Air Freight Market Analysis, Size, and Forecast 2025-2029: APAC (China, India, Japan, South Korea), North America (US and Canada), Europe (France, Germany, Italy, UK), Middle East and Africa , and South America

Air Freight Market Size 2025-2029

The air freight market size is forecast to increase by USD 96.5 billion, at a CAGR of 7.5% between 2024 and 2029.

• The market is experiencing significant growth due to the increasing demand from the e-commerce sector. With the rise of online shopping, there has been a surge in the need for quick and efficient delivery of goods, leading to an increase in air freight demand. Another trend transforming the air freight industry is the implementation of blockchain technology. This innovative solution enhances transparency, security, and efficiency in the supply chain, reducing the need for intermediaries and streamlining processes. However, the high cost of air freight services remains a significant challenge for market participants. Despite the advantages of faster delivery times and increased security, the high costs can limit the adoption of air freight by some businesses.
• Companies seeking to capitalize on market opportunities should focus on optimizing their supply chain logistics and exploring cost-effective solutions to offset the high costs of air freight services. Effective implementation of technology, such as blockchain, can help streamline processes and reduce costs, while strategic partnerships and collaborations can help share costs and increase operational efficiency. Navigating these challenges requires a proactive and strategic approach, with a focus on innovation, cost optimization, and supply chain efficiency.

What will be the Size of the Air Freight Market during the forecast period?

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The market dynamics continue to evolve, with time-sensitive shipments driving the need for efficient and effective solutions. Route optimization and real-time tracking are crucial for ensuring swift delivery, while distribution centers and cargo handling equipment streamline the process. Express shipping and aviation safety standards are integral components of the air freight industry, ensuring the secure and timely transport of various goods. Cargo handling systems, from conveyor belts to cargo aircraft, are continually advancing to accommodate diverse cargo types, including hazardous materials and perishable goods. Predictive analytics and data analytics enable proactive decision-making, optimizing air cargo capacity and fuel efficiency.

Carbon emission reduction is a growing concern, with air freight management integrating sustainable practices and technologies, such as RFID and blockchain, to enhance cargo security and streamline cargo logistics. Environmental regulations and freight rates shape the industry landscape, with cargo insurance and customs clearance playing essential roles in the supply chain. Air cargo networks and cargo space availability remain key factors, with inventory management and cargo logistics ensuring seamless integration of various components. Air cargo regulations and airfreight tracking provide transparency and accountability, enabling effective cargo operations and flight schedules. Live animals and freight forwarders require specialized handling, with air waybills and cargo automation facilitating the process.

Cargo consolidation and temperature-controlled shipping maintain the integrity of sensitive goods, while cargo insurance offers protection against potential losses. The ongoing unfolding of market activities reveals a dynamic and evolving the market, with continuous innovation and adaptation to meet the demands of various sectors.

How is this Air Freight Industry segmented?

The air freight industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• End-user
  • Commercial
  • Private
• Type
  • International
  • Domestic
• Application
  • Food and perishable goods
  • Industrial materials
  • Equipment and machinery
  • Others
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Rest of World (ROW)

By End-user Insights

The commercial segment is estimated to witness significant growth during the forecast period.

The market experiences continuous expansion due to the increasing demand for consumer electronics, automotive products, food items, frozen food, agricultural products, and medical devices. In 2024, the price decrease of consumer electronics in Japan and China, driven by economies of scale in production, intensifies price competition among manufacturers in South Korea and Taiwan. This price reduction increases their purchase frequency, necessitating swift and controlled transportation. Airfreight forwarding is the preferred choice for these perishable goods, ensuring timely delivery and maintaining their physical and chemical integrity. Sustainable air cargo practices, such as fuel efficiency and carbon emission reduction, are gaining importance in the industry.

Air cargo terminals employ advanced cargo handling systems and environmental regulations to minimize environmental impact. Cargo security remains a top priority, with air cargo operations utilizing the latest technology, including blockchain, RFID, and air cargo automation. Cargo consolidation and temperature-controlled shipping are essential for perishable goods, while cargo insurance and supply chain management ensure seamless delivery. The hub-and-spoke model optimizes route optimization and real-time tracking, enabling efficient distribution center management and inventory control. Air cargo networks offer cargo space availability, data analytics, and predictive analytics to enhance air freight management and express shipping. Aviation safety standards ensure the safe transportation of live animals, dangerous goods, and time-sensitive shipments.

