Air Freight Market by Service (Express, Regular), Carrier Type (Belly Cargo, Freighter), Freight Type, End-User - Global Forecast 2024-2030

Air Freight Market by Service (Express, Regular), Carrier Type (Belly Cargo, Freighter), Freight Type, End-User - Global Forecast 2024-2030

The Air Freight Market size was estimated at USD 373.56 billion in 2023 and expected to reach USD 395.34 billion in 2024, at a CAGR 6.17% to reach USD 568.19 billion by 2030.

Air freight refers to the transportation of goods by aircraft. It is a crucial component of global import/export trade, enabling rapid and reliable movement of high-value, time-sensitive, or perishable items across vast distances. The air freight sector accommodates commercial and charter cargo flights, providing tailored solutions regardless of shipment size or weight. The driving factors include increasing international trade activities necessitating efficient logistics solutions, Online shopping surges, Innovations in aircraft design and cargo handling to improve efficiency and capacity, and The need for faster transport of perishable goods such as pharmaceuticals and fresh produce. However, The carbon footprint of air freight is significant, leading to demands for sustainable alternatives. Air freight is typically more expensive than other modes of transport, limiting its use to high-value goods. Major challenges include outdated infrastructure and bureaucracy that can hamper timely deliveries and diverse international regulations requiring careful navigation to avoid delays. Opportunities include transporting vaccines and medicines, particularly during health crises such as a pandemic, and businesses looking to reduce reliance on single-source suppliers may increase air freight usage for flexibility.

Regional Insights

In the Americas, particularly in the United States and Canada, the air freight market is experiencing steady growth. This growth is driven by increased eCommerce activity and strengthening trade relations across the North and South American continents. Europe shows a steady demand for air freight services due to strong manufacturing and export activities, particularly in countries including Germany and France. The Middle East has seen significant investments in air freight infrastructure to solidify its position as a global logistics hub, enhancing its growth prospects. Africa, though still developing in this sector, shows potential for growth with increasing investments in infrastructure. In Asia-Pacific, the air freight market is robust, led by the expansion of manufacturing industries, coupled with an increase in international trade agreements, supports the strong market performance in this region. Additionally, the rise in technological advancement and integration in logistics has further boosted efficiency and capacity, particularly in South Korea and Singapore.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Air Freight Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

• Increasing trade activities coupled with rising popularity of air freight services
• Growing consumer need for express air cargo delivery
• Rising demand for perishables, chemicals and valuables in industries

Market Restraints

• High cost associated with air freight solutions

Market Opportunities

• Integration of innovative and novel technologies to enhance the performance of air freight
• Government investments and support to improve air freight infrastructure

Market Challenges

• Stringent government policies, regulations, and laws related to air freight

Market Segmentation Analysis

• Service: Higher preferences for regular services owing to their cost-effectiveness
• End-User: Growing adoption of air freight to handle varying volumes of commercial goods

Market Disruption Analysis

• Porter’s Five Forces Analysis
• Value Chain & Critical Path Analysis
• Pricing Analysis
• Technology Analysis
• Patent Analysis
• Trade Analysis
• Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Air Freight Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Air Freight Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Air Canada Cargo Expands Operations with New Freighter Service to Chicago

Air Canada Cargo has announced the launch of a new freighter service connecting Toronto and Chicago. This expansion is part of Air Canada’s strategic initiative to enhance its cargo capacity and improve service delivery in key North American markets. The new route operates using recently introduced freighter aircraft designed to meet the increasing demand for air freight between these major commercial hubs.

Cargojet Renews Its Air Cargo Agreement with Canadian North to Strengthen Northern Connections

Cargojet, a Canadian cargo airline, has renewed its air cargo services agreement with Canadian North, an airline serving Canada’s northern communities. Initially established in 2020, this ongoing partnership allows Cargojet to manage most of Canadian North’s cargo capacity, ensuring reliable delivery services to the northern regions. By effectively leveraging each other's strengths, the collaboration enhances logistical efficiencies and supports the vital supply chain needs of these remote areas.

WestJet Cargo Bolsters Operations with the Launch of New Service Route

WestJet Cargo has announced an expansion in its service offerings with the introduction of a new cargo route connecting Calgary and Philadelphia. This strategic move aims to enhance the logistics capabilities between these two key cities, meeting the increasing demand for air freight services in the regions.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Air Freight Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Air Freight Market, highlighting leading vendors and their innovative profiles. These include Air Canada Cargo, Arc Worldwide Limited, C&D Logistics Ltd., Canaan Group, Cargojet, Cargolux Airlines International S.A., CMA CGM Group, Couriers and Freight International, Delmar International Inc., Deutsche Post AG, DSV Group, Emirates Group, Expeditors International of Washington, Inc., FedEx Corporation, Hellmann Worldwide Logistics SE & Co. KG, Korean Air Co., Ltd., Lufthansa Cargo AG, Nippon Express Co., Ltd., Ocean-Air Freight LTD., Qatar Airways Group, Schenker AG, Sealion Cargo Inc., Singapore Airlines Ltd., UKR Shipping LLC, United Parcel Service, Inc., and YUSEN LOGISTICS CO., LTD..

Market Segmentation & Coverage

This research report categorizes the Air Freight Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Service
• Express
• Regular
• Carrier Type
• Belly Cargo
• Freighter
• Freight Type
• eCommerce & Postal Goods
• Hazardous Goods
• Perishable Goods
• End-User
• Commercial
• Private
• Region
• Americas
• Argentina
• Brazil
• Canada
• Mexico
• United States
• California
• Florida
• Illinois
• New York
• Ohio
• Pennsylvania
• Texas
• Asia-Pacific
• Australia
• China
• India
• Indonesia
• Japan
• Malaysia
• Philippines
• Singapore
• South Korea
• Taiwan
• Thailand
• Vietnam
• Europe, Middle East & Africa
• Denmark
• Egypt
• Finland
• France
• Germany
• Israel
• Italy
• Netherlands
• Nigeria
• Norway
• Poland
• Qatar
• Russia
• Saudi Arabia
• South Africa
• Spain
• Sweden
• Switzerland
• Turkey
• United Arab Emirates
• United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year