Air Cargo Market Size - By Service Type (Express, General), By Shipment Type (Domestic, International), By End Use (Pharmaceuticals & Healthcare, Consumer Electronics, Automotive, Retail & E-commerce, Food & Beverages) & Global Forecasts, 2023 - 2032

Air Cargo Market Size

Air Cargo Market size was valued at USD 200 billion in 2022 and is anticipated to grow at a CAGR of 5% between 2023 and 2032, attributed to the rising need to transport high-value & time-sensitive products such as electronics, pharmaceuticals, perishable and auto parts. Air cargo has the advantage of speed and security along with being equipped to handle shipments containing delicate items. The growth in industries relying on these products will lead to an increased demand for air services to transport them. Air cargo plays an important role in the efficient & timely delivery of goods owing to rapid technological development and the international distribution of electronic goods.
 

Air cargo refers to the transportation of goods & equipment by private cargo aircraft or using the cargo capacity of passenger aircraft. It includes the movement of all kinds of goods including raw materials, finished goods, valuables, perishables, chemicals, and electronics.

Fuel costs have a significant impact on the operating costs of airlines including the cost of cargo. Rising fuel prices directly affect the profit margins of the airlines and the total cost of shipping the product. Changes in fuel prices can also affect the profitability & pricing strategies of air cargo operators, disrupting the air cargo market size.
 

COVID-19 Impact

The COVID-19 had significant impacts on the air cargo market. Passenger aircraft were either grounded or operated with reduced capacity due to travel restrictions and reduced demand, resulting in limited cargo capacity and intense competition between airlines. Further, there was a significant increase in demand for e-commerce and essential goods, causing a shift in the types of cargo being transported. Cargo airlines played a crucial role in transporting goods to many countries and sustaining a global supply chain.
 

Air Cargo Market Trends

The rapid growth in e-commerce has pivoted the consumer market toward online platforms. Consumers now expect faster delivery times and smooth deliveries. To meet these expectations, e-commerce companies rely on the speed & efficiency of cross-border air transport. In addition, e-commerce companies use inventory management strategies including just-in-time inventory & drop shipping models to reduce transportation costs and increase efficiency. Air cargo plays an important role in supporting these strategies by ensuring the timely movement of goods and enabling businesses to keep low inventories while fulfilling orders quickly.
 

The rising use of e-commerce platforms has propelled the consumer demand for fast deliveries, which in turn, is driving the air cargo market growth. Customers now expect fast deliveries, often within days or hours. The capability of air cargo container transportation enables e-commerce to meet these needs and maintain good industry value.
 

Air Cargo Market Analysis

The express air cargo market size was reached USD 90 billion in 2022 and will observe around 5.5% CAGR during the forecast timeline. The growth in e-commerce has created a high demand for air freight services. Online retailers prefer fast & reliable deliveries to meet customer demands. An express air freight helps e-commerce companies in offering fast delivery options, thereby ensuring timely & efficient deliveries. As the business becomes more global, the supply chain becomes more complex and spreads across different countries.
 

Air delivery services play an important role in optimizing the global supply chain by enabling the quick & efficient movement of goods between different regions. This allows businesses to simplify operations, reduce lead times, and improve overall energy efficiency. In addition, express air cargo services offer businesses a competitive advantage by providing faster deliveries and acquiring unique market positions.

The international air cargo market dominated over 60% of revenue share in 2022, due to the growing need to transport goods across borders. Air services provide fast & efficient transportation for international shipments, enabling businesses to access global markets and meet customer needs. The rising use of e-commerce platforms and the popularity of online cross-border transactions have fueled the growth of international shipping. Customers can now buy products from anywhere in the world, thereby increasing the demand for international shipping services. Air cargo contribute greatly in the fast & reliable transportation of these goods across borders, thereby driving cross-border trading activities.

The air cargo market size from retail & e-commerce segment was surpassed USD 55 billion in 2022 and is set to expand at 5.5% CAGR through 2032. Retailers, especially in the e-commerce space, aim to expand their customer base beyond the domestic market. Air cargo is a reliable & efficient means of transportation to reach customers all over the world. Using air services, retailers can offer products to customers in different regions and also open new markets, thus leading to the air cargo market demand. The demand for air freight services is also increasing as retailers and e-commerce companies prioritize the consumer demand for fast deliveries.

Asia Pacific air cargo market share hold more than 30% in 2022, owing to the economic growth and increasing consumer demand for convenient products. The Asia Pacific region is home to some of the world's largest economies that have registered economic growth in recent years. This growth leads to rising air cargo market demand and an increase in the purchasing power of consumers.
 

The growing middle-class population and the increasing use of e-commerce platforms have led to the rising demand for air services to meet the product needs. The establishment of trade agreements and free trade zones in Asia Pacific has encouraged international trade and investments. These agreements promote trade liberalization, reduce trade barriers, simplify customs procedures, and make it easier for businesses to engage in cross-border trade. Air services play an important role in supporting the movement of goods under these agreements, thereby leading to economic growth.
 

Air Cargo Market Share

Some of the major players operating in the air cargo market are

• ANA Cargo
• Cargolux
• Cathay Pacific Airways Limited
• China Airlines Ltd.
• Delta Air Lines, Inc.
• DHL International GmbH
• Etihad Cargo
• FedEx Corporation
• Kuehne+Nagel International AG
• Lufthansa Airlines
• Nippon Express
• United Airlines
• United Parcel Service, Inc. (UPS)

These players focus on strategic partnerships, new launches & commercialization for market expansion.
 

Air Cargo Industry News:

• In May 2023, ECS Group partnered with the Air Cargo business unit of MSC. ECS will be the company’s commercial partner for local coverage in Europe, North America & Mexico, thus satisfying the customer demand, supporting customers, and maximizing capacity utilization.
   
• In November 2022, cargo-partner introduced a new air freight solution to & from Amsterdam that specifically supports customers with the import & export of goods to & from Asia. The new air service is managed by the Amsterdam branch of the company with an in-house team of trade experts.
   

This air cargo market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2018 to 2032 for the following segments:

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Market, By Service Type

• Express Air Cargo
• General Air Cargo

Market, By Shipment Type

• Domestic Air Cargo
• International Air Cargo

Market, By End Use

• Consumer electronics
• Consumer Electronics
• Automotive
• Retail & E-commerce
• Food & Beverages
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Belgium
  • Spain
  • Norway
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • ANZ 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa