Air Cargo Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global air cargo market was valued at USD 129.60 Billion in 2024. The industry is expected to grow at a CAGR of 7.50% during the forecast period of 2025-2034. The market growth has been majorly supported by the rise of artificial intelligence (AI) which allows the booking of freight through booking platforms that aid both in instant pricing, predictability for a carrier with respect to offered capacity, and real-time carrier selection, leading to the efficiencies of both parties, helping mitigate delays, and optimally optimizing business operations across the globe. In turn, all these factors have resulted in the market attaining a valuation of USD 267.11 Billion by 2034.

Global Air Cargo Market Report Summary

Market Size 2024

• USD Billion 129.60

Market Size 2034

• USD Billion 267.11
• CAGR 2025-2034
• 7.50%

CAGR 2025-2034 - Market by Region

• Asia Pacific
• 8.4%

CAGR 2025-2034 - Market by Country

• India
• 8.5%

CAGR 2025-2034 - Market by Country

• China
• 8.3%

CAGR 2025-2034 - Market by Service

• Express
• 8.6%

CAGR 2025-2034 - Market by Shipment

• Domestic
• 8.3%

Market Share by Country 2024

• Germany
• 4.5%

Air Cargo Market Overview

The air cargo market is growing remarkably along with international trade. Continuous market development calls for monitoring of sensitive products, supply resilience development, cargo drone scheming, blockchain-based documentation, and AI-informed load optimization. FedEx, DHL, and UPS, are some of the major airlines dominating the global market share. Moreover, increased geopolitics and variable oil prices are some of the challenges that companies are facing. Further, they are increasingly getting involved in automating processes and seeking innovations that can enhance practices of efficiency in maintaining profitability and reliability of the global supply chain.

Air Cargo Market Growth

The increasing level of global e-commerce is driving demand for express air cargo services. Companies such as Amazon, Alibaba, and DHL are investing in dedicated air networks, automated sorting hubs, and same-day or next-day capabilities for offering express services to meet customer expectations. In addition, air cargo usage is being improved for the transportation of key components within the automotive and aerospace industries due to the growing demand for just-in-time manufacturing and global supply chain integration. Manufacturers utilize accelerated airfreight to reduce production delays and guarantee timely delivery of critical components for vehicle manufacturing, aircraft assembly, and aftermarket supply chains.

Key Trends and Recent Developments

The key trends of the air cargo market include freighter expansion, AI-driven load optimization, cold chain innovations, and integration of block chain technology.

November 2024

A new strategic alliance between Qatar Airways Cargo and MASkargo, the cargo airline and subsidiary of Malaysia Aviation Group, was launched. This collaboration is a major step toward improving operational effectiveness and worldwide cargo connectivity.

August 2024

The third Boeing 777-200F delivered by CMA CGM Air Cargo was announced. A new transpacific route linking Asia and North America was opened by this aircraft.

July 2024

From Milan Malpensa Airport (MXP) to Hong Kong International Airport (HKG), MSC Air Cargo began operating its first commercial trip. The Malpensa-Hong Kong-Malpensa route will be run twice a week.

February 2024

A.P. Moller introduced a completely digital system that gives clients the ability to reserve their air cargo needs using an easy-to-use online application that offers real-time rates for up to 70,000 connections.

Expansion of Cargo-Only Airlines and Freighter Conversions

Airlines around the world are on an expansion drive of their dedicated cargo fleets and the transformation of passenger aircraft into freighters due to the surge in global demand for air freight movement. Companies like Airbus and Boeing are converting A330 and 777 family aircraft into freighters as a means of transport for e-commerce and industrial shipping and hence are geared towards transforming the air cargo market trends and dynamics. While conventional airlines like Lufthansa and Qatar Airways plan to invest in new freighter aircraft to improve their cargo operations, Amazon Air is rapidly growing its fleet of converted freighters to fortify its logistical network.

AI-Driven Predictive Analytics for Load Optimization

Through the optimization of load planning and the resolution of the twin issues of vacant space and fuel economy, artificial intelligence is largely supporting the air cargo market growth. Predictive analytics powered by AI enables carriers to maximize payload, save expenses, and guarantee on-time delivery. Companies like Cargolux and UPS are implementing AI-based logistics technologies for real-time demand forecasting, weather analysis, and cargo weight distribution. This, in turn, enhances operations and profitability in an industry which is struggling with increased competition and volatile fuel pricing.

