Air Cargo Market Strategies, Top Players, Growth Opportunities, Analysis and Forecast by 2031

The Air Cargo Market size is projected to reach US$ 267.03 billion by 2031 from US$ 132.65 billion in 2023. The market is expected to register a CAGR of 9.1% in 2023–2031. The intelligent cold chain solution in air cargo sector is likely to remain a key air cargo market trend.

Air Cargo Market Analysis

With the rapid development of connected technologies, comprising of mobile devices consumers’ lives has changed in many aspects, which includes their purchasing process. In the present scenario, consumers are turning to e-commerce which has resulted increased cross-border sales thus, boosting the air cargo market, as the manufacturers or sellers aim to reach the customer as quickly and economically as possible. In addition, the provision of air cargo including faster delivery speed and high investments by the government in favor of air cargo also fuels the global air cargo market. However, presently over-capacity, complexities of temperature-sensitive products and market restraints are some of the key challenges faced by the air cargo industry.

Air Cargo Market Overview

The air mail is one of the oldest services provided by air cargo companies. The increasing trade of goods, couple with the booming e-commerce sector, across the world has created a significant demand for air freight. The air mail and air freight market are highly influenced by regional regulations. Air freight is the transportation of goods via air carrier, which can be commercial or charter. With the increasing demand for quick delivery, express shipping is trending in the air freight market. Small and mid-sized companies are highly benefited by air freight as it allows them to participate in international trade in an expeditious and effective manner. Third-party logistics providers offer the most reliable and cost-effective means of air freight services for the corporate, individual parcel, or shipment deliveries.

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Air Cargo Market: Strategic Insights

Air Cargo Market

• 
  CAGR (2023 - 2031)

  9.1%
• Market Size 2023
  US$ 132.65 billion
• Market Size 2031
  US$ 267.03 billion

Market Dynamics

GROWTH DRIVERS

• Rapid Adoption of E-Commerce Platforms
• Constant Need to Transport Temperature-Sensitive Products

FUTURE TRENDS

• Intelligent Cold Chain Solutions
• Implementation of Several Software Solutions

OPPORTUNITIES

• Expanding Airport Infrastructure and New Policies

Key Players

• ANA Cargo
• Cargolux
• Cathay Pacific Airways Limited
• DHL International GmbH (Deutsche Post DHL Group)
• Emirates SkyCargo
• Etihad Cargo
• FedEx Corporation
• United Parcel Service of America, Inc.
• Zela Aviation The Air Charter Company
• Lufthansa Cargo AG

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Type

• Air Mail
• Air Freight

Service

• Express
• Regular

End User

• Retail
• Pharmaceutical & Healthcare
• Food & Beverage
• Consumer Electronics
• Automotive
• Others

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Air Cargo Market Drivers and Opportunities

Constant Need to Transport Temperature-Sensitive Products

The transportation of temperature-sensitive products including drugs, chemicals, and medicines is creating a huge opportunity for the air cargo market. For instance, almost 68% of all biotech products are considered to be temperature sensitive. In addition, Marken announced clinical home healthcare services that include clinical drug storage, direct-to-patient delivery, biologic sample collection, central pharmacy, and home care/nursing services. Thus, pharmaceutical companies are highly dependent on-air transportation due to factors such as time-sensitivity and temperature-controlled transportation. The rapid growth of the pharmaceutical industry resulted in augmenting the demand for transportation services for temperature-sensitive cargo. The demand is anticipated to increase with new pharmaceutical and biotechnology products entering the market every day. Therefore, airlines using advanced cool chain solutions will be well-placed to take full advantage of this sector as it grows. Therefore, airlines can expect increasing demand for shipping services that cater to their specific needs with the pharmaceutical industry is anticipated to increase further in the next several years.

Expanding Airport Infrastructure and New Policies – An Opportunity in Air Cargo Market

Air cargo stakeholders have a huge opportunity in Southeast Asian countries such as Singapore, Thailand, and Indonesia. Airports in the Southeast Asian countries are the fastest growing airports in the world. The Turkish Cargo is increasing its presence with the launch of new freighter services. The airports of Singapore, Incheon, Hong Kong, and Taiwan are supporting national carriers to expand air freights and also encouraging operators to increase services. These initiatives are expected to reduce the trade with China and increase in some transfer cargo traffic in Taiwan from ASEAN. Companies such as APEX Logistics and SEKO Logistics have strategically expanded their operations in Southeast Asian countries.

Air Cargo Market Report Segmentation Analysis

Key segments that contributed to the derivation of the air cargo market analysis are type, service, and end user.

• Based on type, the air cargo market is divided into air mail and air freight. The air freight segment held a larger market share in 2023.
• Based on service, the market is segmented into express and regular. The regular segment held a larger market share in 2023.
• Based on end user, the market is segmented into retail, pharmaceutical & healthcare, food & beverage, consumer electronics, automotive, and others. The pharmaceutical & healthcare segment held a larger market share in 2023.

Air Cargo Market Share Analysis by Geography

The geographic scope of the air cargo market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America.

In 2023, Asia Pacific accounted for a major share in the global air cargo market followed by North America and Europe. Huge demand for air cargo in Asia Pacific is attributed to the robust economic growth of the region and increased focus on retail enactment. Foreign players prefer Asian countries for the expansion of their manufacturing activities due to the availability of a cheaper workforce. Factors such as continuous urbanization, strong economic growth, and a large middle-class population create high domestic demand for fast-moving consumer goods, personal automobiles, household items, and luxury items. Additionally, companies in the e-commerce market opt for various logistic alternatives, including surface transport and air transport, to deliver items to their clients. Thus, with the flourishment of the e-commerce business, different purchase habits and trends have been noted in various countries in Asia Pacific. The proliferating e-commerce industry is likely to boost the air cargo market in Asia Pacific in the coming years with the rise in demand for parcel delivery services around the region.

Air Cargo Market Report Scope

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Air Cargo Market News and Recent Developments

The air cargo market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for innovations, business expansion, and strategies:

• In 2022, Cathay Pacific Airways Limited and Lufthansa Cargo AG announced their entry of Swiss WorldCargo into the airlines’ joint business agreement, in order to provide their cargo customers with more direct connections, flexibility, and more time saving service options. (Source: Lufthansa Cargo AG, Press Release)
• In 2022, Air France-KLM and the CMA CGM signed a long-term strategic partnership in the air cargo market. The partnership will influence both partners´ global sales teams, presenting one voice to the customer (Source: Air France-KLM, Newsletter)

Air Cargo Market Report Coverage and Deliverables

The “Air Cargo Market Size and Forecast (2023–2031)” report provides a detailed analysis of the market covering the following areas:

• Air Cargo Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Air Cargo Market trends
• Detailed Porter’s Five Forces
• Air Cargo Market analysis covering key market trends, Global and regional framework, major players, regulations, and recent market developments
• Air Cargo Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles