Air Cargo Market by Service (Express, Regular), Component (Air Freight, Air Mail), Destination, End-Use - Global Forecast 2024-2030

Air Cargo Market by Service (Express, Regular), Component (Air Freight, Air Mail), Destination, End-Use - Global Forecast 2024-2030

The Air Cargo Market size was estimated at USD 146.53 billion in 2023 and expected to reach USD 159.77 billion in 2024, at a CAGR 9.32% to reach USD 273.45 billion by 2030.

Air cargo refers to the mode of transportation of goods through an aircraft. This shipping mode moves various products, from everyday consumer goods to critical and time-sensitive shipments, including medical supplies. Air cargo offers a swift and reliable means of transportation, making it an essential component in global trade and logistics networks. It facilitates rapid delivery and helps in bridging vast geographical distances, thereby playing a crucial role in supporting economies and supply chains worldwide. Meanwhile, increasing international trade agreements and economic integration fuel the demand for air cargo services. However, high operational costs, stringent regulations, and environmental concerns over the aviation industry's carbon footprint impose barriers for the companies. Innovations aimed at reducing the carbon footprint of air cargo operations can open new markets focused on eco-friendly logistics. In addition, utilizing blockchain, the Internet of Things (IoT), and artificial intelligence (AI) can streamline operations and improve tracking and security during cargo operations.

Regional Insights

In the Americas, the United States and Canada showcase a vast and diverse demand for air cargo, ranging from e-commerce deliveries to international trade of high-value goods such as technology and pharmaceutical products. Investments in automation and sustainable practices are shaping the future of the air cargo industry in this region. On the other hand, EMEA exhibits a balanced mix of advanced manufacturing and strong consumer markets, leading to a steady demand for air cargo services. The emphasis is on efficient, sustainable logistics solutions, as indicated by investments in greener aviation technologies and policies encouraging trade. The EU's strategic location also makes it a vital hub for transcontinental air cargo operations, connecting the Americas with Asia and the Middle East. Moreover, the Asia-Pacific region is witnessing a significant evolution in the air cargo market, driven largely by the expanding e-commerce sector, increasing international trade, and enhancements in freight logistics infrastructure. As a pivotal hub for global supply chains, the region's air cargo sector benefits from the rapid economic growth of countries such as China, India, and Southeast Asia.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Air Cargo Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

• Increasing international trade agreements and economic integration
• Rapid growth of online shopping and the need for less time-consuming delivery options

Market Restraints

• Limited carrying capacity along with dependability on weather conditions

Market Opportunities

• Increasing adoption of blockchain technology in air cargo services
• Demand for time-sensitive materials from pharmaceuticals and healthcare industry

Market Challenges

• Varying international regulations regarding trade

Market Segmentation Analysis

• Service: Utilization of regular services in air cargo due to their cost-effectiveness and less time-sensitive deliveries
• Destination: Growing preference for international air cargo among clients to access broader markets

Market Disruption Analysis

• Porter’s Five Forces Analysis
• Value Chain & Critical Path Analysis
• Pricing Analysis
• Technology Analysis
• Patent Analysis
• Trade Analysis
• Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Air Cargo Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Air Cargo Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

UPS Secures Major Contract as Primary Air Cargo Provider for USPS Following FedEx Negotiation Fallout

UPS takes over as the primary air cargo service provider for the United States Postal Service (USPS), effective 30 September. The new partnership was an innovative and mutually beneficial solution, emphasizing the integrated and efficient nature of UPS's network. This strategic alignment comes as USPS seeks to enhance its transportation efficiency, responding to significant changes in the mailing and shipping sectors.

AIA Cargo Forges Key Partnerships with Hainan Airlines and Air Peace to Enhance Global Cargo Operations

AIA Cargo has announced strategic collaborations with Hainan Airlines and Air Peace, aiming to augment cargo options and connectivity between the UK, China, and Lagos. Through an alliance with Hainan Airlines, AIA Cargo introduces extensive new routes from key UK cities to several destinations in China, marking a pivotal development in its expansion efforts.

Strategic Expansion: CMA CGM Group's Landmark Acquisition of Bolloré Logistics

The CMA CGM Group has successfully finalized its acquisition of Bolloré Logistics from the Bolloré Group. With the integration of Bolloré Logistics, renowned for its comprehensive expertise across multimodal transportation, logistics, and supply chain management, the newly formed entity, which includes CEVA Logistics, rises to become the world’s fifth-largest in the sector.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Air Cargo Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Air Cargo Market, highlighting leading vendors and their innovative profiles. These include AIA Cargo, Air Cargo Carriers, LLC, ATA Freight Line Ltd., Augustin Quehenberger Group GmbH by Geis Group, BCR Australia Pty Ltd. by SEAWAY Group, Bolloré Logistics by CMA CGM S.A., Cargolux Airlines International S.A., Cathay Pacific Airways Limited, China Airlines Cargo, Deutsche Post AG, DSV A/S, ECU Worldwide, Emirates SkyCargo by Emirates Group, Expeditors International of Washington, Inc., Express Air Freight Unlimited, Inc., FedEx Corporation, Hellmann Worldwide Logistics SE & Co. KG, Korean Air Co., Ltd., KWE Group, Kühne + Nagel Management AG, Lufthansa Cargo AG, Nippon Express Co., Ltd., Ryan Air, Schenker AG, Siemens Logistics GmbH by Siemens AG, Singapore Airlines Ltd., UKR Shipping LLC, and United Parcel Service, Inc..

Market Segmentation & Coverage

This research report categorizes the Air Cargo Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Service
• Express
• Regular
• Component
• Air Freight
• Air Mail
• Destination
• Domestic
• International
• End-Use
• Commercial
• Automotive
• Consumer Goods
• E-commerce
• Electronics
• Food & Beverages
• Pharmaceutical & Healthcare
• Private
• Region
• Americas
• Argentina
• Brazil
• Canada
• Mexico
• United States
• California
• Florida
• Illinois
• New York
• Ohio
• Pennsylvania
• Texas
• Asia-Pacific
• Australia
• China
• India
• Indonesia
• Japan
• Malaysia
• Philippines
• Singapore
• South Korea
• Taiwan
• Thailand
• Vietnam
• Europe, Middle East & Africa
• Denmark
• Egypt
• Finland
• France
• Germany
• Israel
• Italy
• Netherlands
• Nigeria
• Norway
• Poland
• Qatar
• Russia
• Saudi Arabia
• South Africa
• Spain
• Sweden
• Switzerland
• Turkey
• United Arab Emirates
• United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year