USD 67.2 billion
Report ID:
SQMIG20R2018 |
Region:
Global |
Published Date: March, 2024
Pages:
202
|
Tables:
60 |
Figures:
75
Global Air Freight Market size was valued at USD 67.2 billion in 2022 and is poised to grow from USD 74.12 billion in 2023 to USD 162.39 billion by 2031, growing at a CAGR of 10.3% during the forecast period (2024-2031).
The global air freight market is a vital component of the logistics industry, playing a pivotal role in the rapid and efficient transportation of high-value and time-sensitive shipments across long distances. While air freight accounts for approximately 1% of total freight activities by weight, its significance cannot be overstated, especially in delivering critical goods like vaccines. In today's interconnected world, where the global economy relies on the swift delivery of top-quality products to consumers worldwide, air freight emerges as the champion of speed and reliability. One of the most compelling use cases for air freight is the transportation of vaccines, crucial in preventing approximately 3 million child deaths annually, as reported by the World Health Organization. Vaccines, often temperature-sensitive, must reach their destinations swiftly to remain effective. Here's where the air freight industry shines, employing cutting-edge procedures and technologies to ensure that these life-saving medications are transported in optimal conditions. The transformative power of technology is reshaping the air freight landscape. The industry is transitioning from antiquated mainframe systems to flexible, adaptable interfaces for critical functions like flight operations, revenue accounting, and network planning. Moreover, the adoption of innovative technologies such as cool-chain systems, robotics, automation, artificial intelligence (AI), Big Data, deep learning, IoT, and augmented & virtual reality is set to propel the global air freight market's growth in the foreseeable future. While air freight is undoubtedly a game-changer in terms of rapid delivery when compared to other logistics solutions, its appeal extends to a wide range of valuable and perishable goods. Items like jewelry, pharmaceuticals, high-end electronics, and more find their trusted mode of transportation in air freight. Despite these advantages, it's essential to acknowledge the challenges. The high costs associated with air freight can be a barrier to entry for some, and this is a factor that the industry must navigate. However, the market's growth is further driven by the rising popularity of consolidated air freight services, which optimize costs while delivering efficiency. In conclusion, the global air freight market is a dynamic and indispensable sector within the broader logistics industry. It acts as a lifeline for the rapid delivery of critical goods and plays a pivotal role in the global economy. With ongoing technological advancements and the increasing adoption of innovative solutions, it's poised for continuous growth and evolution, ensuring that valuable and time-sensitive shipments reach their destinations swiftly and securely.
Global Market Size
USD 67.2 billion
Largest Segment
International Air Freight
Fastest Growth
Domestic Air Freight
Growth Rate
10.3% CAGR
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Global Air Freight market is segmented by type, End-User, and region. Based on type, the market can be segmented into domestic air freight and international air freight. Based on End-User, the market is segmented into door-to-door service and airport-to-airport service. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Air Freight Market Analysis by Type
By type, the market can be segmented into domestic air freight and international air freight. The international air freight segment dominated the market. International air freight involves the transportation of goods across borders, which is crucial for global trade. The rise in e-commerce, global supply chains, and the expansion of the manufacturing industry has increased the demand for international air freight services.
The domestic air freight segment is the fastest-growing segment in the market. Domestic air freight refers to the movement of goods within a country. The growth of the domestic air freight market is attributed to the increasing need for fast and reliable delivery of goods within the country. The rise in domestic e-commerce, the expansion of the retail industry, and the growth of the manufacturing sector have fueled the demand for domestic air freight services.
Air Freight Market Analysis by End-User
By End-User, the market can be segmented into door-to-door service, and airport-to-airport service. Airport-to-airport service involves the transportation of goods from one airport to another, while door-to-door service involves the transportation of goods from the shipper's location to the consignee's location. The airport-to-airport service segment dominates the market due to its cost-effectiveness and efficiency in the transportation of goods over long distances. This segment is preferred by large organizations and businesses that need to transport goods in bulk.
However, the door-to-door service segment is the fastest-growing due to the increasing demand for fast and efficient delivery of goods to the end-user. This service is particularly popular in the e-commerce sector, where there is a growing need for timely delivery of products to customers' doorsteps. The door-to-door service segment is also gaining popularity in the B2B market due to the convenience it offers to businesses.
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North America dominated the global air freight market. The region's robust economy, advanced transportation infrastructure, and high demand for time-sensitive shipments contribute to its strong position. Major players in the North American air freight market include UPS, FedEx, and DHL. The United States, in particular, is a key market in the region, accounting for a significant share of air freight volumes.
APAC is the fastest-growing region in the global air freight market. The region's rapid economic growth, expanding middle class, and burgeoning e-commerce sector drive the demand for air cargo services. Countries such as China, India, and Japan are major contributors to APAC's air freight market. Additionally, the rise of manufacturing hubs and the increasing integration of APAC economies have led to significant growth in cross-border trade and air freight activities.
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Air Freight Market Drivers
Rapid growth of e-commerce
Air Freight Market Restraints
Volatility of fuel prices
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The global air freight market is characterized by a diverse range of companies spanning airlines, freight forwarders, logistics providers, and integrators. These companies compete based on factors such as service reliability, network coverage, pricing, and technological capabilities. The market is highly fragmented, with numerous players vying for market share. Some focus on specific regions or niche markets, while others offer comprehensive global solutions. Continuous innovation, strategic partnerships, and investments in technology and infrastructure are crucial for companies to stay competitive in this dynamic and evolving industry.
Air Freight Market Top Player’s Company Profiles
Air Freight Market Recent Developments
In January 2024, Delta Cargo uncovered its latest offering, DeliverDirect, created in partnership with SmartKargo. DeliverDirect is a door-to-door delivery service customized for the U.S. market, an adaptable and competitive solution for e-commerce retailers aiming to enhance their direct-to-consumer shipping processes.
In February 2024, Etihad Cargo, the cargo and logistics division of Etihad Airways, entered into a strategic partnership agreement with Worldwide Flight Services (WFS), a member of the SATS Group, for cargo handling services at 12 major international airports across Europe, Scandinavia, North America, India, and the Asia Pacific region.
In February 2024, AllMasters, a digital freight consolidation platform focusing on Less Than Container Load (LCL) exports, introduced its recent solution planned to tackle the challenges faced by freight forwarders in the industry.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global air freight market analysis, the market is a dynamic and competitive industry driven by factors such as e-commerce growth, technological advancements, and increasing demand for sustainable practices. While North America is the dominant region in the market due to its established logistics infrastructure and key air cargo carriers, Asia-Pacific is the fastest-growing region, driven by the rise of emerging economies and the booming e-commerce sector. However, the market also faced challenges, including the volatility of fuel prices and the need to meet increasing sustainability demands. Key players in the market span a range of logistics companies and airlines, each competing based on factors such as service reliability, network coverage, and pricing. As the market continues to evolve, innovation and strategic partnerships are crucial for companies to stay competitive and meet the changing demands of customers and stakeholders.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 67.2 billion |
Market size value in 2031 | USD 162.39 billion |
Growth Rate | 10.3% |
Base year | 2022 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Global Air Freight Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Air Freight Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Air Freight Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Air Freight Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Product ID: SQMIG20R2018