Air cargo market to grow 5.97 percent
The Global Air Cargo market has also been witnessing an increase in the number of new air routes. However, the increasing competition from surface transportation could pose a challenge to the growth of this market.
The report "Global Air Cargo Market Report" has been prepared based on a market analysis with inputs from industry experts. The report covers the market in the APAC region, North America, South America, the Middle East, Africa, Europe, and CIS; it also covers the Global Air Cargo landscape and its growth prospects in the coming years.
The Global Air Cargo market is witnessing an increase in airline research, which is resulting in the introduction of new air routes for cargo transportation purposes. This is a trend which is expected to continue over the years. Airlines are adopting the acquisitive route to enter the Global Air Cargo market to increase their revenue. Airline research has also resulted in the adoption of a new concept of dedicated cargo terminals at airports.
Such terminals will be operated and maintained by cargo airlines and not by the airline that owns the airport. This concept can reduce the cost of airport operations for the airline. In this scenario, cargo airlines will use certain airports as their hub airports, from where they can transport goods and also try to capitalize on the air cargo markets in which those hubs are based.
According to the report, the major growth driver is the increase in online retail stores. Online retail stores and fashion stores are the major revenue contributing sectors in the Global Air Cargo market. Over a period of many years these have been the major contributors to market share.
Further, the report states that the major challenge for the market is the increase in surface competition. For instance, bullet trains are giving tough competition to the Global Air Cargo market. ■