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Global air cargo service market set to grow by $8.5 billion in 2021

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By Edward Robertson

A new report is predicting the global air cargo service market will grow by $8.5 billion this year.

The Air Cargo Services Global Market Report 2021: COVID-19 Impact and Recovery to 2030 has predicted that the value of the sector will grow from $56.48 billion in 2020 to $64.98 billion in 2021 at a compound annual growth rate (CAGR) of 15 per cent.

It said the growth will be driven by companies rearranging their operations as they recover from the Covid-19 impact having suffered from restrictions placed by governments around the world in response to the pandemic.

Practices that previously prohibited growth and are now expected to be abandoned this year include social distancing, remote working and the closure of commercial activities, from grounded airlines to a slowdown in manufacturing around the world.

Air cargo companies are also expected to benefit from the increased use of block chain technology which should improve efficiency, minimise losses and prevent damage to cargo as they can better digitally track their goods.

The positive impact will be perhaps felt most keenly in the Asia Pacific region which has the largest air cargo services market in the world, accounting got 40 per cent of it, followed by North America with 26 per cent.

Nor is the growth expected to tail off any time soon, the report also predicts that the market is expected to be worth $99.67 billion in 2025 with a CAGR of 11 per cent.