According to a report published by Global Market Insights, the Air Cargo Industry is anticipated to grow at a CAGR of five percent between 2023- 2032, increasing the market value projection to USD 300 billion. The global air freight market is on a growing spree, and over the next five years, we can anticipate significant developments that will shape the industry's landscape.
Let's explore five key global Air Cargo market predictions, focusing on the Indian market.
Prediction 1: Continued Growth of E-commerce in India
e-Commerce in India is booming, and this trend will persist. Over the years, especially post-pandemic, more Indian consumers have preferred online shopping for swift and reliable deliveries. With the Indian e-commerce giants relying heavily on Air Cargo to meet customer expectations, the Air Cargo Industry will remain a crucial component of the e-Commerce supply chain for the next five years.
Prediction 2: Expansion of Air Cargo Infrastructure and Technological Advancements
Significant investments in Air Cargo infrastructure across India have been made to accommodate the increasing demand. The Aviation Ministry plans to add 100 to 110 aircraft every year, resulting in a total fleet of approximately 1,200 aircraft by 2027. Moreover, the Indian government is allocating resources to enhance the objective of the UDAN Scheme, strengthening regional air connectivity.
Furthermore, the Air Freight Industry has further integrated advanced technologies, such as artificial intelligence (AI) for route optimisation and the Internet of Things (IoT) for real-time tracking. These innovations will streamline cargo operations and improve overall efficiency.
Prediction 3: Focus on Sustainability
In the coming years, pressure to reduce the carbon footprint will push the Industry towards greener practices. According to a report published by the International Air Transport Association (IATA), governments reached a consensus during the 41st ICAO Assembly on the Long-Term Aspirational Goal (LTAG) of achieving net-zero carbon emissions by 2050. Environmental concerns will drive sustainability initiatives in the Indian Air Cargo sector. Airlines and cargo companies will invest in fuel-efficient aircraft and sustainable aviation fuels to align with environmental goals and regulations.
Prediction 4: Digitalisation and Efficiency
The digital transformation will accelerate with the increased adoption of digital platforms for booking, tracking, and managing Air Cargo operations. Moreover, the addition will improve transparency and efficiency throughout the supply chain. IATA has launched several projects to enhance digitalisation like eAWB, Cargo Connect, Interactive Cargo and more.
Prediction 5: Role in New Trade Routes
Geopolitical changes and trade agreements will influence global trade routes. Moreover, as trade dynamics evolve, India may emerge as a hub connecting various regions. The suggestions of the ICAO's Council aim to minimise direct interactions between international trade and transportation experts in the forthcoming years. The process will lead to a seamless flow of cross-border trade and global transportation activities, shielding them from constraints.
Overall, these predictions provide valuable insights into the future of the global Air Cargo market. Still, it's crucial to remain mindful of the impact of unforeseen events such as geopolitical crises, economic downturns, or pandemics, which may necessitate adaptations. Nevertheless, the global Air Freight market is poised for remarkable transformations, shaping the industry's future.
