Air Cargo Services Market Report 2025

The air cargo services market size has grown strongly in recent years. It will grow from $77.06 billion in 2024 to $81.83 billion in 2025 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to globalization of trade, time-sensitive shipments, manufacturing supply chains, automotive and electronics industry, oil and gas equipment transport.

The air cargo services market size is expected to see strong growth in the next few years. It will grow to $107.14 billion in 2029 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to evolving trade alliances, pharma cold chain logistics, customs and regulatory changes, energy transition equipment transport, space cargo and exploration. Major trends in the forecast period include smart cargo tracking solutions, ai and predictive analytics, digitalization of cargo handling, collaboration in air cargo alliances, unmanned aerial vehicles (UAVs) for cargo delivery.

The forecast of 7% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. Trade restrictions on fuel and aircraft parts may push up operational costs for air cargo providers, potentially leading to higher freight rates and slower turnaround times. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The expanding automotive industry is anticipated to drive growth in the air cargo services market moving forward. The automotive industry encompasses a sector involving numerous companies and organizations dedicated to designing, developing, manufacturing, marketing, selling, repairing, and modifying motor vehicles. Air cargo services are vital to the automotive industry, enabling the prompt delivery of essential components and spare parts, reducing production delays, and supporting just-in-time manufacturing processes. For instance, in November 2023, a report from the International Trade Administration, a Canada-based organization, noted that the total value of Canadian automotive local production in 2022 was 64,565, showing an increase from the previous year’s total of 54,892. Thus, the automotive industry’s growth is fueling the expansion of the air cargo services market.

The adoption of blockchain technology is gaining traction within air cargo companies to enhance operational efficiency, mitigate losses, and prevent cargo damage. This technology facilitates the digital tracking and recording of custody changes for airline cargo containers, such as Unit Load Devices (ULDs), throughout their journeys. Organizations such as the Blockchain in Transport Alliance (BiTA) advocate for standardized implementations in the logistics industry, with major players such as UPS, FedEx, DHL, and Union Pacific aligning with BiTA. Sita, an air transport communications and information technology company, estimates potential savings of $400 million annually through the use of blockchain technology in the air cargo industry.

Leading companies in the air cargo services market are strategically focusing on the introduction of logistics and delivery network cargo services to enhance their competitive position. These services encompass a spectrum of activities within the supply chain and transportation industry, involving the management, transportation, and handling of goods throughout various stages of the supply chain. In January 2023, Amazon Air, a US-based cargo airline, launched its dedicated air cargo fleet in India, becoming the first e-commerce company in the country with its air network. Utilizing the cargo capacity of two Boeing 737-800 aircraft operated by Quikjet Cargo Airlines, Amazon Air aims to expedite the shipping of goods from fulfillment centers to last-mile deliveries across key cities such as Hyderabad, Bengaluru, Delhi, and Mumbai. This strategic move is geared towards facilitating faster and more efficient delivery services.

Major companies operating in the air cargo services market include Amazon.com Inc., UPS Airlines, United Parcel Service Inc., Deutsche Post AG, FedEx Corporation, United States Postal Service, American Airlines, Delta Airlines, United Airlines, Kuehne + Nagel International AG, The Emirates Group, International Consolidated Airlines Group SA, Qatar Airways Company QCSC, LATAM Airlines, Japan Airlines Co. Ltd., Cathay Pacific Airways Limited, Cargolux Airlines International SA, China Airlines Ltd., Cargill Incorporated, Aeromexico Cargo, Azul Airlines, Magma Aviation Limited, China Airlines Cargo, South African Airways Cargo, Thai Airways Cargo.

Asia-Pacific was the largest region in the air cargo services market in 2024. North America was the second largest region in the air cargo services market. The regions covered in the air cargo services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the air cargo services market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The air cargo services market includes revenues earned by entities by transporting goods and couriers at high speeds to enhance less time-consuming delivery without the need for warehouse and storage facilities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the resulting trade tensions in spring 2025 are having a considerable impact on the transport services sector by increasing the costs of vehicles, spare parts, and fuel - critical inputs frequently imported from tariff-affected regions. Freight operators, logistics companies, and public transportation providers are experiencing margin pressures as elevated equipment and maintenance expenses coincide with limited flexibility to pass these costs on to customers due to intense market competition. This climate of uncertainty has also led to delays in fleet upgrades and the adoption of greener, more energy-efficient vehicles, hindering progress toward sustainability objectives. In response, transport firms are enhancing route optimization, investing in fuel-efficient technologies, renegotiating supplier agreements, and adopting collaborative logistics strategies to share resources and cushion the financial impact of rising tariffs.

The air cargo services market research report is one of a series of new reports that provides air cargo services market statistics, including air cargo transport services industry global market size, regional shares, competitors with an air cargo transport services market share, detailed air cargo transport services market segments, market trends and opportunities, and any further data you may need to thrive in the air cargo transport services industry. This air cargo transport services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

Air cargo services represent a mode of transportation that utilizes aircraft, including planes and helicopters, to offer contract air transportation for cargo and mail over fixed international routes. This method is chosen for its capacity to efficiently deliver high-quality goods to consumers worldwide at reasonable prices.

The primary types within the air cargo services market are air mail and air freight. Airfreight involves the transportation of cargo and mail facilitated by an air carrier. The market is further segmented based on destination, distinguishing between domestic and international, and by service, categorized into express and regular. Additionally, segmentation by end-users includes consumer electronics, retail, third-party logistics, food and beverages, pharmaceuticals and healthcare, and other sectors.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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