Growth in Pharmaceutical and Cold Chain Logistics

Another emerging air cargo market trend is the advancements of cold chain logistics due to the demand for temperature-sensitive goods, such as perishables, biologics, and vaccinations. As a result, the airlines have made investments in improved storage solutions and temperature-controlled ULDs (Unit Load Devices). Emirates SkyCargo and Delta Cargo have added to their range of pharmaceutical logistics with dedicated zones for temperature-controlled areas at major airports, assuring safe and compliant transport of critical healthcare products.

Integration of Blockchain for Secure Documentation

Air cargo documentation is being increasingly streamlined through blockchain technology, leading to great transparency, security and efficient supply chain management. Smart contracts and incorruptible records are able to increase trust among all stakeholders and reduce delays. Companies, such as Maersk and IBM, have developed blockchain-based freight- tracking initiatives, while IATA's One Record program attempts to establish a single, digital air cargo ecosystem, accelerating the demand in the air cargo market. This minimizes the scope for fraud, increases regulatory compliance, and speeds up customs clearance to make international air cargo operations smooth and cost-effective.

Air Cargo Market Opportunities

Drone cargo services and urban air mobility (UAM) provide a huge opportunity for air cargo market companies to build last-mile logistics through air-oriented delivery networks. When it comes to autonomous aerial delivery, businesses like Zipline and Wing are setting the standard, reducing operating costs and transit times for urgent goods like e-commerce packages and medical supplies. Furthermore, air cargo combined with rail, road and sea is rendering complete end-to-end logistics solutions. Companies that invest in digital freight platforms and AI-driven route optimization create an efficient supply chain. DHL and FedEx are working on the expansion of multimodal hubs to improve connectivity and reduce transit bottlenecks.

Air Cargo Market Trends

The development of cargo-specialized transport infrastructure, such as dedicated freight terminals, automated handling systems, and extended runway capacity, is increasing with rising support from governments and private investors. With attention at significant hubs like Hong Kong, Memphis, and Dubai, investments are being made in airport cargo facilities in order to catch up with the huge volumes of trade and to increase the efficiency of air cargo operations. Moreover, the rising demand for high-value, time-sensitive goods such as electronics, luxury items, and just-in-time manufacturing components is driving up air cargo demand. Businesses are increasingly relying on fast, dependable air freight to reduce inventory costs and meet urgent worldwide demand. This demand is particularly observed in industries such as automotive, aerospace, and fashion.

Air Cargo Market Restraints

• The fuel prices are volatile, and the ever-expanding operational cost-lead time has nearly choked scope of profit margins for air cargo carriers. Hence, sustainable growth in the backdrop of such price volatility is a a major challenge for air cargo market growth.
• Stricter emissions regulations, noise limits, and complex international trade policies have caused air cargo operators to increase financing and operations in sustainable aviation fuel (SAF) investments, carbon offset programs, and compliance systems.

Air Cargo Industry Segmentation

The report titled “Air Cargo Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Shipment

• Domestic
• International

Market Breakup by Service

• Express
• General

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa
• Air Cargo Market Share

Market Insights by Shipment

The booming usage of e-commerce platforms for final delivery, same-day delivery, and regional distribution centers is stimulating the growth of domestic air cargo market. FedEx and UPD have further augmented their domestic airfreight services, utilizing their fully automated, reliable, and competitive airfreight services as an extension of their range of distribution networks within national borders. This segment is expected to grow at 8.3% CAGR during the forecast period. International air freight is poised for growth in line with global trade enhancement, shipping pharmaceuticals, and the transport of high-value goods. Major carriers such as DHL and Emirates SkyCargo are investing in upgrading intercontinental logistic services involving data tracking systems, expediting custom processes, and service solutions catering to perishables and temperature-sensitive shipments, ensuring greater working efficiency in international supply chains.

Market Analysis by Service

The continuously expanding sectors of e-commerce, same-day delivery, and high-priority shipments have resulted in accelerated air cargo market revenues through express services. The express segment is anticipated to grow at 8.6% CAGR over the forecast period. Companies like FedEx Express and Deutsche Post DHL are investing in dedicated cargo fleets, automated logistics hubs, and AI-jacked tracking for speedy time-sensitive delivery to businesses and consumers. The general segment has maintained relevance for industrial freight and non-critical shipments. Airlines such as Emirates SkyCargo and Cargolux work towards cost-effective solutions in air freight, making use of widebody freighters with optimized routing for the transport of pharmaceuticals, machinery, or perishables across supply chains worldwide with an emphasis on speed while remaining economical.

