Nigeria Air Freight Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.01 Billion |
| Market Size (2029) | USD 5.64 Billion |
| CAGR (2024 - 2029) | 13.54 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
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Nigeria Air Freight Market Analysis
The Nigeria Air Freight Market size is estimated at USD 3.01 billion in 2024, and is expected to reach USD 5.64 billion by 2029, growing at a CAGR of 13.54% during the forecast period (2024-2029).
Air cargo service providers are facing new difficulties as a result of the rising demand for air freight transportation services.
Despite rising freight shipping costs and some related difficulties, Nigeria has seen a significant increase in air freight throughputs.
According to a recent review of studies in Nigerian air transport, the analysis of passenger flow, aircraft movement, and flight operations with an emphasis on safety and security, as well as issues with policy and bilateral agreements, received more deliberate attention than the flow of air cargo. Even though they are not specifically designed for cargo, the majority of airlines rely heavily on them for revenue generation.
The scale of the domestic aircraft cargo market There are signs that the domestic cargo market is worth N40 billion (approx. USD 0.087 billion), from which the airlines and the government stand to profit greatly, even though the government ought to bridge the gap between the volume of air cargo imports and exports in the nation.
However, several issues, including a lack of updated equipment, corrupt immigration officials, and Nigerian customs, are impeding the sustainability of aviation logistics and air cargo lifting by airlines in Nigeria.
Nigeria Air Freight Market Trends
Growth In Ecommerce is driving the market
The sale of both physical and digital goods has almost entirely become digital. With the addition of a payment gateway, Nigeria's e-commerce platform has improved in efficiency. Some Nigerian traditional banks have developed their payment gateways over time, such as GTPay by GTBank. Top-notch payment gateway services are provided in the nation by financial technology businesses, including Paypal, Stripe, Interswitch, WayaPay (WayaQuick), Flutterwave, and other payment gateways. Nigeria has participated in the development of the Internet. In terms of both quality and delivery style, there has been an improvement. The exchange of goods served as the economic sector's mainstay in the beginning. Following that, using commercial banks became more popular and offered advantages over the former.
The largest segment of Nigerian e-commerce in 2022 was fashion. 35 percent of the entire value was in the sector. 28 percent went to electronics and media, while 17 percent went to furniture and appliances.
Growing Demand for the Air Freight Market
The Middle East and Europe are the next-largest markets for passenger flows into and out of Nigeria. A total of 4 million passengers arrived in Nigeria from Africa (73.3 percent of the total), followed by 589 thousand from Europe (10.7 percent) and 366 thousand from the Middle East (6.7 percent).
By enabling quick connections between cities, air travel benefits both customers and the larger economy. The economic flows of products, investments, people, and ideas that are the key drivers of economic progress are made possible by these fictitious bridges in the air.
Nigeria's GDP is expected to be supported by the air transport sector, including airlines and its supply chain, to the tune of USD 600 million. Spending by visitors from other countries contributes a total of USD 1.7 billion to the GDP of the nation. Total inputs to the aviation industry and air travel for foreign visitors account for 0.4 percent of the nation's GDP.
According to the global Air Trade Facilitation Index (ATFI) and the eFreight Friendliness Index (EFFI), Nigeria ranks 68th out of 124 countries for its facilitation of air cargo through its customs and border rules. Nigeria is ranked 127th out of 136 nations on the worldwide Enabling Trade Index (ETI) for facilitating the free flow of commodities across borders and to their final destination.
Nigeria Air Freight Industry Overview
The air freight market is mildly fragmented. Some of the major players in the market, who operate in many different parts of the world, dominate it. Air cargo service providers are facing new difficulties as a result of the rising demand for air freight transportation services. In order to offer services at a reasonable price, airlines must concentrate on implementing fuel-efficient solutions and incorporating cutting-edge technologies.
