Air Cargo Market Emerging Trends, Investment Opportunities & Competitive Benchmarking

Air Cargo Market Share and Trends, Import & Export Analysis

The air cargo market is predicted to expand from USD 235.78 billion in 2025 to USD 359.48 billion by 2034, growing at a CAGR of 5.01% during the forecast period from 2025 to 2034.

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Introduction

The air cargo market is a prominent segment of the logistics industry. This industry deals in delivering goods through airlines in different parts of the world. There are several types of services provided by this sector comprising of express cargo services and regular cargo services. These services are designed for delivering various types of shipments including domestic shipments and international shipments. The end-user of this sector consists of pharmaceutical and healthcare, consumer electronics, automotive, retail, food & beverage and some others. The growing demand for air cargo services from the e-commerce sector has boosted the market expansion. This market is predicted to rise significantly with the growth of the airlines industry around the globe.

• According to the India Brand Equity Foundation, the Indian e-commerce industry generated a revenue of around US$ 125 billion in 2024 that is expected to reach around US$ 345 billion in 2030. (Source: India Brand Equity Foundation)

Highlights of the Air Cargo Market

• North America held the highest share of the air cargo market.
• Asia Pacific is expected to grow with the highest CAGR during the forecast period.
• By service type, the general segment dominated this industry.
• By service type, the express segment is predicted to rise with a significant CAGR during the forecast period.
• By destination, the domestic segment held the largest share of the industry.
• By destination, the international segment is likely to grow with a considerable CAGR during the forecast period.
• By end-user, the retail and e-commerce segment led the industry.
• By end-user, the food and beverage segment held a significant share of the market.

Key Metrics and Overview

What are the Trends of Air Cargo Market in 2025?

The major trends in this industry consists of sustainable aviation initiatives, expansion of e-commerce and integration of advanced technologies.

Sustainable Aviation Initiatives

Government of several countries such as India, the U.S., UK, Dubai and some others are launching initiatives for enhancing sustainability in the aviation sector.

Expansion of E-Commerce

The rise in number of e-commerce platforms globally has enabled people to buy and sell products from the comfort of their home.

Integration of Advanced Technologies

The integration of advanced technologies such as AI, IoT, big data analytics and some others in logistics sector is an ongoing trend in the industry.

Service Type Insights

The general segment dominated this industry. The growing demand for regular air cargo services from several sectors such as automotive and consumer electronics and some others has boosted the market growth. Additionally, numerous market players are investing heavily for launching general air cargo services to deliver general products such as mobile phones, laptops, smart watches and some others has driven the industrial expansion. Moreover, the rising popularity of e-commerce platforms has increased the demand for regular air cargo services, thereby driving the growth of the air cargo market.

• In March 2025, SF Airlines launched an air cargo service. This service is launched for strengthening the trade activities among China and Pakistan. (Source: Arab News)

The express segment is predicted to rise with a significant CAGR during the forecast period. The rising adoption of express cargo services for transporting military equipment in warfare zones has boosted the market expansion. Also, the increasing use of these services for transporting perishable items such as meat, sea foods, food products and some others is crucial for the industrial expansion. Moreover, the growing application of express cargo services from pharmaceutical sector for transporting items such as medicines and vaccines is likely to boost the growth of the air cargo market.

• In November 2024, Allcargo Gati launched an air express service in India. This service is launched for delivering perishable goods in different parts of India. (Source: Manufacturing Today)

Destination Insights

The domestic segment held the largest share of the industry. The growing adoption of airways for transporting goods from one state to another has contributed to the market growth. Additionally, the rising popularity of national e-commerce brands such as Flipkart, Snapdeal, Meesho and some others has enabled people to buy and sell products, thereby driving the industrial expansion. Moreover, rapid investment by market players for launching domestic air cargo services is expected to drive the growth of the air cargo market.

• In February 2025, Menzies Aviation partnered with BIAL (Bangalore International Airport Ltd). This partnership is done for launching a domestic cargo terminal in Bengaluru, India. (Source: Air Cargo)

The international segment is likely to grow with a considerable CAGR during the forecast period. The rising demand for imported products such as watches, bags, perfume and some others has boosted the market expansion. Additionally, the growing interest of air cargo providers to launch service that can connect developed nations with isolated countries is further contributing to the industrial growth. Moreover, ongoing geo-political issues has increased the demand for advanced military equipment, thereby driving the growth of the air cargo market.

• In April 2025, Emirates launched Emirates Courier Express. Emirates Courier Express is an international cargo service that connect various nations such as the UAE, Kuwait, Oman, Saudi Arabia, Bahrain, South Africa and the UK. (Source: Air Cargo News)

End-User Insights

The retail and e-commerce segment led the industry. The growing proliferation of smartphones has enabled people to sell and purchase goods in online-platforms, thereby driving the market growth. Additionally, rapid investment by government of several countries such as the U.S., Canada, India, China, France and some others for developing the e-commerce sector is further adding to the industrial expansion. Moreover, numerous market players are launching air cargo services to cater the needs of e-commerce and retail sector coupled with the increasing emphasis on developing cross-border trade is likely to drive the growth of the air cargo market.

