Air Cargo Market Size, Share, Growth, and Industry Analysis, By Type (Air Mail & Air Freight), By Application (Machinery & Equipment, Food and Beverages, Pharmaceuticals and Healthcare, Consumer Electronics, Medical Devices, Automotive & Other) and Regional Forecast to 2033

AIR CARGO MARKET REPORT OVERVIEW

The Global air cargo market size was USD 85800 million in 2024 and the market is projected to touch USD 130708.31 million by 2033, exhibiting a CAGR of 4% during the forecast period.

Air freight is the movement of goods in aircraft, and it includes all sizes, ranging from small packages to bulky machinery. It has a central part in international business, as you can quickly and easily transport products over long distances for items that need to be transported quickly or those that are expensive. This industry employs dedicated freight aircraft as well as the converted passenger planes used for applications, accommodating cargo by means of door, ramp, or main-deck loaders in a network of airports and cargo handling centres with requisite handling apparatus. This mode of transport is of great importance in industries like the manufacturing of pharmaceutical products, electronics, and e-retailing services, among others.

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KEY FINDINGS

• Market Size and Growth: The Air Cargo Market size was USD 85,800 Million in 2024, is projected to grow to USD 89,232 Million by 2025 and exceed USD 130,708.31 Million by 2033, with a CAGR of 4%.

• Key Market Driver: Rising global e-commerce activity and consumer demand for same-day delivery are driving higher air freight volumes, with online sales contributing to nearly 20% of total shipments in 2024.

• Major Market Restraint: Limited cargo capacity and infrastructure bottlenecks at major airports continue to cause operational inefficiencies, leading to average shipment delays of 12–18 hours in key hubs.

• Emerging Trends: Digitalization and smart cargo tracking technologies are taking off, with around 40% of air carriers adopting IoT-enabled solutions for real-time visibility and inventory control.

• Regional Leadership: Asia-Pacific dominates with over 35% of the total global cargo volume, largely supported by manufacturing exports from China, Japan, and South Korea.

• Competitive Landscape: The market is moderately consolidated, with nearly 10 major logistics and airline operators accounting for about 70% of global air freight capacity.

• Market Segmentation: By service type, express cargo services are gaining traction—holding nearly 28% of total shipments as demand for time-sensitive delivery continues to rise.

• Recent Development: In 2024, airlines like Qatar Airways Cargo and Lufthansa Cargo expanded AI-based load optimization systems, improving efficiency by nearly 15% across international routes.

COVID-19 IMPACT

"Market Growth Restrained due to Decline in the Number of Passengers’ Flights"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

This market also experienced the following major risks that have been caused by the COVID-19 pandemic. Firstly, because of the closure of borders and the general decline in the number of passengers’ flights, the so-called “belly capacity” collapsed significantly. This is the area in the belly hold of passenger aircraft, which in most cases form a large percentage of total international airfreight. This shortage means heightened competition for a few spaces on the cargo-only flights, damaging the freight rates. Second, the pandemic disrupted the value chain industry globally, and manufacturing plant shutdowns, restricted cross-border movements, and many other inconveniences led to inefficiencies and congestion. This made the environments unable to sustain free and orderly movement of cargo as required.

LATEST TRENDS

This market is at the moment undergoing what can best be described as a revolution given the several trends that define it at the moment. One of the most obvious trends is sustainability, and carriers and logistics companies are purchasing fuel-efficient aircraft, considering the SAFs, and implementing environmental management systems to address emissions. The other emerging trend is digitisation and automation with cargo-concerned technologies such as artificial intelligence, blockchain, and the Internet of Things to deliver efficiency, instant, and secure operations. There remains a strong impetus for the growth of online sales as this segment remains the most popular and rapidly developing, and consumers expect quick delivery of online orders.

AIR CARGO MARKET SEGMENTATION

By Type

Based on type the market can be categorized into Air Mail & Air Freight

• Air Mail: Mainly deals with letters, postcards, and small packets. Frequently employed scheduled passenger flight-related counterparts have been created through mail services. It stresses speed and efficiency when delivering items that are very sensitive and important documents and letters.

