The Air Cargo Market size is projected to reach US$ 267.03 billion by 2031 from US$ 132.65 billion in 2023. The market is expected to register a CAGR of 9.1% in 2023–2031. The intelligent cold chain solution in air cargo sector is likely to remain a key air cargo market trend.
With the rapid development of connected technologies, comprising of mobile devices consumers’ lives has changed in many aspects, which includes their purchasing process. In the present scenario, consumers are turning to e-commerce which has resulted increased cross-border sales thus, boosting the air cargo market, as the manufacturers or sellers aim to reach the customer as quickly and economically as possible. In addition, the provision of air cargo including faster delivery speed and high investments by the government in favor of air cargo also fuels the global air cargo market. However, presently over-capacity, complexities of temperature-sensitive products and market restraints are some of the key challenges faced by the air cargo industry.
The air mail is one of the oldest services provided by air cargo companies. The increasing trade of goods, couple with the booming e-commerce sector, across the world has created a significant demand for air freight. The air mail and air freight market are highly influenced by regional regulations. Air freight is the transportation of goods via air carrier, which can be commercial or charter. With the increasing demand for quick delivery, express shipping is trending in the air freight market. Small and mid-sized companies are highly benefited by air freight as it allows them to participate in international trade in an expeditious and effective manner. Third-party logistics providers offer the most reliable and cost-effective means of air freight services for the corporate, individual parcel, or shipment deliveries.
The transportation of temperature-sensitive products including drugs, chemicals, and medicines is creating a huge opportunity for the air cargo market. For instance, almost 68% of all biotech products are considered to be temperature sensitive. In addition, Marken announced clinical home healthcare services that include clinical drug storage, direct-to-patient delivery, biologic sample collection, central pharmacy, and home care/nursing services. Thus, pharmaceutical companies are highly dependent on-air transportation due to factors such as time-sensitivity and temperature-controlled transportation. The rapid growth of the pharmaceutical industry resulted in augmenting the demand for transportation services for temperature-sensitive cargo. The demand is anticipated to increase with new pharmaceutical and biotechnology products entering the market every day. Therefore, airlines using advanced cool chain solutions will be well-placed to take full advantage of this sector as it grows. Therefore, airlines can expect increasing demand for shipping services that cater to their specific needs with the pharmaceutical industry is anticipated to increase further in the next several years.
Air cargo stakeholders have a huge opportunity in Southeast Asian countries such as Singapore, Thailand, and Indonesia. Airports in the Southeast Asian countries are the fastest growing airports in the world. The Turkish Cargo is increasing its presence with the launch of new freighter services. The airports of Singapore, Incheon, Hong Kong, and Taiwan are supporting national carriers to expand air freights and also encouraging operators to increase services. These initiatives are expected to reduce the trade with China and increase in some transfer cargo traffic in Taiwan from ASEAN. Companies such as APEX Logistics and SEKO Logistics have strategically expanded their operations in Southeast Asian countries.
Key segments that contributed to the derivation of the air cargo market analysis are type, service, and end user.
The geographic scope of the air cargo market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America.
In 2023, Asia Pacific accounted for a major share in the global air cargo market followed by North America and Europe. Huge demand for air cargo in Asia Pacific is attributed to the robust economic growth of the region and increased focus on retail enactment. Foreign players prefer Asian countries for the expansion of their manufacturing activities due to the availability of a cheaper workforce. Factors such as continuous urbanization, strong economic growth, and a large middle-class population create high domestic demand for fast-moving consumer goods, personal automobiles, household items, and luxury items. Additionally, companies in the e-commerce market opt for various logistic alternatives, including surface transport and air transport, to deliver items to their clients. Thus, with the flourishment of the e-commerce business, different purchase habits and trends have been noted in various countries in Asia Pacific. The proliferating e-commerce industry is likely to boost the air cargo market in Asia Pacific in the coming years with the rise in demand for parcel delivery services around the region.
The regional trends and factors influencing the Air Cargo Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Air Cargo Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 132.65 billion |
| Market Size by 2031 | US$ 267.03 billion |
| Global CAGR (2023 - 2031) | 9.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Air Cargo Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Air Cargo Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The air cargo market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for innovations, business expansion, and strategies:
The “Air Cargo Market Size and Forecast (2023–2031)” report provides a detailed analysis of the market covering the following areas: