Air Freight Market by Service Type (Freight Forwarding, Air Cargo Charter Services, Express Delivery Services, Consolidation Services), Air Freight Mode (Full Cargo, Part Cargo), Application (E-commerce, Healthcare & Pharmaceuticals, Automotive, Retail & Consumer Goods), End-Use Industry (Manufacturing, Retail, Automotive, Pharmaceuticals & Healthcare); Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Air Freight Market was valued at USD 111.2 billion in 2023 and will surpass USD 177.2 billion by 2030; growing at a CAGR of 6.9% during 2024 - 2030.

The air freight market plays a vital role in facilitating international trade and logistics, offering a fast, reliable, and secure method of transporting goods across long distances. It is particularly essential for industries that deal with high-value, time-sensitive, and perishable goods. With globalization driving e-commerce, international trade, and supply chains, the demand for air freight services continues to rise. Air freight offers advantages such as speed, security, and the ability to handle a wide range of goods, from raw materials to finished products, supporting the growth of industries globally. The market is poised to expand as industries increasingly demand fast and efficient delivery methods, especially in the context of e-commerce growth and global supply chain evolution.

With rapid growth in e-commerce, healthcare, and automotive sectors, the air freight industry is seeing significant shifts. Air freight service providers are focusing on innovative solutions, such as integrated logistics, real-time tracking, and automation, to meet the evolving needs of the market. The expansion of trade, especially with emerging markets, further boosts the demand for air freight services. Additionally, with the rise in international demand for fast delivery times and perishable goods, the market for air freight is on track to experience sustained growth in the coming years.

Freight Forwarding Service Is Largest Owing to Its Broad Application Across Industries

The freight forwarding service is the largest segment in the air freight market, owing to its widespread application across multiple industries. Freight forwarders act as intermediaries between shippers and transportation services, providing a wide array of services, including transportation, customs clearance, and warehousing. As international trade and global supply chains become increasingly complex, the role of freight forwarding becomes more critical. These services are particularly in demand by companies that need to move goods across different regions and countries efficiently while ensuring compliance with local regulations and minimizing delays.

The size and scale of the freight forwarding segment are further driven by its versatility across industries, including automotive, electronics, pharmaceuticals, and consumer goods. Freight forwarders help businesses streamline their shipping processes by organizing the logistics and optimizing supply chain management, enabling them to manage costs effectively while offering speed and reliability. As the demand for seamless, global connectivity increases, the freight forwarding segment remains a dominant force in the air freight market, supporting businesses in the transport of large volumes of goods.

Air Freight (Part Cargo) Mode Is Fastest Growing Owing to Cost-Effective Solutions

The air freight (part cargo) mode is the fastest growing subsegment within air freight services, driven by its cost-effectiveness and flexibility for smaller shipments. Part cargo allows businesses to share space on a flight, offering a more affordable option compared to full cargo shipments. As small and medium-sized enterprises (SMEs) increasingly enter the global marketplace and look for ways to keep logistics costs low, part cargo has become an attractive solution. This model enables companies to transport goods quickly while managing expenses more effectively, which is especially important for industries like e-commerce and retail, where speed is crucial but large volumes may not always justify the cost of full cargo.

The increasing popularity of part cargo is fueled by its ability to cater to a wide range of applications, from high-value products to perishable goods, allowing businesses to access faster delivery without the need for large-scale shipments. As air freight continues to grow, part cargo offers a scalable and cost-effective option for businesses seeking efficiency in global trade and logistics, contributing to its rapid expansion within the market.

E-Commerce Application Is Largest Owing to Surge in Online Retail and Global Shipping

The e-commerce application is the largest subsegment in the air freight market, driven by the significant rise in online retail sales and the growing need for fast, reliable shipping. E-commerce companies rely heavily on air freight services to ensure quick delivery of products to consumers worldwide, especially with the increasing demand for expedited shipping options. The ability to ship goods internationally at high speed has become a critical component of the e-commerce sector’s business model, making air freight a primary means of transportation.

The surge in global e-commerce, particularly following the COVID-19 pandemic, has resulted in an unprecedented demand for air freight services. Retailers and marketplaces such as Amazon, Alibaba, and others are expanding their logistics networks to meet customer expectations for faster delivery times. Air freight offers a competitive edge in this space, allowing companies to minimize delivery time and reduce inventory costs. As global e-commerce continues to flourish, the demand for air freight services in this application is expected to remain robust, cementing its position as the largest application segment.