• Air Freight: Also covers delivery of these products; products vary from small parcels to big and bulky freight. Uses both freighter aircraft and capacity available in the belly of passenger aircraft. It depends on the type of the cargo; some of them require faster delivery (for instance, pharmaceuticals), while some others may require them to be delivered at a cheaper price.

By Downstream Industry 

Based on application the market can be categorized into Machinery & Equipment, Food and Beverages, Pharmaceuticals and Healthcare, Consumer Electronics, Medical Devices, Automotive & Other

• Machinery & Equipment: Shipment of construction equipment, manufacturing gear, and assembly parts. This usually involves the execution of transportation with very large or very massive loads, which may necessitate unique aeroplanes and manoeuvring. Reliability and accessibility for reducing downtime in industrial and other organisational operations.

• Food and Beverages: Cold food distribution, which involves moving perishable products like fruits and vegetables, among others, such as seafood and other food products. Environmental conditions such as temperature & humidity and fast distribution to customers are essential. Quick and effective to avoid deterioration of food items as well as to maintain food quality.

• Pharmaceuticals and Healthcare: Transpiration of delicate cargoes, drugs, vaccines, and many health-related commodities that require specific temperature regulation. Requires the highest standard of compliance with temperature management and security. Product quality and timely delivery for essential goods to deal with important medical requirements.

• Consumer Electronics: Delivering perishable goods, including expensive electronics such as smartphones, laptops, and other related gadgets. Deserves special attention to safety and cannot be transported without risk of getting damaged. High speed with reliable delivery to match the consumers’ demand for new products.

• Medical Devices: Moving hospital and other healthcare facility equipment and medical devices. This process is generally carried out gently since it deals with delicate or sensitive equipment. Reliability of delivery to make it available for pre- and post-medical procedures and patient care.

• Automotive: Distribution of automobiles and spare parts for assembly and fixing for any automobile. Can include small and quickly delivered elements and significant and complex components. A smooth supply chain and reduction of product production halts.

MARKET DYNAMICS

Market Dynamics Include Driving and Restraining Factors, Opportunities and Challenges Stating the Market Conditions.

Driving Factors

"Growth of E-commerce to Expand the Market"

One of the key driving factors of Air Cargo Market growth is the Growth of E-commerce. There is a persistent exponential growth in online businesses in the domestic as well as the international market, and as such, there is demand and need for delivery services for the goods sold. Consumers demand quick deliveries of their products within a few days or even hours; hence, they require this type of cargo for longer distances. An increase in international B2C electronic commerce, or Internet selling, increases demand on air freight services since consumers buy from other retailers based in different countries. This is because this cargo generates the speed and efficiency required in delivering goods across continents within a short duration.

"Globalisation and Supply Chain Dynamics to Advance the Market"

Globalisation has enhanced manufacturing and trade liberalisation, which has resulted in a highly complex and interrelated chain of product delivery across the globe. These global supply chains rely heavily on air cargo to facilitate the fast forwarding of pieces, finished products, or any other vital items. In the contemporary business world, organisations need timely, effective, and reliable means of transport to help bring down lead times, rein in inventory expenses, and meet customers’ needs in a timely manner within the ever-shifting and unpredictable markets. 

Restraining Factor

"High Cost to Pose Potential Impediments on this Market"

An important limiting factor influencing the Air Cargo Market share is cost, as far as this mode of transport is concerned. Air cargo, therefore, costs more than sea or ground freight because of one or the other of the following factors. That is why initial expenses of airliners are rather great: fuel, service/repair of aircraft, pilots and stewards’ reimbursements, and airport charges. Hence, costs such as fuel are variable, and their effects are realisable directly in the air freight rates. Secondly, installation that is necessary for this business, such as airports, cargo depots, and special equipment in the form of forklifts, lifts, among others, is an enormous investment, which is passed through to the cost of services.

Opportunity

"Digitalisation of the Supply Chain to Create Opportunity in this Market"

One promising avenue for this market can be associated with the growing tendency towards the use of advanced technology and digitalisation of the supply chain. This is therefore a good opportunity to increase both the efficiency of air logistics services as well as the levels of accountability and security inside airborne cargo. The use of technologies such as AI, IoT, blockchain, advanced analytics, and others may transform different sides of the industry. For instance, AI is applied to determine the best route for trucks and fixed-interval check and repair of planes and automatic management of the warehouse for eliminating costs and increasing productivity.

