Asia Pacific Air Cargo Market Market to Grow at a CAGR of 9.2% to reach US$ 59,298.21 million Million from 2022 to 2028

The Asia Pacific air cargo market size 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.

With the constant rise in the demand for air cargo, several players operating in the supply chain are significantly investing to compete in the Asia Pacific air cargo market efficiently. For instance, in May 2022, DHL Express and Singapore Airlines (SIA) signed a Crew and Maintenance agreement (CM) to deploy five Boeing 777 freighters. The DHL Express partnership represents a "further step" in expanding its intercontinental aviation network to satisfy customer demand in quickly expanding international express shipping markets.

With the growing demand for air cargo from the pharmaceutical industry, the market players are making necessary technological strides to cope with the fast-growing demand. For instance, in January 2019, an airport-to-airport (A2A) pharmaceutical corridor was established between Brussels Airport and Hong Kong International Airport to provide services to fulfill the demands of pharmaceutical shipments. The two airports led the effort in collaboration with Pharma companies. Under the collaboration AERO company had provided the necessary services and standards for the better handling of temperature-sensitive pharmaceutical products. Both airports have earned the Centre of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification from the International Air Transport Association (IATA), which guarantees that airport cargo service providers handle pharmaceutical shipments under strict guidelines. The industry recently made great strides in monitoring temperature-sensitive goods on the ground and in the air. Thus, the factors mentioned above are driving the Asia Pacific air cargo market growth.

Impact of COVID-19 Pandemic on Asia Pacific Air Cargo Market Growth

In FY 2020, despite the COVID-19 pandemic, the demand for air cargo in Asia Pacific has been driven by the large transportation of medical and pharmaceutical products and COVID-19 vaccines across different Asian countries. For instance, in 2020, China Airline’s cargo team was chosen to transport the Moderna and AstraZeneca vaccines from Luxembourg, Amsterdam, Bangkok, Memphis, and other locations back to Taiwan. Furthermore, in 2020, the Chinese Airlines network was also used to transport vaccines to other countries. Such operations have driven the demand for air cargo services in Asia Pacific during the COVID-19 pandemic in 2020. Moreover, in 2021, several air cargo vendors partnered with different vaccine manufacturing companies to transfer, supply, and distribute the vaccines to other countries after the vaccine development. For instance, in 2021, DHL Global Forwarding Japan and ANA partnered to deliver Pfizer's COVID-19 vaccine across Japanese cities. Such developments have driven the Asia Pacific air cargo market size during the FY 2020-2021.

Market Insights – Asia Pacific Air Cargo Market

Based on country, the Asia Pacific air cargo market analysis is primarily segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. China is expected to dominate the market in 2022 in terms of Asia Pacific air cargo market share in 2022 and it is expected to retain its dominance during the forecast period, followed by Japan and India. Some of the top airports that handles large volume of cargo annually in China include Hong Kong International Airport, Beijing Airport, and Shanghai Pudong International Airport. In Hong Kong International Airport, some of the top ground handlers include Hong Kong Airport Services Limited, Jardine Aviation Services, and SATS HK Ltd. Further, India is expected to be the fastest growing country in the Asia Pacific air cargo market during the forecast period, according to the Asia Pacific air cargo market analysis. Some of the top airports in India that handles large cargo volume include Indra Gandhi International Airport and Chhatrapati Shivaji International Airport.

Type-Based Insights – Asia Pacific Air Cargo Market

Based on type, the Asia Pacific air cargo market is bifurcated into air mail and air freight. The air freight segment is expected to dominate the market in 2022. The companies such as ANA Cargo Inc., Cathay Pacific Airways Limited, SIA Cargo, and Japan Cargo are among the major air cargo market players offering air freight services in the Asia Pacific air cargo market for air freight segment. These companies transport cargo for industries such as retail, pharmaceuticals and healthcare, food & beverages, consumer electronics, and automotive. Further, Cathay Pacific Airways Limited also transports live animals from one location to another. For instance, in January 2022 Geodis expanded its Asia Pacific airfreight network through cooperation with Malaysia's Air Asia X, following rising volumes and a continued lack of belly-hold capacity throughout the region. The initial term of the agreement is expected to last for six months starting on January 20, 2022, with potential extensions beyond that. In accordance with the contract, AAX will provide frequent, dedicated scheduled cargo flights between Kuala Lumpur (Malaysia) and Hong Kong, Chennai (India), Shanghai (China), and Sydney (Australia). Therefore, the expansion of the airfreight network in the Asia Pacific region is driving the air freight segment in the Asia Pacific air cargo market.

DHL International, Emirates SkyCargo, Korean Air, Cathay Pacific, and Etihad Cargo are among the prominent players operating in the Asia Pacific air cargo market. The Asia Pacific air cargo market is moderately consolidated, with several players localized in specific regions to cater to domestic demand.

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Asia Pacific Air Cargo Market: Strategic Insights

Asia Pacific Air Cargo Market

• Market Size 2022
  US$ 38,355.21 Million
• Market Size 2028
  US$ 59,298.21 Million

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• Asia-Pacific

Market Segmentation

Type

• Air Mail and Air Freight

Services

• Express and Regular

End User

• Retail
• Pharmaceutical and Healthcare
• Food and Beverage
• Consumer Electronics
• Automotive

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– Asia Pacific Air Cargo Market

Players operating in the Asia Pacific air cargo market are mainly focused on providing efficient cargo services to their customers.

• In 2020, United Parcel Service of America, Inc. made delivery easier by handling signatures at UPS access point location deliveries. The UPS Stores and Michaels now accept packages requiring adult signatures, giving consumers increased control over when and where they sign for and receive deliveries. Michaels also offers in-store pick-up and an option for contactless pick-up in many locations.
• In 2020, due to ANA and cargo one's partnership, the ever-growing number of freight forwarders using cargo.one will have easy web-based access to ANA's large network with a focus on top destinations in Asia Pacific such as HND, NRT, HKG, SIN, and more for booking with instant confirmation.

Asia Pacific Air Cargo Market Report Scope