Air Cargo Market Size, Industry Share & COVID-19 Impact Analysis, Russia Ukraine War Impact Analysis, By Type (Air Mail and Air Freight), By Service (Express and Regular), By End User (FMCG, Manufacturing, Retail, Pharmaceutical & Healthcare, Food & Beverage, Consumer Electronics, Automotive, and Others), By Destination (Domestic and International), By Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America) and Regional Forecast, 2024-2032

The air cargo market is a significant contributor to the global transport industry, with an increasing market size driven by increasing demand for e-commerce and delivery services. It refers to the transportation of goods by air, usually using specialized cargo aircraft or the belly space of passenger aircraft. Air cargo plays a significant role in the international trade of goods. It provides a fast, safe, and efficient mode of transportation for high-value, time-sensitive, and perishable products.

Air Cargo Market Segmentation Analysis

The air cargo market is segmented by service type and end-use industry. The market is segmented into express, regular, and special cargo. The air cargo comprises a diverse range of industries, including manufacturing, retailer-commerce, healthcare, and automotive.

The air cargo industry is segmented By Type, in which the market is segmented into air mail and air freight, By Service Type the market into segmented as express and regular, By End User Type, the market is segmented into FMCG, manufacturing, retail, pharmaceutical & healthcare, food & beverage, consumer electronics, automotive, and others, By Destination type the market is segmented into domestic and international, and  By Geography, the market is segmented into Europe, North America, Asia Pacific, Middle East and Africa, and South America

The air cargo industry is highly competitive, with many airlines and cargo operators offering services globally. The market is also heavily regulated by national and international authorities to ensure the safety and security of the cargo and passengers. Recently, the cargo industry faced various challenges, including COVID-19 and increasing demand for sustainable and environmentally friendly transportation options. Despite these challenges, the air cargo market is expected to continue growing in the coming years, driven by globalization, e-commerce, and technological advancements. The increase in e-commerce sales to boost the market is notably driving the market growth, although factors such as the expected rise in jet fuel prices may impede the market growth.

Factors driving the growth of the global air cargo industry are rise in e-commerce sales due to the increasing number of online sellers and the rising number of online shoppers. Online sellers require air cargo services to deliver their products to customers on time due to which the rise in e-commerce is driving the air cargo industry.

COVID-19 Impact Analysis

COVID-19 has had a significant impact on the air cargo market. While the pandemic decreased passenger air travel, air cargo demand surged due to medical supplies, personal protective equipment, and other essential goods. However, the pandemic has also created various challenges for the air cargo industry, such as disruption in supply chains, capacity constraints, and increased costs.

The pandemic created a surge in demand for air cargo as countries scrambled to secure essential medical supplies and other critical goods. The demand for air cargo also increased due to the disruption of ocean fright, which was severely impacted by port closure and delay. The decrease in passenger air travel also led to decreased available cargo space, as most air cargo is carried in the belly of passenger planes. This has led to capacity constraints, with many air cargo carriers struggling to meet demand.

The demand and capacity constraint increase led to significant price volatility in the air cargo market. Prices for air cargo increased sharply during the early stages of the pandemic due to a surge in demand and capacity constraints. However, prices have stabilized as airlines have adjusted their operations to meet the increased demand. The pandemic led to significant supply chain disruption, which had a ripple effect on the air cargo industry. Many manufacturers had to shut down production facilities, which impacted the availability of goods for air transport.

Russia-Ukraine War Impact Analysis

The ongoing conflict between Russia-Ukraine has had a significant impact on the air cargo industry, particularly in the region of the imposition of sanctions and restrictions on trade, which has impacted the movement of goods by air. The conflict has led to disruption of the supply chain, which has impacted the movement of goods by air. The closure of borders and restrictions on trade have made it difficult for airlines to transport goods between the two countries.

The conflict has also reduced air cargo demand as businesses have been forced to reduce air operations in the region. The number of flights and cargo volumes transported between Russia and Ukraine decreased.

The demand reduction has also led to capacity constraints as airlines have reduced their regional operations. This has led to higher prices for air cargo as the supply of the available cargo space has decreased. It has also impacted the ability of the airports to handle air cargo. The closure of the airport and restrictions on air traffic have made it difficult for airlines to transport goods in the region.

Key Insights

• The research includes detailed information about the competitors' overviews, important market developments, and key strategies.


• The Report format has been maintained to provide the most business value possible.


• It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market.

Air Cargo Market Regional Analysis

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Air transportation of goods from the Asia Pacific region to North American countries is anticipated to increase due to the shipment of raw materials from Asia Pacific, which are comparatively cheaper than in other parts of the world. This is mainly due to the lower manufacturing and labor cost in Asia Pacific countries like India, China, Vietnam, and Thailand.

The North American region holds the second largest market share globally, as it is home to many key market players who drive demand in the region. Additionally, increased disposable income per person contributes to the regional market.

Europe holds the third largest market share, primarily due to its advanced technological infrastructure that simulates market growth.

Key Players Covered:

• American Airlines Inc


• CAL Cargo Air Lines Ltd


• FedEx Corp


• Bollore Logistics


• Emirates SkyCargo


• Cargolux Airlines International SA


• Cathay Pacific Airways Ltd


• Qatar Airways Cargo China Airlines Ltd


• China Southern Airlines Co. Ltd


• Delta Air Lines Inc


• others.

Segmentation

Recent Developments

• In February 2022, AP Moller – Maersk As is set to acquire pilot freight, a developer of first, middle, and last-mile solutions focused on large and heavy air freight, for approximately USD 1600 million. Maersk is a leading global container shipping company, transporting nearly 12 million containers annually and offering a wide range of services, such as air freight, ocean transport, inland shipping, and intercontinental rail.


• In February 2022, Flexport made an advanced purchase order for two large-scale cargo unmanned aerial vehicle designees from Natilus. These drones can carry up to 100 tons of cargo, making them potential competitors to traditional aircraft. Nautilus is developing the first-ever autonomous aircraft specifically designed for air freight transportation.