Air Cargo Market to Grow by USD 20.6 Billion (2025-2029), Driven by E-Commerce Sales, with AI Impact on Market Trends - Technavio

NEW YORK, Feb. 10, 2025 /PRNewswire/ -- Report on how AI is redefining market landscape - The global air cargo market size is estimated to grow by USD 20.6 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 5.2% during the forecast period. Increase in e-commerce sales is driving market growth, with a trend towards rise in demand for temperature-sensitive products. However, rise in jet fuel prices poses a challenge. Key market players include Air France KLM Martinair Cargo, American Airlines Inc., Bollore Logistics, CAL Cargo Air Lines Ltd, Cargolux Airlines International SA, Cathay Pacific Airways Ltd, China Airlines Ltd., China Eastern Airlines Corp. Ltd., Delta Air Lines Inc., Deutsche Post AG, Emirates SkyCargo, Etihad Airways PJSC, Expeditors International of Washington Inc., FedEx Corp., IAG Cargo, Korean Air Lines Co. Ltd., Lufthansa Cargo, Nippon Express Holdings Inc., Qatar Airways Cargo, Saudi Airlines Cargo Co., and Singapore Airlines Cargo.

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Market Driver

The air cargo industry faces challenges in transporting temperature-sensitive products, particularly for pharmaceutical companies. To address these issues, IATA established the Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma). This certification ensures facilities, equipment, operations, and staff meet pharmaceutical manufacturers' standards, increasing compliance, security, safety, and efficiency. CEIV Pharma's recognition drives growth in the global air cargo market for temperature-sensitive products. 

The air cargo market is experiencing significant growth, driven by increasing demand for express deliveries and e-commerce sales. Carriers and logistics companies are expanding their fleets and capacities to meet this demand. The FedEx and UPS express services are key players in this market, offering fast and reliable shipping solutions. The centralized and decentralized models are used for cargo handling, with Schiphol and Dubai being major hubs. The use of technology, such as digitalization and automation, is also trending in the air cargo industry. Capacity and pricing are important factors influencing the market, with capacity constraints leading to increased rates. The air cargo market is expected to continue growing, driven by the global economy and increasing consumer demand. 

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Market Challenges

• Air cargo market players face rising fuel costs, a significant expense. Crude oil prices dropped due to surplus supply from Russia, Canada, and Iran, as well as US fracking. However, this surplus may decrease, leading to increased oil prices and jet fuel costs. Companies must adjust budgets accordingly, as higher fuel expenses limit funds for growth. Political instability in countries like Venezuela and Nigeria may further limit oil surpluses. Balancing fuel costs and growth will be a challenge for the air cargo industry.
• The air cargo market faces several challenges in today's business environment. Capacity and cost are key issues. The demand for air cargo capacity is increasing, but the supply is not keeping up. This results in higher prices for shippers. Additionally, the cost of fuel is a significant factor in the air cargo industry. Fluctuations in fuel prices can have a major impact on the profitability of cargo airlines. Another challenge is the need for faster and more reliable delivery times. Customers expect their goods to arrive on time, and any delays can lead to lost business and damage to reputations. Finally, there is growing competition from sea freight and other modes of transportation. Air cargo must differentiate itself by offering faster delivery times, better security, and more personalized services to remain competitive.

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Segment Overview 

This air cargo market report extensively covers market segmentation by

• End-user
• Manufacturing
• FMCG And Retail
• Pharmaceuticals And Chemicals
• Others
• Type
• Belly Cargo
• Freighter
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

1.1 Manufacturing- Air cargo market experiences consistent growth, driven by increasing global trade and e-commerce sales. Companies rely on efficient air freight services to transport goods quickly and securely. Key players in this industry include FedEx, DHL, and UPS, who invest in modern technology and expand their networks to meet customer demands. Air cargo contributes significantly to the global economy, facilitating the seamless movement of goods across borders.

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Research Analysis

The air cargo market is a significant component of the global trade landscape, facilitating the transport of goods across vast geographies. Flight movements play a crucial role in air cargo logistics, ensuring the timely delivery of products. The air cargo industry practices centralized examination stations to streamline the examination process and enhance capacity. The demand for air cargo services is growing worldwide, driven by the need for faster delivery times and increasing global trade. Air transport research indicates that carrier type, such as freighters or integrated carriers, significantly impacts the market dynamics. Air freight is a critical segment, catering to the transportation needs of various industries, including automotive, electronics, and perishables. As businesses expand their reach to new geographies, the need for efficient and reliable air cargo services continues to increase.

Market Research Overview

The air cargo market refers to the transportation of goods by air using dedicated cargo planes or the belly hold capacity of passenger aircraft. This market caters to various industries such as electronics, automotive, pharmaceuticals, and perishables, among others. The air cargo industry offers benefits like faster delivery times, reduced damage, and improved security compared to other modes of transportation. The market is driven by factors like increasing globalization, e-commerce growth, and the need for just-in-time inventory. Logistics companies play a crucial role in managing the complexities of air cargo transportation, including customs clearance, ground handling, and freight forwarding. The air cargo industry is also investing in technology to enhance efficiency, such as automated cargo handling systems and real-time tracking solutions. The market is expected to grow steadily in the coming years due to the increasing demand for faster and more reliable transportation solutions.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Manufacturing
• FMCG And Retail
• Pharmaceuticals And Chemicals
• Others
• Type
• Belly Cargo
• Freighter
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio