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Air Cargo And Freight Logistics Global Market Insights: Growth Drivers, Size & Forecasts to 2029
Stay informed on tariff shifts, macro trends, and global economic changes-use code ONLINE30 to enjoy 30% off our global market reports.What Is the Forecasted Market Growth Rate of the Air Cargo And Freight Logistics Industry?
The market size for air cargo and freight logistics has seen robust expansion in the past few years. The projection is that it will rise from $225.06 billion in 2024 to $240.65 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 6.9%. The past growth can be credited to factors like the surge in the number of internet users along with a broad spectrum of products, the boost in global trade propelling market growth, the heightened globalization resulting from swift development in certain emerging economies, the demand for air cargo transport driven by increased global trade, and the burgeoning e-commerce sector.
How Will the Air Cargo And Freight Logistics Market Size Evolve From 2025 to 2029?
The market size for air cargo and freight logistics is set to experience robust expansion in the coming years. By 2029, it is projected to reach $303.79 billion, with a compound annual growth rate (CAGR) of 6.0%. The uptick during the forecast period is a result of factors such as the heightened consumer appetite for perishable items, burgeoning e-commerce sector spurring market demand, rising requirement for chemical and pharmaceutical products and valuables, as well as just-in-time production. Other drivers include the popularity of online shopping, and the need for time-sensitive and high-value shipments. Key trends during this period embody the transformation of logistics through automation and digitization, accelerating market opportunities, advancements in blockchain technology, sustainability efforts, and growing urban air mobility (UAM).
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What Are the Main Growth Drivers in the Air Cargo And Freight Logistics Market Today?
The expansion of e-commerce is set to drive the development of the air cargo and freight logistics segments. The term 'e-commerce' represents the online exchange of products and services, or money and data transactions, conducted primarily through the internet. The increasing global availability of the internet has broadened the potential customer reach for online sellers, allowing them to connect with shoppers even in remote regions. As delivering goods rapidly and accurately is crucial for e-commerce companies, air cargo and freight logistics emerge as the essential foundation for their operations. For illustration, the International Trade Administration, a US government agency, projected in November 2023 that the annual growth rate of eCommerce revenues in the UK will hit an average of 12.6% by 2025. eCommerce constituted 36.3% of the UK's total retail industry, and is anticipated to attain revenue worth $285.60 billion by 2025. Thus, the burgeoning e-commerce and online retail sales sectors lead to the growth of the air cargo and freight logistics markets.
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Which Air Cargo And Freight Logistics Market Segment Is Expected to Lead Through 2029?
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
Which Market Trends Are Expected to Dominate Air Cargo And Freight Logistics Industry Growth?
Key players in the air cargo and freight logistics sector are forging strategic alliances to boost their competitiveness, extend their geographical coverage, and elevate their overall industry performance. Such partnerships offer companies the opportunity to bolster their network and tap into new markets by making the most of each other's infrastructure, resources, and expertise. For example, in May 2023, Speedcargo Technologies Pte Ltd., a Singaporean software firm, collaborated with Güdel Corporate, a Swiss automation firm, to roll out the Air Cargo Automation System. This pioneering system, the first completely automated robotic freight handling solution for air freight around the globe, is set to revolutionize three essential ground handling processes. It combines the advanced computer vision, optimization, and intelligent robotics software of Speedcargo with Güdel's state-of-the-art gantry robots and years of experience in intralogistics automation. This improvised system addresses prominent challenges encountered by the air cargo sector, including labor and space restrictions, and the demand for reliable, safe, and superior handling.
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Which Companies Hold the Largest Market Share in the Air Cargo And Freight Logistics Sector?
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
Where Is the Air Cargo And Freight Logistics Market Experiencing the Highest Growth?
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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