Air Freight Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 151.22 Billion |
| Market Size (2029) | USD 201.57 Billion |
| CAGR (2024 - 2029) | 5.92 % |
| Fastest Growing Market | Middle-East and Africa |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Air Freight Market Analysis
The Air Freight Market size is estimated at USD 151.22 billion in 2024, and is expected to reach USD 201.57 billion by 2029, growing at a CAGR of 5.92% during the forecast period (2024-2029).
The air cargo industry faced considerable challenges in 2022, primarily due to the ongoing conflict between Russia and Ukraine, which significantly reduced the volume of dedicated air cargo originating in Russia.
- According to the International Air Transport Association (IATA), in July 2023, the air cargo industry experienced a 20.7% increase from the previous month, maintaining steady growth since February 2023. However, compared to July 2022, the industry's cargo tonne kilometers (CTKs) decreased by 0.8%, placing it 0.3% below the July 2022 level and 3.7% lower than the pre-crisis level in 2019. This year-on-year increase in CTKs worldwide is partly due to the rise resulting from the lower base year in 2022.
- Throughout the historic shock of the pandemic, airlines have demonstrated remarkable innovation and agility, displaying resilience during this period. The financial profitability of airlines is within reach of the industry at large despite continued pressure on cost evolution from the macroeconomic environment. The substantial gap between jet fuel and oil prices limits airlines' ability to benefit from potential oil price declines, unlike other industries. Limited refinery capacity might sustain this issue into 2023. Tight labor markets lead to higher wages, and unsustainable pricing power within the downstream aviation value chain is likely to persist in 2023."
- This version aims to enhance readability by breaking down some sentences and rephrasing certain parts for better flow while maintaining the original context and information.
Air Freight Market Trends
Growing Demand for the Air Freight Market
- The air cargo industry serves as the backbone of global commerce, facilitating the transportation of goods and interconnecting companies worldwide. Recent years have witnessed a dramatic surge in air cargo owing to the growth of the global economy, evolving consumer preferences, and technological advancements. Cross-border trade stands as a primary driver behind the current market growth, expected to accelerate even further in the upcoming years. As global trade escalates, the demand for swift and efficient international shipping intensifies.
- In August 2023, China's Shenzhen Bao'an International Airport (SBI) experienced a twofold increase in cross-border e-commerce from January to July, anticipating further growth in the remaining five months following the inclusion of freighter flights in the airport's operations. SBI successfully managed 93,000 tons of international e-commerce in seven months, marking a 101% increase compared to the corresponding period last year.
- Partner airlines Central Airlines and YunExpress introduced a second Boeing 777 freight flight in late July, a move anticipated to significantly bolster cargo volumes. This additional freighter aims to expand the airlines' service from three to six weekly flights connecting Shenzhen and Paris.
- April 2023 witnessed the introduction of new features in digital air cargo marketplaces, allowing logistics companies overseeing imports to promptly book export shipments from agents in other countries. This development eliminates the previously time-consuming process of sourcing quotes via phone or email.
- Cargo.One announced an upgrade targeting easier booking for freight forwarders seeking overseas bookings with partners, thereby eliminating the necessity for a third party to execute the booking.
- WebCargo, a part of the Freightos companies, disclosed that airfreight wholesale distributors in China now possess the capability to directly sell space to freight agents, akin to airline partners.
- Third-party platforms, exemplified by CargoAi, enable airlines to vend their capacity in a unified platform, empowering forwarders to compare live rates and availability while electronically booking shipments—similar to how travelers shop for air seats, hotels, and rental cars online using platforms like Kayak and Priceline.
E-commerce Growth Creating Great Opportunities for the Air Freight Industry
- The explosive surge of e-commerce during the pandemic has rendered its future trajectory unpredictable. This online shopping phenomenon has become a global norm as consumers worldwide embrace the convenience of digital transactions. IATA reports that 80% of international e-commerce relies on air transport, significantly streamlining cross-border shopping with enhanced efficiency, security, and transparency. Projections anticipate a substantial expansion in the e-commerce sector, potentially soaring to a value of USD 4.4 trillion by 2026.
- Logistics, widespread mobile device ownership, and marketplace expansions constitute pivotal factors poised to fuel this anticipated growth. Moreover, this expansion isn't confined solely to new regions but encompasses areas where online shopping has already entrenched itself, underscoring the crucial role of logistics. IATA's 2021 e-commerce monitor revealed that 18% of air cargo comprised e-commerce shipments—a figure expected to rise as consumer behaviors evolve. The air cargo industry, boasting global networks, adaptable capacity, and digitalization initiatives, stands well-equipped to bolster e-commerce growth. These initiatives promise to augment operational efficiency and shipment visibility throughout transit.
