Asia-Pacific Air Cargo Market Size and Forecast (2021 - 2031)

The Asia Pacific air cargo market is poised for significant growth, with projections indicating that its size will reach approximately US$ 69,552.2 million by 2031, up from US$ 42,503.7 million in 2024. This growth trajectory reflects a compound annual growth rate (CAGR) of 7.4% from 2025 to 2031.

Executive Summary and Market Analysis

The Asia Pacific air cargo market encompasses several key regions, including Australia, China, India, Japan, South Korea, and other parts of the APAC region. According to data from the International Air Transport Association (IATA) as of March 2025, the Asia Pacific region led the global air cargo demand with a remarkable year-over-year increase of 9.3% in cargo tonne-kilometers (CTK). This growth is indicative of robust international trade activities within the region.

Several factors are driving the expansion of air cargo in Asia Pacific. A notable contributor is the burgeoning cross-border e-commerce sector, which has significantly increased express shipments originating from China, Hong Kong, and Southeast Asia. However, the market faces challenges, particularly with the resurgence of belly cargo capacity from passenger flights, which has led to softer freight yields and increased pressure on freighter profitability. Major carriers, including Cathay Cargo, Korean Air Cargo, Singapore Airlines Cargo, and China Southern Cargo, are actively adjusting their strategies to navigate these challenges. For instance, Korean Air is expanding its fleet of Boeing 777 freighters, while China Southern is focusing on hybrid operations that combine freighter and belly capacity to enhance operational efficiency.

The air cargo market is also influenced by trade tensions and geopolitical uncertainties, particularly the ongoing US-China tariff situation, which introduces volatility into cargo flows. As a result, freight routes are diversifying, with a noticeable shift away from China towards countries like Vietnam, Thailand, and Indonesia, reflecting broader supply chain adjustments. To mitigate risks associated with policy changes, air cargo companies are increasingly adopting flexible capacity agreements.

Strategic Insights

Market Segmentation Analysis

The Asia Pacific air cargo market can be segmented based on end users, types, and services:

• By End User: The market is divided into several segments, including Retail, Pharmaceutical or Healthcare, Food or Beverage, Consumer Electronics, Automotive, and Others. The Pharmaceutical or Healthcare segment was the largest in 2024.
• By Type: The market is categorized into Air Mail and Air Freight, with the Air Freight segment leading in 2024.
• By Services: The market is further segmented into Express and Regular services, where the Regular segment dominated in 2024.

Market Developments

The air cargo market is witnessing an increase in partnerships and collaborations among airlines and cargo service providers. Some notable developments include:

• In 2024, IndiGo CarGo entered into a significant interline agreement with Air France KLM Martinair Cargo, aimed at enhancing delivery accuracy and efficiency across their networks, thereby improving cargo services between India and Europe.
• SpiceXpress partnered with Star Air in 2024 to manage belly space capacity, adding nine new destinations to its domestic network and bolstering air cargo infrastructure in underserved regions of India.
• Saudia Cargo signed two major global logistics partnerships in 2025, one with Scan Global Logistics and another with Air Logistics Group, enhancing its global network and integrated air cargo solutions.
• Korean Air Cargo expanded its partnership with Vienna Airport in 2024 to meet the rising demand for air cargo services between Korea and Central/Eastern Europe, focusing on temperature-sensitive and hazardous goods.
• The merger of Korean Air and Asiana Airlines in 2024 consolidated cargo operations, further strengthening Korea's position as a cargo hub in East Asia.
• India signed several memorandums of understanding (MoUs) in 2024 to enhance air cargo capacity with countries like Korea and Ethiopia, increasing service frequencies and connectivity.
• Throughout 2024 and into 2025, WestJet Cargo expanded its global reach into Latin America and Asia through partnerships, supporting both freighter and belly cargo operations.

Country Insights

By country, the Asia Pacific air cargo market is segmented into Australia, China, India, Japan, South Korea, and the Rest of APAC. China held the largest market share in 2024, with cargo handled by its airports increasing from 16.8 million tonnes in 2023 to 20.06 million tonnes in 2024, a growth of 20%. This surge is largely attributed to the booming e-commerce sector. Major airports like Guangzhou Baiyun International and Beijing Capital International ranked among the busiest in terms of air cargo capacity.

Despite the growth, Chinese carriers face challenges in widebody freighter capacity, which limits their ability to fully leverage the expanding demand. Investments in newer freighter aircraft are essential for maintaining global competitiveness. For instance, in 2025, China Airlines announced plans to expand its cargo operations with orders for four B777-8 freighters, enhancing fleet flexibility and growth potential.

Company Profiles

Key players in the Asia Pacific air cargo market include United Parcel Service Inc, FedEx Corp, ANA Cargo, Cargolux Airlines International S.A., Cathay Pacific Airways Limited, Emirates SkyCargo, Etihad Cargo, Zela Aviation, Lufthansa Group, and Deutsche Post AG. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their market presence and offer innovative solutions to their customers.