May 28, 2024
Air Cargo And Freight Logistics Market

Air Cargo And Freight Logistics Market Is Expected To Be Flourished By Growing International Trade

Air cargo and freight logistics involves the transportation of goods through airplanes, drones, and other flying modes. It plays a vital role in international trade by enabling the efficient and swift movement of goods across borders. Air cargo services involve activities like warehousing, inventory management, customs documentation, freight consolidation and more. Major types of cargo transported include perishables, specialty chemicals, manufacturing components, electronics, retail goods and others. Courier services make use of aircraft to deliver time-sensitive packages across wide geographies. Key end-users of air freight services are aerospace, pharmaceuticals, electronics, agriculture and FMCG industries.

The global Air Cargo And Freight Logistics Market is estimated to be valued at US$ 164.48 Mn  in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Growing international trade is expected to drive the growth of the air cargo and freight logistics market over the forecast period. International trade has been rising steadily over the past few decades driven by globalization, trade agreements and emergence of new economies. Air transportation plays a vital role in speeding up global supply chains and shipping time-sensitive goods across borders. New trade routes between developing nations in Asia, Africa and Latin America have opened up opportunities for air logistics providers. Further, e-commerce expansion worldwide has increased the volume of lightweight parcel shipments carried by aircraft. Digitization of supply chain and logistics operations through technologies like blockchain, AI and IoT is also supporting improved air cargo management, real-time tracking and asset utilization for freight forwarders and carriers. However, volatility in fuel prices and economic or geopolitical uncertainties pose challenges to stable growth of the market.

Segment Analysis

The global air cargo and freight logistics market is segmented based on transport type into air cargo and freight. The air cargo segment dominates the market and accounts for over 65% share owing to time-sensitive shipments of goods such as electronics, machinery, and perishable items that cannot bear long transit durations. Air freight offers faster delivery within a short duration and time-bound transportation of goods, thus making it the preferred mode of transport especially for high-value and urgently required items.

PEST Analysis

Political: Growth of international trade between nations and easing of regulations encouraging cross-border movement of goods and services positively impacts the market. However, security regulations and restrictions can delay cargo clearance.
Economic: Rise in globalization, increase in GDP, industrialization, and growth in international trade drive the demand for air cargo transport. Fluctuations in fuel prices and economic downturns pose challenges.
Social: Changes in lifestyle and consumption patterns fuel demand for imported goods. However, spread of epidemics can disrupt supply chains.
Technological: Automation and digitization enhance efficiency of cargo handling and tracking. Adoption of IoT and AI aids in route optimization and demand forecasting.

Key Takeaways

The global Air Cargo And Freight Logistics Market Share is expected to witness high growth over the forecast period. The global air cargo and freight logistics Market is estimated to be valued at US$ 164.48 Mn  in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031.

Regionally, North America dominates the market currently owing to strong presence of key industry players such as FedEx and UPS and robust economic growth. The Asia Pacific region is expected to grow at the fastest pace led by increasing international trade from countries such as China and India.

Key players operating in the air cargo and freight logistics market are AGRANA Beteiligungs-AG, Baor Products, CitroGlobe S.r.l., Döhler GmbH, FIL Industries Private Limited, Fructrum GmbH, FruitSmart, H&H Products Company, Hermann Pfanner Getränke GmbH, Himalyan Food Park, Ingredion, Lizaz Food Processing, Old Orchard Brands, LLC. Key players are focusing on expanding their product portfolio and global footprint through strategic mergers and acquisitions to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it