Air Cargo Market Growth & Forecast 2025-2031 | Global & Regional Insights

The Air cargo market size is expected to reach US$ 210.92 billion by 2031 from US$ 141.03 billion in 2024. The market is anticipated to register a CAGR of 5.8% during 2025–2031.

Air cargo market Analysis

The air cargo market is growing rapidly, driven by increasing end-user demand due to evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Air cargo market Overview

Air cargo is a transportation mode of delivering fast shipments through aircraft. It contributes to economic development by enhancing the capability of transporting valuable and superior quality products to consumers worldwide. Several advancements have been observed in the air cargo industry. Innovative logistics and supply chain concepts established on low-fuel costs as well as labor costs emerged as key trends in on-time production and end-point manufacturing assembly destination. Moreover, a surge in demand for expeditious shipping and control, as well as transparency, has been noticed with the decreasing shelf-life of new products such as consumer electronics.

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Air Cargo Market: Strategic Insights

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Air cargo market Drivers and Opportunities

Market Drivers:

• Surging Adoption of E-Commerce Platforms :

  Online retailing draws a larger audience than physical stores owing to its worldwide availability. In addition, e-commerce market players opt for logistics options such as surface transport and air transport to deliver packages to their customers. With the rise in the global e-commerce market, varying buying patterns and trends have been observed.

• Increasing Number of Partnerships and Collaborations:

  In 2024, IndiGo CarGo signed an extensive interline agreement with Air France KLM Martinair Cargo. This partnership aims to enhance delivery accuracy and efficiency across their combined networks, expanding IndiGo's reach and improving cargo services between India and Europe.

Market Opportunities:

• Airport Infrastructure and New Policies:

  Air cargo stakeholders have a huge opportunity in Southeast Asian countries such as Singapore, Thailand, and Indonesia. Airports in Southeast Asian countries are the fastest-growing airports in the world. Turkish Cargo is increasing its presence with the launch of new freighter services.

Air cargo market Report Segmentation Analysis

The Air cargo market is divided into various segments to provide a more detailed understanding of its operations, growth opportunities, and emerging trends. Below is the standard segmentation approach used in most industry reports:

By Type:

• Air Mail:

  The air mail segment experienced a resurgence in 2024 owing to the accelerating growth of cross-border e-commerce and the increasing need for rapid, reliable delivery of small parcels and documents.

• Air Freight:

  Air freight is the transportation of goods via an air carrier, which can be commercial or charter. With the increasing demand for quick delivery, preferences for express shipping are growing.

By Services:

• Regular Service:

  Regular air cargo encompasses general freight services for less time-sensitive and bulkier shipments. The segment holds the largest share of the global air cargo market in 2024.

• Express Service:

  The express air cargo has emerged as the fastest-growing and most dynamic segment in the global air cargo market in 2024, underpinned by the relentless rise of e-commerce, escalating consumer expectations for same-day and next-day delivery, and the increasing prevalence of just-in-time supply chain models across industries.

By End User:

• Pharmaceuticals
• Retail
• Food and Beverages
• Consumer Electronics
• Others

Each industry type has specific requirements for air cargo. It influences relentless focus on speed, convenience, and sustainability.

By Geography:

• North America
• Europe
• Asia Pacific
• South & Central America
• Middle East & Africa

The Air cargo market in Asia Pacific is expected to witness the fastest growth. This growth is primarily driven by the expanding cross-border e-commerce sector.

Air Cargo Market Regional Insights

The regional trends and factors influencing the Air Cargo Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Air Cargo Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Air Cargo Market Report Scope

Air Cargo Market Players Density: Understanding Its Impact on Business Dynamics

The Air Cargo Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Asia Pacific is expected to grow the fastest in the next few years. Emerging markets in South & Central America, the Middle East, and Africa also have many untapped opportunities for air cargo providers to expand.

The Air cargo market grows differently in each region. This is because of factors such as the rise of the e-commerce industry and growing trade between various countries. Below is a summary of market share and trends by region:

1. North America

• Market Share:

  Holds a significant portion of the global market

• Key Drivers:

  • E-commerce growth is driving demand for fast and flexible shipping.
  • High-tech and pharmaceutical exports require time-sensitive transport.
  • Strong infrastructure and major cargo hubs (e.g., Memphis, Anchorage).