- As the global e-commerce landscape continues to burgeon, strategic partnerships, cutting-edge technologies, and robust infrastructures will dominate the air cargo arena, ensuring visibility, flexibility, and swiftness at each stage of the journey. Notably, Air Canada Cargo spearheaded an e-commerce-focused delivery division, Rivo, in March 2021. Furthermore, in July 2022, the airline inked a multi-year pact with Trexity, an on-demand delivery firm. To harness the available cargo prospects, the airline aims to deploy seven cargo aircraft by the first quarter of 2023, encompassing five converted aircraft and two production cargo aircraft.
Air Freight Industry Overview
The air freight industry is moderately fragmented, with dominant players operating across multiple regions worldwide. The increasing demand for air freight transportation services presents new challenges to cargo providers. Airlines must prioritize implementing fuel-efficient solutions and embracing innovative technologies to offer cost-effective services.
For instance, companies like Lufthansa Cargo have invested in digital capabilities, such as their e-booking system, and aim to make their booking systems accessible through Application Programming Interfaces (APIs), providing inventory accessibility to others.
However, regulatory disputes (such as the US-China trade war), anti-national activities, and the COVID-19 pandemic significantly disrupted the air freight industry. This disruption led to the cancellation of numerous flights due to safety concerns and a decrease in passenger numbers.
To address the warehousing needs associated with the movement of freight through airports, Special Economic Zones (SEZs), Free Trade Zones (FTZs), and bonded warehouses are projected to play a significant role shortly.
Air Freight Market Leaders
FedEx (Federal Express) Corporation
United Parcel Service Inc.
The Emirates Group
Cathay Pacific Airways Limited
Cargolux Airlines International Sa
*Disclaimer: Major Players sorted in no particular order
Air Freight Market News
- May 2023: FedEx launched FedEx® Sustainability Insights for customer emissions tracking. This cloud-based engine uses near-real-time FedEx network data to estimate CO2e emissions for both individual tracking numbers and FedEx.com accounts.
- May 2023: FedEx Express, a subsidiary of FedEx Corp. and one of the world’s largest express transportation companies, enhanced its international delivery services to cater to customers’ growing demand for reliable and diverse services in the Asia Pacific region. Customers will now have access to FedEx International Economy® (IE) services connecting the Asia Pacific to 170 markets worldwide.
Air Freight Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Increasing global trade
4.2.1.2 Growth of e commerce
4.2.2 Restraints
4.2.2.1 High operational costs
4.2.2.2 Capacity constraints
4.2.3 Opportunities
4.2.3.1 Increasing demand for perishable goods
4.2.3.2 The emergence of new markets on the globe
4.3 Government Regulations and Initiatives
4.4 Supply Chain/Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Buyers/Consumers
4.5.2 Bargaining Power of Suppliers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Technology Snapshot and Digital Trends
4.7 Spotlight on Key Commodities Transported by Air
4.8 Elaboration on Air Freight Rates
4.9 Spotlight on Heavy Cargo/Project Logistics in the Air Cargo Industry
4.10 Insights into Key Ground Handling Equipment in Airports
4.11 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods
4.12 Brief on Cold Chain Logistics in the Air Cargo Sector
4.13 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION (Market Size by Value)
5.1 By Service
5.1.1 Forwarding
5.1.2 Airlines
5.1.3 Mail
5.1.4 Other Services
5.2 By Destination
5.2.1 Domestic
5.2.2 International
5.3 By Carrier Type
5.3.1 Belly Cargo
5.3.2 Freighter
5.4 By Geography
5.4.1 Asia-Pacific
5.4.1.1 China
5.4.1.2 Japan
5.4.1.3 India
5.4.1.4 South Korea
5.4.1.5 Rest of Asia-Pacific
5.4.2 North America
5.4.2.1 United States
5.4.2.2 Canada
5.4.3 Europe
5.4.3.1 United Kingdom
5.4.3.2 Germany
5.4.3.3 France
5.4.3.4 Russia
5.4.3.5 Rest of Europe
5.4.4 Middle-East and Africa
5.4.4.1 Saudi Arabia
5.4.4.2 United Arab Emirates
5.4.4.3 Qatar
5.4.4.4 South Africa
5.4.4.5 Rest of Middle-East and Africa
5.4.5 Latin America
5.4.5.1 Brazil
5.4.5.2 Mexico
5.4.5.3 Argentina
5.4.5.4 Colombia
5.4.5.5 Rest of Latin America
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 FedEx (Federal Express) Corporation
