ABI Research’s Supply Chain & Logistics team has compiled a report compiling various air cargo data. This information reveals key market dynamics, informing technology providers of promising business opportunities and air cargo logistics teams of notable trends.
Key Takeaways
- Air cargo demand is currently outpacing capacity worldwide. High growth is expected in the Asia-Pacific region, with countries like China, Vietnam, and the Indian subcontinent having the highest growth rates. While North America and Europe are expected to maintain stability, demand may fluctuate.
- Although fuel prices are expected to remain relatively low thanks to increased U.S. crude oil production, price fluctuations remain a concern. Geopolitical events like the Red Sea crisis may impact air freight costs and create potential delays.
- Global Business-to-Business (B2B) commerce—projected to grow by 14.5% annually through 2026—is a key driver behind the growing demand for air freight services.
North America Leads Air Cargo Volume Growth Amid Global Recovery
North American air freight providers are experiencing the fastest growth in air cargo movement. With a 3.4% Compound Annual Growth Rate (CAGR), North America’s air cargo volume reached 17.5 million tons in 2023.
This growth is driven by the region's robust demand for products in B2B e-commerce, pharmaceuticals, and high-value manufacturing industries.
Asia-Pacific Is the Largest Contributor to Global Air Cargo Volume
Although North America is growing the fastest, Asia-Pacific holds the lead in total air cargo volume carried.
By 2023, the region will handle 22.5 million tons of air cargo, driven by its strong manufacturing sector growth and increasing demand for rapid delivery services.
This makes Asia-Pacific the largest market for air freight, underscoring the region's importance in global supply chains.
Fleet Expansion Supports Growing Air Cargo Demand Across Regions
The global aircraft fleet is expanding steadily, with the total number of aircraft increasing steadily between 2019 and 2023.
In total, the air cargo fleet numbered nearly 25,900 aircraft in 2023, providing the necessary capacity to support the increasing demand for air freight services globally.
Air Cargo Revenue to Outpace Volume and Fleet Expansion
Air cargo revenue has been on an upward trajectory, with the total global revenue reaching US$135 billion by the end of 2023. Asia-Pacific stands out with a 9.9% CAGR, driven by its strong demand for both scheduled and charter freight.
North America follows closely with an 8.2% CAGR, despite a decline in 2023. Meanwhile, Europe and the Rest of the World experience more moderate, sub-5% growth rates.
The growth in air cargo revenue signals a broader trend of increasing reliance on air freight for time or temperature-sensitive shipments and high-value goods.
Air Traffic Growth Hits the Breaks
Worldwide air traffic data is relatively slow across regions, ranging from 0.2% to 0.5%:
- North America: Shows modest air traffic growth of 0.5% from 2019 to 2023. The majority of this traffic comes from scheduled freight, with a growing demand for charter freight.
- Europe: Air traffic growth is slow, with a 0.3% CAGR, as scheduled freight volumes remain relatively stable.
- Asia-Pacific: Air traffic growth is minimal, at just 0.2%, but the region remains a global leader in freight traffic due to its sheer volume of goods being transported.
- Rest of the World: Shows stable 0.3% growth in air traffic, with a slight increase in both scheduled and charter freight.
As the air cargo market continues to evolve, technology providers and supply chain executives must stay informed about these trends and adapt to changing global trade conditions. For a deeper dive into the current state and future technological projections of the air cargo industry, download the full forecast from ABI Research.
