Global Air Freight Market Size, Share, Growth, Forecast: By Destination: Domestic, International; By Service: Freight, Express, Mail, Others; By End Use: Private, Commercial, Institutional; Regional Analysis; Market Dynamics: SWOT Analysis; Porter’s Five Forces Analysis, Key Indicators for Demand; Competitive Landscape; 2024-2032

Global Air Freight Market Size

The global air freight market reached a volume of nearly 97.92 million metric tons in 2023. The market is expected to grow at a CAGR of 12% during the forecast period of 2024-2032.

Air Freight Market Outlook

• According to the International Air Transport Association (IATA), there has been a significant increase in air cargo demand, with a remarkable 18.4% year-on-year growth in January.

• As per industry reports, North America to Asia route moved 26.9% of all air cargo during 2023.

• In 2023, Hong Kong International Airport processed an impressive 4,199,196 metric tons of freight.

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Air Freight Market Growth Rate

Air freight refers to the carrier that is used to transport goods by air. Air freight facilities are offered by nearly all the airlines. There are two types of cargo that are delivered through air freight, namely, perishable and emergency items, and regular non-perishable goods. Products like jewellery, clothes, and other products are included in the non-perishable segment. Food items like fruits, vegetables, and meats, as well as medicines, are included in the perishable category.

Key drivers aiding the air freight market development include the rapid expansion of e-commerce, which has significantly increased the demand for air cargo services, especially for time-sensitive shipments. Additionally, the rise of global supply chains and the manufacturing industry has boosted the need for international air freight services.

Moreover, the growth of the domestic air freight market is fuelled by the increasing demand for fast and reliable delivery of goods within countries, particularly driven by the growth of domestic e-commerce, retail industry expansion, and manufacturing sector development.

Key Trends and Developments

Advancements in technology, growth of e-commerce, and rising demand for air freight by pharmaceuticals industries are factors propelling the air freight market growth

May 2024

LATAM Cargo has introduced a new freighter service between Europe and Brazil, focusing on pharmaceuticals, general cargo, and automotive volumes. It operates between Amsterdam, Brussels, and Florianopolis using Boeing 767 freighters and targets imports into Brazil's Santa Catarina region.

April 2024

AGI Global Logistics has initiated a strategic partnership with Scandinavian Shipping & Logistics (SSL) in Sweden, aiming to strengthen and expand its freight and logistics services in the Scandinavian market.

September 2022

CEVA Logistics expanded its global air capacity program by adding five IATA Lithium Battery Certified Stations, across key locations in Frankfurt, Incheon, Shanghai, Singapore, and Tokyo. This strategic move underscores CEVA's commitment to compliance and safety in air cargo operations.

April 2021

CEVA Logistics has introduced two new air freight services, SKYCAPACITY and Time-Critical Solution. First provides customers with guaranteed air freight capacity through a network of recurring bookings across multiple carriers. Latter is designed for urgent shipments in industries like healthcare and automotive.

Technological advancements

The air freight industry is embracing technological advancements to meet the increasing demands for faster and more secure air freight services. Companies like Lufthansa Cargo have implemented IoT sensors to monitor cargo conditions in real-time, ensuring the safe transport of sensitive goods.

Expansion of global networks and partnerships

Leading players such as FedEx have been actively expanding their global networks and forming strategic partnerships to drive growth and add to air freight market development. An example is FedEx's acquisition of TNT Express, which significantly expanded its European network and service capabilities.

Growth of e-commerce sector

The rise of e-commerce has propelled the demand for air freight services, with companies like UPS developing specialised solutions to cater to this growing market segment. UPS's investment in automated sorting systems and dedicated e-commerce facilities exemplifies the industry's response to the e-commerce boom.

Growth of the pharmaceuticals and medical equipment industries

The air freight market is being propelled by the growing demand for pharmaceuticals as well as medical equipment. Various regions are also witnessing a robust growth in its automobiles industry, which is providing further impetus to the market as air freight is extremely useful in the transportation of these products within the domestic and overseas areas.

Air Freight Market Trends

Air freight providers are diversifying their service offerings to meet the diverse needs of customers across various industries. For instance, DHL offers specialised logistics solutions for the pharmaceutical sector, ensuring the safe and timely delivery of temperature-sensitive medical products.

