Air Cargo Market by Service Type (Freight Forwarding, Express Delivery Services, Air Cargo Charter Services, Consolidation Services), Air Cargo Mode (Full Cargo, Part Cargo), Application (E-commerce, Healthcare & Pharmaceuticals, Automotive, Retail & Consumer Goods), End-Use Industry (Manufacturing, Retail, Automotive, Pharmaceuticals & Healthcare); Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Air Cargo Market was valued at USD 129.7 billion in 2023 and will surpass USD 208.3 billion by 2030; growing at a CAGR of 7.0% during 2024 - 2030.

The air cargo market is integral to global trade, offering fast, reliable, and efficient transportation solutions for a wide variety of goods. Air cargo enables the quick movement of products across long distances, catering to industries that require expedited delivery times, such as e-commerce, pharmaceuticals, automotive, and consumer goods. With the increasing globalization of supply chains and a growing demand for faster delivery, the air cargo sector is positioned for sustained growth. Additionally, advancements in logistics technologies, such as real-time tracking and automated processes, are enhancing the overall efficiency of the air cargo market, making it a critical component of modern logistics infrastructure.

In recent years, the air cargo market has seen significant demand from various sectors, with certain segments like e-commerce and pharmaceuticals witnessing rapid growth. The rise of online shopping, along with the need for time-sensitive goods such as healthcare products, has propelled the demand for air cargo services. This has resulted in a dynamic and highly competitive market where logistics providers are continually innovating to offer faster, more cost-effective, and reliable solutions. As air cargo services adapt to new challenges and opportunities, the market is poised for continued expansion.

Freight Forwarding Service Is Largest Owing to Its Broad Industry Reach

The freight forwarding service is the largest subsegment in the air cargo market, given its essential role in managing and organizing shipments for a wide range of industries. Freight forwarders coordinate the movement of goods from the point of origin to the final destination, offering a comprehensive range of services, including cargo space reservation, customs clearance, documentation, and transportation management. Freight forwarding is particularly crucial for businesses involved in international trade, as it ensures the timely and efficient transportation of goods while navigating complex regulations across borders.

This segment is particularly large because it serves industries as diverse as manufacturing, retail, pharmaceuticals, and automotive. Freight forwarders help companies optimize their supply chains by managing the logistics of global trade, ensuring that goods are transported via the most efficient and cost-effective routes. As international trade continues to grow and supply chains become more globalized, the demand for freight forwarding services is expected to remain strong, making it the dominant service type in the air cargo market.

Air Freight (Part Cargo) Mode Is Fastest Growing Owing to Its Cost Efficiency

The air freight (part cargo) mode is the fastest growing subsegment in the air cargo market, driven by its cost-effective nature and increasing appeal to small and medium-sized enterprises (SMEs). Part cargo allows businesses to share cargo space with other shipments, reducing the overall cost of air freight. This is particularly advantageous for companies that do not require the full capacity of a cargo plane but still need the speed and reliability that air transport offers. The flexibility and affordability of part cargo services have made them increasingly popular, particularly in the e-commerce and retail sectors, where timely delivery is crucial but shipment volumes do not always justify full cargo.

The rapid growth of SMEs and the rise of online retail have been key factors driving the demand for part cargo. As more businesses look to expand their reach globally without incurring the high costs associated with full cargo shipments, part cargo offers a scalable and affordable solution. With its ability to cater to a wide range of applications and industries, part cargo is poised to continue its rapid expansion within the air cargo market.

E-Commerce Application Is Largest Owing to Surging Online Retail Demand

The e-commerce application is the largest subsegment in the air cargo market, driven by the exponential growth of online retail and the increasing need for rapid, reliable delivery services. With consumers demanding faster shipping times and a wider selection of products, e-commerce companies rely heavily on air cargo services to meet these expectations. The rise of global online marketplaces, such as Amazon and Alibaba, has spurred a surge in cross-border shipping, with air cargo offering the speed and flexibility required to ensure timely deliveries of a wide range of goods, from electronics to clothing.

