Air Freight Market size was valued at USD 296.63 Billion in 2022 and is expected to reach USD 440.16 Billion by 2029, exhibiting a CAGR of 5.8% during the forecast period (2023-2029)
Air Freight Market OverviewAir freight is the transport mode for goods that require fast delivery and minimal inventory level. There are size and weight limitations for the shipments depending on the operating aircraft in air freight. In the past few years, the market has undergone notable changes due to the global COVID-19 pandemic. The air freight industry played a crucial role in distributing COVID-19 vaccines across the world. Transporting vaccines required specialized handling and cold chain logistics, which had put a strain on the air cargo sector. The conflict between Russia and Ukraine had created uncertainty throughout the transportation sector, which majorly included air cargo. As per the research, the global air freight market is expected to grow rapidly during the forecast period.
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Air Freight Market DynamicsIncreasing International Trade and Globalization The usage of air cargo is increasing majorly because businesses are expanding their reach across borders. This is because of the high demand for rapid and efficient transportation of goods, especially high-value products. Air freight offers unparalleled speed, which allows goods to be transported quickly across continents and oceans that enables businesses to meet deadlines and customer demands. Air freight benefits luxury goods, electronics and high-value products by offering security and speed. These items having a high-profit margin justifies the additional costs of air transportation. Many industries operate on a global scale, along with supply chains spanning multiple countries for which air freight provides a seamless way to connect different stages of production and distribution across the world. In times of supply chain disruptions such as natural disasters or geopolitical tensions, air freight plays a crucial role to keep goods flowing when traditional transportation modes are hindered. Therefore, increasing international trade and globalization are majorly driving the Air freight Market growth. High Costs Associated with Air Freight and Alternative Transportation Modes High air freight costs impact profit margins for businesses, especially when shipping large volumes or low-cost items. This results in companies exploring cost-saving measures such as optimizing inventory management by using slower but cheaper transportation alternatives. it is also a barrier for businesses in emerging markets willing to export their products. This limits economic growth and development. It also leads to trade imbalances, as countries that depend majorly on air Imports face higher costs and reduced competitiveness in the global Air Freight Market. Alternative transportation modes are more efficient and cost-effective, which creates create competitive pressure on the air freight industry. To reduce costs, businesses choose sea or rail transport for certain shipments, especially for heavy or non-time-sensitive goods. Improvements in sea and rail transportation infrastructure are opening up new trade routes and enhancing connectivity, which is providing more options for businesses to choose from. This is expected to hamper the market growth during the forecast period.
Global Transport by Freight Mode in 2022 (%)Future of the Air Freight Industry The future seems promising for the air freight market. It is expected to grow rapidly in the future. By 2029, many facility operations are expected to become automated. Robotic systems, autonomous vehicles and drones are meant to boost productivity and quality of air freight services. The growing e-commerce industry is creating various opportunities for market growth in the future, which will majorly benefit the customers, shippers and logistics agencies. Many logistics companies are setting carbon reduction goals to become environmentally friendly by utilizing more technology and finding the ideal balance between profit generation and environmental protection in light of the overall environmental impact of aviation. The favorable PMI (purchasing manager’s index) and the soaring manufacturing provide an opportunity for the aviation sector to grow. To increase air cargo capacity, passenger fleets are converted into cargo jets. As of 2022, 737 passenger planes have been converted into cargo jets to meet the increasing demands of e-commerce companies like Amazon. Businesses are increasingly distributing more and more goods using air cargo. Supply chain diversification is the major trend that is expected to change the face of the industry.
