Air Cargo Market Size, Share, Growth, and Global Industry Growth, By Type (Air Freight and Air Mail), By Application (Machinery & Equipment, Food and Beverages, Pharmaceuticals and Healthcare, Consumer Electronics, Medical Devices, Automotive, Other), Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights and Forecast From 2025 To 2034

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AIR CARGO MARKET OVERVIEW

The Global Air Cargo Market is expected to be valued at USD 89.158 billion in 2025, increase to around USD 92.729 billion in 2026, and is forecasted to reach nearly USD 122.755 billion by 2034, advancing at a CAGR of 4% between 2025 and 2034.

Air cargo is any goods or property that can be carried in any aircraft. It is a mode of transportation that delivers fast-speed shipments through aircrafts. It is one of the fastest modes of air transportation. Growing popularity of air freight services and advances in air freight business is propelling the use of such cargos for transportation.

Market progression for air cargo is being driven due to transportation of temperature-sensitive goods such as pharmaceuticals, chemicals, drugs, and other goods. Introduction of new and transforming technologies is expected to change the scenario of air freight business. Need for fast shipments and logistics is projected to drive demand. Escalating focus on supply chain optimization to propel demand for air cargos. Improvement in air freight routes in different countries is anticipated to drive demand for the service. Robust demand from medical equipment and pharmaceuticals is expected to augment market growth.

Key Findings

COVID-19 Impact

Cessation of Trade Activities to Hinder Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with air cargo experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The spike in CAGR is attributable to the air cargo market growth and demand returning to pre-pandemic levels once the pandemic is over.

The effects of the COVID-19 pandemic are already being felt on a global level, the air cargo market was considerably influenced. The outbreak of COVID-19 had a negative impact on several markets. Various countries went into lockdown. With sudden pandemic, all kinds of businesses observed disruptions. The pandemic of COVID-19 affected the demand for air transportation. Due to a halt on global import and export activities, affected the economic activities during the pandemic hindered market growth during the pandemic. Strict rules and regulations imposed by the government have impacted the transportation activities worldwide. But during the pandemic, pharmaceuticals and healthcare products were transported by the means of air transportation. This created the demand in the air freight business.   

LATEST TRENDS

Advanced Technologies in Air Freight Business to Fuel Market Development

The global air cargo market growth is estimated to experience growth due to integration of new and advanced technologies in air freight business. Air freight business is integrating transforming technology by adopting more advanced interface and removing the use of old mainframes systems. Modernization in the air freight by integration of new technologies such as machine learning, artificial intelligence (AI), and analytics. Rising usage of cool-chain technology, Big Data, Deep Learning, and virtual and augmented reality. This is expected to enable fast deliveries and logistic solutions. Automation of various operations is expected to automate various operations which expected to augment growth in the market. Such integration of new trends in revenue operations service is estimated to pose prospects for market growth during the forecast period. 

• Integration of AI, machine learning, and cool-chain technologies in air cargo operations has improved shipment efficiency by approximately 18% globally in 2023, according to IATA.

• Use of Big Data and automation in air freight operations has reduced average cargo handling time from 8 hours to 5.5 hours per shipment in major hubs like Chicago O’Hare and Frankfurt (Airports Council International, ACI).

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AIR CARGO MARKET SEGMENTATION

• By Type

Based on type; the market is divided into air mail and air freight.

Air freight is expected to be the leading part of the type segment.  

• By Application

Based on application; the market is divided into machinery & equipment, food and beverages, pharmaceuticals and healthcare, consumer electronics, medical devices, automotive, other

pharmaceuticals and healthcare is expected to be the leading part of the application segment.

DRIVING FACTORS

Benefits of the Air Transportation to Boost Market Growth

Delivery done through air cargo is one of the fastest modes of transportation. Other modes of transportation such as rail, water, and road take up too much time to deliver items. They take usually take weeks or days to deliver the products whereas air transportation does it in hours. Such benefits are projected to drive air cargo market growth. Presence of less stock of goods for unloading compared to cargo ships. It is one of the fastest and safest modes of transportation. Clearance is much quicker and it requires less local warehousing. This approach is one of the safest modes among all the other modes as it requires least amount of handling and safety protocols. Such various benefits of the service are anticipated to provide lucrative opportunities for air cargo market.

Focus on Optimization of Supply Chains to Magnify Service Demand

With emphasis on supply chain transformation and optimization is expected to experience market growth over forecast period. The market is driven by diversifications in logistics which is done by various companies to curb risks. Robust growth in e-commerce channels and rising demand for fast delivery is propelling the need to have optimized supply chains. This is expected to drive market growth for air cargo. Airline companies are also extending their end-to-end services and air freight is being used as one of the omnichannel.

• Air transportation enables delivery within 24-48 hours, compared to several days via road or rail, supporting over 30% faster fulfillment for urgent shipments (IATA).

• Expansion of e-commerce logistics has led to over 250 million packages shipped globally via air cargo in 2023, boosting demand for optimized air freight networks (World Bank Logistics Data).

RESTRAINING FACTORS

High Costs to Impede Service Demand

There are a number of factors that can induce the growth of the air cargo market. High costs associated with air freight solutions can cause hindrance in market growth. Air freight delivery charge high either by volume or weight. Therefore, high costs associated with the air freight is expected to restrict and limit the market growth.   

• High freight costs, averaging USD 4.50 per kilogram for international shipments in 2023, limit adoption for small and medium enterprises (IATA Air Cargo Financial Report).

• Fuel price volatility caused operational cost fluctuations of up to 20% for global carriers in 2023, restricting market growth (International Energy Agency, IEA).

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AIR CARGO MARKET REGIONAL INSIGHTS

North America to Govern the Market Share Owing to Development of Air Transportation Infrastructure  

North America holds the largest part in the global air cargo market share due to favorable government policies and technologies to boost strengthen the infrastructure capabilities of air transportation. Presence of large scaled organizations in the region is estimated to generate rewarding opportunities in the market. Financial support and initiatives by the government is anticipated to drive market expansion. Increasing presence of e-commerce channels and websites that promise fast delivery is anticipated to facilitate market progress. Focus on optimization of supply chains by the air freight companies is estimated to drive market growth in the region.  

KEY INDUSTRY PLAYERS

Market Players to Boost Market Growth

The report delivers information about the list of market players and their operations in the industry. The information is collected and reported with proper research, technological developments, acquisitions, mergers, expanding production lines, and partnerships. Other aspects examined for this market include companies producing and introducing new products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

• FedEx Express (U.S.) handles over 5 million tons of cargo annually, with advanced automation in sorting hubs (FedEx Annual Report 2023).

• DHL Aviation (Germany) operates over 220 aircraft globally, serving more than 220 countries and territories, enhancing delivery efficiency (DHL Annual Report 2023).

List Of Top Air Cargo Companies

• China Airlines Cargo (China)
• FedEx Express (U.S.)
• UPS Airlines (U.S.)
• Cathay Pacific Cargo (Hong Kong)
• DHL Aviation (Bahrain)
• Korean Air Caro (South Korea)
• Cargolux (Luxembourg)
• Lufthansa Cargo (Germany)
• Singapore Airlines Cargo (Singapore)
• Emirates SkyCargo (Dubai)
• Air Freight and Air Mail (Cuba)

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.