• In March 2024, Hong Kong launched an air cargo service. This air cargo service is designed for transporting e-commerce goods from Hong Kong to Riyadh. (Source: STAT Trade Times)

The food and beverage segment held a significant share of the market. The growing investment by government of several countries such as the U.S., UK, Saudi Arabia, India and some others for developing the food and beverage industry has boosted the market growth. Additionally, the increasing trend of international wines and intercontinental cuisines in developed nations along with rapid consumer preference towards frozen foods is further contributing to the overall industrial expansion. Moreover, various cargo services launched by market players for enhancing the supply chain of food and beverage sector is anticipated to boost the growth of the air cargo market.

• In February 2025, UPS launched a new air cargo service. This service is designed for exporting French goods such as wine and food products to different parts of Asia. (Source: Air Cargo News)

Geographical Insights

North America held the highest share of the air cargo market. The growing adoption of advanced air cargo services due in major automotive brands such as Tesla, Ford, Rivian, Buick and some others has boosted the market growth. Additionally, numerous government initiatives aimed at enhancing sustainable logistics along with rapid development in the e-commerce sector is playing a vital role in shaping the industrial landscape. Moreover, the presence of several market players such as FedEx Express, United Parcel Service, Atlas Air and some others is projected to foster the growth of the air cargo market in this region.

• In April 2025, FedEx launched an air cargo service. This service is launched for enhancing the cargo operations between the U.S. and Singapore. (Source: Caasint)

U.S. is the major contributor in this region. In the U.S., the market is generally driven by the growing adoption of express air cargo service by several military equipment companies such as Lockheed Martin, L3Harris Technologies, Inc., Northrop Grumman Corporation and some others. Moreover, the rising demand for processed food and frozen items among office-goers is driving the industry in a positive direction.

Asia Pacific is expected to grow with the highest CAGR during the forecast period. The growing adoption of air cargo services from several industries such as consumer electronics and retail is driving the market growth. Additionally, the rising demand for imported wines coupled with technological advancements in the logistics sector is shaping the industry in a positive direction. Moreover, the presence of various air cargo providers such as China Airlines, Nippon Express, Singapore Airlines and some others is likely to drive the growth of the air cargo market in this region.

• In February 2025, Nippon Express partnered with Nikon. This partnership is done for enhancing air cargo transportation using SAF. (Source: NIPPON EXPRESS HOLDINGS)

China dominated the market in this region. The growing demand for air cargo services from the e-commerce sector for transporting goods to different countries has driven the market growth. Additionally, rapid adoption of eco-friendly aviation techniques along with ongoing development in the electronics industry boosts the industrial expansion.

Industry Leader Announcement

• In January 2025, Ramon He, the Senior Vice President and Head of Air Freight of DB Schenker Greater China made an announcement stating that, “We are optimistic about the development potential of Ezhou Huahu International Airport and have chosen it as our key air freight hub in Central China," said, this new route will enable us to provide more efficient and reliable professional logistics and transportation solutions to our customers."

Competitive Landscape

The air cargo market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of China Airlines Cargo, Cargolux Airlines International, Turkish Cargo, FedEx Express, UPS Airlines, Qatar Airways Cargo, Emirates SkyCargo, DHL Aviation, Korean Air Cargo, Cathay Pacific Cargo, Singapore Airlines Cargo, and some others. These companies are constantly engaged in providing air cargo services and adopting numerous strategies such as collaborations, launches, partnerships, joint ventures, business expansions, acquisitions, and some others to maintain their dominance in this industry.

• In May 2025, FedEx launched an advanced air cargo service. This air cargo service is launched for delivering sustainable cargo services in the UK region. (Source: Caasint)

Recent Developments

• In May 2025, JD Logistics launched a new air cargo service. This service is launched for transporting goods from China to Vietnam. (Source: JINGDONG)
• In March 2025, Jayud Global Logistics launched a chartered air cargo service. This service is aimed at enhancing the supply chain across Fuzhou and Jakarta. (Source: Jayud Global Logistics)
• In November 2024, Qatar Airways partnered with MASkargo. This partnership is done for launching an air cargo service in Kuala Lumpur. (Source: The STAT Trade Times)

Air Cargo Market Segments

By Type

• Air Freight
• Air Mail

By Service

• Express
• General

By Destination

• Domestic
• International

By End User

• Retail and E-commerce
• Food & Beverages
• Pharmaceutical & Healthcare
• Consumer Electronics
• Automotive
• Others

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa