Global Air Cargo Market Size, Status and Forecast 2022

Air Cargo Market

The global Air Cargo market size is projected to reach USD 111810 Million by 2027, from USD 82570 Million in 2020, at a CAGR of 4.0% during 2021-2027. Key drivers of the air cargo market include the growing demand for faster delivery of cargo.  Increasing cross-border eCommerce and low costs related to insurance premiums will drive the growth of the air cargo market during the forecast period. Further, the rapid expansion of the pharmaceutical industry and the need to transport temperature-sensitive goods such as drugs, medicines will aid in market growth.

Trends Influencing the Global Air Cargo Market

Consumer demand for faster delivery of cargo

The demand for air cargo is growing as transportation of goods by air takes much less time in comparison to other modes of transportation such as railways, roads, and shipping. There is a fixed arrival and departure time with minimal or no scope for delays. The warehouse requirement is less and clearance is fast. The shipment of goods always arrives on time. Thus the above factors are creating consumer demand for air cargo thereby driving the growth of the air cargo market during the forecast period.

Expansion of cross-border eCommerce and low insurance premiums

The cross border eCommerce industry is expanding at a substantial rate. The growing penetration of smartphones, online shopping trends, and rising disposable incomes are all aiding in the growth of the industry. The easy availability of a wide variety of goods at cheaper payment options in other countries along with strong logistical solutions is catering to the growing demand for cross-border eCommerce. Air cargo plays a major role in this sector. Moreover, the shipment duration in air freight is short leading to lesser insurance premiums for air transportation. Thus the acceleration of the cross-border eCommerce industry along with low insurance premiums for airline transportation will drive the growth of the air cargo market in the coming years.   

Growth of pharmaceutical industry and need for transporting temperature-sensitive goods

The pharmaceutical industry is growing at a rapid pace. The strict regulatory requirements and a growing number of biotech or pharma products entering the market every day require the need for efficient air cargo transport services with packaging and cold chain facilities. This enables quick transportation of temperature-sensitive goods such as drugs, chemicals, and medicines without any damage or threat to security. Thus the expanding pharma industry and the growing need to transport temperature-sensitive products will drive the growth of the air cargo market during the forecast period. Market players with cold chain facilities will develop immensely during the review period.

Air Cargo Market Share

Based on application, the Pharmaceutical and healthcare segment is expected to provide lucrative opportunities for growth in the air cargo market share as air transport provides fast delivery and smooth packaging enabling quick transport of time-controlled and temperature sensitive products.

Based on type, air freight is expected to provide lucrative opportunities for growth in the air cargo market share due to the rising eCommerce industry and global trade of goods and services.

Based on region, North America will provide huge scope for growth in the air cargo market share due to economic growth and rising income levels.

Air Cargo Market Segmentation

By Type

• Air Mail
• Air Freight

By Application

• Retail
• Food and Beverages
• Pharmaceuticals and Healthcare
• Consumer Electronics
• 3PL

Key Players

• China Airlines Cargo
• FedEx Express
• UPS Airlines
• Cathay Pacific Cargo
• DHL Aviation
• Korean Air Caro
• Cargolux
• Lufthansa Cargo
• Singapore Airlines Cargo
• Emirates SkyCargo
• Air Freight and Air Mail

Scope of Air Cargo Market Report