Air Cargo Market - By Service, By Shipment, By End Use & Forecast, 2024 - 2032

Air Cargo Market Size

The global air cargo market was valued at USD 185.3 billion in 2023 and is projected to grow at a CAGR of 4.3% between 2024 and 2032. The surge in e-commerce has dramatically transformed the market by increasing the volume of goods shipped globally.
 

As consumers increasingly turn to online shopping for convenience, retailers are compelled to offer faster delivery options to remain competitive. This demand for quick shipping has led businesses to prioritize air freight, which provides the speed and efficiency needed to meet customer expectations. Furthermore, the rise of same-day and next-day delivery services has intensified the reliance on air cargo, especially for high-value and time-sensitive items. Major logistics providers are investing heavily in their air transport capabilities to support e-commerce growth, creating dedicated networks for expedited shipping. Consequently, this driver is reshaping logistics strategies and positioning air cargo as a vital component of modern supply chains.

According to International Air Transport Association (IATA), in December 2023, global air cargo traffic grew by 10.3% year-on-year. This highlights the trajectory of market growth rate.
 

Further, the expansion of global trade has been a significant driver of the air cargo market, fueled by the increasing interconnectivity of economies and the establishment of free trade agreements. As businesses seek to access new markets and expand their reach, the demand for air transportation of goods has surged, particularly for high-value and low-volume products. Air cargo enables faster transit times compared to other modes of transport, facilitating timely delivery and enhancing supply chain efficiency. Additionally, the growing participation of emerging economies in global trade further boosts air freight volumes, as these countries often rely on air transport to export goods quickly. This interconnectedness underscores the critical role of air cargo in supporting international commerce.
 

Air Cargo Market Trends

Companies in the air cargo industry are increasingly adopting advanced monitoring and intervention solutions due to a rising demand for visibility and control over shipments. Customers, particularly in sectors such as healthcare and e-commerce, are seeking real-time insights and transparency, especially for sensitive and high-value goods. As supply chains become more complex and globalized, logistics providers are implementing smarter technologies to manage risks associated with disruptions and compliance. These innovations also enable companies to optimize operations, reduce costs, and improve resource allocation by predicting potential delays. Additionally, the growing emphasis on just-in-time delivery systems further drives the need for precise tracking and management of shipments. Ultimately, these advancements not only enhance service reliability but also provide a competitive advantage in an increasingly crowded market.
 

For instance, in August 2024, FedEx introduced "FedEx Surround," an intelligent solution designed for monitoring and managing sensitive shipments. This innovative system utilizes advanced sensor technology, including SenseAware ID, to provide continuous tracking and near real-time data analytics. Compact sensors transmit package locations every two seconds, significantly increasing tracking frequency compared to traditional methods. By leveraging artificial intelligence and machine learning, the system can predict potential disruptions, enabling proactive decision-making. FedEx Surround offers a dashboard for global visibility and predictive analytics, alongside dedicated support teams available 24/7. Initially launched in Singapore and Hong Kong, the service will soon expand to other Asian countries, targeting sectors like healthcare, aerospace, and technology.
 

One major challenge facing the air cargo market is the high operating costs associated with logistics and transportation. Air freight involves significant expenses, including fuel, maintenance, and labor, which can fluctuate based on global oil prices and economic conditions. These rising costs can erode profit margins and impact pricing strategies, making it difficult for companies to remain competitive while maintaining service quality. Additionally, regulatory compliance and security requirements add further financial burdens, as carriers must invest in advanced technologies and training to meet stringent standards. As e-commerce demand grows, the pressure to provide cost-effective solutions intensifies, forcing companies to find innovative ways to streamline operations and reduce expenditures. Balancing these costs with the need for speed and reliability remains a critical challenge in the air cargo industry.
 

Air Cargo Market Analysis

Based on service, the market is segmented into express and general air cargo. In 2023, the general air cargo segment accounted for over 55% of the market share and is expected to exceed USD 150 billion by 2032. General air cargo dominates the market because it offers the flexibility to transport a wide variety of goods efficiently, catering to diverse industries like electronics, automotive, and retail. Unlike specialized cargo, which requires specific handling (e.g., temperature control), general cargo is less complex and more cost-effective to process. The rapid growth of e-commerce has further boosted demand for general air cargo, as it can quickly deliver high volumes of parcels. Additionally, general cargo benefits from simpler logistics and regulatory requirements, making it more accessible for companies to use and scale. This versatility and responsiveness to market needs position general air cargo as a key segment in the industry.
 

