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

The India air cargo market size reached around USD 13.44 Billion in 2024. The market is projected to grow at a CAGR of 5.80% between 2025 and 2034 to reach nearly USD 23.62 Billion by 2034. The market growth can be attributed to India’s export potential, the expansion of the logistics sectors, increasing investments in modernising airport infrastructure, and the rising volume of international trade.

India Air Cargo Market Report Summary

Market Size 2024

• USD Billion 13.44

Market Size 2034

• USD Billion 23.62
• CAGR 2025-2034
• 5.80%

CAGR 2025-2034 - Market by Region

• West and Central India
• 6.6%

CAGR 2025-2034 - Market by Region

• East India
• 6.2%

CAGR 2025-2034 - Market by Service

• Express
• 6.9%

CAGR 2025-2034 - Market by Destination

• Domestic
• 6.3%

Market Share by Region 2024

• South India
• 22.3%

India Air Cargo Market Growth

In 2023, the volume of domestic cargo transported by scheduled airlines totalled around 698 TMT. This was attributed to the growth of both dedicated freights transported by specialised planes and belly cargo transported by passenger aircraft. By 2030, the volume of air cargo is expected to rise to 10 million tons. This has prompted India’s Ministry of Civil Aviation to bolster its infrastructure development efforts, alongside the Airports Authority of India (AAI). Ongoing government efforts for infrastructure development and the creation of new air cargo terminals, including dedicated, integrated, and multimodal facilities, are bolstering the India air cargo market development.

By 2030, the e-commerce industry is expected to attain a size of USD 350 billion in India, which can expedite the demand for efficient and swift air cargo delivery services. Besides, as India bolsters its domestic vaccine and generic drug production capabilities, its pharmaceutical exports are expected to rise steadily. By 2030, the India pharmaceuticals industry is expected to reach a size of USD 130 billion, which is expected to increase the India air cargo market revenue in the coming years. Moreover, the growth of India’s agricultural sector is expected to surge the exports of fresh fruits and vegetables, thereby driving the market growth.

Key Trends and Developments

Modernisation of airport infrastructure; increasing focus on cold chain logistics; improving turnaround times; and rising smartphone exports are the major factors favouring the India air cargo market growth.

November 2024

FedEx introduced a new air cargo transportation route between Bangalore and Guangzhou to capitalise on the increasing volume of trade between India and China by operating 5 times weekly and reduce transit times on its popular routes.

July 2024

Pradhaan Express Air, India’s first dedicated air cargo carrier, launched its maiden flight services for the transportation of essential pharmaceutical products between Mumbai and Tashkent (Uzbekistan). Through this, the air cargo carrier aims to position India as a dominant player in the air cargo sector and strengthen the country’s pharmaceutical reputation.

January 2023

Amazon.com Inc. launched Amazon Air, a dedicated air cargo service by introducing two dedicated cargo aircraft with a capacity of 20,000 packages. This is expected to reduce its parcel delivery time to a maximum 2 days across 4 cities, thereby enabling it to cut costs and improve customer satisfaction. This is favourably shaping the India air cargo market dynamics.

April 2021

SpiceXpress, commonly known as SpiceJet’s cargo division, launched a new service for the Mumbai-Delhi-Bangkok route on the Boeing 737-800F aircraft for the smooth transportation of automotive parts, perishables, and electronic devices between Thailand and India.

Moderni airport infrastructure

Many Indian international airports, such as those based in Mumbai and Bangalore, are focusing on increasing their cargo handling capacity. For instance, Kempegowda International Airport (Bangalore) is planning to expand its cargo handling capacity from 420,000 tons to 500,000 tons.

Increasing focus on cold chain logistics

With rising demand for temperature-sensitive goods such as pharmaceuticals, perishable foods, and fresh produce, Indian air cargo operators are investing in advanced refrigeration, tracking systems, and specialised containers. This is one of the key India air cargo market trends which not only supports the growing pharmaceutical and agriculture exports but also positions India as a reliable player in the global cold chain market.

Improving turnaround times

India’s air cargo sector constitutes a 10% share in domestic carriers’ revenues. To further boost their international competitiveness and consumer appeal, major companies are focusing on reducing their turnaround times for air cargo, which is creating a favourable market outlook.

Rising smartphone exports

India Air Cargo Market Trends

Soaring commercial end uses of air cargo

Commercial end use of air cargo dominates the market landscape, which can be attributed to rapid industrial development and expansion of the retail sector. Improvements in supply chain efficiency have fuelled the demand for air cargo services from various commercial sectors including trade and logistics. This is one of the key India air cargo market trends.

Expansion of Indira Gandhi International Airport’s infrastructure

In 2024, Indira Gandhi International Airport (of Delhi) handled a massive cargo volume of over 900,000 tons in February 2024. It is making substantial investments to further increase their cargo handling capabilities and streamline its operations, including the installation of 28 dual-view X-ray machines to ensure secure transportation of international general cargo. This is expected to lead to India air cargo market expansion. Furthermore, the IGIA has a capacity of handling 1.8 million tons, which can be expanded to over 2.5 million tons. This positions it as one of the leading airports equipped to handle the increasing volumes of air cargo.

India Air Cargo Industry Segmentation

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

Breakup by Service

• Freight
• Express
• Mail

Breakup by Destination

• Domestic
• International

Breakup by End Use

• Private
• Commercial

Breakup by Region

• East India
• West and Central India
• North India
• South India

India Air Cargo Market Share

Based on region, the market is segmented into East India, West and Central India, North India, and South India. Over the forecast period of 2025-2034, West and Central India is estimated to grow at a CAGR of 6.6% due to the expansion of its existing cargo handling capacities. East India is expected to register a CAGR of 6.2% due to the establishment of new airport infrastructure.

Based on service, the market is divided into mail, freight, and express. The India air cargo market analysis suggests that the demand for express is expected to grow at a CAGR of 6.9% between 2025 and 2034 due to the growth of e-commerce industry and the increasing demand for reliable shipping solutions for the transportation of fresh fruits and vegetables.

Leading Companies in the India Air Cargo Market

Major market players are expanding their air cargo networks and improving infrastructure to drive growth. By bolstering investments in automation solutions and advanced tracking systems, companies are also enhancing customer experience and operational efficiency, thereby driving the India air cargo market expansion.

Blue Dart Express Limited

Blue Dart Express Limited was founded in 1983 and is headquartered in Mumbai, Maharashtra. It is regarded as one of South Asia's most premier logistics company, which offers reliable and secure delivery of various consignments across 56,000 locations in India and 220 countries worldwide.

FedEx Corp.

FedEx Corp. was incorporated in 1971 and is headquartered in Tennessee, United States. It is a freight company that transports around 14.5 million packages daily.

Delhivery Limited

Delhivery Limited was founded in 2011 and is headquartered in Gurugram, Haryana. It is India’s biggest 100% integrated logistics services providing company. It specialises in providing storage solutions and supply chain management services for cargo.

A.P. Moller - Maersk

A.P. Moller - Maersk was founded in April 1904 and is headquartered in Denmark. It is an integrated transportation and logistics company with operations in over 125 countries.

Other players included in the India air cargo market report are Deutsche Post AG, DB Schenker, CEVA Logistics, DSV A/S, United Parcel Service of America, Inc., and NIPPON EXPRESS HOLDINGS, INC., among others.