The air cargo market is poised for strong growth between 2025 and 2029, supported by increasing global trade and digital logistics infrastructure. The market size is projected to grow by USD 20.6 billion, achieving a compound annual growth rate (CAGR) of 5.2% during the forecast period. This expansion reflects the sector’s pivotal role in transporting high-value and time-sensitive goods across international routes.
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A primary driver fueling the air cargo market is the explosive growth in e-commerce sales. Online retail has transformed consumer expectations around delivery times, pushing logistics providers to rely heavily on air freight to meet tight turnaround requirements. The e-commerce sector's continued expansion has led to a notable increase in small consignment volumes that demand fast, trackable, and secure shipment. As a result, cargo airlines are investing in advanced logistics solutions such as cargo automation and the Internet of Things (IoT) to enhance delivery speed, reduce costs, and support environmental goals. The integration of technologies like big data analytics in distribution centers is further optimizing inventory management and enabling real-time cargo tracking, making the e-commerce logistics chain more agile and efficient.
The rising demand for temperature-sensitive goods such as pharmaceuticals and perishables has emerged as a key trend in the air cargo market. Pharmaceutical companies, in particular, are dependent on rapid air transport to maintain product efficacy. This trend is pushing the industry to implement stringent quality and safety standards, including the establishment of certified pharmaceutical trade lanes by the International Air Transport Association (IATA). These certified routes ensure consistent product handling and integrity throughout the transit process. The deployment of advanced cooling systems, cargo security technologies, and inventory management systems further supports the transportation of these sensitive products. With regulatory demands increasing, the market continues to evolve toward infrastructure modernization and tech integration to meet growing expectations for product safety and reliability.
The Air Cargo Market is a critical pillar of global trade, driven by services such as freight forwarding, express delivery, and efficient cargo handling that support growing demand for air freight solutions. Equipment like the pallet loader, cargo pallet, and unit load devices are central to cargo movement efficiency, especially when managing freight containers across global hubs. The sector also supports temperature-sensitive and time-critical shipments via the cold chain, catering to perishable goods, dangerous goods, oversized cargo, and live animals. Segments like pharma transport rely on reliable temperature control systems and precise cargo tracking. To safeguard these operations, essentials like freight insurance, customs clearance, and air waybill documentation are foundational to seamless cross-border transactions.
By End-user:
Manufacturing
FMCG and retail
Pharmaceuticals and chemicals
Others
By Type:
Belly cargo
Freighter
By Service Type:
Express Cargo
General Cargo
Special Cargo
By Destination:
Domestic
International
Among end-user industries, the manufacturing segment is expected to lead market growth through 2029. Air cargo plays a central role in transporting high-value, time-sensitive components such as automotive parts. According to the research, this segment was valued at USD 20.80 billion in 2019 and has shown consistent growth since. As global supply chains become more dynamic, manufacturers rely on freight forwarders and third-party logistics providers to optimize lead times using technologies like route planning software, conveyor systems, and pallet handling solutions. An industry analyst highlights that "air cargo enables critical just-in-time deliveries for high-tech and automotive manufacturing, making it a backbone of international industrial trade."
Covered regions:
North America
Europe
APAC
South America
Middle East and Africa
The Asia-Pacific (APAC) region is expected to contribute 30% to the global air cargo market growth between 2025 and 2029. This dominance is largely driven by cost-effective manufacturing hubs in countries like China, India, Vietnam, and Thailand. In 2024, China alone held a major share of the Trans-Pacific air cargo market. Major exports from APAC include consumer electronics, apparel, plastic goods, and telecommunication equipment destined for North America and Europe. These exports necessitate efficient air freight services to meet demand for speed and reliability. As noted by analysts, "APAC’s manufacturing cost advantage and growing intra-regional trade are transforming the region into the global nerve center for air cargo movement."