Nigeria Air Freight Market Leaders
Value Handlers
fob global logistics
SGK global shipping services
Homeland Cargo Services
DHL
*Disclaimer: Major Players sorted in no particular order
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Nigeria Air Freight Market News
- March 2023: The Nigerian government has established specific committees comprising executives from both public and private businesses to build and run airports with cutting-edge cargo infrastructure, which is helping the nation's air cargo competitiveness. The Federal Airports Authority of Nigeria (FAAN) recently established committees to address the primary obstacles that have continued to impede Nigeria's growth of its air cargo infrastructure to increase air cargo traffic and infrastructure. According to experts, Nigeria is possibly at a disadvantage in the developing free trade area known as the African Continental Free Trade Area (AfCFTA) because of several things that could be improved in its air cargo value chain.
- May 2023: Nigerian exports of agricultural products are expected to see an increase in air cargo shipments. This is because people want to be able to get their food in its original form, without any of the chemicals and preservatives that come with them. According to the Federal Airports Authority of Nigeria (FAAN), Nigeria imports around 131 million tons of air cargo each year but only exports 16 million tons.
Nigeria Air FreightMarket Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Passenger flows is driving the market
4.2.1.2 Government Investments for the improvement of air freight is driving the market
4.2.2 Restraints
4.2.2.1 Rise in Fuel Prices
4.2.3 Opportunities
4.2.3.1 Technological Innovation
4.3 Government Regulations and Initiatives
4.4 Supply Chain/Value Chain Analysis
4.5 Technology Snapshot and Digital Trends
4.6 Spotlight on Key Commodities Transported by Air
4.7 Elaboration on Air Freight Rates
4.8 Spotlight on Heavy Cargo/Project Logistics in the Air Cargo Industry
4.9 Insights into Key Ground Handling Equipment in Airports
4.10 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods
4.11 Brief on Cold Chain Logistics in the Air Cargo Sector
4.12 Porter's Five Forces Analysis
4.12.1 Bargaining Power of Suppliers
4.12.2 Bargaining Power of Consumers/Buyers
4.12.3 Threat of New Entrants
4.12.4 Threat of Substitute Products
4.12.5 Intensity of Competitive Rivalry
4.13 Impact of COVID-19 on the market
5. MARKET SEGMENTATION
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
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Value Handlers
6.2.2 fob global logistics
6.2.3 SGK global shipping services
6.2.4 Folams Freights
6.2.5 Homeland Cargo Services
6.2.6 DHL
6.2.7 Air Tiger Express
6.2.8 TruthKey Cargo Nigeria Limited
6.2.9 Allied Air Cargo
6.2.10 Cargoland Nigeria Limited
6.2.11 Main Service Logistics
6.2.12 UPS*
- *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. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
Nigeria Air Freight Industry Segmentation
Moving products or consignments by air is known as air freight. The report provides a comprehensive background analysis of the Nigeria Air Freight market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry's competitive landscape. Additionally, the COVID-19 impact has been incorporated and considered during the study.
The Nigerian 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, the Middle East and Africa, and Latin America).
The report offers market size and forecasts for the Nigerian air freight market in terms of value (USD) for all the above segments.
| By Service | |
| Forwarding | |
| Airlines | |
| Other Services |
| By Destination | |
| Domestic | |
| International |
| By Carrier Type | |
| Belly Cargo | |
| Freighter |
Nigeria Air FreightMarket Research FAQs
How big is the Nigeria Air Freight Market?
The Nigeria Air Freight Market size is expected to reach USD 3.01 billion in 2024 and grow at a CAGR of 13.54% to reach USD 5.64 billion by 2029.
What is the current Nigeria Air Freight Market size?
In 2024, the Nigeria Air Freight Market size is expected to reach USD 3.01 billion.
Who are the key players in Nigeria Air Freight Market?
Value Handlers, fob global logistics, SGK global shipping services, Homeland Cargo Services and DHL are the major companies operating in the Nigeria Air Freight Market.
What years does this Nigeria Air Freight Market cover, and what was the market size in 2023?
In 2023, the Nigeria Air Freight Market size was estimated at USD 2.65 billion. The report covers the Nigeria Air Freight Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Nigeria Air Freight Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Nigeria Air FreightIndustry Report
Statistics for the 2024 Nigeria Air Freight market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Nigeria Air Freight analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
