Airfreight Services Market - Global Industry Research Analysis

According to Market Research Store, the global airfreight services market size was valued at around USD 1.36 billion in 2023 and is estimated to reach USD 2.83 billion by 2032, to register a CAGR of approximately 8.50% in terms of revenue during the forecast period 2024-2032.

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The airfreight services report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

Global Airfreight Services Market: Overview

Airfreight services refer to the transportation of goods and cargo via aircraft, providing a fast and reliable solution for shipping items over long distances. These services are commonly used for high-value, time-sensitive, or perishable goods, such as electronics, pharmaceuticals, and fresh produce. Airfreight services include cargo handling, customs clearance, door-to-door delivery, and tracking, often provided by freight forwarders and logistics companies. These services offer advantages in speed and efficiency compared to other modes of transport, making them crucial for international trade and supply chain operations.

The airfreight services market is experiencing steady growth, driven by increasing global trade, the rise of e-commerce, and the demand for fast shipping solutions. The need for rapid and reliable transportation of goods, especially in sectors such as healthcare, electronics, and retail, is boosting the demand for air cargo services. Additionally, the ongoing globalization of supply chains and the growing demand for perishable goods have further fueled the market.

Key Highlights

• The airfreight services market is anticipated to grow at a CAGR of 8.50% during the forecast period.
• The global airfreight services market was estimated to be worth approximately USD 1.36 billion in 2023 and is projected to reach a value of USD 2.83 billion by 2032.
• The growth of the airfreight services market is being driven by increasing global trade, e-commerce boom, and demand for faster delivery times.
• Based on the service, the freight segment is growing at a high rate and is projected to dominate the market.
• On the basis of destination, the international segment is projected to swipe the largest market share as global trade relies heavily on airfreight for the fast movement of goods between countries.
• In terms of application, the commercial segment is expected to dominate the market by providing large-scale airfreight services for businesses across various industries.
• By region, North America leads due to its advanced logistics infrastructure and high volume of imports and exports.

Airfreight Services Market: Dynamics

Key Growth Drivers

• Global trade growth: The increasing globalization of trade and the expansion of international markets are driving the demand for airfreight services.
• E-commerce boom: The rapid growth of e-commerce has fueled the demand for fast and reliable delivery of goods, often requiring airfreight.
• Advancements in aviation technology: Improvements in aircraft technology, such as larger cargo planes and fuel-efficient engines, have made airfreight more efficient and cost-effective.
• Need for time-sensitive shipments: Many industries, including pharmaceuticals, electronics, and fashion, rely on airfreight to transport time-sensitive goods.

Restraints

• High transportation costs: Airfreight is generally more expensive than other modes of transportation, such as sea freight or rail freight.
• Environmental concerns: The environmental impact of airfreight, including carbon emissions, is a growing concern.
• Regulatory challenges: Compliance with aviation regulations and customs procedures can be complex and time-consuming.
• Supply chain disruptions: Factors such as geopolitical events, natural disasters, and economic downturns can disrupt the airfreight supply chain.

Opportunities

• Expanding applications in emerging markets: The growth of the aviation industry in emerging markets presents opportunities for airfreight services.
• Integration with other logistics services: Airfreight can be integrated with other logistics services, such as ground transportation and warehousing, to provide comprehensive supply chain solutions.
• Development of new airfreight technologies: Innovations in airfreight technology, such as drones and unmanned aerial vehicles (UAVs), can create new opportunities for the industry.
• Growing demand for sustainable transportation: The increasing focus on sustainability is driving the demand for more environmentally friendly transportation options, including airfreight.

Challenges

• Market volatility: The market for airfreight services can be subject to fluctuations due to economic conditions, geopolitical events, and changes in trade patterns.
• Competitive landscape: The market is competitive, with numerous airlines and freight forwarders offering airfreight services.
• Technological advancements: The rapid pace of technological advancements can make it difficult for airlines to keep up with the latest innovations and maintain a competitive edge.
• Regulatory changes: Changes in aviation regulations, customs procedures, or trade agreements can impact the airfreight industry.

Airfreight Services Market: Segmentation Insights

The global airfreight services market is divided by service, destination, application, and region.

Segmentation Insights by Service

Based on Service, the global airfreight services market is divided into freight, mail, express, and others.

The Freight segment holds the largest share of the airfreight services market, as the transportation of goods for commercial trade is a primary function of airfreight. Manufacturers, retailers, and supply chain managers rely on airfreight services to move goods quickly and efficiently across international borders. Freight services involve the transportation of bulk goods and large shipments, typically for commercial or industrial purposes. This service is used by businesses to transport heavy goods, machinery, electronics, automotive parts, and other large-scale items.

While the Mail segment represents a smaller portion of the overall airfreight market compared to freight, it remains a key service for postal and courier companies. The demand for air mail has been declining slightly with the rise of digital communication, but it still plays a critical role in delivering physical documents and goods, particularly across international borders.

The Express segment is growing rapidly, driven by the increasing demand for next-day or same-day delivery services in sectors such as e-commerce, pharmaceuticals, and high-value goods. The rise of online shopping and customer expectations for fast delivery has fueled the expansion of express airfreight services.

