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Air Cargo Services Market Forecast 2025-2034: Analysing Major Trends, Opportunities, and Growth Drivers
Air Cargo Services Market
The expansion of the automotive industry is forecasted to spur the air cargo services market's growth in the future. This industry comprises various businesses and institutions that specialize in the conception, improvement, production, marketing, sales, repair, and alteration of motor vehicles. The transportation of goods through the air is vital in this industry since it ensures the prompt delivery of essential components and spare parts, reducing manufacturing downtime, and aiding just-in-time manufacturing methods. For example, a report by the International Trade Administration, based in Canada, disclosed that the total worth of Canadian automotive local manufacture in 2022 rose to 64,565 from 54,892 in the previous year. Consequently, the flourishing automotive industry is a significant driver of the rate of growth in the air cargo services market.
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What growth opportunities are expected to drive the air cargo services market's CAGR through 2034?
The market size for air cargo services has significantly expanded over recent years. Its growth is projected to surge from $72.93 billion in 2024 to an estimated $78.69 billion in 2025, with a compound annual growth rate (CAGR) of 7.9%. Factors contributing to growth during the historic period include the globalisation of trade, the need for time-sensitive deliveries, the manufacturing supply chains, as well as the automotive, electronics, oil and gas equipment transport industries.
Expectations are high for substantial growth in the air cargo services market in the coming years, with projections indicating a rise to $101.14 billion by 2029. This represents a compound annual growth rate (CAGR) of 6.5%. This anticipated increase during the forecast period is linked to various factors including evolving trade partnerships, pharma cold chain logistics, alterations in customs and regulations, energy transition equipment transport, and space cargo and exploration. Furthermore, the predicted trends during this period entail advanced cargo tracking solutions, artificial intelligence and predictive analytics, digital transformations in cargo handling, collaborations within air cargo alliances, and the usage of unmanned aerial vehicles (UAVs) for cargo delivery.
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What trends are poised to drive the future success of the air cargo services market?
Leading players in the air cargo services market are boosting their emphasis on developing logistics and delivery network cargo services to earn a superior position in the market. Such services incorporate various tasks and solutions in both the supply chain and transportation sector. These services entail the control, transport and handling of commodities, materials, and products at different stages of the supply chain, namely production, warehousing, dissemination, and final delivery to the end consumers. For example, in January 2023, Amazon Air, a cargo airline based in the US, debuted its specialized air cargo fleet, Amazon Air, in India. This marked the first time an e-commerce firm in the nation possessed its proprietary air network. Amazon Air will harness the cargo capacity of two Boeing 737-800 aircraft run by Quikjet Cargo Airlines. Each Amazon Air plane will transport thousands of parcels daily, covering Hyderabad, Bengaluru, Delhi, and Mumbai. Amazon Air will expedite the delivery of orders from Amazon's fulfillment centers to last-mile deliveries.
Which growth-oriented segments of the air cargo services market are leading the industry's development?
The air cargo services market covered in this report is segmented -
1) By Type: Air Mail, Air Freight
2) By Service: Express, Regular
3) By Destination: Domestic, International
4) By End-User: Consumer Electronics, Retail, Third Party Logistics, Food And Beverages, Pharmaceuticals And Healthcare, Other End Users
Subsegments:
1) By Air Mail: Domestic Air Mail Services, International Air Mail Services, Express Air Mail Services
2) By Air Freight: Standard Air Freight Services, Expedited Air Freight Services, Heavy And Oversized Air Freight Services, Temperature-Controlled Air Freight Services, Charter Air Freight Services
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What regions are leading the charge in the air cargo services market?
Asia-Pacific was the largest region in the air cargo services market in 2024. North America was the second largest region in the air cargo services market. The regions covered in the air cargo services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What companies are at the forefront of innovation in the air cargo services market?
Major companies operating in the air cargo services market include Amazon.com Inc., UPS Airlines, United Parcel Service Inc., Deutsche Post AG, FedEx Corporation, United States Postal Service, American Airlines, Delta Airlines, United Airlines, Kuehne + Nagel International AG, The Emirates Group, International Consolidated Airlines Group SA, Qatar Airways Company QCSC, LATAM Airlines, Japan Airlines Co. Ltd., Cathay Pacific Airways Limited, Cargolux Airlines International SA, China Airlines Ltd., Cargill Incorporated, Aeromexico Cargo, Azul Airlines, Magma Aviation Limited, China Airlines Cargo, South African Airways Cargo, Thai Airways Cargo
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What Is Covered In The Air Cargo Services Global Market Report?
• Market Size Forecast: Examine the air cargo services market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the air cargo services market for a structured understanding.
• Key Players Overview: Analyze major players in the air cargo services market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the air cargo services market.
• Segment Contributions: Evaluate how different segments drive overall growth in the air cargo services market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the air cargo services market.
• Industry Challenges: Identify potential risks and obstacles affecting the air cargo services market.
• Competitive Landscape: Review strategic developments in the air cargo services market, including expansions, agreements, and new product launches.
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