by The air cargo and freight logistics market primarily includes transportation of goods by air and related services such as customs clearance and warehousing. Air cargo logistics plays a vital role in the global supply chain landscape by offering fast and reliable transportation of perishable goods, consumer electronics, pharmaceuticals, aerospace components and other high value items between key trading markets. With growing infrastructure developments across airports coupled with deployment of advanced technologies like internet of things, blockchain and analytics, air logistics operators are able to provide seamless cargo movement through efficient tracking and monitoring.
The global air cargo and freight logistics market is estimated to be valued at US$ 340 billion in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing e-commerce industry is expected to be a key driver for the air cargo and freight logistics market over the forecast period. Rising consumer preference for online shopping has shifted the demand towards fast delivery of goods. This has further boosted the applications of air logistics in transportation of parcels and retail goods globally. According to commerce department, the global B2C e-commerce sales reached $26.7 trillion in 2019 and the figure is projected to surpass $35 trillion by 2023. Further, demand for time-sensitive cargo deliveries has also supported the air freight activities. For instance, shipments of urgent medical equipment, temperature controlled drugs, fresh foods and automotive components require quick transportation via airways to meet strict timelines.
Segment Analysis
The global air cargo and freight logistics market is dominated by the air freight segment. This segment accounts for over 60% of the total market share owing to increasing demand for express delivery of goods globally. Air freight provides the fastest mode of transportation for cargo across borders. The demand for air freight is high for shipping temperature-sensitive goods like perishable foods, pharmaceuticals, electronic components etc due to its ability to maintain cold chain during transit.
PEST Analysis
Political: Trade policies and regulations imposed by different countries impacts the movement of cargo. Border tensions can disrupt supply chains.
Economic: Economic growth and trade volumes influence demand for cargo transportation. A recession impacts the manufacturing and trading sectors thereby affecting the market.
Social: Rising e-commerce has increased demand for faster delivery of consumer goods. Social media usage promotes online shopping trends.
Technological: Adoption of IoT, AI, block chain and automation solutions helps optimize operations, visibility and efficiency. Developments in fuel-efficient aircraft and cold chain technologies support sustainable growth.
Key Takeaways
The global Air Cargo And Freight Logistics Market Share is estimated to be valued at US$ 340 billion in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.
Regional analysis shows that Asia Pacific dominates currently due to high export volumes from China, Japan and other Southeast Asian countries. The North American region is expected to witness high growth during the forecast period owing to strong economic growth as well as presence of some of the leading logistics companies in the US and Canada. Large pharmaceutical, healthcare and electronics sectors contribute to cargo demand. Stringent regulations around temperature-controlled logistics have propelled innovations and quality standards.
Key players like Cathay Pacific Cargo, FedEx Express, United Parcel Service of America Inc., CEVA Logistics, DHL Aviation are focused on expanding their networks and service capabilities through strategic partnerships and acquisitions to strengthen their foothold. Key players operating in the air cargo and freight logistics market are Cathay Pacific Cargo, FedEx Express, United Parcel Service of America Inc., CEVA Logistics, DHL Aviation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