The air freight market outlook is also being shaped due to supply chain diversification by various companies to mitigate risks and the emergence of countries like Mexico and India as manufacturing hubs, which, in turn, is boosting air traffic and shaping air cargo as a significant mode of transport.

Moreover, as airlines are increasingly extending their services to end-to-end services, various companies are utilising air freight as an omnichannel, which is likely to provide impetus to the market growth. Additionally, the modernisation of air freight and the deployment of latest technologies like artificial intelligence (AI), machine learning, and advanced analytics, to automate several operations of air freight are likely to further augment the air freight market value in the coming years.

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Air Freight Industry Segmentation

The EMR’s report titled “Air Freight Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Destination

• Domestic

• International

Market Breakup by Service

• Freight

• Express

• Mail

• Others

Market Breakup by End Use

• Private

• Commercial

• Institutional

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Air Freight Market Share

Domestic destinations are using air freight services due to the increasing demand for fast delivery of goods

As per air freight market analysis, the domestic air freight segment refers to the movement of goods within a country. This segment is experiencing significant growth attributed to the increasing demand for fast and reliable delivery of goods within the country. Factors driving this growth include the rise of domestic e-commerce, expansion of the retail industry, and development in the manufacturing sector.

The international air freight segment involves the transportation of goods across borders, playing a vital role in global trade. This segment is the dominant market contributor, driven by factors such as the growth of e-commerce, global supply chains, and the expansion of the manufacturing industry. The increasing demand for efficient and fast transportation of goods across borders, coupled with the rising import and export activities among countries, is fuelling the growth of the international air freight market.

Leading Companies in the Air Freight Market

Market players are expanding global reach, adopting advanced technologies, diversifying service offerings, forming strategic partnerships, and capitalising on e-commerce boom to drive market growth.

Deutsche Post AG was founded in 1949 and is headquartered in Bonn, Germany. It operates as a global logistics company offering a diverse range of services, including mail delivery, parcel delivery, and comprehensive logistics solutions. It operates under various brands such as DHL, DHL Express, DHL Global Forwarding, and DHL Supply Chain.

DSV A/S, founded in 1976 and based in Brøndby, Denmark, is a prominent transport and logistics company specialising in road, air, sea, and train transportation. DSV A/S provides express delivery, freight transportation, supply chain management, and specialised logistics solutions tailored to industries like pharmaceuticals and perishables.

Kuehne + Nagel International AG was established in 1890 and is headquartered in Switzerland, United Kingdom. Specialising in logistics, supply chain management, and freight forwarding services, company is renowned for its commitment to sustainability and providing customer-specific tailored solutions.

FedEx Corporation, founded in 1973 and headquartered in the United States is a global leader in shipping, transportation, and e-commerce services, connects people and possibilities worldwide through its integrated business applications. Renowned for exceptional service, FedEx Express, the world's largest cargo airline, serves over 220 countries with time-definite air-ground services.

Other key players in the global market for air freight include Schenker AG, United Parcel Service of America, Inc., The Emirates Group, Cargolux International Airlines S.A., Nippon Express Co., Ltd., and Hellmann Worldwide Logistics SE & Co. KG, among others.

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Air Freight Market Analysis by Region

North America leads the market due to the growth of several end use industries, such as automotive

North America holds the largest air freight market share, and the United States is the leading regional market. The air freight market in the region is being driven by the growing end-use industries, which comprise electrical, personal care, machinery, and automobile equipment, pharmaceutical, fashion, and retail industries, among others. The addition of another terminal at the Mexico airport is also expected to increase the demand for air freight in the region.

The Asia Pacific region is likely to witness a healthy growth as surplus volume of goods is expected to be supplied from China to other Southeast Asian countries. The market is also expected to be supported by the rising investments in the Southeast Asian nations by freight forwarders. The sourcing locations of the shippers are expected to change in the coming years, that is, cargo traffic is likely to be shifted from China to Vietnam. The shift is expected to attract more third part logistics investments in the Southeast Asian nations, where the demand is healthy, and the potential is also high.

Key Highlights of the Report

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Air Freight Market Report Snapshots

Air Freight Market Size

Air Freight Market Growth

Air Freight Market Trends

Air Freight Market Share

Air Freight Companies

Air Freight Market Regional Analysis

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.