Air Transport Market Report 2026

The air transport market size has grown strongly in recent years. It will grow from $1.04 trillion in 2025 to $1.11 trillion in 2026 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to expansion of global air travel demand, growth of international trade volumes, development of airport infrastructure, increased adoption of commercial aviation services, rising reliance on time-sensitive transport.

The air transport market size is expected to see strong growth in the next few years. It will grow to $1.46 trillion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to increasing investments in sustainable aviation fuels, rising demand for express air logistics, expansion of regional air connectivity, growing adoption of smart airport technologies, increasing focus on operational cost optimization. Major trends in the forecast period include increasing demand for air cargo services, rising adoption of digital airline operations platforms, growing focus on fuel efficiency and emission reduction, expansion of low-cost carrier networks, enhanced emphasis on passenger experience optimization.

The growth of e-commerce and online shopping is expected to stimulate expansion in the air transport market in the coming years. E-commerce, or electronic commerce, involves purchasing and selling goods and services over the internet or through other digital communication platforms. Air transport supports e-commerce by enabling fast and reliable delivery, helping online retailers reach wider markets, and shortening delivery times for customers, which improves convenience and satisfaction. For example, in August 2024, data from the U.S. Census Bureau showed that U.S. retail e-commerce sales for the second quarter of 2024 totaled $282.3 billion, representing a 5.3 percent increase from the first quarter of 2023. Therefore, the rise of e-commerce and online shopping is contributing to the expansion of the air transport market.

Increasing demand for tourism and travel is expected to drive the growth of the traffic equipment market. Tourism and travel demand refers to the number of people traveling domestically or internationally for leisure, business, or other purposes, which requires adequate transportation infrastructure and services. This growth is being fueled by economic recovery and greater consumer confidence, as post-pandemic conditions have encouraged people to travel again, supported by improved connectivity, easier visa processes, and the reopening of international borders. As travel increases, there is a greater need for enhanced traffic management systems - including signals, signage, safety barriers, and intelligent transportation technologies - to handle higher vehicle volumes around major destinations and transportation corridors. For instance, in December 2023, the Australian Bureau of Statistics reported that domestic tourism consumption rose by $34.9 billion to $124.9 billion in 2022-23, while international tourism consumption increased by $17.7 billion to $23.6 billion in chain volume terms. Therefore, rising tourism and travel demand is supporting the growth of the traffic equipment market.

Companies in the air transport industry are increasingly developing advanced technologies such as NextGen eVTOL aircraft to meet emerging needs in urban air mobility. These aircraft are electrically powered vehicles designed for vertical takeoff and landing in limited spaces, offering efficient and environmentally friendly transportation solutions within city environments. For example, in March 2024, Airbus SE, a Netherlands-based aerospace company, introduced the CityAirbus NextGen - an all-electric eVTOL prototype representing a major step forward in urban air mobility. Designed with a wingspan of about 12 meters, a two-ton weight class, and a range of up to 80 kilometers, it can carry one pilot and three passengers at speeds of up to 120 kilometers per hour. The CityAirbus NextGen features fixed wings, a V-shaped tail, and eight electric propellers arranged in a distributed propulsion system to enhance efficiency and safety.

Major companies operating in the air transport market are The Emirates Group, China Airlines Ltd., American Airlines Group Inc., Delta Air Lines Inc., United Airlines Inc., China Southern Airlines, Qatar Airways Company Q.C.S.C, Air France-KLM SA, Deutsche Lufthansa AG, FedEx Corporation, United Parcel Service Inc., Cathay Pacific Airways Limited, Cargolux Airlines International SA, Japan Airlines Co. Ltd., ANA Holdings Inc., International Consolidated Airlines Group SA, Magma Aviation Limited, Deutsche Post AG, Kuehne Nagel International AG, AirBridgeCargo Airlines LLC, Cargojet Inc., Gol Linhas Aereas Inteligentes SA, Azul Linhas Aereas Brasileiras S/A, Latam Airlines, Compania Panamena de Aviacion SA, Lufthansa Cargo AG, Korean Air Lines Co. Ltd., Singapore Airlines Ltd., Air China Limited, Turkish Airlines Inc., Air Canada Inc., Ethiopian Airlines Group, British Airways plc, Air India Limited, Malaysia Airlines Berhad, Philippine Airlines Inc., Vietnam Airlines Corporation, Garuda Indonesia (Persero) Tbk PT, Royal Jordanian Airlines.

Asia-Pacific was the largest region in the air transport market in 2025. North America was the second largest region in the air transport market. The regions covered in the air transport market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the air transport market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The air transport market includes revenues earned by entities by providing transportation services for fast delivery of goods and services in business operations and emergencies. 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).

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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