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One of the most pressing challenges for the air cargo market is the rising cost of jet fuel. Fuel represents a substantial share of air cargo carriers’ operating expenses, and fluctuating crude oil prices add financial uncertainty. While recent increases in oil production from countries like Russia and Canada have temporarily eased costs, forecasts suggest that this surplus will diminish, leading to potential price spikes during the forecast period. The volatility of jet fuel pricing not only affects freight rates but also compels air cargo operators to explore sustainable aviation fuels and invest in fuel-efficient aircraft and operational models. Without addressing this issue, profit margins may be compromised, especially as demand for express and temperature-controlled cargo rises.
Market research reveals that cargo security remains a top priority, addressed through robust screening systems across every logistics hub and cargo terminal. Dedicated freight aircraft fleets and optimized belly cargo use in passenger planes are being expanded to meet rising volume demands, while charter flights offer flexibility for urgent shipments. Innovation is shaping the market with emerging technologies like the cargo drone, which is opening new channels for lightweight freight. Ground operations are becoming more efficient through warehouse automation, supported by tools like the pallet truck and forklift equipment. Security tools such as the cargo scanner and X-ray screening ensure regulatory compliance, while also enhancing the overall safety and reliability of air cargo processes.
Recent research focuses on controlling freight rates amid global economic fluctuations and supply chain volatility. The integration of advanced logistics software is helping stakeholders manage complex supply chain activities, with tools like inventory tracking improving visibility across every shipment stage. With the rise of digital commerce, last-mile delivery and e-commerce logistics are reshaping service expectations, prompting the adoption of agile models like cross-docking and more responsive freight brokerage services. Documentation management is evolving as well, with cargo manifest systems providing accuracy and compliance. Ensuring optimized airfreight capacity is now central to strategic planning, especially as networks expand and demand intensifies across the global delivery network.
Innovations and Recent Developments
The air cargo industry is undergoing rapid technological transformation to enhance operational efficiency and sustainability. In February 2023, Boeing and DHL Supply Chain partnered to deploy a new generation of 737-800 freighters, aiming to reduce fuel consumption and emissions by up to 16%. This move reflects a broader industry push toward fleet modernization and green logistics. In May 2024, Amazon Prime Air received regulatory approval from the FAA to operate drone delivery services beyond the visual line of sight, marking a milestone in unmanned cargo operations. Furthermore, in July 2024, Emirates SkyCargo and DB Schenker signed a memorandum of understanding to expand their global freight network and optimize supply chains. These partnerships and technology adoptions underscore how industry leaders are responding to environmental and operational challenges. Most notably, in October 2024, Cargolux and Volga-Dnepr Group merged to create the world’s largest all-cargo airline, operating a fleet of over 140 aircraft and generating €5 billion in annual revenue.
These developments demonstrate a clear trend: leading air cargo firms are focusing on fleet sustainability, network expansion, and logistics innovation to maintain a competitive edge in a complex global trade environment. Companies are also leveraging artificial intelligence, RFID tracking, and predictive maintenance to optimize route planning and minimize cargo handling time.
1. Executive Summary
2. Market Landscape
3. Market Sizing
4. Historic Market Size
5. Five Forces Analysis
6. Market Segmentation
6.1 End-user
6.1.1 Manufacturing
6.1.2 FMCG and retail
6.1.3 Pharmaceuticals and chemicals
6.1.4 Others
6.2 Type
6.2.1 Belly cargo
6.2.2 Freighter
6.3 Service Type
6.3.1 Express Cargo
6.3.2 General Cargo
6.3.3 Special Cargo
6.4 Destination
6.4.1 Domestic
6.4.2 International
6.5 Geography
6.5.1 North America
6.5.2 APAC
6.5.3 Europe
6.5.4 South America
6.5.5 Middle East And Africa
7. Customer Landscape
8. Geographic Landscape
9. Drivers, Challenges, and Trends
10. Company Landscape
11. Company Analysis
12. Appendix
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