GLOBAL AIR FREIGHT MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)

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 & Africa, and Latin America). The report offers market size and forecasts for the global air freight market in value (USD Billion) for all the above segments.

Market Snapshot

Air Freight Market Size
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Middle-East and Africa
Largest Market: Asia-Pacific
CAGR: >6 %
Air Freight Market Major Players

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Market Overview

  • The global air freight market is expected to register a CAGR of more than 6% during the forecast period.
  • Although land and ship cargo transportation remains favorable options, goods transport by air is considered the quickest and the unhindered mode of transportation. With the COVID-19 pandemic, air cargo faced significant challenges in 2020, such as fallen global trade volumes, global economic activity, and weakening consumer confidence.
  • However, as per the data released by the International Air Transport Association (IATA) in January 2021, the air cargo demand returned to pre-COVID levels (January 2019) for the first time since the onset of the crisis.
  • The air freight market gained growth in pre-crisis volumes through the transportation of lifesaving medical equipment, vaccines, and PPE. Also, delivery of e-commerce during the lockdown periods.
  • IATA’s Cargo Account Settlement System (CASS) simplified the billing and account settlement between airlines and freight forwarders. It is done through the CASS link, an advanced web-enabled e-billing solution, which generated more than USD 40 billion with on-time settlement.

Scope of the Report

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 Billion) for all the above segments.

By Service
Forwarding
Airlines
Mail
Other Services
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

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Key Market Trends

Growing Demand for the Air Freight Market

  • A notable improvement in air freight services was experienced after the pandemic in the second half of 2020, which continued into 2021. Cargo tonne kilometers (CTKs) from January 2021 to July 2021 held more than a 7% share above the same period in 2019.
  • Air cargo also performed global goods trade to meet the increasing demand from different supply chain dynamics like exceptionally long supply delivery times and other transport modes, which cost high fares.
  • Improved air cargo routes in different countries at different paces helped in the growth of the air freight market.
  • From January 2021 to July 2021, the size of the global air freighter fleet increased by around 12% to meet the increasing demand.
Air Freight Market Share

E-commerce Growth Creating Great Opportunities for the Air Freight Industry

  • E-commerce is accelerating the growth rate in the global air freight market, as the growth rate for 2020 was almost 20%.
  • The average transaction volume using e-commerce increased by almost 70% in 2020 compared to 2019.
  • According to Adobe’s 2021 Digital Economy Index, global e-commerce hit USD 876 billion in the first quarter of 2021, almost 30% more than the previous year.
  • Owing to the opportunities in the air freight market due to e-commerce and digitalization, many retailers digitalized their business activities by 20% to sustain the market competition.
Air Freight Market Analysis

Competitive Landscape

The air freight industry is moderately fragmented in nature. The industry is dominated by some of the major players operating in multiple regions across the world. The growing demand for air freight transportation services has posed new challenges to the air cargo service providers. Airlines need to focus on implementing fuel-efficient solutions and accommodate innovative technologies to provide cost-effective services.

Companies like Lufthansa Cargo have invested in digital capabilities with their own e-booking and also want to make their bookings available to others so that the Application Programming Interface can offer the accessibility of the inventory in the systems.

The air freight industry has been recently immense disturbed by the recent regulatory disputes (US-China trade war), anti-national activities, and the COVID-19 pandemic leading to the cancelation of a huge number of flights due to safety concerns and a fall in the number of passengers. Special economic zones (SEZ), free trade zones (FTZ), and bonded warehouses are projected to cater to significant warehousing needs for the freight moving in and out of the airport shortly.

Recent Developments

  • September 2021: The Emirates SkyCargo was planning to launch new technology solutions with WiseTech Global. The new technology, CargoWise, enables a better user experience and improves the efficiency of the booking process for a cargo shipment to the customer.
  • March 2021: The International Air Transport Association (IATA) launched Enhanced Partner Identification and Connectivity (EPIC) platform to digitalize the international cargo supply chain. EPIC provides quick and easy digital connections in the supply chain, thereby saving time and money in procuring revenues. Currently, EPIC is implemented by more than 30 airlines and 900 freight forwarder branches.
  • January 2021: ANA Group unveiled a New Network Model for the Okinawa International Aerial Logistics Hub. New operations will strengthen the aviation network by utilizing passenger flights at Naha Airport. The move will transform Okinawa into the node of a logistics network connecting overseas locations and destinations across Japan.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Government Regulations and Initiatives

