The North America air cargo market is seen expanding by US$5 billion in the next eight years to be driven by growth in e-commerce, according to business intelligence firm Aircargopedia.
In a statement, the research and business intelligence firm said the North America air cargo market accounts for US$21.01 billion in 2018 and is expected to grow at a CAGR of 2.5% over the forecast period 2019-2030, to account for US$26 billion in 2028.
The positive impact of the growing e-commerce sector, it noted, is the key driver that is propelling the growth of the air cargo market.
"The focus on design and implementation of various software solutions across the region is expected to boost the air cargo market growth in the forecast period. The e-commerce industry gathered pace in the early part of this decade with advancements in the internet infrastructures & speed, as well as increasing smartphones and internet penetration among the users," Aircargopedia said.
As the global e-commerce market is heating up, changing buying patterns and trends, have been observed in different countries of the region with regards to the product category preferred for online purchase.
"Air cargo is a significant component of the e-commerce ecosystem to manage the transportation of goods globally," it added.
In contrast with the retail store, Aircargopedia said the e-commerce business is accountable for ensuring timely delivery, and if the goods or products are returned, then the company has to manage all the operations in reverse logistics.
In the e-commerce business, the business intelligence company said air cargo service providers deliver flexibility and scalability, upgraded technology, and efficiency & specialization along with services like data management, real-time tracking, safe transportation, and reduced time, among others.
Aircargopedia noted that the current air cargo market is fragmented with the presence of several industries, although "the competitive dynamics in the market is expected to change during the upcoming years."
