Technavio Forecasts Robust Growth in Air Cargo Sector
According to industry analyst Technavio’s recent report titled “Air Cargo Market Analysis 2023-27,” the air cargo industry is poised for significant expansion in the coming years. Projections suggest a substantial increase of 19.5 million tons in cargo volume between 2022 and 2027, with a compound annual growth rate of 5.3% during this period.
Several factors are expected to drive this growth. These include the surge in e-commerce transactions, particularly notable in the Asia Pacific region, which is anticipated to contribute 30% of the market’s growth by 2027. Additionally, there is a rising demand from just-in-time manufacturers and a growing need for transporting temperature-sensitive products, particularly pharmaceuticals.
External factors such as expected fluctuations in jet fuel prices, changes in import/export volumes, and a shift in trade patterns towards ocean freight may also influence the airfreight sector.
Within the industry itself, there is a growing emphasis on air cargo digitization and the integration of autonomous vehicles into logistics operations.
The report highlights notable developments in the first quarter of 2023, including major cargo carriers like FedEx, UPS, Emirates, and Cathay Pacific ramping up their cargo traffic close to pre-crisis levels.
Looking ahead, Technavio sees significant opportunities for logistics companies and airlines to capitalize on the expanding air cargo market. Leveraging technological advancements and strategic partnerships, they can drive growth and improve efficiency in global goods transportation.
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