Air Freight Market Regional InsightsAsia Pacific Air Freight Market dominated the global market in 2022. The region is home to the fastest-growing economies, including China and India. Rapid industrialization, manufacturing expansion and export-oriented growth is resulting in an increase in demand for air freight services. The regional e-commerce market is growing rapidly, which is increasing the demand for fast and efficient air freight services to fulfill online orders and meet consumer expectations for timely delivery. The increasing The aim of the “New Narita Airport” concept, proposed by the Narita International Airport Company (NAA) in Japan is to transform the airport and its cargo area into a unified and efficient facility. The plan includes the completion of the construction of a new runway by March 2029, followed by the integration of the current passenger terminals and cargo areas into a single airport. North American Air Freight Market is expected to grow at a high rate during the forecast period. In the region, airports such as Memphis International Airport (FedEx hub) and Los Angeles International Airport play crucial roles in air freight operations. The growing e-commerce along with high-tech manufacturing and innovation is majorly contributing to the regional market growth. In 2022, air cargo volume reduced after a major boost in air cargo shipping in 2020 and 2021. Overall air cargo traffic decreased by 3.9 percent due to a reduction in international freight volume of 2.6 percent while domestic freight decreased by 4.5 percent as compared to 2021.
Rank Airport Name Total Metric Tonnes % Change 2022-2021 1 Memphis International Airport 4,042,679 -9.8 2 Ted Stevens Anchorage International Airport 3,462,874 -5.2 3 Louisville International Airport 3,067,234 0.5 4 Miami International Airport 2,499,837 -0.8 5 Los Angeles International Airport 2,489,854 -7.6
Air Freight Market Segment AnalysisBased on Services: The market is divided into Freight, Express, Mail and Other Services. The Express segment has grown immensely and is expected to grow at a high rate during the forecast period. The growing e-commerce is a major driver of increasing demand for express air freight services. The online shopping trend is creating a greater need for fast and reliable delivery of goods. To meet production schedules or urgent customer needs, many industries such as automotive, electronics, and healthcare require shipments. The solution for businesses is been provided by the express air freight services to transport goods quickly and efficiently. The Mail segment is also expected to grow at a high rate during the forecast period. The popularity of express mail services offered by post and mail carriers, especially for urgent deliveries of documents and packages. Based on End-User: The market is divided into Private and Commercial. The Commercial segment held the largest Air Freight Market share in 2022. Air freight is very important for urgent shipments such as perishable goods, pharmaceuticals, and high-value electronics, where timely delivery is crucial. It is mainly valuable for businesses engaged in international trade and global supply chains. The fastest mode of transportation leads to reduced inventory holding costs. Companies restock or replenish more frequently, which helps them to maintain lower inventory levels. Hence, the demand for air freight is expected to increase for commercial purposes in the future.
Air Freight Market, by End-User (%) in 2022Air Freight Market Competitive Landscape This section of the Air Freight Market report includes a detailed analysis of the competitors and information provided by the competitors. The investments by Air Freight key competitors in research and development, revenue, sales, production capacities and company overview are all included in the report. In July 2023, the Nippon Express launched an "e-NX Visibility" digital forwarding service, which integrates tracking systems for air transport and is designed for a wide range of users. American Airlines are majorly focusing on running a more fuel-efficient operation with more fuel-efficient aircraft increasingly powered by low-carbon fuel for its strategy to reach net-zero greenhouse gas (GHS). In 2022, the company took meaningful steps in its strategy such as adding new-generation aircraft to its fleet and finalizing its most significant sustainable aviation fuel offtake agreement to date to invest in two companies focusing on the development of low-carbon, hydrogen-powered aviation. In 2023, DHL started to fully invest the amount charged to their customers in emission reduction measures and especially in purchasing sustainable aviation fuel. Therefore, private customers sending small packages and parcels from Germany to Israel, Australia and the US are actively avoiding greenhouse gas emissions.
