Report : North America Air Cargo Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Type (Air Mail and Air Freight), Service (Express and Regular), and End User (Retail, Pharmaceutical & Healthcare, Food & Beverage, Consumer Electronics, Automotive, and Others)
At 5.2% CAGR, the North America Air Cargo Market is speculated to be worth US$ 43.20 billion by 2028, says The Business Market Insights
According to the Business Market Insights’ research, the North America air cargo market was valued at US$ 31.94 billion in 2022 and is expected to reach US$ 43.20 billion by 2028, registering a CAGR of 5.2% from 2022 to 2028. Rapid adoption of E-Commerce platforms and constant need to transport temperature-sensitive products are the critical factors attributed to the North America air cargo market expansion.
Online retailing attracts prospective customers than brick and mortar based competitors due to the scale of the internet. In addition, e-commerce market players opt from a variety of logistics options such as the surface transport and air transport, to deliver packages to their customers. Therefore, as the e-commerce market is heating up, varying buying patterns and trends have been observed in different countries. Majority of the purchase is influenced by the demographics of the country such as the percentage of youth population indulging in e-commerce activity, the economy of the country, age group interested in e-commerce, and the level of awareness in the country. Thus, e-commerce is a future growth driver for the air cargo industry, as online shopping boosts the demand for parcel delivery services. Air cargo is well-positioned to serve their needs and deliver their goods with speed, efficiency, and reliability. The fast-growing cross-border e-commerce market remains a key driver in addition to rising domestic volumes sent by large and small e-retailers. Air cargo is an important for the e-commerce ecosystem to manage the transportation of goods. Air cargo service providers deliver upgraded technology, flexibility & scalability, and efficiency & specialization in the e-commerce business. There are numerous benefits pertaining to the e-commerce and they can get fulfilled if the company delivers to customers on time. Thus, several organizations are engaged in improving air cargo services owing to the growing adoption of e-commerce. Online shoppers are now purchasing frequently, and cross-border e-commerce volumes are growing. Customers’ expectations are similar for domestic and cross border e-commerce. Moreover, many passenger aircraft had been operating as cargo planes during the pandemic when the passenger traffic witnessed a steep decline which has also boosted the adoption of air cargo services during the years 2020 to 2022. Such factors are boosting the North America air cargo market.
On the contrary, market uncertainty hurdles the growth of North America air cargo market.
Based on type, the North America air cargo market is segmented into air mail and air freight. The air freight segment held 84.4% share of North America air cargo market in 2022, amassing US$ 26.96 billion. It is projected to garner US$ 36.88 billion by 2028 to expand at 5.4% CAGR during 2022–2028.
Based on service, the North America air cargo market is segmented into express and regular. The regular segment held 52.5% share of North America air cargo market in 2022, amassing US$ 16.77 billion. It is projected to garner US$ 22.07 billion by 2028 to expand at 4.7% CAGR during 2022–2028.
Based on end user, the North America air cargo market is segmented into retail, pharmaceutical & healthcare, food & beverage, consumer electronics, automotive, and others. The others segment held 24.4% share of North America air cargo market in 2022, amassing US$ 7.80 billion. It is projected to garner US$ 9.02 billion by 2028 to expand at 2.5% CAGR during 2022–2028.
Based on country, the North America air cargo market has been categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 62.9% share of North America air cargo market in 2022. It was assessed at US$ 20.10 billion in 2022 and is likely to hit US$ 27.22 billion by 2028, exhibiting a CAGR of 5.2% during the forecast period.
Key players dominating the North America air cargo market are ANA Cargo; Cargolux; Cathay Pacific Airways Limited; DHL International GmbH (Deutsche Post DHL Group); Emirates SkyCargo; Etihad Cargo; FedEx Corporation; Lufthansa Cargo AG; and United Parcel Service of America, Inc. among others.
- In 2021, Lufthansa Cargo is expanding its extremely efficient freighter fleet with the addition of another brand-new Boeing 777F aircraft. The plane is expected to arrive before the end of the year. Customers of Lufthansa Cargo will then have access to a total of fifteen full-freighters.
- In 2022, DHL Express continues to strengthen its global aviation network with the purchase of eight additional Boeing 777 Freighters.
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