The aircraft cargo systems market is anticipated to register a CAGR of above 5% during the forecast period.
- The growth in e-commerce has stimulated air cargo growth, which in turn, is generating demand for freighter aircraft. For safe transfer of goods and cargo in freighter aircraft, the need for advanced cargo systems has increased significantly.
- With the introduction of the new generation of wide-body passenger aircraft with larger lower-hold capacity, most of the airlines are using their passenger aircraft for transportation of cargo to capitalize on additional revenue opportunities. This is generating a need for installation of cargo systems in passenger aircraft, which is boosting the growth of the market during the forecast period.
- Developments of new types of cargo fitting in aircraft are also driving the growth of the aircraft cargo systems during the forecast period.
Key Market Trends
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. This growth is mainly driven by the need for better aircraft loading techniques that are required to create more cargo space, greater efficiency, eliminate costly ground delays, and thereby create 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. To avoid this, airlines are integrating new technologies to develop new cargo loading systems, which can help the carriers to distribute cargo volume and weight capacity evenly on each aircraft. This will aid in avoiding the structural damage and also in providing better support to large and special product shipments.
The Asia-Pacific Region to Experience the Highest Growth During the Forecast Period
The Asia-Pacific region is anticipated to have the highest growth during the forecast period. The growth is majorly due to the demand for new and converted freighters, which in turn, is due to the growth of the e-commerce sector in the region. Southeast Asia is the largest e-commerce market in the world, with China acting as the major driver for the growth in the region. Japan and South Korea are expected to emerge as the next biggest e-commerce markets in the region, with high-income levels and urbanization rates. This growth in e-commerce is supporting the growth and the replacement of the existing fleet of freighter aircraft in the Asia-Pacific region. At the beginning of 2018, DHL Express deployed its first ever Airbus A330-300 in its air network for providing services in Malaysia, Vietnam, and Hong Kong. The aircraft was first of the four A330-300s that were expected to join the DHL Express fleet under the passenger-to-freighter (P2F) deal with Elbe Flugzeugwerke GmbH, a joint venture between Airbus SE and Singapore Technologies Aerospace. Such an increasing demand for procurement of freighter aircraft in the region may propel the growth of aircraft cargo systems market during the forecast period.
The prominent players in the Aircraft Cargo Systems Market are Ancra International LLC, TELAIR International Group, CEF Industries LLC, Cargo Systems, Inc., and Onboard Systems International Inc. The market is highly fragmented, due to the presence of many local players who provide airlines with cargo nets, hooks, rollers, and other cargo systems. Partnerships of the cargo system providers with the aircraft OEMs are expected to propel the development of new loading and fitting systems, which in turn, is expected to help the companies to capture significant market share.
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