February 25, 2024
Air Cargo And Freight Logistics Market

Rising Demand For Express Delivery Services To Boost The Growth Of Air Cargo And Freight Logistics Market

Market Overview:

The global Air Cargo And Freight Logistics Market is estimated to be valued at US$ 142.77 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The air cargo and freight logistics market consists of transportation and delivery of goods, packages and other freight via air carriers. It involves international and domestic delivery of cargo using passenger and dedicated freight aircraft. The key advantage of air cargo logistics is quicker delivery compared to other modes of transportation such as sea or rail. It plays a vital role in supply chain management for industries such as pharmaceuticals, consumer electronics and perishable food items which require time-bound delivery.

Market key trends:

One of the key trends in the market is growing demand for express delivery services. This can be attributed to increasing e-commerce activities and need for quicker delivery of online orders. Various logistics companies are focusing on expanding their express delivery networks and capabilities to cater to this rising demand. For instance, FedEx launched new facilities in 2020 to improve its express delivery infrastructure globally. Furthermore, adoption of technologies such as blockchain, autonomous vehicles and drones is also gaining traction in the air cargo market. This is enabling improved tracking, optimized operations and reduced delivery timelines. For example, Incheon International Airport in South Korea partnered with UPS in 2021 to test drone deliveries within the airport premises.

Porter’s Analysis

Threat of new entrants: The global air cargo and freight logistics market requires high capital investments for aircraft procurement, infrastructure and technology which makes the threat of new entrants moderate.

Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have several options available for freight transportation including sea freight and road freight.

Bargaining power of suppliers: The bargaining power of suppliers is low as major airlines have global operations and source materials from a diverse supplier base globally reducing dependency on any individual supplier.

Threat of new substitutes: The threat of substitutes is moderate as freight transportation through sea and road modes provide alternatives however air cargo offers speed of delivery which is not matched by other modes.

Competitive rivalry: The competitive rivalry in the global market is high as major players compete on pricing, quality of service and expansion of global networks.

Key Takeaways

The Global Air Cargo and Freight Logistics Market Size was valued at US$ 142.77 Bn in 2023 and is expected to reach US$ 220.11 Bn by 2030, exhibiting a CAGR of 5.9% during the forecast period. Expansion of e-commerce industry relies heavily on supply chain and logistics networks which is driving the growth of air cargo and freight logistics.

The Asia Pacific region dominates the global air cargo and freight logistics market with over 35% share in 2023 led by China. Strong economic growth, rising exports and well developed logistics infrastructure has made Asia Pacific an attractive market for air freight. North America and Europe follow Asia Pacific in terms of market share and are expected to witness steady growth owing to presence of global logistics players.

Key players operating in the air cargo and freight logistics market are FedEx (Federal Express) Corporation, United Parcel Service Inc., The Emirates Group, Japan Airlines Co. Ltd and All Nippon Airways Co. Ltd (ANA). Major players are investing in digital solutions, aircraft fleet expansion and strategic collaborations to strengthen their global networks and market presence.

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