Air cargo carriers prioritize cargo logistics and customs clearance to streamline operations and reduce freight rates. Cargo handling equipment and air freight management systems enable efficient cargo operations and cargo aircraft maintenance.

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The Commercial segment was valued at USD 133.50 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 31% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region is experiencing significant growth, driven by the expanding retail and electronics industries. Retail sales are projected to surge, particularly in India and Japan, due to favorable government policies, such as the Indian Department of Industrial Policy and Promotion's 100% FDI allowance for single-brand retailers. This policy is expected to boost retail sales and, in turn, increase transportation demands, fueling market expansion. Sustainable air cargo solutions, including temperature-controlled shipping and cargo consolidation, are gaining popularity due to increasing environmental regulations. Air cargo terminals are integrating advanced technology, such as RFID and conveyor systems, to enhance efficiency and security.

Cargo logistics companies are employing real-time tracking, predictive analytics, and route optimization to streamline operations and reduce carbon emissions. The hub-and-spoke model is being adopted by air cargo carriers to optimize cargo space availability and improve delivery networks. Air cargo automation and express shipping are essential for time-sensitive shipments, such as perishable goods and live animals. Cargo insurance and inventory management systems help mitigate risks and ensure efficient supply chain management. Air cargo operations are subject to stringent regulations, including those related to dangerous goods and cargo security. Blockchain technology is being explored to improve airfreight tracking and enhance transparency.

Air cargo capacity and freight rates are critical factors influencing market dynamics. Cargo handling systems, including pallet handling and cargo aircraft, are being upgraded to improve fuel efficiency and reduce operational costs. Aviation safety standards and customs clearance procedures are essential for maintaining a seamless air cargo supply chain. Overall, the market in APAC is witnessing dynamic growth, driven by the retail sector, technological advancements, and evolving market trends.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Air Freight Industry?

• The e-commerce sector's expansion is the primary catalyst for the increasing demand in air freight, significantly driving the market growth.

• The market experiences significant growth due to the increasing demand from the e-commerce industry. In 2024, the industry's revenue is projected to reach unprecedented heights, driven by increasing internet penetration and rising purchasing power in key regions. The US and China are at the forefront of this trend, with the US market projected to generate USD1.2 trillion in revenue, and online sales expected to expand by 8.7%. In China, the market is poised to grow by 6.3% annually, reaching USD3.1 trillion. Major players in the market include freight forwarders, air cargo carriers, and air cargo networks.
• They facilitate the transportation of goods, including live animals and time-sensitive items, through the use of air waybills and cargo logistics. Air cargo automation, such as conveyor systems, plays a crucial role in streamlining operations and improving inventory management. Data analytics is also a significant trend in the market, enabling real-time tracking of cargo space availability and customs clearance. Cargo aircraft are being optimized with advanced technology to increase cargo capacity and reduce turnaround times. The market is further propelled by the need for efficient cargo logistics and the increasing demand for faster delivery times.
• In conclusion, the market is a critical component of the global supply chain, particularly in the e-commerce sector. Its growth is driven by various factors, including increasing internet penetration, rising purchasing power, and the need for faster delivery times. The market is dynamic, with players continually investing in technology and innovation to meet evolving customer demands.

What are the market trends shaping the Air Freight Industry?

• Blockchain technology is increasingly making inroads into the air freight industry, marking a significant market trend. This innovative solution offers enhanced security, transparency, and efficiency in the logistics sector.

• Air freight is a critical component of global supply chains, particularly for time-sensitive shipments. Effective air freight management is essential for businesses seeking to optimize their logistics networks and ensure on-time delivery. The use of advanced technologies, such as route optimization, real-time tracking, and predictive analytics, is transforming the industry. Cargo handling equipment and distribution centers are being automated to increase efficiency and reduce errors. Aviation safety standards remain a top priority, with continuous efforts being made to improve safety and reduce carbon emissions. Air freight routing is being optimized through the use of data and analytics to minimize costs and improve delivery times.
• Blockchain technology is also gaining traction in the air freight industry, providing secure, transparent digital records and reducing the risk of data corruption or alteration during transactions. By enhancing security, improving efficiency, and reducing emissions, these technologies are helping to drive innovation and growth in the market.

What challenges does the Air Freight Industry face during its growth?

• The escalating costs of air freight services pose a significant challenge to the industry's growth trajectory.

