Asia Pacific Air Cargo Market Report 2022: A $59.29 Billion Market by 2028 – Rational Cool Chain Solutions Gaining Momentum & Expanding Airport Infrastructure in Southeast Asia and New Policies – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Asia Pacific Air Cargo Market Forecast to 2028 – COVID-19 Impact and Regional Analysis By Type, Services, and End User” report has been added to ResearchAndMarkets.com’s offering.
The Asia Pacific air cargo market is expected to grow from US$ 38,355.21 million in 2022 to US$ 59,298.21 million by 2028; it is estimated to grow at a CAGR of 7.3% from 2022 to 2028.
Online retailing attracts more prospective customers than brick-and-mortar-based competitors as the internet has a global reach. In addition, e-commerce market players choose from various logistics options, such as surface transport and air transport, to deliver packages to their customers.
Therefore, as the e-commerce market is growing, varying buying patterns and trends have been observed in multiple countries across the Asia Pacific region. The majority of people’s purchases are influenced by the country’s demographics, such as the percentage of youth indulging in e-commerce activity, the economy of the country, the age group interested in e-commerce, and the level of awareness among the citizens in the Asia Pacific countries.
Thus, e-commerce is expected to fuel the air cargo industry, as online shopping boosts the demand for parcel delivery services across Asia Pacific region. Air cargo can serve customers needs and deliver goods with speed, efficiency, and reliability. The fast-growing cross-border e-commerce market and the rising domestic volumes sent by large and small e-retailers are driving the Asia Pacific air cargo market growth.
Impact of COVID-19 Pandemic on Asia Pacific Air Cargo Market Size
Irrespective of a downfall in the airline sector during the COVID-19 pandemic due to travel restrictions imposed in many countries in Asia Pacific, the air cargo demand held up relatively well. However, supply chain disruptions and weakening business and consumer confidence due to increased uncertainties and rising unemployment adversely affected the air cargo businesses.
As per the Association of Asia Pacific Airlines (AAPA), the air cargo sector plays an active role in the transportation of essential medical equipment and supplies. Many countries in Asia Pacific encouraged several airlines to modify their passenger aircraft for air freight transport temporarily.
For instance, Fiji Airways modified one ATR 72-600 into a freighter configuration for cargo operations in June 2020. While a standard passenger ATR72-600 can only carry 1.7 metric tons of cargo, its freighter-modified model can carry up to 8 metric tons, making it suitable for Pacific Island countries, given the region’s demand and oper ating conditions.
Air Astana Cargo, a freight business founded in May 2020, announced that it would use three B767-300ERs, withdrawn from the airline’s fleet and retrofitted for cargo transport. Such initiatives by airlines are driving the growth of the Asia Pacific air cargo market.
In terms of Asia Pacific air cargo market share, South Korea is expected to account for the fourth-largest market share in 2022. South Korea has one of the world’s biggest air cargo carrier industry. It has benefited from strong demand when the collapse of passenger traffic has reduced available transport space.
For instance, Korean Air Lines observed a consolidated operating profit of US$ 97.55 billion (109 billion won) in 2020, as cargo sales helped offset a slump in passenger travel due to COVID-19 restrictions. The cargo sales jumped by 66% to US$ 3.00 billion (4.3 trillion won) in 2020 compared to 2019.
Cargo sales were underpinned by the airline’s strategy to increase the operation rate of cargo planes and utilize idle passenger planes for transport, the airline said in a statement. Korean Air and Asiana Airlines, South Korea’s two largest airlines, increased their operational earnings significantly in 2021, harnessing surging demand for cargo transport to help offset low passenger traffic.
The need for COVID-19 diagnostic kits and auto parts has increased, and the demand for sea cargo has transferred to air transport, which is driving air cargo sales. Therefore, this leads to the significant growth of the air cargo market in South Korea. Further, in June 2022, as Korean Air continues to position itself for high cargo demand, it is considering a move for the new wide-body freighters released by Airbus and Boeing in recent months.
Long-term strong cargo demand also prompted Airbus to launch its A350 freighter last year in 2021 and Boeing its 777X freighter in January 2022. Thus, increasing the number of aircraft in cargo service will boost the Asia Pacific air cargo market during the forecast period.
India is expected to be the fastest-growing Asia Pacific air cargo market during the forecast period. Based on country, the Asia Pacific air cargo market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. in 2022, Japan is expected to account for the second-largest air cargo market share in the Asia Pacific region.
The Rest of APAC comprises Indonesia, Singapore, Malaysia, Cambodia, Thailand, Philippines, Vietnam, Bangladesh, Sri Lanka, and Pakistan. These countries have been contributing to the Asia Pacific air cargo market growth. However, these countries account for a lesser share than the other countries considered under the scope. For instance, according to the Asia Pacific air cargo market analysis, Thailand is expected to account for over 2.5% market share in 2022 in the Asia Pacific air cargo market.
Key Industry Dynamics
- Speedy Adoption of E-Commerce Platforms
- Continuous Need to Transport Temperature-Sensitive Products
- Market Ambiguity
- Difficulty in Temperature-Sensitive Cargo Operations
- Expanding Airport Infrastructure in Southeast Asia and New Policies
- Rational Cool Chain Solutions
- Execution of Several Software Solutions
- ANA Cargo
- Cathay Pacific Airways Limited
- DHL International GmbH
- Emirates SkyCargo
- Etihad Cargo
- FedEx Corporation
- United Parcel Service of America, Inc.
- Lufthansa Cargo AG
- Korean Air
For more information about this report visit https://www.researchandmarkets.com/r/wltrue
The content is by Business Wire. Headlines of Today Media is not responsible for the content provided or any links related to this content. Headlines of Today Media is not responsible for the correctness, topicality or the quality of the content.