"The global Air Cargo Services Market was valued at USD 61.2 billion in 2025 and is projected to reach USD 114.9 billion by 2034, growing at a CAGR of 7.3%."
The Air Cargo Services Market refers to the transportation of goods and freight through air carriers, playing a vital role in global supply chains for industries requiring speed, security, and efficiency. This market includes express shipments, general cargo, perishables, pharmaceuticals, e-commerce parcels, and high-value industrial goods. Air cargo services are primarily provided by dedicated freighters, combination carriers (passenger aircraft with cargo holds), and integrators such as DHL, FedEx, and UPS. Growth in the sector is driven by increasing globalization, cross-border e-commerce, just-in-time manufacturing, and demand for time-sensitive shipments. Furthermore, the need for resilient logistics following disruptions caused by the COVID-19 pandemic, geopolitical tensions, and port congestion has reinforced the importance of air freight in ensuring supply chain continuity.
Over the years, the air cargo industry has undergone structural shifts, including digital transformation, fleet modernization, automation in cargo handling, and sustainability initiatives aimed at reducing carbon emissions. Airlines and third-party logistics providers are investing in cargo-focused infrastructure, including dedicated terminals, smart ULDs (unit load devices), and temperature-controlled storage to support growing volumes of medical, high-tech, and e-commerce goods. The Asia-Pacific region dominates air cargo volumes due to strong export manufacturing in China, South Korea, and Southeast Asia, while North America and Europe follow with significant demand from consumer electronics, automotive, and healthcare industries. The increasing use of AI, blockchain, and IoT for cargo tracking and optimization is improving transparency and operational efficiency. However, challenges persist around volatile fuel prices, limited airport capacity, regulatory complexities, and the environmental impact of air transport. Despite these hurdles, the air cargo services market continues to evolve as a critical enabler of global trade, supported by long-term trends in digital commerce, international production networks, and demand for rapid logistics solutions.
Key Insights_ Air Cargo Services Market
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The rapid growth of cross-border e-commerce has significantly boosted demand for air cargo services, as consumers and businesses alike seek faster delivery times for international shipments, especially for fashion, electronics, and health products.
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Major logistics providers are expanding their air cargo fleets and route networks, deploying larger wide-body freighters and entering into long-term leasing agreements to accommodate rising freight volumes and bypass global shipping disruptions.
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Pharmaceutical and healthcare sectors are increasing their reliance on air cargo due to the need for temperature-controlled transport and quick delivery of vaccines, biologics, and other critical medical supplies across regions.
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Technological integration such as AI-driven load planning, IoT-enabled real-time tracking, and blockchain-based documentation is revolutionizing cargo operations by enhancing efficiency, visibility, and security across the supply chain.
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Airlines are converting older passenger aircraft into freighters to optimize asset use, especially during periods of low passenger traffic. These conversions support flexible capacity management and increase cargo throughput.
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Asia-Pacific continues to dominate global air cargo volumes, driven by robust manufacturing activity, major export hubs in China and Southeast Asia, and increasing intra-Asia trade supported by regional economic partnerships.
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Sustainability has emerged as a major focus, with leading cargo airlines and integrators investing in SAF (Sustainable Aviation Fuel), lighter cargo containers, and fleet modernization to reduce carbon emissions and environmental footprint.
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Express and same-day delivery services are gaining traction in urban centers, prompting growth in short-haul air cargo operations supported by regional carriers and integration with last-mile delivery providers.
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Air cargo infrastructure upgrades are underway globally, including automation in cargo terminals, dedicated pharma and e-commerce handling zones, and investments in smart logistics parks adjacent to major airports.
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Regulatory harmonization, trade policy shifts, and customs modernization initiatives are streamlining cross-border air cargo flows, although challenges remain with fluctuating tariffs, geopolitical risks, and compliance complexities.
Report Scope
| Parameter | Detail |
| Base Year | 2024 |
| Estimated Year | 2025 |
| Forecast Period | 2026-2032 |
| Market Size-Units | USD billion |
| Market Splits Covered | By Type, By Service, By Destination, By End-User |
| Countries Covered | North America (USA, Canada, Mexico) |
| Analysis Covered | Latest Trends, Driving Factors, Challenges, Trade Analysis, Price Analysis, Supply-Chain Analysis, Competitive Landscape, Company Strategies |
| Customization | 10% free customization (up to 10 analyst hours) to modify segments, geographies, and companies analyzed |
| Post-Sale Support | 4 analyst hours, available up to 4 weeks |
| Delivery Format | The Latest Updated PDF and Excel Data file |
Air Cargo Services Market Segmentation
By Type
- Air Mail
- Air Freight
By Service
- Express
- Regular
By Destination
- Domestic
- International
By End-User
- Consumer Electronics
- Retail
- Third Party Logistics
- Food And Beverages
- Pharmaceuticals And Healthcare
- Other End Users
By Geography
- North America (USA, Canada, Mexico)
- Europe (Germany, UK, France, Spain, Italy, Rest of Europe)
- Asia-Pacific (China, India, Japan, Australia, Vietnam, Rest of APAC)
- The Middle East and Africa (Middle East, Africa)
- South and Central America (Brazil, Argentina, Rest of SCA)
Companies Analysed
Amazon.com Inc., China Railway Corporation, UPS Airlines, United Parcel Service Inc., Deutsche Post AG, FedEx Corporation, A.P. Møller-Mærsk A/S, United States Postal Service, American Airlines, Delta Airlines, United Airlines, Kuehne + Nagel International AG, The Emirates Group, Indian Railways, JSC Russian Railways, International Consolidated Airlines Group SA, Qatar Airways Company QCSC, LATAM Airlines, Japan Airlines Co. Ltd., Cathay Pacific Airways Limited, Cargolux Airlines International SA, China Airlines Ltd., Cargill Incorporated, Aeromexico Cargo, Gol Airlines, Azul Airlines, Magma Aviation Limited, China Airlines Cargo, South African Airways Cargo, Thai Airways Cargo
Recent Developments
July 2025: Korean Air reported a decline in cargo revenue due to changing U.S. tariffs on Chinese goods, prompting the airline to focus more on high-yield shipments such as semiconductors, batteries, and perishables.
July 2025: Delta Air Lines launched a new e-commerce cargo delivery service using unused belly space in its passenger fleet, aiming to enhance last-mile delivery efficiency for online retailers.
June 2025: Boeing delivered 27 freighter aircraft during the first half of the year and confirmed a strong order backlog, reflecting continued demand from logistics firms and integrators for long-haul cargo capacity.
June 2025: Airbus secured a major order from AviLease for 10 A350F freighters, signaling strong investor interest in newer, fuel-efficient aircraft for expanding global cargo operations.
June 2025: MNG Airlines signed a memorandum of understanding to acquire two A350F freighters to boost its international cargo network with next-generation aircraft capabilities.
June 2025: Air cargo volumes posted a modest increase, though the market experienced a drop in spot rates due to airspace disruptions and evolving trade conditions in major global corridors.
June 2025: British Airways announced plans to expand its cargo services in India, leveraging the upcoming free trade agreement between India and the UK to increase air freight capacity.
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FAQ's
The Global Air Cargo Services Market is estimated to generate USD 61.2 billion in revenue in 2025.
The Global Air Cargo Services Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.25% during the forecast period from 2025 to 2034.
The Air Cargo Services Market is estimated to reach USD 114.9 billion by 2034.
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