Global Air Cargo Market: By Type (Air Mail and Air Freight), By Service (Express and Regular), By End User (Retail, Pharmaceutical, F&B, Consumer Electronics, Automotive and others) and Geography, and by Region (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa)—Forecast till 2028

Description

Market Overview:

The global air cargo market platform market size was valued at USD 24.5 billion in 2022 and is projected to expand at a CAGR of 11.8% from 2023 to 2028. The surge in demand is majorly accredited to the integration in the regular advancements of technology, boost in the e-commerce platforms, and rise in perishable goods platforms together with the increasing globalization, which is predicted to augment the growth of the market in the forthcoming years.

Market Size for Global Air Cargo Market on the Basis of Revenues in USD Bn , 2018-2023

Source: Maven Market Research

What Factors are Leading to the Growth of the Global Air Cargo Market?

• The surging globalization continues to drive demand for air cargo enabling companies to maintain lean inventories and meet tight deadlines, essential for global supply chains. These organizations expand their markets and source products from different regions of the world.
• The major developments in technologies such as real-time tracking, automated warehouses, and drone deliveries are streamlining processes, reducing costs, and improving service quality. These factors have led to the growth of the air cargo market.
• It is observed that there has been major economic growth during the past decade in the market. This is mainly due to the policies promoting free trade and reduced tariffs encouraging international trade, subsequently increasing demand for air cargo services.

Which Industry Trends have been Fueling the Growth of the Air Cargo Market?

Performance By Key Players: Several key companies are striving to enhance service quality, expand networks, and innovate in logistics solutions. Key players like FedEx, are also increasingly focusing on sustainability, adopting fuel-efficient aircraft, and optimizing logistics processes to reduce environmental impact. It is witnessed that the company’s fleet of freighters and integrated logistics solutions, hence augment the growth of the market in the upcoming years.

Rising Transportation of Perishable Goods: The rising transport of pharmaceuticals, fresh produce, and flowers, heavily relies on air cargo. Additionally, speed and temperature control make air freight the preferred mode of transport for these products. These factors are readily expected to drive the growth of the market in the upcoming years.

What is the Current Structure of the Global Air Cargo Market?

By End-User Type, Pharmaceutical Sector has Dominated the Largest Market Share in the Global Air Cargo Market

Pharmaceutical companies focus on air cargo for the timely and safe transportation of medical supplies, vaccines, and other critical health products. Moreover, the requirement for temperature control and quick delivery makes air freight readily surge the growth of the market in the forthcoming years.

By Type

The international air freight segment dominated the market. International air freight involves the transportation of goods across borders, which is crucial for global trade. The rise in e-commerce, global supply chains, and the expansion of the manufacturing industry has increased the demand for international air freight services.The market segment with the quickest rate of growth is domestic air freight. The transportation of products inside a nation is referred to as domestic air freight. The growing demand for quick and dependable domestic delivery of goods is thought to be the reason behind the expansion of the domestic air freight sector. The need for domestic air freight services has been driven by the growth of the manufacturing sector, the rise in domestic e-commerce, and the retail business.

By Channel Type, Belly Cargo Dominated the Largest Market Revenue in the Global Market

The belly cargo leads the market by holding the highest market revenue in the global market. This growth leverages existing passenger flights, offering cost-effective solutions for shippers. It is particularly prevalent on international routes with high passenger traffic. Hence, driving the overall growth of the market.

By Region Type, North America Leads the Market

North America, especially the United States region, with hubs like Atlanta and Memphis, due to its advanced infrastructure, major international airports, and significant economic activity. Moreover, the Asia-Pacific region is witnessing rapid growth in the air cargo market, driven by countries like China, Japan, and South Korea. It is observed that major airports like Hong Kong and Shanghai are key transshipment points, escorting the growth of the market. Within the worldwide air freight market, Asia Pacific is growing at the highest rate. The need for air cargo services is driven by the region’s increasing e-commerce sector, growing middle class, and rapid economic expansion. APAC’s air freight market is heavily influenced by nations like China, India, and Japan. Furthermore, there has been a notable surge in cross-border commerce and air freight activity due to the emergence of manufacturing hubs and the growing economic integration of the Asia-Pacific region.

Competitive Analysis

The key players in the market continue to innovate and expand their capabilities, fostering a highly competitive environment. With significant demand from diverse sectors like retail, automotive, pharmaceuticals, technology, and perishables, air cargo services are evolving to meet complex logistical needs. Additionally, the market’s growth is driven by factors such as the rise of e-commerce, globalization, and technological advancements. There are many businesses fighting for market share, and the industry is very fragmented. Some concentrate on certain areas or niche markets, while others provide all-encompassing worldwide solutions. Companies must invest in technology and infrastructure, form strategic alliances, and innovate continuously if they want to remain competitive in this fast-paced, constantly-changing market.Key players operating in the market are FedEx, Qatar Airways, All Nippon Airways Co Ltd., Etihad Airways, Singapore Airlines, Japan Airlines, Cargolux, Korean Air, The Emirates Group, DHL International GmBH, United Parcel Service of America Inc, Emirate Sky Cargo, Zela Aviation and Lufthansa Cargo AG among others.

Market Segmentation

Global Air Cargo Market, By End User Type

• Freight Forwarders
• Airlines
• Logistics Providers
• Express Shipping

Global Air Cargo Market, By Channel Type

• Manufacturing
• Consumer Goods
• Retail & E-commerce
• Healthcare
• Pharmaceuticals
• Automotive
• Aerospace &Defense

Global Air Cargo Market, By Region Type

North America

• United States
• Canada

Europe

• Germany
• United Kingdom
• France

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia

Latin America

• Brazil
• Mexico
• Argentina

Middle East & Africa

• South Africa
• UAE

Key Players

• DHL Express
• FedEx Corporation
• United Parcel Service (UPS)
• Cathay Pacific Airways Limited
• Emirates SkyCargo
• Cargolux Airlines International S.A.
• China Airlines Cargo
• Lufthansa Cargo AG
• Singapore Airlines Cargo
• Korean Air Cargo
• Qatar Airways Cargo
• Etihad Cargo
• British Airways World Cargo