Air Cargo Market Report 2026: Size Projected USD 273.50 Billion, CAGR of 6.40% by 2032

North America dominated the air cargo market with a industry share of 32.10% in 2024.

PUNE, MAHARASHTRA, INDIA, February 8, 2026 /EINPresswire.com/ -- The global air cargo market size has demonstrated robust growth momentum, with its valuation reaching USD 172.74 billion in 2024. Industry projections indicate substantial expansion ahead, with the market expected to grow from USD 177.11 billion in 2025 to USD 273.50 billion by 2032, representing a compound annual growth rate of 6.40% throughout the forecast period. This growth trajectory reflects the increasing importance of air freight in global supply chain operations and international trade facilitation.

North America currently dominates the market landscape, commanding a significant 32.10% share in 2024. The region's leadership position stems from its extensive logistics infrastructure, major integrator presence, and strong demand from technology and healthcare sectors.

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Key Growth Drivers

E-Commerce Expansion

The explosive growth of e-commerce serves as a primary catalyst for air cargo market expansion. Modern e-commerce logistics depend heavily on express networks and efficient delivery systems. According to Boeing's World Cargo Forecast, global e-commerce revenue is projected to more than double pre-pandemic levels by 2026, reaching over five times the spending recorded in 2015. This surge directly translates to increased demand for air freight services capable of meeting rapid delivery expectations.

Passenger-to-Freighter Conversions

The increasing trend of converting passenger aircraft to cargo freighters significantly contributes to market growth. These conversions involve comprehensive modifications, including cabin interior removal, seat extraction, and installation of cargo handling systems. With global e-commerce sales expected to double and international air order volumes booming, Passenger-to-Freighter conversions have become essential to meet rising freight capacity demands.

Market Segmentation Analysis

By Destination

The domestic segment captured a larger market share in 2024 and maintains strong growth prospects. This dominance reflects the emergence of regional cargo service providers and changing manufacturing dynamics. Rising labor costs in countries like China, combined with consumer preferences for higher-quality products and shorter delivery times, have driven onshoring and nearshoring trends. American companies increasingly relocate production to countries such as Mexico and Canada, boosting domestic air cargo volumes.

By Cargo Type

Bulk cargo emerged as the leading segment, benefiting from its ability to leverage pure network frequency without requiring specialized infrastructure. Freight forwarders can consolidate diverse products while maintaining tight cut-off times, keeping unit costs predictable and enabling flexible uplift during peak periods or route adjustments.

By Carrier

Cargo airlines dominate the carrier segment, holding over 59% market share in 2024. Dedicated cargo airlines provide schedule-independent main-deck capacity, night-wave connectivity, and flexible payload options. These capabilities prove critical for time-sensitive products and routes with limited passenger demand. Freighter operators can adjust rotations around exporter requirements, protect peak seasons, and maintain service integrity during operational disruptions.

By End-User

The commercial and civil segment led the market in 2024, accounting for more than 45% of total share. This segment encompasses electronics, industrial components, fashion, and aerospace spare parts shippers who utilize air freight to prevent stock-outs, maintain product launch schedules, and optimize cash conversion cycles.

Regional Market Dynamics

North America

North America maintained its leadership position with a market value of USD 55.45 billion in 2024. The region's success stems from major integrator presence, robust transatlantic demand, and high-value exports in technology and healthcare sectors. Capacity diversification across belly and freighter fleets enables rapid shifts between business-to-consumer surges and business-to-business replenishment.

Asia Pacific

The Asia Pacific region experiences the highest growth rate, driven by export-oriented manufacturing, cross-border e-commerce, and dense long-haul connections. Network restorations and expanding intra-Asia trade flows have propelled cargo tonne-kilometers growth above global averages.

Europe

Europe's market share remains sustained by strong transatlantic and intra-EU demand, established pharmaceutical corridors, and substantial belly capacity from long-haul passenger services. However, geopolitical reroutes and Red Sea disruptions have increased buffer times and operating costs.

Competitive Landscape

The market exhibits consolidation, with several global and regional players competing for market share. Major industry participants include DHL GROUP (Germany), FedEx (U.S.), The Emirates Group (UAE), Cargolux Airlines International, China Airlines, Turkish Cargo, Qatar Airways, Deutsche Lufthansa, Cathay Pacific Airways, and All Nippon Airways. These companies strengthen their positions through strategic partnerships, acquisitions, and service innovations.

Market Challenges

Geopolitical factors and airspace detours present significant challenges to industry growth. When airlines must avoid restricted airspace, flight times lengthen, fuel consumption increases, and operational complexity rises. These factors elevate unit costs per ton-kilometer while reducing available payload capacity and disrupting hub connectivity.

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Future Outlook

The market demonstrates promising growth opportunities through reopened belly capacity and digitally bookable lift, expanding high-value air trade. Passenger network normalization has restored wide-body belly capacity on trunk routes, unlocking more city-pairs for small and medium enterprises to ship time-definite goods. Express platforms and digital booking systems enable shippers to purchase ad-hoc space or charter entire aircraft, improving speed-to-market without fixed contract commitments.

Near-term opportunities concentrate in premium, time-definite products including pharmaceuticals, semiconductors, and aerospace components, alongside cross-border e-commerce and hybrid operational strategies that maximize seasonal demand while maintaining service integrity.

Ashwin Arora
Fortune Business Insights™ Pvt. Ltd.
+1 833-909-2966
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