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Global Air Freight Market Report Coverage Details Base Year: 2022 Forecast Period: 2023-2029 Historical Data: 2018 to 2022 Market Size in 2022: US $ 296.63 Bn. Forecast Period 2023 to 2029 CAGR: 5.8% Market Size in 2029: US $ 440.16 Bn. Segments Covered: by Service Freight Express Mail Other Services by Destination Domestic International by End User Private Commercial
Air Freight Market, by RegionNorth America (United States, Canada and Mexico) Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and the Rest of Europe) Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and the Rest of APAC) South America (Brazil, Argentina Rest of South America) Middle East & Africa (South Africa, GCC, Egypt, Nigeria and the Rest of ME&A)
Air Freight Market, Key Players are1. DHL Global Forwarding (Germany) 2. Kuehne + Nagel (Switzerland) 3. DB Schenker (Germany) 4. Expeditors International (US) 5. United Parcel Service Inc. (US) 6. FedEx (US) 7. Panalpina (Denmark) 8. C.H. Robinson (US) 9. Hellmann Worldwide Logistics (Germany) 10. Nippon Express (Japan) 11. DACHSER (Germany) 12. AirBridgeCargo Airlines (Moscow) 13. Cathay Pacific Cargo (China) 14. American Airlines Inc. (US) 15. Cargolux Airlines International S.A. (Luxembourgish) 16. Expeditors International of Washington Inc. (US)
Frequently Asked Questions1] What is the expected CAGR of the Global Air Freight Market during the forecast period? Ans. During the forecast period, the Global Air Freight Market is expected to grow at a CAGR of 5.8 percent. 2] What was the Air Freight Market size in 2022? Ans. 296.63 Bn was the Air Freight Market size in 2022. 3] What is the expected Air Freight Market size by 2029? Ans. 440.16 Bn is the expected Air Freight Market size by 2029. 4] What are the major Air Freight Market segments? Ans. The market is divided by Blockchain Type, Technology, Contract Type, Enterprise Type and End-User 5] Which regional Air Freight Market share is expected to grow at a high rate during the forecast period? Ans. Air Freight Market in North America is expected to increase at a high rate during the forecast period.
1. Air Freight Market: Research Methodology 2. Air Freight Market: Executive Summary 3. Air Freight Market: Competitive Landscape 3.1. MMR Competition Matrix 3.2. Competitive Landscape 3.3. Key Players Benchmarking 3.4. Market Structure 3.4.1. Market Leaders 3.4.2. Market Followers 3.4.3. Emerging Players 3.5. Consolidation of the Market 4. Air Freight Market: Dynamics 4.1. Market Trends by Region 4.1.1. North America 4.1.2. Europe 4.1.3. Asia Pacific 4.1.4. Middle East and Africa 4.1.5. South America 4.2. Market Drivers by Region 4.2.1. North America 4.2.2. Europe 4.2.3. Asia Pacific 4.2.4. Middle East and Africa 4.2.5. South America 4.3. Market Restraints 4.4. Market Opportunities 4.5. Market Challenges 4.6. PORTER’s Five Forces Analysis 4.7. PESTLE Analysis 4.8. Value Chain Analysis 4.9. Regulatory Landscape by Region 4.9.1. North America 4.9.2. Europe 4.9.3. Asia Pacific 4.9.4. Middle East and Africa 4.9.5. South America 5. Air Freight Market Size and Forecast by Segments (by Value USD) 5.1. Air Freight Market Size and Forecast, by Service (2022-2029) 5.1.1. Freight 5.1.2. Express 5.1.3. Mail 5.1.4. Other Services 5.2. Air Freight Market Size and Forecast, by Destination (2022-2029) 5.2.1. Domestic 5.2.2. International 5.3. Air Freight Market Size and Forecast, by End-User (2022-2029) 5.3.1. Private 5.3.2. Commercial 5.4. Air Freight Market Size and Forecast, by Region (2022-2029) 5.4.1. North America 5.4.2. Europe 5.4.3. Asia Pacific 5.4.4. Middle East and Africa 5.4.5. South America 6. North America Air Freight Market Size and Forecast (by Value USD) 6.1. North