Air Freight Market

Air Freight Market:

The global air freight market size reached USD 319.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 492.7 Billion by 2033, exhibiting a growth rate (CAGR) of 4.9% during 2025-2033. The market is primarily driven by the escalating demand for fast and efficient transportation of goods across borders, the expanding e-commerce sector, the increasing import and export of goods across countries globally, and the continuous technological advancements.

Air Freight Market Analysis:

• Major Market Drivers: The elevating requirement for reliable and rapid transportation of perishable goods, time-sensitive shipments, and high-value products across borders is one of the significant air freight market drivers. Besides this, the ongoing technological advancements in aircraft design, management systems, and cargo handling facilities are further stimulating the market growth.
• Key Market Trends: The rising establishment of e-commerce cargo networks by airlines and logistics providers that offer various services, such as real-time tracking, faster transit times, and seamless integration with online platforms is propelling the air freight market demand. Moreover, the emerging trend of digitalization and the inflating investments by the leading players in digital technologies, including blockchain and artificial intelligence, to streamline operations are also bolstering the air freight market trends.
• Competitive Landscape: Some of the major market players in the air freight market share include American Airlines Inc., ANA Cargo Inc., Bolloré Logistics, Cargolux Airlines International S.A., Delta Air Lines Inc., Deutsche Bahn AG, Deutsche Post AG, DSV A/S, Expeditors International of Washington Inc., FedEx Corporation, Hellmann Worldwide Logistics SE & Co. KG, Kuehne + Nagel International AG, Nippon Express Co. Ltd., Qatar Airways, United Parcel Service Inc., among many others.
• Geographical Trends: Asia Pacific accounted for the largest share in the air freight market analysis, owing to the increasing exports, manufacturing, and trade activities. In addition to this, the expanding e-commerce industry and the growing popularity of cross-border online shopping are also propelling the air freight market outlook in Asia Pacific.
• Challenges and Opportunities: According to the air freight market overview, one of the major challenges of the air freight market value includes the increasing fluctuations in fuel prices, which can highly impact operating costs for freight forwarders and airlines. However, the growing popularity of digital technologies to enable greater efficiency, visibility, and collaboration across supply chains is presenting significant growth opportunities for the air freight market revenue.
   

Air Freight Market Trends:

Increasing International Trade

The rising international trade activities and the escalating demand for efficient transportation of goods across borders are primarily driving the demand for air freight market products. Moreover, the rising sourcing of components, materials, and finished products by various companies and organizations from several countries and the widespread movement of perishable and high-value goods, including luxury items, fresh produce, flowers, electronics, pharmaceuticals, etc., are also catalyzing the market growth. For instance, in August 2023, China's Shenzhen Bao'an International Airport (SBI) experienced a twofold increase in cross-border e-commerce from January to July, expecting further growth in the remaining five months following the inclusion of freighter flights in the airport's operations. SBI successfully managed 93,000 tons of international e-commerce in seven months, marking a 101% increase compared to the corresponding period last year. Besides this, to address the warehousing needs associated with the movement of freight through airports, Special Economic Zones (SEZs), Free Trade Zones (FTZs), and bonded warehouses are envisioned to play a significant role shortly.

Escalating Demand for Fast-Delivery Services

The escalating demand for faster shipping options, such as same-day or next-day delivery, owing to the expanding e-commerce sector and online retail channels, is stimulating the air freight market growth. For instance, the global e-commerce industry, which makes up 16% of the total air cargo business, is projected to increase from US$ 3.5 Trillion in goods in 2022 to US$ 7 Trillion by 2025. Moreover, the rising need for time-sensitive delivery of electronics, pharmaceuticals, fashion apparel, and automotive components, on account of their short shelf life, is also catalyzing the global market. For example, the Association of Asia-Pacific Airlines (AAPA) states that the air cargo sector is active in transporting essential medical equipment and supplies. Besides this, IATA reports that 80% of international e-commerce relies on air transport, significantly streamlining cross-border shopping with enhanced security, efficiency, and transparency. Projections anticipate a substantial expansion in the e-commerce sector, potentially soaring to a value of USD 4.4 trillion by 2026.

Rapid Innovations and Advancements

The continuous technological advancements in air freight, such as the usage of advanced tracking systems and the emerging trend of automation and digitalization to improve transparency and operational efficiency are positively influencing the market growth. In addition to this, the integration of artificial intelligence to optimize cargo loading and routing, detect potential issues, and predict demand is propelling the air freight market analysis. For instance, April 2023 witnessed the introduction of new features in digital air cargo marketplaces, allowing logistics companies overseeing imports to promptly book export shipments from agents in other countries. This development eliminates the previously time-consuming process of sourcing quotes via phone or email. Moreover, companies like Lufthansa Cargo have invested in digital capabilities, such as their e-booking system, and aim to make their booking systems accessible through Application Programming Interfaces (APIs), providing inventory accessibility to others. Additionally, in May 2023, FedEx launched FedEx Sustainability Insights for customer emissions tracking. This cloud-based engine uses near-real-time FedEx network data to estimate CO₂ emissions for both individual tracking numbers and FedEx.com accounts.

Air Freight Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional and country levels for 2025-2033. Our report has categorized the market based on service, destination, and end user.

