by The global air freight services market comprises transportation of goods by air. It involves various services such as freight transportation, express delivery, mail and parcel delivery using aircraft. The market is driven by growing e-commerce and international trade. Air freight enables timely and reliable delivery of goods globally. Customers prefer air transportation for trade of perishable goods, urgent shipments, transportation of outsized and heavy cargo.
The Global Air Freight Services Market is estimated to be valued at US$ 223.43 Bn in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the air freight services market are Deutsche Post DHL, United Parcel Service, FedEx, CEVA Logistics, and DB Schenker.
The growing Air Freight Services Market Demand for convenient and faster delivery of goods across various sectors such as pharmaceutical, e-commerce, manufacturing is fueling the growth of air freight services market. Air cargo transportation plays a vital role in facilitating international trade by ensuring timely delivery of goods.
Major players are expanding their footprint globally by acquiring regional players and opening new facilities to cater to rising demand from international shippers. Airlines are also actively partnering with freight forwarders to tap opportunities in international trade lanes.
Market key trends
Automation and digitalization is a key trend in the air freight services market. Adoption of technologies such as Internet of Things, blockchain, artificial intelligence is helping players improve visibility, optimize operations and enhance customer experience. Use of automated systems is enabling tracking of shipments in real-time, digital processing of documentation and automated booking. This is improving efficiency, reducing costs and errors for supply chain stakeholders.
Porter’s Analysis
Threat of new entrants: Low capital requirements to enter the market and availability of second-hand aircraft allows new players to enter the market easily poses moderate threat.
Bargaining power of buyers: Large multinational companies have high bargaining power owing to their ability to switch between competitors or choose multiple logistics partners.
Bargaining power of suppliers: Airlines have moderate bargaining power as customers can switch between airlines based on pricing and quality of services.
Threat of new substitutes: Sea and land freight are economical substitutes for air freight however sea freight has high transit time and land freight has geographical limitations.
Competitive rivalry: Intense competition exists between full service carriers and niche freight forwarders to acquire market share.
Geographical concentration
North America accounts for the largest share of the Air Freight Services Market Regional Analysis in terms of value owing to high international trade between US and Asia.
Fastest growing region
Asia Pacific region is expected to witness highest growth in the air freight market during the forecast period due to rising exports from China and geographic proximity with Middle East and European markets facilitating trade.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
About Author - Ravina Pandya
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