North America Air Cargo Market to 2027 - Regional Analysis and Forecasts by Type (Air Mail and Air Freight); Service (Express and Regular); and End User (Retail, Pharmaceutical & Healthcare, Food & Beverages, Consumer Electronics, Automotive, and Others)
The North America air cargo market accounted for US$ 21.01 Bn in 2018 and is expected to grow at a CAGR of 2.4% over the forecast period 2019-2027, to account for US$ 25.99 Bn in 2027. The positive impact of the growing e-commerce sector is the key driver that is propelling the growth of the air cargo market. Moreover, the focus on design and implementation of various software solutions across the region is expected to boost the air cargo market growth in the forecast period. The e-commerce industry gathered pace in the early part of this decade with advancements in the internet infrastructures & speed, as well as increasing smartphones and internet penetration among the users. E-commerce sparked an upheaval in the consumers buying behavior and also changed how businesses interact with each other. As the global e-commerce market is heating up, changing buying patterns and trends, have been observed in different countries of the region with regards to the product category preferred for online purchase. Air cargo is a significant component of the e-commerce ecosystem to manage the transportation of goods globally.
In contrast with the retail store, the e-commerce business is accountable for ensuring timely delivery, and if the goods or products are returned, then the company has to manage all the operations in reverse logistics. In the e-commerce business, air cargo service providers deliver flexibility & scalability, upgraded technology, and efficiency & specialization. Moreover, the services provided by air cargo firms to e-commerce business are data management, real-time tracking, safe transportation, reduced time, and others. The air cargo market players are focusing on various initiatives to enhance its reach to rural areas and boost its position in the market.
The air cargo market is fragmented with the presence of several industries, and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the air cargo market further. For instance, the North American Free Trade Agreement (NAFTA) is an agreement signed between the US, Canada, and Mexico, this has reduced most tariff and non-tariff barriers to free trade and investment between the three countries, further, this has helped in increasing the trade and investment level in North American countries. The NAFTA has benefitted the transportation & logistics industry. Also, the decentralization of large sectors in the US, setting up their manufacturing bases in Mexico has further led to increased transportation & logistics activities within the North American region. Any logistic service provider needs to take into considerations the regulations under the domain of NAFTA. Any changes in the regulations are sure to have an impact on the air cargo market. These initiative provide various benefits to the US air cargo based companies located in the region, thus, increasing the growth of the air cargo market.
Based on type, the air freight segment is leading the air cargo market and is expected to continue its dominance during the forecast period. Air freight is the transportation of goods via an air carrier, which can be commercial or charter. With the increasing demand for quick delivery, express shipping is trending in the air freight market. The express shipping option of air freight makes it valuable for coordinating time-sensitive shipments across the globe. The small and mid-sized companies are highly benefited by air freight as it allows them to participate in international trade expeditiously and effectively. The air freight market is expected to witness significant growth during the forecast period due to the booming e-commerce sector. The air freight market is highly influenced by regional regulations. With the implementation of advanced technologies such as IoT, big data, real-time tracking, and others are expected to have a significant positive impact on the market.
The overall air cargo market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the air cargo market. It also provides an overview and forecast for the air cargo market based on all the segmentation provided for the North America region. Also, primary interviews were conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the air cargo industry. Some of the players present in air cargo market are FedEx Express, UPS Airlines, DHL Aviation, Emirates, Cathay Pacific Airways, Korean Air Cargo, Lufthansa, Singapore Airlines Cargo, China Airlines, British Airways, Cargolux, ANA CARGO, and Zela Aviation The Air Charter Company among others.
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