• Air freight plays a crucial role in the global supply chain for transporting high-value and time-sensitive goods. The cost of air freight is significantly higher than other modes of transportation, such as roadways and waterways. The primary components of air freight costs include jet fuel surcharges, transportation costs, labor and handling fees, customs brokerage, and landing charges. A significant portion of these costs is attributed to jet fuel, which accounts for approximately half the annual operating cost of an aircraft due to its direct correlation with weight and distance. The rise in fuel prices can substantially increase the overall cost of air freight.
• Perishable goods and hazardous materials require specialized handling, adding to the overall expense. Sustainable air cargo solutions, cargo security, and advanced air cargo technology, such as blockchain and cargo consolidation, are essential considerations to optimize costs and enhance efficiency in air cargo operations. The hub-and-spoke model and air cargo terminals facilitate seamless delivery networks, ensuring timely and secure transportation of goods.

Exclusive Customer Landscape

The air freight market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the air freight market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, air freight market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Agility Public Warehousing Co. K.S.C.P - The company specializes in expediting air freight transportation, ensuring minimal handling to safeguard goods and expediting customs clearance for swift and efficient processing. Our solutions prioritize streamlined logistics, reducing cargo wait times and ensuring timely delivery. By implementing advanced technology and strategic partnerships, we optimize the air freight experience for businesses seeking to import and export goods on a global scale.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Agility Public Warehousing Co. K.S.C.P
• Bollore Logistics
• C H Robinson Worldwide Inc.
• CEVA Logistics SA
• DB Schenker
• DHL International GmbH
• Dimerco Express Corp
• DSV AS
• Expeditors International of Washington Inc.
• FedEx Corp.
• GEODIS
• Hellmann Worldwide Logistics SE and Co KG
• Kerry Logistics Network Ltd.
• Kuehne Nagel Management AG
• Nippon Express Holdings Inc.
• Sinotrans Ltd
• The Emirates Group
• United Parcel Service Inc.
• XPO Inc.
• YUSEN LOGISTICS CO. LTD.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Air Freight Market

• In February 2023, DHL Express, a leading global logistics company, announced the launch of its new greenhouse gas (GHG) emissions calculation tool for air freight, aiming to provide customers with more transparency and help them reduce their carbon footprint (DHL Press Release, 2023).
• In November 2022, FedEx Express, a significant player in the market, entered into a strategic partnership with Google Cloud to enhance its digital capabilities and improve the customer experience through advanced analytics and automation (FedEx Press Release, 2022).
• In June 2021, Amazon Air, the cargo division of Amazon, completed the acquisition of Air Transport Services Group's (ATSG) Air Transport International (ATI), expanding its air freight capacity and strengthening its control over its logistics network (Amazon Press Release, 2021).
• In March 2020, IATA (International Air Transport Association) and WHO (World Health Organization) announced the implementation of the 'IATA Time:Research & Development' project, which aims to develop a digital solution for the global air cargo community to improve the tracing and sharing of critical data during crises, such as the COVID-19 pandemic (IATA Press Release, 2020).

Research Analyst Overview

• In the dynamic international air cargo market, various elements shape the industry's landscape. Cargo charters offer flexibility for businesses requiring expedited shipping, while e-commerce fulfillment drives growth in belly cargo. Cargo security systems ensure the safe transport of goods through advanced technology and cargo theft prevention measures. Freight insurance mitigates risks, and cargo handling staff ensure efficient ground handling services. International air cargo faces stringent compliance regulations, including air cargo safety, compliance, and security audits. Cold chain logistics and pharmaceutical logistics require specialized temperature monitoring to maintain product integrity. Air cargo optimization, freight brokerage, and aircraft maintenance enhance operational efficiency.
• Cross-border shipping and freighter operations require careful planning and air freight contracts. Carbon offsetting and environmental impact assessments address the industry's environmental concerns. Air cargo pricing remains competitive, with cargo space leasing providing flexible solutions. Cargo claims and aircraft maintenance ensure business continuity, and green logistics initiatives contribute to sustainability. Domestic air cargo caters to local markets, and air cargo optimization and air freight contracts streamline operations. Overall, the market continues to evolve, responding to changing business needs and market demands.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Air Freight Market insights. See full methodology.

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What are the Key Data Covered in this Air Freight Market Research and Growth Report?

• CAGR of the Air Freight industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the air freight market growth of industry companies

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