Breakup by Service:

• Freight
• Express
• Mail
• Others
   

Freight service is dominating the air freight

The report has provided a detailed breakup and analysis of the market based on the service. This includes freight, express, mail, and others. According to the report, freight represented the largest segment.

Freight is the most preferred service type, as it provides an efficient, reliable, and cost-effective transportation of goods internationally and domestically. Moreover, freight aids in ensuring the proper handling and packaging of the cargo, which includes appropriately protecting and securing the goods that are hazardous, fragile, or require special handling. For instance, Cargojet's bet on more aircraft led it to secure an expanded agreement with DHL Express. The pair announced a five-year cooperation agreement, with an option for another two years, for ACMI, CMI, charter, and dry leases. Canada's Cargojet already uses 12 aircraft for DHL, which is adding five 767Fs and next to handle 'expected cargo volume' DHL expanded its capacity in the Americas by 18% in the peak season and launched a weekly service from Vietnam to the US. Additionally, Cargojet recently signed purchase and conversion agreements for six more 777s, making eight more by 2026.

Breakup by Destination:

• Domestic
• International
   

International holds a larger share in air freight

The report has provided a detailed breakup and analysis of the market based on the destination. This includes domestic and international. According to the report, international represented the largest market segment.

International air freight offers the connectivity and speed required for moving goods between distant continents and countries, which makes it popular in the global supply chain. Besides this, the rising movement of high-value and perishable items, such as pharmaceuticals, luxury goods, electronics, and other time-critical products is also catalyzing the market growth in this segment. For instance, some global carriers are working to gain a more significant share of the door-to-door delivery market that online shopping giants such as Amazon, Alibaba, and JD.com dominate. Dubai-based Emirates launched Emirates Delivers, Lufthansa includes Heyday, and British Airways parent IAG includes Zenda. Moreover, according to the International Air Transport Association  (IATA), in July 2023, the air cargo industry experienced a 20.7% increase from the previous month, maintaining steady growth since February 2023.

Breakup by End User:

• Private
• Commercial
   

Commercial hold a larger share in air freight

The report has provided a detailed breakup and analysis of the market based on the end user. This includes private and commercial. According to the report, commercial accounted for the largest segment.

The extensive utilization of air freight by commercial end users, such as manufacturers, retailers, wholesalers, and  other industries to transport their goods efficiently is propelling the market growth. For instance, ATA's e-commerce monitor revealed that 18% of air cargo comprised e-commerce shipments—a figure expected to rise as consumer behaviors evolve. The air cargo industry, boasting global networks, adaptable capacity, and digitalization initiatives, stands well-equipped to bolster e-commerce growth. These initiatives promise to augment operational efficiency and shipment visibility throughout transit.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest air freight market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share, owing to the rising trade activities.

Besides this, the inflating investments by government bodies and the leading players in modernizing airport infrastructure and building new networks are also propelling the growth of the air freight market in this region. For instance, many Asian-Pacific countries encouraged several airlines to modify their passenger aircraft for air freight transport temporarily. While a standard passenger ATR72-600 can only carry 1.7 metric tons of cargo, its freighter-modified model can carry up to 8 metric tons, making it suitable for Pacific Island countries, given the region's demand and operating conditions. Furthermore, as Korean Air continues to position itself for high cargo demand, it is considering a move for the new wide-body freighters released by Airbus and Boeing in recent months. Long-term strong cargo demand also prompted Airbus to launch its A350 freighter and Boeing its 777X freighter.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the major market players in the Air Freight industry include:

• American Airlines Inc.
• ANA Cargo Inc.
• Bolloré Logistics
• Cargolux Airlines International S.A.
• Delta Air Lines Inc.
• Deutsche Bahn AG
• Deutsche Post AG
• DSV A/S
• Expeditors International of Washington Inc.
• FedEx Corporation
• Hellmann Worldwide Logistics SE & Co. KG
• Kuehne + Nagel International AG
• Nippon Express Co. Ltd.
• Qatar Airways
• United Parcel Service Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Air Freight Market News:

• March 2024: Korean Air has connected its cargo booking system with DHL Global Forwarding. This is the first time the airline has connected its booking system directly with a freight forwarder that allows DHL Global Forwarding to book cargo on Korean Air flights directly from its system, bypassing the need to access the airline’s platform. The integration enhances workflow efficiency by enabling real-time data exchange between the airline and customers, facilitating easier access to flight schedules and air cargo rates.
• March 2024: Challenge Group has decided to launch a scheduled freighter route between Mumbai (BOM) and Liège (LGG). Operating twice weekly, the service will use the capacity of Challenge Group’s recently acquired second B767 freighter, which has a payload of 52 tons per uplift. The freighter will mainly carry pharmaceuticals and electronics.
• February 2024: A.P. Moller – Maersk (Maersk), as a part of its integrated logistics solutions, has launched a fully digital solution for customers willing to purchase air freight solutions. The new online solution available on Maersk.com provides customers with an option to book their air cargo requirements through a simple online tool that will provide customers with instant prices for as many as 70,000 connections between virtually all relevant airports globally.

Air Freight Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the air freight market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global air freight market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the air freight industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.