Segmentation Insights by Destination

On the basis of Destination, the global airfreight services market is bifurcated into domestic and international.

The International segment dominates the airfreight services market in terms of revenue and strategic importance, as global trade increasingly relies on fast, reliable airfreight services to move goods across borders. International segment plays a critical role in global trade.

Major industries such as electronics, pharmaceuticals, and e-commerce depend heavily on international airfreight for their supply chains. International airfreight faces complex customs regulations and is more expensive than ocean freight, but it provides the fastest means of global transportation.

However, the Domestic segment remains crucial in large countries where internal trade and regional distribution are key to the economy. This segment is particularly important for sectors like e-commerce, healthcare, and retail, where rapid delivery times are essential within national borders. Domestic airfreight faces fewer regulatory barriers but is more expensive than ground transport.

Segmentation Insights by Application

In terms of Application, the global airfreight services market is categorized into private and commercial.

The Commercial segment dominates the airfreight services market due to the large scale and frequency of shipments required by businesses and industries. Commercial airfreight supports global trade and supply chains, providing essential services for manufacturers, retailers, e-commerce platforms, and industries that require rapid, large-scale transportation of goods. The growing demand for fast deliveries in sectors like e-commerce and pharmaceuticals is driving further growth in this segment.

The Private segment, while smaller, caters to a niche market that requires specialized services. Individuals or small businesses rely on private airfreight for the transport of high-value, sensitive, or urgent items. Despite its smaller market share, the private segment remains important for luxury goods transport and personalized shipping solutions.

Airfreight Services Market: Report Scope

Airfreight Services Market: Regional Insights

• North America dominates the global airfreight services market

North America leads the market with a 38.2% market share in 2024. The U.S. plays a significant role, being home to key players like FedEx and UPS, which have developed extensive air freight networks. The region benefits from strong infrastructure, including major cargo hubs such as Memphis and Louisville, along with a focus on high-value exports such as electronics and medical equipment. High demand for time-sensitive shipments and a robust export industry, along with innovations in automation and cargo handling efficiency.

Asia-Pacific (APAC) is anticipated to witness the fastest growth, driven by rapid industrialization and export activities in countries like China, Japan, and South Korea. The region's large-scale manufacturing and export of goods, such as electronics and automobile components, are key factors for this growth​. Expanding e-commerce sector and increased regional trade activity, particularly in Southeast Asia. Major airports like Hong Kong and Incheon are enhancing logistics capabilities to meet demand.

Europe is also a significant player, driven by high levels of exports and growing demand for electric and sustainable aviation technologies. Major cargo hubs in Germany and the UK support efficient handling of air freight​. Investments in air cargo infrastructure and an increasing focus on reducing carbon footprints through sustainable practices.

The Middle East & Africa (MEA) region is experiencing growth due to rising tourism and the expansion of the aviation sector in countries like UAE and Saudi Arabia. Additionally, the region is seeing growth in the air freight transport of perishable goods. Whereas, Latin America, particularly Brazil and Mexico, is expanding its air freight capacity. The region’s growth is driven by increased export activities and the modernization of logistics networks.

Recent Developments:

• ECU Worldwide and ShipBob Join Forces for Enhanced E-commerce Logistics - In June 2024, ECU Worldwide, a subsidiary of Allcargo Logistics, announced a strategic partnership with ShipBob, a leading e-commerce fulfillment company. This collaboration aims to strengthen ShipBob's inventory management capabilities by providing access to ECU Worldwide's extensive global network of ocean and air freight services. Leveraging its tech-driven platform, ECU360, ECU Worldwide will streamline freight operations and support ShipBob's clients in various markets.
• Amazon Expands Air Cargo Network in India - In January 2023, Amazon expanded its logistics footprint in India by launching Amazon Air, a dedicated air cargo service. Partnering with Quikjet Cargo Airlines and utilizing Boeing 737-800 aircraft, Amazon is building a robust network across major Indian cities. This move is aimed at accelerating delivery times for customers and solidifying Amazon's position in India's growing e-commerce market.
• A.P. Moller - Maersk Launches New Air Freight Service - In October 2022, A.P. Moller - Maersk announced the launch of a new air freight service between the US and South Korea. Operated by Maersk Air Cargo, this new route is a strategic move to enhance the company's integrated air cargo capabilities. By introducing its own fleet of Boeing 767-300 freighters, Maersk aims to offer customers greater control and reliability in their supply chains.

Airfreight Services Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the airfreight services market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global airfreight services market include:

• Agility Logistics
• Air France-KLM S.A.
• AirFreight.com
• C.H. Robinson Worldwide, Inc.
• CEVA Logistics
• DB Schenker
• DHL International GmbH
• DIMOTRANS Group
• DSV
• FedEx
• GEODIS
• Kuehne+Nagel
• Nippon Express Co., Ltd.
• Rhenus Group
• United Parcel Service, Inc.
• Ziegler Group

The global airfreight services market is segmented as follows:

By Service

• Freight
• Mail
• Express
• Others

By Destination

• Domestic
• International

By Application

• Private
• Commercial
  • Manufacturing
  • Retail & E-commerce
  • Automotive
  • Healthcare
  • Others

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

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