Air Cargo Market Regional Analysis

North America Air Cargo Market Opportunities

The thriving e-commerce and quick delivery services industries can be accounted for the rising air cargo demand in North America. To fulfill the growing demands of their customers for speedy shipping, major logistics companies like FedEx, UPS, and Amazon Air are increasing the size of their fleets of dedicated air cargo, automating large parts of their operations, and improving last-mile connectivity.

Europe Air Cargo Market Insights

Environmental initiatives and sustainability in logistics are driving the Europe air cargo market. In order to adhere to EU environmental requirements, fuel-efficient freighters, carbon-offset schemes, and digitization are being implemented. Leading providers of environmentally friendly air freight solutions, such as Lufthansa Cargo and Air France-KLM, optimize their operations to reduce emissions.

CAGR 2025-2034 - Market by

• Country
• India
• 8.5%
• China
• 8.3%
• Saudi Arabia
• 7.9%
• Australia
• 7.3%
• USA
• 7.1%
• Canada
• UK
• Germany
• France
• Italy
• Japan
• 7.0%
• Brazil
• Mexico

Asia Pacific Air Cargo Market Growth

Due to significant exports of electronics and auto parts, the Asia Pacific air cargo market has dominated the global market share. The market is projected to grow ata aCAGR of 8.4% over the forecast period.For international trade, nations like China, Japan, and South Korea depend on air freight. More regional hubs and freighter networks are being developed by major operators, including Cathay Pacific Cargo and Singapore Airlines Cargo.

Latin America Air Cargo Market Outlook

The demand for agricultural and perishable exports such as fresh produce, seafood, and flowers drives the air cargo market in Latin America. Airlines such as LATAM Cargo and Avianca Cargo are investing in temperature-controlled logistics and direct routes to North America and Europe to ensure that products are kept fresh, and the supply chain is efficient.

Middle East and Africa Air Cargo Market Dynamics

The Middle East and Africa air cargo market value is driven by its strategic geographical location, which allows transcontinental trade between Asia, Europe, and Africa for carriers like Emirates SkyCargo and Qatar Airways Cargo. Apart from this, in some of Africa's least served areas, inland demand for humanitarian and pharmaceutical cargo is driving an increase in air freight.

Competitive Landscape

Air cargo market players are focused on fleet expansion, digitalization, and sustainable logistics. Most of the air cargo companies are employing AI-driven tracking systems for automatic cargo handling and green aviation fuel for enhancing efficiency and cutting costs, while still meeting growing demands posed by e-commerce, pharmaceutical, and global trade for adherence to regulations and resilience in the supply chain.

United Parcel Service of America, Inc.

Founded in 1907, Seattle, Washington, United Parcel Service of America, Inc. is a global giant in air freight, express shipping, and logistics. It is the world's fourth-largest cargo aircraft operator, primarily serving e-commerce, healthcare, and time-sensitive freight solutions.

FedEx Corporation

FedEx, which was founded in 1971 and has its headquarters in Memphis, Tennessee, runs one of the biggest air freight networks globally. Express shipping, freight forwarding, and supply chain solutions are its areas of expertise. To increase productivity and strengthen global connections, it uses automation and artificial intelligence in logistics.

Kuehne + Nagel International AG

Kuehne + Nagel is a prominent forwarding company that was founded in 1890 and is headquartered in Switzerland. The firm increases the efficiency of the worldwide supply chain by offering digital logistics platforms, integrated air cargo services, and customized solutions for the high-value, perishable, and pharmaceutical cargo sectors.

Deutsche Post AG (Deutsche Post-DHL Group)

Deutsche Post AG (DHL), a multinational leader in air freight, was founded in 1995 and has its headquarters in Bonn, Germany. Strong in freight forwarding, e-commerce logistics, and express delivery, the company makes investments in digitalization and sustainable aircraft to increase the effectiveness of international trade.

Other key players in the air cargo market report are Schenker AG, Nippon Express Co., Ltd., CEVA Logistics, Cal Air Cargo, Inc., and American Airlines, Inc., among others.

Startup Scenario in the Air Cargo Market

Innovative startups target AI-driven freight booking, autonomous air drones, blockchain-based logistics, and sustainable aviation. They aim at maximum real-time tracking, load efficiency, emissions reduction, and smoother global air freight operations.

Eazy Chain

Established in 2020, Eazy Chain is a cutting-edge startup that aims to alter the global supply chain and revolutionize air freight management by utilizing state-of-the-art technology to streamline logistics, increase transparency, and improve efficiency.