America Air Freight Market Size and Forecast, by Service (2022-2029) 6.1.1. Freight 6.1.2. Express 6.1.3. Mail 6.1.4. Other Services 6.2. North America Air Freight Market Size and Forecast, by Destination (2022-2029) 6.2.1. Domestic 6.2.2. International 6.3. North America Air Freight Market Size and Forecast, by End-User (2022-2029) 6.3.1. Private 6.3.2. Commercial 6.4. North America Air Freight Market Size and Forecast, by Country (2022-2029) 6.4.1. United States 6.4.2. Canada 6.4.3. Mexico 7. Europe Air Freight Market Size and Forecast (by Value USD) 7.1. Europe Air Freight Market Size and Forecast, by Service (2022-2029) 7.1.1. Freight 7.1.2. Express 7.1.3. Mail 7.1.4. Other Services 7.2. Europe Air Freight Market Size and Forecast, by Destination (2022-2029) 7.2.1. Domestic 7.2.2. International 7.3. Europe Air Freight Market Size and Forecast, by End-User (2022-2029) 7.3.1. Private 7.3.2. Commercial 7.4. Europe Air Freight Market Size and Forecast, by Country (2022-2029) 7.4.1. UK 7.4.2. France 7.4.3. Germany 7.4.4. Italy 7.4.5. Spain 7.4.6. Sweden 7.4.7. Austria 7.4.8. Rest of Europe 8. Asia Pacific Air Freight Market Size and Forecast (by Value USD) 8.1. Asia Pacific Air Freight Market Size and Forecast, by Service (2022-2029) 8.1.1. Freight 8.1.2. Express 8.1.3. Mail 8.1.4. Other Services 8.2. Asia Pacific Air Freight Market Size and Forecast, by Destination (2022-2029) 8.2.1. Domestic 8.2.2. International 8.3. Asia Pacific Air Freight Market Size and Forecast, by End-User (2022-2029) 8.3.1. Private 8.3.2. Commercial 8.4. Asia Pacific Air Freight Market Size and Forecast, by Country (2022-2029) 8.4.1. China 8.4.2. S Korea 8.4.3. Japan 8.4.4. India 8.4.5. Australia 8.4.6. Indonesia 8.4.7. Malaysia 8.4.8. Vietnam 8.4.9. Taiwan 8.4.10. Bangladesh 8.4.11. Pakistan 8.4.12. Rest of Asia Pacific 9. Middle East and Africa Air Freight Market Size and Forecast (by Value USD) 9.1. Middle East and Africa Air Freight Market Size and Forecast, by Service (2022-2029) 9.1.1. Freight 9.1.2. Express 9.1.3. Mail 9.1.4. Other Services 9.2. Middle East and Africa Air Freight Market Size and Forecast, by Destination (2022-2029) 9.2.1. Domestic 9.2.2. International 9.3. Middle East and Africa Air Freight Market Size and Forecast, by End-User (2022-2029) 9.3.1. Private 9.3.2. Commercial 9.4. Middle East and Africa Air Freight Market Size and Forecast, by Country (2022-2029) 9.4.1. South Africa 9.4.2. GCC 9.4.3. Egypt 9.4.4. Nigeria 9.4.5. Rest of ME&A 10. South America Air Freight Market Size and Forecast (by Value USD) 10.1. South America Air Freight Market Size and Forecast, by Service (2022-2029) 10.1.1. Freight 10.1.2. Express 10.1.3. Mail 10.1.4. Other Services 10.2. South America Air Freight Market Size and Forecast, by Destination (2022-2029) 10.2.1. Domestic 10.2.2. International 10.3. South America Air Freight Market Size and Forecast, by End-User (2022-2029) 10.3.1. Private 10.3.2. Commercial 10.4. South America Air Freight Market Size and Forecast, by Country (2022-2029) 10.4.1. Brazil 10.4.2. Argentina 10.4.3. Rest of South America 11. Company Profile: Key players 11.1. DHL Global Forwarding 11.1.1. Company Overview 11.1.2. Financial Overview 11.1.3. Business Portfolio 11.1.4. SWOT Analysis 11.1.5. Business Strategy 11.1.6. Recent Developments 11.2. Kuehne + Nagel 11.3. DB Schenker 11.4. Expeditors International 11.5. United Parcel Service Inc. 11.6. FedEx 11.7. Panalpina 11.8. C.H. Robinson 11.9. Hellmann Worldwide Logistics 11.10. Nippon Express 11.11. DACHSER 11.12. AirBridgeCargo Airlines 11.13. Cathay Pacific Cargo 11.14. American Airlines Inc. 11.15. Cargolux Airlines International S.A. 11.16. Expeditors International of Washington Inc. 12. Key Findings 13. Industry Recommendation