Air Cargo Market Growth and Analysis 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

The rapid advancement of connected technologies, particularly mobile devices, has significantly transformed consumer behavior, including purchasing patterns. As more consumers shift toward e-commerce, cross-border transactions have surged, thereby driving growth in the air cargo market. To meet rising demand, manufacturers and retailers are increasingly relying on air freight for faster and more cost-efficient delivery to global customers.

Additionally, the inherent advantages of air cargo—such as expedited delivery—and substantial government investments aimed at strengthening air freight infrastructure are further propelling market growth. However, the industry faces notable challenges, including overcapacity, the complexities of handling temperature-sensitive goods, and various market restraints that continue to impact operational efficiency.

Air Cargo Market Overview

Air mail is one of the earliest services offered by air cargo providers and continues to play a vital role in global logistics. The growing volume of international trade, combined with the rapid expansion of the e-commerce sector, has significantly increased the demand for air freight services worldwide.

Both air mail and air freight markets are strongly influenced by regional regulations and compliance requirements. Air freight involves the transport of goods via commercial or chartered air carriers, and the rising need for rapid delivery has led to a surge in demand for express shipping solutions.

Small and medium-sized enterprises (SMEs) particularly benefit from air freight, as it enables them to engage in global trade quickly and efficiently. Third-party logistics (3PL) providers play a crucial role in this ecosystem by offering reliable and cost-effective air freight solutions for corporate clients, individual parcels, and bulk shipments.

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Get 10% FREE CUSTOMIZATION

Air Cargo Market: Strategic Insights

Market Size Value in	US$ 123.90 Billion in 2022
Market Size Value by	US$ 175.24 Billion by 2028
Growth rate	CAGR of 5.9% from 2022 to 2028
Forecast Period	2022-2028
Base Year	2022

Naveen

Have a question?

Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

 Speak to Analyst

Air Cargo Market Drivers and Opportunities

Constant Need to Transport Temperature-Sensitive Products

The transportation of temperature-sensitive products—including pharmaceuticals, biologics, chemicals, and medicines—is creating significant growth opportunities within the air cargo market. Temperature-sensitive cargo demands stringent handling protocols to preserve product efficacy and safety, making air freight an essential component for supply chains in the pharmaceutical and biotechnology industries. Notably, approximately 68% of all biotech products require controlled temperature environments throughout transit, underscoring the critical role of cold chain logistics in this segment. Pharmaceutical companies increasingly rely on air transportation due to the urgent nature of their shipments and the necessity for precise temperature control. Services such as Marken’s clinical home healthcare offerings—which encompass clinical drug storage, direct-to-patient delivery, biologic sample collection, central pharmacy functions, and home care nursing—highlight the growing complexity and specialization required in pharmaceutical logistics. The integration of these specialized services with temperature-controlled air cargo facilitates rapid, secure, and compliant delivery of sensitive healthcare products directly to end-users.

The rapid expansion of the pharmaceutical and biotechnology sectors globally is intensifying the demand for reliable and efficient transportation solutions tailored for temperature-sensitive cargo. With new drugs, vaccines, and advanced biologic therapies continuously entering the market, the volume and complexity of shipments requiring temperature control are expected to grow substantially. This trend is particularly pronounced in light of increased focus on personalized medicine, gene therapies, and cold-chain-dependent vaccines, all of which require meticulous handling during transportation.

Airlines and freight forwarders equipped with advanced cold chain technologies—including temperature-controlled containers, real-time monitoring systems, and specialized handling protocols—are strategically positioned to capitalize on this evolving market. Investment in robust cold chain infrastructure enhances their ability to guarantee compliance with stringent regulatory standards and meet the specific needs of pharmaceutical clients. Moreover, the COVID-19 pandemic accelerated the adoption of temperature-controlled air cargo solutions, as the urgent global distribution of vaccines underscored the importance of efficient and secure cold chain logistics. This experience has further entrenched the reliance of pharmaceutical companies on air freight providers capable of delivering high standards of temperature integrity and rapid transit times. Looking ahead, airlines offering integrated end-to-end cold chain services, including last-mile delivery and clinical trial logistics, are expected to benefit from increased demand driven by pharmaceutical innovation and expanding global healthcare markets. As the pharmaceutical industry continues to grow and evolve, the air cargo sector’s ability to adapt and provide specialized temperature-controlled transportation will be a critical factor in supporting healthcare supply chains worldwide.

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

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 air cargo market:

• 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
• Air Cargo 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