Challenge

"Greenhouse Gas Emissions to Pose Potential Challenge for this Market"

A major task when looking at the future of this market is that the need to intensify efforts towards raising sustainability levels and decreasing adverse harmful effects on the environment will remain high. Air transport, including air cargo, is a substantial producer of greenhouse gas emissions, predominantly arising from the use of fossil fuels. This has resulted in increased monitoring by governments, environmental groups, and other stakeholders, hence the pressures toward change by the industry. The problem nests in identifying adequate and affordable measures to reduce emissions sources in air freight. There is good progress in areas such as the production of sustainable aviation fuels (SAF) while these alternatives are pricey and not easily accessible right now.

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AIR CARGO MARKET REGIONAL INSIGHTS

North America

North America has a developed domestic market in this sector because the region has a large and growing population of buyers, superior transportation infrastructure, and a booming e-commerce sales industry. This puts a lot of pressure on air freight service providers within the region as a result of this demand. The North American region plays an important role as a transit channel for the Asian, European, and Latin American countries. Inter-regional flow of goods is eased through big air cargo hubs in cities such as Chicago, Memphis, and Los Angeles. The overall market of North America is dominated by the United States Air Cargo Market, and the country is considered as the key player in the global network. It boasts the most extensive airports all over the world. It has impeccable logistics. It offers high domestic and international air cargo traffic.

Europe

This cargo is highly transit in Europe because of its central geographical position between North America and Asia. Entries such as freight-based destinations, including Germany’s Frankfurt and the Netherlands’ Amsterdam and Paris. Europe is a big manufacturing and industrial region with a paramount concentration on car, medicine, and aviation industries. This creates a large need for both express and regular air freight services that would be used for moving the components and finished products. Being members of the European Union, the responders bear considerable responsibility for sending out positive signals to the major airlines and prompting them to lean toward green behaviours in this sector.

Asia

Today Asia has turned into an arena of manufacturing hubs for products that are exported to different global markets from automobile giants like China, Japan, and South Korea to electronics and garments. This situation generates a very large volume of business requiring air cargo frequencies to deliver such products to markets globally. E-commerce is becoming more popular in Asia, especially in countries such as China and India, which will increase the flow of products through air freight for e-commerce. Cities in Asia, including Hong Kong, Singapore, and Shanghai, have become pivotal logistics cities characterised by modern airport facilities, as well as good airport cargo handling systems worldwide.

KEY INDUSTRY PLAYERS

"Key Players Transforming the Air Cargo Market through Service Specifications"

End users of this market include key industrial players such as airlines, freight forwarders, integrators, and airport operators. Carriers, or the airline companies exercising control over the aircraft, bear authority over capacity, routes, and rates of air freight service. Cargo carriers are, in fact, agents, as they actually buy freight, combine them, negotiate freight rates with airlines, and fix the cargoes’ flow for shippers and thus perform as market makers. SHIP, FUL, and HLO provide chain-wise service covering pick-up to delivery to which they own their conduits and pre-empt service specifications. 

List of Market Players Profiled

• China Airlines Cargo (China)
• FedEx Express (U.S.)
• UPS Airlines (U.S.)
• Cathay Pacific Cargo (China)
• DHL Aviation (Germany)

INDUSTRIAL DEVELOPMENT

3rd October 2024: On 3rd October 2024, Lufthansa Cargo unveiled that they would buy more SAF from Shell after expanding the options for safe supply. Hereby Lufthansa Cargo customers can go even more climate-neutral through a choice of transportation with SAF. I believe this development is due to increasing focus on sustainability within air cargo, and Lufthansa Cargo, as a firm, has embraced sustainability policies. 

REPORT COVERAGE

This report is based on historical analysis and forecast calculation that aims to help readers get a comprehensive understanding of the global Air Cargo Market from multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the growth of the market by discovering the dynamic categories and potential areas of innovation whose applications may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points into consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.