The market’s growth prospects are well ahead of worldwide projections, where global volumes are expected to more than double by 2043 at a CAGR of 4 per cent, the aircraft manufacturer noted.
Despite India accounting for less than 1 per cent of global air cargo traffic in 2023, its domestic air cargo market is projected to explode in the next few decades, quadrupling over the next 20 years at a CAGR of 7 per cent, according to Boeing’s World Air Cargo Forecast.
Boeing sees Inditex as one retail giant contributing to India’s anticipated air cargo growth—mainly to avoid shipping delays.
Economic growth, expanding manufacturing, and an enormous domestic consumer market are all anticipated to propel the country’s air cargo capabilities in the coming years, the report said.
However, the biggest factor in the forecasts comes from the growth in India’s nascent e-commerce market.
“Rising household incomes, high internet penetration, and widespread smartphone adoption are powering a booming e-commerce market. Although still relatively small in volume compared to established e-commerce markets like China, the US, or the EU, Indian e-commerce volumes are growing faster than almost anywhere else at more than 25 per cent per year,” the report noted.
“Higher household incomes across the board, along with a rising affluent class, will drive explosive e-commerce growth and demand for distribution via domestic air cargo,” it said.
Major logistics players are getting in on the potential growth of the Indian market and such moves are expected to power further growth in global air cargo capabilities.
Fibre2Fashion News Desk (DS)