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Role Of E-Commerce In Driving Air Cargo And Freight Logistics Growth: A Significant Driver Propelling The Air Cargo And Freight Logistics Market In 2025
Air Cargo And Freight Logistics
What Is the Air Cargo And Freight Logistics Market Size and Projected Growth Rate?
The market size of air cargo and freight logistics has shown considerable expansion in recent years. A surge from $225.06 billion in 2024 to $241.87 billion in 2025 is expected, representing a compound annual growth rate (CAGR) of 7.5%. The historic growth of this sector is primarily due to the rise in the number of internet users and availability of diverse products, a boost in global trade leading to growth in the market, enhanced globalization as a result of accelerated development in certain countries, a rise in global trade stimulating the need for air cargo transport, and the growing e-commerce industry.
Anticipated robust expansion is on the cards for the air cargo and freight logistics market in the forthcoming years, with projections estimating it to burgeon up to $306.18 billion by 2029, posting a Compound Annual Growth Rate (CAGR) of 6.1%. This expansion during the prognosticated period is creditable to a surge in consumer demand for perishable goods, the burgeoning e-commerce sector, growth in pharmaceutical, chemical, and valuables demand, as well as the rise in "just in time" production methodologies. Furthermore, the upswing in online shopping and the urgency to transport high-value cargo are contributing factors. Major future trends include the transformative role of automation and digitization in logistics, the prospects yielded from these technologies, the potential of blockchain technology, sustainability practices, and urban air mobility (UAM).
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What Are the Major Segments in the Air Cargo And Freight Logistics Market?
The air cargo and freight logistics market covered in this report is segmented -
1) By Type: Domestic Logistics, International Logistics
2) By Service Type: Express, Regular
3) By Application: Food, Industrial Materials, Equipment, Other Applications
4) By End-use Industry: Retail, Manufacturing, Healthcare, Automotive, Agriculture
Subsegments:
1) By Domestic Logistics: Intra-Country Air Freight, Same-Day Delivery Services, Regional Distribution Services
2) By International Logistics: Global Air Freight Services, Cross-Border Shipping, Customs Clearance Services
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What Are The Driving Air Cargo And Freight Logistics Market Evolution?
The anticipated surge in e-commerce is set to spur the expansion of the air cargo and freight logistics markets. Defined as the act of purchasing and selling of products and services, or sending funds or data through an electronic network, mainly the Internet, e-commerce has seen increased global accessibility, extending the potential client base for online sellers. This makes it possible for them to connect with customers in distant places. Air cargo and freight logistics act as the crucial element in delivering goods promptly and accurately, allowing e-commerce enterprises to meet the quick and precise needs of the online buyer. For example, a forecast by the International Trade Administration, a government agency based in the US, in November 2023 suggested that the UK's eCommerce revenues would grow at an average yearly rate of 12.6% by 2025. E-commerce made up 36.3% of the UK's total retail business, with eCommerce income predicted to reach $285.60 billion by 2025. Thus, the growing e-commerce and online retail sales are fuelling the expansion of the air cargo and freight logistics markets.
Which Firms Dominate The Air Cargo And Freight Logistics Market Segments?
Major companies operating in the air cargo and freight logistics market are Deutsche Post DHL Group, United Parcel Service, FedEx Corporation, Deutsche Lufthansa AG, DSV AS, DB Schenker, Expeditors International of Washington, Kuehne + Nagel International AG, Singapore Airlines Limited, Korean Air Co., Air China Limited, Cathay Pacific Airways Limited, Bolloré Logistics, China Airlines Limited, EgyptAir Cargo, Canada Air Cargo & Freight Logistics Inc., Kalitta Air LLC, CEVA Logistics, Titan Sea & Air Services, Horizon International Cargo Inc., Lavin Star Trading LLC, Rosan Sea Air Services, Velocity Freight, Air Cargo & Freight Logistics India Pvt Ltd., ENS Logistics India Pvt Ltd., Qatar Airways Group, SNCF Logistics, American Airlines Cargo
What Trends Are Expected to Dominate the Air Cargo And Freight Logistics Market in the Next 5 Years?
Prominent players in the air cargo and freight logistics market are forging strategic alliances to boost their competitive edge, broaden their scope, and enhance their overall industry performance. These collaborations permit businesses to enlarge their networks and penetrate new markets by utilizing each other's infrastructure, resources, and skills. For example, in May 2023, Speedcargo Technologies Pte Ltd., a software company based in Singapore, teamed up with Güdel Corporate, a Swiss automation firm, to unveil the Air Cargo Automation System, the first of its kind in the world for fully automated robotic freight handling solutions for air freight. This system integrates Speedcargo's advanced computer vision, optimization and intelligent robotics software with Güdel's state-of-the-art gantry robots and extensive knowledge of intralogistics automation, aiming to improve three essential ground handling activities. This automation system aims to overcome primary challenges in the air cargo sector, such as labor and space limitations, while ensuring consistent, safe, and quality handling.
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Which Is The Largest Region In The Air Cargo And Freight Logistics Market?
North America was the largest region in the air cargo and freight logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the air cargo and freight logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Air Cargo And Freight Logistics Market?
2. What is the CAGR expected in the Air Cargo And Freight Logistics Market?
3. What Are the Key Innovations Transforming the Air Cargo And Freight Logistics Industry?
4. Which Region Is Leading the Air Cargo And Freight Logistics Market?
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