• Trends:

  Expansion of dedicated cargo fleets by passenger airlines to diversify revenue streams.

2. Europe

• Market Share:

  Substantial share due to early, stringent EU regulations

• Key Drivers:

  • Intra-European trade and manufacturing supply chains.
  • Growing demand for express and perishable goods logistics.
  • EU sustainability initiatives are pushing for efficient multimodal logistics.

• Trends:

  Adoption of green air cargo solutions and SAF (sustainable aviation fuel) for emissions reduction.

3. Asia Pacific

• Market Share:

  Fastest-growing region with dominant market share

• Key Drivers:

  • Massive e-commerce exports from China, South Korea, and Japan.
  • Strong manufacturing and semiconductor supply chain dependencies.
  • Strategic air freight corridors between Asia, North America, and Europe.

• Trends:

  Rise of cross-border e-commerce logistics platforms and digital freight forwarders.

4. South and Central America

• Market Share:

  Although small, it is growing quickly

• Key Drivers:

  • Export of perishables such as fruits, flowers, and seafood.
  • Growing middle-class consumption is increasing the demand for imports.
  • Investments in airport and cold-chain infrastructure.

• Trends:

  Shift toward regional cargo consolidation hubs to improve connectivity and reduce costs.

5. Middle East and Africa

• Market Share:

  Growing Market with steady progress

• Key Drivers:

  • Strategic location as a transshipment hub between continents.
  • National carrier investments in cargo fleets (e.g., Emirates SkyCargo, Qatar Airways Cargo).
  • Oil, medical supplies, and electronics contribute to air freight volume.

• Trends:

  Development of integrated logistics cities and free trade zones near major airports (e.g., Dubai South, Kigali Logistics Platform).

Air cargo market Players Density: Understanding Its Impact on Business Dynamics

High Market Density and Competition

Competition is strong due to the presence of established players such FedEx Express, UPS Airlines, DHL Aviation. Regional and niche providers such as Emirates (UAE), and British Airways (UK) are also adding to the competitive landscape across different regions.

This high level of competition urges companies to stand out by offering:

• Investments in cargo fleets
• Investments in cold-chain infrastructure.

Opportunities and Strategic Moves

• Implementing AI, IoT, and blockchain for real-time tracking, route optimization, and demand forecasting.
• Digital freight platforms are reshaping forwarder–carrier relationships.

Major Companies operating in the Air cargo market are:

1. FedEx Express. (US)
2. UPS Airlines (US)
3. DHL Aviation. (Germany)
4. Emirates SkyCargo (Dubai)
5. Cathay Pacific Airways Cargo (China)
6. Korean Air Cargo (South Korea)
7. Lufthansa Cargo       (Germany)
8. Singapore Airlines Cargo (Singapore)
9. China Airlines Cargo. (Taiwan)
10. British Airways World Cargo (UK)

Disclaimer: The companies listed above are not ranked in any particular order.

Other companies analysed during the course of research:

1. Qatar Airways Cargo
2. Turkish Cargo
3. Etihad Cargo
4. Ethiopian Cargo & Logistics Services
5. Saudi Cargo (Saudia Cargo)
6. Asiana Cargo
7. Air France KLM Martinair Cargo
8. AirBridgeCargo Airlines
9. MASkargo (Malaysia Airlines Cargo)
10. Nippon Cargo Airlines (NCA)
11. Silk Way West Airlines
12. LATAM Cargo
13. Avianca Cargo
14. Aerologic
15. Kalitta Air

Air cargo market News and Recent Developments

• SpiceXpress Partnered With Bengaluru-Based Star Air

  SpiceXpress partnered with Bengaluru-based Star Air to manage belly space capacity in Star Air's fleet. This collaboration added nine new destinations to SpiceXpress's domestic network, strengthening door-to-door delivery and air cargo infrastructure, especially in underserved regions of India.

• Saudia Cargo Signed Two Major Global Logistics Partnership Agreements

  Saudia Cargo signed two major global logistics partnership agreements—one with Denmark's Scan Global Logistics (SGL) and another with Air Logistics Group. The SGL partnership provides priority access to Saudia Cargo's global network, while the Air Logistics Group agreement enhances integrated air cargo solutions between the UK and Saudi Arabia.

Air cargo market Report Coverage and Deliverables

The "Air cargo market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below 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 trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Air cargo market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Air cargo market
• Detailed company profiles