Global air cargo market is expected to expand by 10% annually to be driven by synchronized global economic expansion, increased industrial output, and world trade growth.

A study conducted by market insight company, Valuates Reports, said the air cargo market could grow to US$183.8 billion by 2025, at a compounded annual growth rate of 10.25% from US$ 92.8 billion in 2018.

E-commerce boost

The report noted that among the trends influencing the air cargo market include:

• The rising e-commerce which has put sales channels under pressure for faster delivery and an efficient supply chain. Growth in overall cross-border e-commerce is also expected to fuel demand for the air cargo market.
  
  
• Products transported by air, such as time-sensitive perishables and high-value materials, including computers, consumer electronics, and pharmaceuticals, are among the fastest-growing trade flows in the world. The increase in demand for these products has in-turn, increased air cargo market growth.
  
  
• In developed countries, dedicated air cargo terminals are being designed in tandem with the increased air cargo volume to speed up the air cargo screening process and efficiently manage security threats. Advanced air cargo screening systems and new freight terminals increasingly being used are also triggering the expansion of the air cargo market.
  
  
• During the forecast period, North America is predicted to be the fastest-growing regional market. The increasing US economy and high disposable per capita income are driving the region's business growth.

During the forecast period, the study also revealed that North America is predicted to be the fastest-growing regional market.

The increasing US economy and high disposable per capita income will be driving the region's business growth.