Air Cargo Unit Load Device (ULD) Market Growth Analysis | 2019-2024

Market Insights

The Global Air Cargo Unit Load Device Market (ULD) is likely to grow at a significant CAGR of 5.5 %, in the long run, to reach US$ 427.5 million in 2024.

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What is Air Cargo Unit Load Device?

An Air Cargo Unit Load Device (ULD) is a standardized container or pallet used to transport cargo on aircraft. It is designed to efficiently utilize the available space in an aircraft's cargo hold and ensure safe handling and transportation of goods. ULDs come in various sizes and types, such as containers, pallets, and igloos, and are typically made of lightweight yet durable materials. They are equipped with features like locks, handles, and tie-down points to secure the cargo during flight. ULDs streamline the loading and unloading process, enable efficient stacking of cargo, and protect goods from damage while in transit.

Market Dynamics

Growing cargo traffic (freight tonne-kilometers) owing to accelerating urbanization and increasing disposable income, increasing deliveries of commercial aircraft, increasing demand for lightweight ULDs, rising ULD fleet size, and advancements in technology are some of the major growth drivers of the market.

Cargo is an essential part of the airline business today. It contributed roughly 9% of the airline’s revenue, which is more than twice the revenues from the first-class segment. The biggest benefit of air cargo ULD is that it allows bundling a large quantity of cargo into a single unit. This helps to minimize the airlines’ operational costs by saving the ground crew’s time and effort.

The airline industry is looking for lightweight containers with a prime focus to enhance fuel efficiency as well as reducing carbon emissions. In the last decade, the industry has noticed remarkable research and development activities related to lightweight containers. Many companies have succeeded in developing lightweight containers by forming strategic alliances with industry stakeholders. The key ULD management companies are opting for composite-made containers by replacing their heavy-weight containers. The momentum of lightweight containers does not extend to pallets. Some companies have developed composite pallets to reduce the overall weight, but they could not offer other required properties and performance, such as durability. Composite pallets have a higher damage rate than conventional pallets.

Segments Analysis

By Device Type

The air cargo ULD market is segmented based on device type as containers and pallets. The container is expected to remain the dominant device type in the air cargo ULD market during the forecast period. High preference for pallets, a safer device to transport cargo, and easy to load and unload are major growth drivers of the containers segment. The pallet is also likely to witness a healthy growth rate in years to come.

By Product Type

The air cargo ULD market is also segmented based on the product type as LD3, LD6, LD11, M1, PMC, PAG, and Others. There are several types of ULDs used on passenger, cargo, and military aircraft. The selection of ULD is dependent on the type of aircraft, nature of goods, airline requirements, and the combination of the unit load device (ULDs). LD3 is the most widely preferred ULD type on both passenger as well as cargo aircraft and is highly compatible with Boeing and Airbus wide-body aircraft, such as B747, B767, B777, B787, A330, A350XWB, and A380. LD3 can also be interchangeably used by replacing another container type.

By Deck Type

Based on the deck type, the air cargo ULD market is segmented into the lower deck and main deck. The lower deck is projected to remain the larger segment of the air cargo ULD market during the forecast period, driven by the usage in both passenger and freighter aircraft. Passenger aircraft uses mainly its lower hold for ULDs, whereas freighter aircraft uses both the main deck and lower hold for ULDs.

By Material Type

Based on the material type, the market is broken down into composite ULDs, metal ULDs, and other ULDs. Composite-based air cargo ULD is likely to experience the highest growth during the forecast period. The increasing demand for lightweight containers to increase fuel efficiency is the major driver of the segment. High durability and increased life of containers are the other major drivers of the segment. Composite-based containers are about 20% to 40% lighter than that aluminum-based similar-sized containers.

By Aircraft Type

Based on the aircraft type, the air cargo ULD market is bifurcated into narrow-body aircraft, wide-body aircraft, Very Large Body Aircraft, and Military Aircraft. Wide-body aircraft is expected to remain the largest demand generator of cargo ULDs during the forecast period. The high number of ULDs per aircraft, increasing the share of wide-body aircraft, and increasing demand for wide-body aircraft by cargo airlines are some of the major growth drivers of the segment. The aircraft type is also expected to experience the highest growth for the same period.

Key Players

The supply chain of this market comprises raw materials suppliers, panel manufacturers, ULD manufacturers, distributors, ULD management companies, and airline companies.

The key air cargo ULD manufacturers are-

• Safran Cabin (Zodiac AirCargo Equipment)
• Nordisk Aviation Products
• VRR Aviation
• DokaSch GmbH
• Satco Inc.

The development of lightweight containers, the formation of partnerships with ULD management companies, and regional expansion are the key strategies adopted by the key players to gain a competitive edge in the market.

Research Methodology

For calculating the market size, our analysts follow either Top-Bottom or Bottom-Top approach or both, depending upon the complexity or availability of the data points. Our reports offer high-quality insights and are the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. We leverage a multitude of authenticated secondary sources, such as company annual reports, government sources, trade associations, journals, investor presentations, white papers, and articles to gather the data. More than 10 detailed primary interviews with the market players across the value chain in all four regions and industry experts are usually executed to obtain both qualitative and quantitative insights.

Report Features

The 330-page comprehensive report, from Stratview Research, provides a comprehensive analysis that reflects today’s air cargo ULD market realities and future possibilities for the forecast period of 2019 to 2024. After a continuous interest in our air cargo container market report from the industry stakeholders, we have tried to develop another specific report on air cargo ULDs to provide a crystal-clear picture of the market. The report provides the air cargo ULD market size, five-year trend (2013-2018), and five-year forecast (2019-2024). Furthermore, the report segments and analyses the market in the most comprehensive manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of low-hanging fruits available as well as the formulation of growth strategies.

What Deliverables Will You Get in this Report?

Customization Option

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players).
• SWOT analysis of key players (up to three players).

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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