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Key Trends Influencing the Growth of the Air Cargo And Freight Logistics Market in 2025: Revolutionizing Air Cargo Logistics Speedcargo Technologies And Güdel Corporate's Groundbreaking Partnership
Air Cargo And Freight Logistics
What Is the Expected CAGR for the Air Cargo And Freight Logistics Market Through 2025?
In the past few years, the air cargo and freight logistics market has seen a robust expansion. The market size, which stands at $225.06 billion in 2024, is projected to increase to $241.87 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 7.5%. The significant growth during the historical period is due to the surge in internet users and product variety, spurred by an uptick in global commerce. The market expansion is also attributed to mounting globalization fuelled by the accelerated growth of certain developing nations, an escalation in global trade necessitating air cargo transport, and the boom of the e-commerce industry.
What's the Projected Size of the Global Air Cargo And Freight Logistics Market by 2029?
Expectations for the air cargo and freight logistics market revolve around a robust escalation in size over the coming years. The market is anticipated to surge to a value of $306.18 billion in 2029, courtesy of a compound annual growth rate (CAGR) of 6.1%. Factors contributing to this growth during the forecast period include a rise in consumer demand for perishable items, an enlarged e-commerce industry fuelling market demand, the soaring demand for pharmaceutical products, chemicals and valuables, and the need for just-in-time production of goods. The growth of online shopping and the need for timely delivery of high-value cargo also play a part. Upcoming trends in the forecast period such as the digital transformation of logistics, creating new market opportunities, blockchain technology, sustainability campaigns, and urban air mobility (UAM) are anticipated to further drive growth.
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Top Growth Drivers in the Air Cargo And Freight Logistics Industry: What's Accelerating the Market?
The burgeoning e-commerce industry is set to drive the expansion of the air cargo and freight logistics markets in the future. E-commerce, defined as the process of buying, selling or transmitting goods, services, funds or data over a digital network primarily including the internet, is on the rise. With the global increase in internet accessibility, the potential customer base for online retailers has grown, even reaching consumers in distant areas. The air cargo and freight logistics industry proves fundamental in ensuring fast and accurate transportation of goods, empowering e-commerce enterprises to meet online customer demands efficiently. In November 2023, as reported by the US Government's International Trade Administration, it is forecasted that eCommerce revenues in the UK will grow at an average annual rate of 12.6% by 2025. eCommerce's contribution to the UK's overall retail industry constituted 36.3%, and it's predicted that the revenues from eCommerce will hit $285.60 billion by 2025. Therefore, the escalating e-commerce and online retail sales signify the driving force behind the growth of the air cargo and freight logistics markets.
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What Trends Will Shape the Air Cargo And Freight Logistics Market Through 2029 and Beyond?
Top firms in the air cargo and freight logistics market are establishing strategic collaborations to boost their competitive edge, extend their reach, and increase their overall operational productivity. Such collaborations enable businesses to extend their networks and penetrate new markets by utilizing the infrastructure, resources, and experience of each party. For instance, in May 2023, Speedcargo Technologies Pte Ltd., a software company based in Singapore, together with Güdel Corporate, an automation firm located in Switzerland, unveiled the Air Cargo Automation System. This system, the world's first fully automated robotic freight handling solution for air cargo, was created out of the fusion of Speedcargo's advanced computer vision, optimization, and intelligent robotics software with Güdel's pioneering gantry robots and deep experience in intralogistics automation. This ground-breaking automated system helps overcome major challenges in the air cargo industry, such as labor and space restrictions, and the demand for dependable, safe, and high-quality handling.
What Are the Main 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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Which Top Companies are Driving Growth in the Air Cargo And Freight Logistics Market?
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
Which Regions Will Dominate the Air Cargo And Freight Logistics Market Through 2029?
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.
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