Pharmaceuticals & Healthcare Industry Is Fastest Growing End-Use Sector Owing to Need for Time-Sensitive Shipments

The pharmaceuticals & healthcare industry is the fastest growing end-use sector in the air freight market, driven by the need for time-sensitive and temperature-controlled deliveries. The transportation of pharmaceutical products, vaccines, and medical equipment requires strict adherence to quality standards, with air freight offering the fastest, most reliable mode of transport. The rise of global health concerns and the increasing importance of just-in-time delivery for pharmaceuticals, especially in the context of the COVID-19 pandemic and ongoing vaccine distribution efforts, has intensified the demand for air freight services in this sector.

The healthcare sector’s growing reliance on air freight is largely due to the need for rapid deliveries of life-saving medicines and equipment, as well as the growing demand for global distribution networks. Air freight ensures that products like vaccines, biologics, and other temperature-sensitive goods reach their destinations quickly and safely, minimizing the risk of spoilage and ensuring regulatory compliance. The sector’s continued expansion and evolving global health needs make pharmaceuticals & healthcare one of the fastest growing end-use industries for air freight services.

Asia-Pacific Is Fastest Growing Region Owing to Expanding E-Commerce and Manufacturing Hub

The Asia-Pacific region is the fastest growing in the air freight market, primarily due to the rapid expansion of e-commerce, manufacturing, and trade in countries such as China, India, and Japan. Asia-Pacific is home to some of the world’s largest manufacturing hubs, and air freight plays a critical role in moving goods quickly across regions. As e-commerce continues to boom in countries like China, the demand for fast, efficient shipping solutions has driven the need for air freight services to accommodate cross-border trade.

The growing presence of key global players in Asia-Pacific, along with increasing demand from sectors like automotive, electronics, and pharmaceuticals, further contributes to the region's rapid growth in air freight services. As the region continues to expand its digital infrastructure and embrace international trade, it is expected to remain a key driver of growth in the air freight market, bolstered by its highly competitive logistics sector and booming e-commerce.

Competitive Landscape: Leading Companies Innovating in Air Freight Solutions

The air freight market is highly competitive, with several key players striving to provide innovative and efficient solutions to meet the growing demand for fast and secure delivery services. Companies such as DHL, FedEx, UPS, Kuehne + Nagel, and DB Schenker dominate the market, offering a range of services including freight forwarding, air cargo charter, express delivery, and consolidation services. These companies have invested heavily in technology and infrastructure to provide seamless logistics solutions, from real-time tracking to automated supply chain management.

The competitive landscape is characterized by mergers, acquisitions, and strategic partnerships aimed at expanding service offerings and regional reach. Leading players are also focusing on sustainability by adopting eco-friendly technologies and practices to meet the growing demand for carbon-neutral logistics. As the market continues to evolve with changing consumer expectations and technological advancements, these companies remain key players in shaping the future of the global air freight market.

Recent Developments:

• DHL Express announced the launch of a new air cargo route linking Europe and North America, expanding its global network to meet growing demand for e-commerce shipments.
• FedEx has introduced electric delivery vehicles into its air freight operations to reduce its carbon footprint, marking a significant step toward sustainability in air logistics.
• United Parcel Service (UPS) acquired a significant stake in a leading AI logistics firm to enhance its air freight operations, integrating AI to improve delivery routes and optimize supply chain efficiency.
• Kuehne + Nagel announced an expansion of its air freight services to Asia Pacific, increasing capacity and strengthening its position as a leader in global logistics.
• Qatar Airways Cargo unveiled a new cargo terminal in Doha, designed to enhance its capacity to handle perishable goods, pharmaceuticals, and e-commerce shipments.

List of Leading Companies:

• Air France-KLM
• Cargolux
• Cathay Pacific Cargo
• China Airlines Cargo
• DB Schenker
• DHL Express
• Emirates SkyCargo
• FedEx Corporation
• Kuehne + Nagel
• Lufthansa Cargo AG
• Nippon Express Co., Ltd.
• Qatar Airways
• Singapore Airlines Cargo
• United Parcel Service (UPS)
• XPO Logistics

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