Air Cargo Market Size, Share, Growth Analysis, By Type of cargo(General cargo, perishable goods, pharmaceuticals, e-commerce parcels), By Service type(Express delivery, freight forwarding, charter services, and courier services), By Region - Industry Forecast 2024-2031

Air Cargo Market Drivers

Growing E-commerce Industry 

• One of the major drivers of the air cargo market is the rapid growth of e-commerce. With online shopping becoming a strong trend across the globe. The demand for fast and efficient delivery solutions, especially for expensive and perishable goods, is increasing. Air freight delivers time faster compared to other modes of transportation and aims to meet customer expectations on- time delivery. It is becoming a preferred product of commercial companies and as a result, aircraft integration of logistics services into the global supply chain has become a key driver for the continued expansion of the e-commerce industry. 

Increasing Global Trade and Industrialization 

• Another important driver is the growth of global trade, driven by technology and increased globalization. Air cargo plays an important role in facilitating international trade by allowing goods to be transported over short distances. As manufacturing and engineering activities increase, especially in emerging markets, the need for fast and reliable delivery of raw materials and finished products continues to grow.  

Restraints 

Increased Operating Costs 

• One of the major challenges in the air cargo market is the high operating costs associated with aircraft parts. The cost of fuel, aircraft maintenance, handling and airport fees contribute to the overall cost of air freight, making it less competitive compared to other modes of transport for marine or rail freight. The growth of the market is limited. 

Strict Regulatory Environmental Policy 

• Another important mandate is stricter air cargo regulations, especially with regard to environmental concerns. Governments and regulatory agencies have established stringent emissions and noise pollution regulations, which aircraft manufacturers must comply. This has increased the pressure on industry to adopt green technologies and improve fuel efficiency. Furthermore, customs trade laws in different countries add complexity to the international air cargo business, further increasing operational complexity and costs.