Market Trends of Aircraft Cargo Systems Industry
The Cargo Loading Systems Segment to Experience the Highest Growth During the Forecast Period
The cargo loading systems segment of the market is expected to register the highest CAGR during the forecast period. The need for better aircraft loading techniques mainly drives this growth. These are required to create more cargo space, greater efficiency, and eliminate costly ground delays, thereby creating additional revenue opportunities.
Loading too much weight at a particular area of a freighter aircraft can cause damage to the structure and, sometimes, lead to the grounding of the aircraft. Airlines are integrating new technologies to develop new cargo loading systems to avoid this. It can help the carriers to distribute cargo volume and weight capacity evenly on each aircraft. It will aid in avoiding structural damage and providing better support for large and special product shipments.
For instance, in August 2023, IBS Software signed a contract with Turkish Cargo to deliver the iCargo solution, which will enable an airline's entire air cargo movement. Furthermore, real-time information and relevant intelligence will be greatly enhanced with the integration of all cargo management into one application suite, enabling users at all levels to an increased access level in any location.
Asia-Pacific to Experience the Highest Growth During the Forecast Period
The Asia-Pacific region is anticipated to hold the highest growth rate during the forecast period. The growth is majorly due to an increase in air cargo services and the rise in the e-commerce market. The rapid growth of low-cost carriers and an increase in passenger traffic result in air cargo volumes. Moreover, development in technologies such as blockchain and RFID is also projected to improve the efficiency and security of cargo systems. Southeast Asia region is the largest e-commerce market, with China including the highest exports, acting as the major driver for the growth in the region. Asia-Pacific countries are supporting trade growth by increasing their freighter aircraft fleets.
For instance, in March 2023, Boeing signed an agreement with GMR Aero Technic to set up a new Boeing Converted Freighter (BCF) line in Hyderabad (India). GMR Aero Technic can support future conversions of both domestic and foreign aircraft. The agreement adds to Boeing's continued investments to support the demand for cargo aircraft and help build complex aircraft modification capabilities and Maintenance, Repair, and Overhaul (MRO) in the Asia-Pacific region.
Such a rapid increase in demand for the transformation of passenger aircraft into freighter aircraft in the region will propel the growth of the aircraft cargo systems market during the forecast period. Similarly, in January 2023, Amazon launched Amazon Air, its air cargo fleet, in India. India is its fourth market outside the US, Canada, and Europe to get the facility to speed up e-commerce deliveries. The company is leasing aircraft from Quikjet Cargo Airlines (India).