6.2.2 United Parcel Service Inc.
6.2.3 The Emirates Group
6.2.4 Cathay Pacific Airways Limited
6.2.5 Cargolux Airlines International SA
6.2.6 China Airlines Ltd
6.2.7 Japan Airlines Co. Ltd
6.2.8 Qatar Airways Company QCSC
6.2.9 Deutsche Lufthansa AG
6.2.10 All Nippon Airways Co. Ltd (ANA)
6.2.11 International Consolidated Airlines Group SA
6.2.12 Magma Aviation Limited
6.2.13 Deutsche Post DHL
6.2.14 Kuehne + Nagel International AG
6.2.15 United Airlines
6.2.16 American Airlines
6.2.17 Delta Airlines
6.2.18 Gol Airlines
6.2.19 Azul Airlines
6.2.20 LATAM Airlines
6.2.21 Copa Airlines*
6.2.22 AirBridgeCargo Airlines
6.2.23 Cargojet Inc.
- *List Not Exhaustive
6.3 Other Companies in the Market
7. KEY VENDORS AND SUPPLIERS (AIRCRAFT MANUFACTURERS, TECHNOLOGY PROVIDERS, CARGO HANDLING EQUIPMENT MANUFACTURERS, ETC.) IN THE AIR CARGO INDUSTRY
8. FUTURE OF THE MARKET
9. APPENDIX
Air Freight Industry Segmentation
Air freight is the movement of goods or consignments through the air.
The global air freight market is segmented by service (forwarding, airlines, mail, and other services), destination (domestic and international), carrier type (belly cargo and freighter), and geography (Asia-Pacific, North America, Europe, Middle East and Africa, and Latin America).
The report offers market size and forecasts for the global air freight market in value (USD) for all the above segments.
| By Service | |
| Forwarding | |
| Airlines | |
| Other Services |
| By Destination | |
| Domestic | |
| International |
| By Carrier Type | |
| Belly Cargo | |
| Freighter |
| By Geography | |||||||
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Air Freight Market Research Faqs
How big is the Air Freight Market?
The Air Freight Market size is expected to reach USD 151.22 billion in 2024 and grow at a CAGR of 5.92% to reach USD 201.57 billion by 2029.
What is the current Air Freight Market size?
In 2024, the Air Freight Market size is expected to reach USD 151.22 billion.
Who are the key players in Air Freight Market?
FedEx (Federal Express) Corporation, United Parcel Service Inc., The Emirates Group, Cathay Pacific Airways Limited and Cargolux Airlines International Sa are the major companies operating in the Air Freight Market.
Which is the fastest growing region in Air Freight Market?
Middle-East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Air Freight Market?
In 2024, the Asia-Pacific accounts for the largest market share in Air Freight Market.
What years does this Air Freight Market cover, and what was the market size in 2023?
In 2023, the Air Freight Market size was estimated at USD 142.27 billion. The report covers the Air Freight Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Air Freight Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What is the impact of e-commerce on the Air Freight Market?
E-commerce has had a significant and transformative impact on the Air Freight Market, acting as a major driver of its growth and shaping its future landscape.
What are the upcoming trends in the Air Freight Industry?
The upcoming trends in the Air Freight Industry are A) The growing utilization of Artificial Intelligence and Machine Learning tools to enhance logistics and supply chain operations b) Growing demand for swift and efficient international shipping intensifies
Air Freight Industry Report
The global air freight market, as analyzed by Mordor Intelligence™ Industry Reports, is projected to experience significant growth. This growth is attributed to the increasing demand for efficient and fast transportation of goods across borders, significant growth in the e-commerce industry, and rising import and export of goods among numerous countries worldwide. The market is undergoing a technological transformation, evolving from the excessive usage of old mainframe systems to more adaptable interfaces employed for various processes. The rising usage of cool-chain tech, robotics, automated systems, artificial intelligence (AI), Big Data, deep learning, IoT, and augmented and virtual reality across several operations is anticipated to boost the market growth. However, high costs associated with air freight solutions may hinder this growth. The market segmentation is based on service, destination, end-use, and region, with the service segment divided into freight, express, mail, and other services. Depending on the destination, the market is bifurcated into domestic and international, and by end-use, it is fragmented into private and commercial. A sample of this industry analysis is available as a free report PDF download, providing a historical overview and a market forecast outlook.
