The global air cargo market is set for a notable upswing, projected to expand by USD 20.6 billion at a CAGR of 5.2% from 2024 to 2029. This surge is predominantly fueled by the rapid growth in e-commerce and increasing demand for temperature-sensitive product logistics. While opportunities abound, players must also navigate significant cost pressures and regulatory complexities.For more details about the industry, get the PDF sample report for free
Key Drivers:
The e-commerce explosion has become the cornerstone of the air cargo industry's recent momentum. Online sellers and buyers demand rapid fulfillment, pushing companies to lean heavily on air cargo services for speedy delivery. This dynamic has triggered substantial investment in freighter fleets and logistics technologies to meet consumer expectations across borders.
Simultaneously, the rising demand for temperature-sensitive goods, especially pharmaceuticals and perishables, is reshaping operational frameworks. These products require specialized handling and expedited transport, areas where air cargo uniquely excels. Certified pharmaceutical trade lanes—established by the International Air Transport Association (IATA)—are emerging as essential infrastructure, enhancing compliance and maintaining product integrity across the supply chain.
Key Challenges:
Despite robust growth, air cargo operators face increasing jet fuel price volatility, which can squeeze profit margins significantly. Though recent surpluses from Russia, Canada, and the US offered short-term relief, expectations of a rebound in crude oil prices underline the need for proactive cost management.
In addition, stricter regulations and enhanced security measures—particularly post-COVID—continue to raise the bar for compliance, complicating logistics and driving up operating expenses
By End-user:
Manufacturing: This segment is poised for significant expansion during the forecast period. Air cargo remains crucial for transporting auto parts and finished vehicles, with Europe commanding over half of the global car export value and nearly half of the auto parts export volume. Key logistics players like FedEx Express, Delta Cargo, and DB Schenker offer tailored solutions, including widebody aircraft for heavy-duty shipments.
FMCG and Retail, Pharmaceuticals and Chemicals: These segments leverage air cargo for fast and secure movement of goods. The rising volume of temperature-sensitive pharmaceutical products further emphasizes the strategic importance of certified cold chain logistics.
By Type:
Belly Cargo: Utilizes passenger aircraft hold space and remains vital, especially in regions where dedicated freighters are unavailable.
Freighter: Dedicated cargo aircraft continue to dominate for heavy and high-volume goods, with logistics players expanding fleets to accommodate growing global demand.
Get more details by ordering the complete report
Asia-Pacific (APAC) – China, India, Japan: APAC is expected to contribute 30% to the global air cargo market growth. The region’s cost-effective raw material production and robust export of consumer goods—ranging from apparel and electronics to perishables—are driving consistent freight demand. China alone commands a dominant share of the Trans-Pacific air cargo corridor.
North America – US, Canada: The United States remains a mature yet dynamic market, underpinned by its role in global trade and just-in-time inventory models across manufacturing and retail sectors. Airports like Punta Cana and centralized hubs such as those in Zurich and Schiphol play pivotal roles in efficient customs clearance and onward cargo movement.
Europe – France, Germany, Spain, UK: Europe’s dominance in automotive exports supports high demand for air cargo. Centralized Examination Stations and bonded warehouse infrastructure enhance shipment speed and regulatory compliance, especially for temperature-sensitive and high-value goods.
Middle East and Africa: As a strategic transit point, the region is investing in air cargo infrastructure to support increasing east-west freight flows.
South America – Brazil: Brazil’s integration into global supply chains for perishables and manufactured goods is growing, with increasing air cargo connectivity.
The Air Cargo Market plays a pivotal role in modern supply chains, enabling rapid global movement of high-priority shipments such as express cargo, pharmaceutical cargo, and perishable goods through robust air freight networks. With the growing demand for just-in-time delivery in sectors like e-commerce logistics, there is an increased reliance on air freighters and specialized cargo aircraft designed to carry temperature-sensitive cargo. Services such as freight forwarding, air charter, and logistics services support efficient air transport across regions, especially when handling oversized cargo or hazardous materials. Additionally, advancements in cold chain infrastructure and use of temperature-controlled cargo systems have bolstered the safe movement of sensitive products. Items are transported securely using air cargo containers, cargo pallets, and unit load devices, ensuring optimal cargo integrity and turnaround. The surge in air logistics also promotes global supply chain efficiency, further supported by airport-level operations such as airport handling and cargo security measures.
For more details about the industry, get the PDF sample report for free
Major players are focusing on strategic alliances, mergers, and technological upgrades to reinforce their market position. Notable companies include:
FedEx Corp.
Delta Air Lines Inc.
DHL Global Forwarding
UPS
DB Schenker
Rhenus
Air France KLM Martinair Cargo
Lufthansa Cargo
Emirates SkyCargo
Qatar Airways Cargo
Virgin Atlantic Cargo
Etihad Airways PJSC
Singapore Airlines Cargo
American Airlines Inc.
Cathay Pacific Airways Ltd.
China Airlines Ltd.
China Eastern Airlines Corp. Ltd.
Nippon Express Holdings Inc.
IAG Cargo
Saudi Airlines Cargo Co.
CAL Cargo Air Lines Ltd
Cargolux Airlines International SA
Expeditors International of Washington Inc.
Bollore Logistics
These firms are integrating end-to-end digital platforms, expanding freighter fleets, and forming global partnerships to address growing e-commerce and pharmaceutical demand.
Technological transformation in the air cargo market is increasingly driven by digital logistics, powered by API platforms, AWOM systems, AFI systems, and ACS systems that enable seamless cargo tracking and smarter decision-making. The integration of autonomous vehicles for ground logistics and the application of logistics automation tools at cargo terminals enhance throughput and reduce manual errors. Supporting operations include customs clearance, cargo screening, and risk mitigation through cargo insurance, especially vital for high-value cargo, dangerous goods, and live animals. Efficient freight consolidation, cross-docking, and processing of air waybills are essential for managing large shipment volumes and time-critical cargo. Environmental and operational costs are also managed through considerations like jet fuel usage and improved refrigerated transport systems. As trade grows, the air cargo sector continues to evolve with the help of innovations and structured frameworks, cementing its role in high-speed global commerce.
For more details about the industry, get the PDF sample report for free
Safe and Secure SSL Encrypted
One user only.
Quick & easy download option
Unlimited user access (Within your organization).
Complimentary Customization Included
*For Enterprise license, go to checkout page
Get the report (PDF) sent to your email within minutes.
