Air Freight Market Size (2024 - 2029)

The market size of the air freight industry is projected to grow significantly in the coming years, despite facing numerous challenges such as geopolitical conflicts and the aftermath of the pandemic. The industry has shown resilience and innovation amidst these trials, with a steady growth trend observed since 2023. However, certain factors like the gap between jet fuel and oil prices, limited refinery capacity, and tight labor markets may pose challenges to profitability and sustainable pricing power in the future. The air cargo sector's market size growth is partly due to a lower base year, indicating a recovering industry.

Market Size of Air Freight Industry

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Air Freight Market Summary
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

Air Freight Market 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, mainly due to the ongoing dispute between Russia and Ukraine, significantly reducing the volume of dedicated air cargo originating in Russia.

According to the International Air Transport Association, 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.

Airlines demonstrated remarkable innovation and agility throughout the historical shock of the pandemic, 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. Unlike other sectors, the substantial gap between jet fuel and oil prices limits airlines' ability to benefit from potential oil price declines. There was a persistent problem until 2023 due to the limited capacity of refineries. Tight labor markets direct to higher wages and unsustainable pricing power within the downstream aviation value chain were likely to persist in 2023.

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Air Freight Industry Segmentation

Air freight transport refers to transporting goods by air from one place to another. These services are commonly used for shipments of goods that require quick and effective delivery, particularly over long distances or internationally. Compared to different modes of transport, such as sea or land, air freight has a reputation for speed and reliability.

A detailed analysis of the air cargo market, covering current trends, limitations, and technological advancements, along with comprehensive information on various segments and industry competition, is covered in the report. The impact of COVID-19 has also been incorporated and considered during the study.

The global air freight market is segmented by service (forwarding, airlines, and mail), 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 all the above segments in value (USD).

By Service
Forwarding
Airlines
Mail
By Destination
Domestic
International
By Carrier Type
Belly Cargo
Freighter
By Geography
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Europe
United Kingdom
Germany
France
Russia
Rest of Europe
Middle East and Africa
Saudi Arabia
United Arab Emirates
Qatar
South Africa
Rest of Middle East and Africa
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of Latin America

Air Freight Market Size Summary

The Air Freight Market is projected to witness substantial growth in the coming years. The industry, which is crucial to global commerce, has seen a rise in demand due to the expansion of the global economy, evolving consumer preferences, and technological advancements. A significant driver of this growth is the increase in cross-border trade, which necessitates efficient and swift international shipping. The industry has also been innovating, with digital air cargo marketplaces introducing features that streamline the booking process for logistics companies. The growth of e-commerce has also created significant opportunities for the Air Freight industry, as a large portion of international e-commerce relies on air transport. The surge in online shopping has led to an increase in demand for efficient, secure, and transparent cross-border shipping. The industry, with its global networks, adaptable capacity, and digitalization initiatives, is well-positioned to support this growth. However, the industry also faces challenges such as regulatory disputes and disruptions caused by the COVID-19 pandemic. To meet the increasing demand for air freight transportation services, airlines are investing in fuel-efficient solutions and innovative technologies.

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Air Freight Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Policies and Regulations

    3. 1.3 Technology Snapshot and Digital Trends

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Elaboration on Air Freight Rates

    6. 1.6 Spotlight on Heavy Cargo/Project Logistics in the Air Cargo Industry

    7. 1.7 Insights into Key Ground Handling Equipment in Airports

    8. 1.8 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods

    9. 1.9 Brief on Cold Chain Logistics in the Air Cargo Sector

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Forwarding

      2. 2.1.2 Airlines

      3. 2.1.3 Mail

    2. 2.2 By Destination

      1. 2.2.1 Domestic

      2. 2.2.2 International

    3. 2.3 By Carrier Type

      1. 2.3.1 Belly Cargo

      2. 2.3.2 Freighter

    4. 2.4 By Geography

      1. 2.4.1 Asia-Pacific

        1. 2.4.1.1 China

        2. 2.4.1.2 Japan

        3. 2.4.1.3 India

        4. 2.4.1.4 South Korea

        5. 2.4.1.5 Rest of Asia-Pacific

      2. 2.4.2 North America

        1. 2.4.2.1 United States

        2. 2.4.2.2 Canada

      3. 2.4.3 Europe

        1. 2.4.3.1 United Kingdom

        2. 2.4.3.2 Germany

        3. 2.4.3.3 France

        4. 2.4.3.4 Russia

        5. 2.4.3.5 Rest of Europe

      4. 2.4.4 Middle East and Africa

        1. 2.4.4.1 Saudi Arabia

        2. 2.4.4.2 United Arab Emirates

        3. 2.4.4.3 Qatar

        4. 2.4.4.4 South Africa

        5. 2.4.4.5 Rest of Middle East and Africa

      5. 2.4.5 Latin America

        1. 2.4.5.1 Brazil

        2. 2.4.5.2 Mexico

        3. 2.4.5.3 Argentina

        4. 2.4.5.4 Colombia

        5. 2.4.5.5 Rest of Latin America

Air Freight Market Size FAQs

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.

In 2024, the Air Freight Market size is expected to reach USD 151.22 billion.

Air Cargo Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)