    4. 4.4 Supply Chain/Value Chain Analysis

    5. 4.5 Porter's Five Forces Analysis

    6. 4.6 Technology Snapshot and Digital Trends

    7. 4.7 Spotlight on Key Commodities Transported by Air

    8. 4.8 Elaboration on Air Freight Rates

    9. 4.9 Spotlight on Heavy Cargo/Project Logistics in the Air Cargo Industry

    10. 4.10 Insights into Key Ground Handling Equipment in Airports

    11. 4.11 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods

    12. 4.12 Brief on Cold Chain Logistics in the Air Cargo Sector

    13. 4.13 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION (Market Size by Value)

    1. 5.1 By Service

      1. 5.1.1 Forwarding

      2. 5.1.2 Airlines

      3. 5.1.3 Mail

      4. 5.1.4 Other Services

    2. 5.2 By Destination

      1. 5.2.1 Domestic

      2. 5.2.2 International

    3. 5.3 By Carrier Type

      1. 5.3.1 Belly Cargo

      2. 5.3.2 Freighter

    4. 5.4 By Geography

      1. 5.4.1 Asia-Pacific

        1. 5.4.1.1 China

        2. 5.4.1.2 Japan

        3. 5.4.1.3 India

        4. 5.4.1.4 South Korea

        5. 5.4.1.5 Rest of Asia-Pacific

      2. 5.4.2 North America

        1. 5.4.2.1 United States

        2. 5.4.2.2 Canada

      3. 5.4.3 Europe

        1. 5.4.3.1 United Kingdom

        2. 5.4.3.2 Germany

        3. 5.4.3.3 France

        4. 5.4.3.4 Russia

        5. 5.4.3.5 Rest of Europe

      4. 5.4.4 Middle-East and Africa

        1. 5.4.4.1 Saudi Arabia

        2. 5.4.4.2 United Arab Emirates

        3. 5.4.4.3 Qatar

        4. 5.4.4.4 South Africa

        5. 5.4.4.5 Rest of Middle-East and Africa

      5. 5.4.5 Latin America

        1. 5.4.5.1 Brazil

        2. 5.4.5.2 Mexico

        3. 5.4.5.3 Argentina

        4. 5.4.5.4 Colombia

        5. 5.4.5.5 Rest of Latin America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 FedEx (Federal Express) Corporation

      2. 6.2.2 United Parcel Service Inc.

      3. 6.2.3 The Emirates Group

      4. 6.2.4 Cathay Pacific Airways Limited

      5. 6.2.5 Cargolux Airlines International SA

      6. 6.2.6 China Airlines Ltd

      7. 6.2.7 Japan Airlines Co. Ltd

      8. 6.2.8 Qatar Airways Company QCSC

      9. 6.2.9 Deutsche Lufthansa AG

      10. 6.2.10 All Nippon Airways Co. Ltd (ANA)

      11. 6.2.11 International Consolidated Airlines Group SA

      12. 6.2.12 Magma Aviation Limited

      13. 6.2.13 Deutsche Post DHL

      14. 6.2.14 Kuehne + Nagel International AG

      15. 6.2.15 United Airlines

      16. 6.2.16 American Airlines

      17. 6.2.17 Delta Airlines

      18. 6.2.18 Gol Airlines

      19. 6.2.19 Azul Airlines

      20. 6.2.20 LATAM Airlines

      21. 6.2.21 Copa Airlines*

      22. 6.2.22 AirBridgeCargo Airlines

      23. 6.2.23 Cargojet Inc.

      24. 6.2.24 Delta Air Lines Inc.

    3. *List Not Exhaustive
    4. 6.3 Other Companies in the Market

  7. 7. KEY VENDORS AND SUPPLIERS (AIRCRAFT MANUFACTURERS, TECHNOLOGY PROVIDERS, CARGO HANDLING EQUIPMENT MANUFACTURERS, ETC.) IN THE AIR CARGO INDUSTRY

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 9. APPENDIX

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Frequently Asked Questions

The Global Air Freight Market market is studied from 2018 - 2027.

The Global Air Freight Market is growing at a CAGR of >6% over the next 5 years.

Middle-East and Africa is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

FedEx (Federal Express) Corporation, United Parcel Service Inc., The Emirates Group, Japan Airlines Co. Ltd, All Nippon Airways Co. Ltd (ANA) are the major companies operating in Global Air Freight Market.

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