Air Cargo Market Size (2025-2029): Key Trends, Regional Insights, and Key Players

The air cargo market is poised for significant growth, forecasted to increase by USD 20.6 billion, at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2029. As e-commerce continues to thrive globally, the demand for faster, more reliable shipping solutions has surged, directly contributing to the expanding air cargo industry. Alongside the growing demand for temperature-sensitive products, especially within healthcare and pharmaceuticals, the market is expected to evolve, offering opportunities for innovation in logistics and air transport solutions.

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Key Market Segments:

• End-User Segments: Manufacturing, FMCG and retail, Pharmaceuticals and chemicals, and Others. The manufacturing segment is projected to witness significant growth, driven by the rising global demand for automotive exports and auto parts, with European countries such as Germany and the UK leading the charge.
• Cargo Types: Belly Cargo and Freighter services. Freighters, specifically designed for air cargo, continue to see increasing activity due to their dedicated space for cargo.

Regional Market

• APAC

  • China
  • India
  • Japan

• North America

  • Canada
  • US

• Europe

  • Germany
  • UK
  • France
  • Spain

• Middle East and Africa

• South America

  • Brazil

Key Drivers:

1. E-commerce Growth: The increasing demand for fast and efficient delivery of goods, driven by the rise of online retail, is one of the primary factors driving air cargo growth. Key players, such as FedEx and UPS, are expanding their fleets to meet the surge in demand.
2. Demand for Temperature-Sensitive Goods: The pharmaceutical sector, in particular, requires specialized air cargo services, including temperature-controlled facilities, for the transportation of medicines and vaccines.

Market Trends:

1. Technological Advancements: New technologies, including platforms like WebCargo and CargoAI, are revolutionizing the booking and logistics management processes, increasing efficiency within the industry.
2. Infrastructure Developments: Airports such as Zürich Airport and Jomo Kenyatta International Airport are enhancing their infrastructure with temperature-controlled facilities to cater to the growing demand for temperature-sensitive products.

Challenges:

1. Rising Jet Fuel Prices: The increasing cost of jet fuel is expected to continue being a challenge for air cargo operators, potentially affecting profitability.
2. Regulatory Challenges: The implementation of stricter regulations around cargo transport, especially for pharmaceutical goods, is creating complexities for industry stakeholders.

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Key Companies in the Air Cargo Market

Some of the key companies of the Air Cargo Market are as follows:

• Air France KLM Martinair Cargo
• American Airlines Inc.
• Bollore Logistics
• CAL Cargo Air Lines Ltd
• Cargolux Airlines International SA
• Cathay Pacific Airways Ltd
• China Airlines Ltd.
• China Eastern Airlines Corp. Ltd.
• Delta Air Lines Inc.
• Deutsche Post AG
• Emirates SkyCargo
• Etihad Airways PJSC
• Expeditors International of Washington Inc.
• FedEx Corp.
• IAG Cargo
• Korean Air Lines Co. Ltd.
• Lufthansa Cargo
• Nippon Express Holdings Inc.
• Qatar Airways Cargo
• Saudi Airlines Cargo Co.
• Singapore Airlines Cargo

Recent Developments:

• In January 2025, Air France KLM Martinair Cargo expanded its operations to enhance services for temperature-sensitive products, focusing on pharmaceuticals and perishable goods.
• December 2024 saw FedEx Corp. announce an increase in its fleet capacity, driven by the rising demand for e-commerce deliveries.
• November 2024, DHL Global Forwarding implemented advanced tracking technologies in collaboration with CargoAI to streamline cargo management.