Based on the end use, the market is divided into pharmaceuticals & healthcare, consumer electronics, automotive, retail & e-commerce, food & beverages, and others. The retail & e-commerce segment held more than 25% of the market share in 2023. Retail and e-commerce dominate the air cargo market due to their need for fast, reliable delivery to meet consumer demand for quick, often same-day or next-day, shipping. Online shopping has surged globally, creating high volumes of smaller, high-value packages that are ideally suited to air transport. Retailers rely on air cargo to maintain lean inventory through just-in-time logistics, avoiding stockouts and reducing warehousing costs. Additionally, the ability to reach customers quickly and efficiently across borders gives e-commerce businesses a competitive edge. This consistent, time-sensitive demand from e-commerce has made it a significant driver in the air cargo industry.
 

In 2023, US accounted for a market share of over 70% in North America region and is expected to exceed USD 50 billion by 2032. The U.S. dominates the air cargo market due to its extensive infrastructure, advanced logistics capabilities, and high demand from both domestic and international markets. As a major hub for global trade, the U.S. benefits from well-developed airports, modernized facilities, and a strong network of cargo carriers. The booming e-commerce industry and high consumer spending also drive demand for air freight, as retailers rely on rapid delivery solutions to meet customer expectations. Additionally, the country’s strategic geographic position and numerous trade agreements facilitate efficient cross-border transport, reinforcing its dominance in the air cargo sector.
 

Asia-Pacific market is rapidly growing, driven by increasing trade volumes, strong manufacturing bases, and the booming e-commerce sector in countries like China, Japan, and India. This region benefits from a robust logistics network and investments in airport infrastructure to support high air freight volumes. Demand for air cargo is also fueled by exports of electronics, automotive parts, and pharmaceuticals. Additionally, government initiatives promoting regional trade and cross-border e-commerce are enhancing connectivity. With expanding global trade routes, Asia-Pacific is emerging as a key player in the global market.
 

European market is growing steadily, supported by its strategic position in global trade routes and strong manufacturing and automotive industries. Key countries like Germany, the Netherlands, and France are major hubs due to their advanced airport infrastructure and connectivity across regions. The rise in e-commerce, along with demand for just-in-time delivery, further drives air freight demand in Europe. Additionally, specialized cargo such as pharmaceuticals and perishable goods boosts the market, as European carriers invest in temperature-controlled logistics solutions. Despite challenges like regulatory compliance and environmental pressures, Europe remains a critical region in the global air cargo network.
 

Air Cargo Market Share

United Parcel Service, FedEx Corporation, and Kuehne+Nagel collectively held a substantial market share of over 30% in the air cargo industry in 2023. These industry leaders drive growth through innovative logistics technologies and solutions tailored to meet the high demand in sectors like e-commerce, healthcare, and manufacturing. Their advancements in tracking systems, real-time data analytics, and temperature-controlled shipping solutions ensure efficient and reliable cargo transport. As the air cargo industry evolves to meet rising consumer expectations for faster and more sustainable shipping, these companies are at the forefront, providing reliable, scalable solutions that align with global trends in trade and sustainability. Their efforts enhance supply chain efficiency and shape the future of the market by supporting critical industries and promoting energy-efficient logistics practices.
 

Air Cargo Market Companies

Major players operating in the air cargo industry are:

• United Parcel Service
• FedEx Corporation
• Kuehne+Nagel
• DSV Panalpina 
• DHL International GmbH
• DB Schenker
• China Airlines
• Nippon Express
• Expeditors International
• CEVA Logistics
   

Air Cargo Industry News

• In August 2024, FedEx introduced "FedEx Surround," an advanced solution for monitoring sensitive shipments in real time. Using SenseAware ID sensors and data analytics, the system provides continuous tracking and predictive interventions. It enables near real-time location updates every two seconds, allowing swift responses to potential disruptions with AI-driven insights. Currently available in Singapore and Hong Kong, it will expand across Asia to countries like China, Japan, and Australia. This service, with options tailored for healthcare, aerospace, and tech clients, is designed for businesses requiring just-in-time delivery and proactive shipment management.
   
• In July 2024, UPS announced its agreement to acquire Estafeta, a Mexican express delivery company with a fleet of six Boeing 737-400 freighters. This acquisition comes as Mexico's strategic importance grows with the rise of nearshoring, providing UPS a stronger foothold in the region. Estafeta, with its extensive network, offers global express delivery and freight forwarding to over 220 countries and provides additional maritime, rail, and trucking services. UPS CEO Carol Tomé highlighted the acquisition's potential to enhance access to the U.S. market for Mexican SMBs. The transaction, part of UPS's ‘Better and Bolder’ strategy, is expected to close by year-end, pending regulatory approval.
   

The air cargo market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (FTK) from 2021 to 2032, for the following segments:

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Market, By Service

• Express
• General

Market, By Shipment

• Domestic
• International

Market, By End Use

• Pharmaceuticals & healthcare
• Consumer electronics
• Automotive
• Retail & E-commerce
• Food & beverages
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa