association, the Air Waybill (AWB), a 20-step, 21-documents, is converted to an e-AWB to reduce the information re-entry to reduce wastage of time and provide efficiency. The e-AWB desktop tool was introduced to help small and medium air freight forwarders to create, send, and manage e-AWBs easily and efficiently.
Potential Opportunities in the Air Cargo Services Market
With increasing competition from new players and other substitute transportation modes such as road cargo transportation and rail cargo transportation service providers, the scope and potential for the global air cargo services market is expected to decline in the forecast period.