The e-commerce sector’s reliance on air cargo is expected to continue to increase, as more businesses and consumers embrace the convenience of online shopping. Air freight allows e-commerce companies to reduce delivery times, manage inventory more efficiently, and expand their global footprint. As e-commerce continues to grow, particularly in emerging markets, the demand for air cargo services in this application is set to remain strong, solidifying its position as the largest application segment in the market.

Pharmaceuticals & Healthcare Industry Is Fastest Growing End-Use Sector

The pharmaceuticals & healthcare industry is the fastest growing end-use sector in the air cargo market, driven by the increasing demand for time-sensitive and temperature-sensitive products. The global distribution of vaccines, biologics, and other critical healthcare products requires fast, secure, and efficient transportation methods. Air cargo is the preferred mode for such shipments due to its speed and ability to ensure temperature control, which is essential for maintaining the integrity of pharmaceuticals during transit.

The growth of the healthcare sector, particularly in the context of the COVID-19 pandemic and ongoing vaccine distribution efforts, has significantly increased the demand for air cargo services. As pharmaceutical companies expand their global reach and demand for quick delivery of critical healthcare products rises, the pharmaceutical and healthcare sector’s reliance on air freight services is expected to continue its rapid growth, positioning it as the fastest-growing end-use industry in the air cargo market.

North America Is Largest Region Owing to High Demand from E-Commerce and Healthcare

The North American region is the largest in the air cargo market, driven by the high demand for air freight services from the e-commerce and healthcare sectors. The United States, in particular, is a global leader in e-commerce, with companies like Amazon, Walmart, and others contributing significantly to the region’s air cargo demand. Additionally, the healthcare sector’s reliance on air freight for the rapid delivery of pharmaceuticals, medical devices, and vaccines has further fueled growth in the region.

North America’s robust logistics infrastructure, coupled with its central role in global trade and commerce, makes it the dominant region in the air cargo market. As e-commerce continues to thrive and healthcare needs evolve, North America’s demand for air cargo services is expected to remain high. The region's highly developed transportation networks and strategic positioning further support its leadership in the global air cargo market.

Competitive Landscape: Leading Companies Shaping the Future of Air Cargo

The air cargo market is highly competitive, with several key players driving innovation and efficiency in the sector. Leading companies such as DHL, FedEx, UPS, Kuehne + Nagel, and DB Schenker dominate the market, offering a wide range of air freight services including freight forwarding, express delivery, and air cargo charter services. These companies have established global networks, leveraging advanced technology, such as real-time tracking and automated supply chain management, to provide enhanced logistics solutions to businesses worldwide.

The competitive landscape is marked by strategic partnerships, mergers, and acquisitions as companies look to expand their service offerings and regional reach. Additionally, sustainability is becoming a major focus, with air cargo providers exploring eco-friendly transportation options and carbon offset programs to meet the growing demand for greener logistics solutions. As the air cargo market continues to evolve, leading companies are expected to remain at the forefront of the industry, innovating and adapting to the ever-changing needs of global trade and logistics.

Recent Developments:

DHL Express launched a new air freight service to cater to growing demand in Asia-Pacific, enhancing its global network and providing quicker shipping solutions for businesses.

FedEx announced the expansion of its fleet with new eco-friendly electric vehicles to integrate with its air cargo operations, aiming to reduce its environmental footprint.

United Parcel Service (UPS) completed an acquisition of a leading logistics software firm to enhance its global air cargo management capabilities and streamline operations.

Kuehne + Nagel unveiled a strategic partnership with an AI technology firm to enhance its air freight services, improving shipment tracking and route optimization for faster del

Qatar Airways Cargo opened a new dedicated freight terminal at its Doha hub, expanding capacity for handling time-sensitive and temperature-controlled goods, further solidifying

List of Leading Companies:

Air France-KLM

Cargolux

Cathay Pacific Cargo

China Airlines Cargo

DB Schenker

DHL Express

Emirates SkyCargo

FedEx Corporation

Kuehne + Nagel

Lufthansa Cargo AG

Nippon Express Co., Ltd.

Qatar Airways

Singapore Airlines Cargo

United Parcel Service (UPS)

XPO Logistics

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