What Is The Current and Historic Market Size Analysis Of The Air Cargo And Freight Logistics Market?
The air cargo and freight logistics market has seen considerable growth due to a variety of factors.
• In recent times, the air cargo and freight logistics market has witnessed significant growth. The market value is projected to increase from $225.06 billion in 2024 to $241.87 billion in 2025, with a compound annual growth rate (CAGR) of 7.5%.
This growth during the historical period can be linked to factors such as the surge in internet usage and expanding product range, rise in global trade propelling the market growth, enhanced globalization brought about by the fast-paced development of certain emerging nations, growing global trade necessitating increased demand for air cargo transportation, and the enlarging e-commerce industry.
What are the Market Size and Expected Growth Rates for the Air Cargo And Freight Logistics Market?
The air cargo and freight logistics market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, the air cargo and freight logistics market is set to experience robust growth, expanding to a worth of $306.18 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%.
This growth during the projected period could be due to heightened consumer demand for perishable goods, the burgeoning e-commerce industry stimulating market demand, an increasing call for pharmaceutical products, chemicals, valuables, and the just-in-time manufacturing of goods. The surge in online shopping and the shipping of time-sensitive and high-value cargo also contribute to this growth. The forecast period is also expected to witness certain trends like the transformation of logistics through automation and digitization, which broadens market opportunities, alongside blockchain technology, sustainability efforts, and urban air mobility (UAM).
Which Key Drivers Are Propelling The Air Cargo And Freight Logistics Market's Growth?
The escalating trend of e-commerce is projected to bolster the expansion of the air cargo and freight logistics sectors in the future. E-commerce is the commercial activity of purchasing and selling goods and services, or transferring funds or data, through an electronic network, predominantly the internet. The global increase in internet accessibility has widened the potential consumer pool for online retailers, enabling them to connect with shoppers in distant regions. Air cargo and freight logistics act as the crucial pillar for fast and dependable goods transportation, facilitating e-commerce firms to satisfy the needs of online buyers rapidly and accurately. For instance, as per the International Trade Administration, a governmental organization in the US, in November 2023, the annual average growth rate for eCommerce revenues in the UK is predicted to be 12.6% by 2025. Consumer eCommerce represented 36.3% of the UK's total retail industry, with eCommerce revenue projected to hit $285.60 billion by 2025. Therefore, the proliferation of e-commerce and online retail sales are fueling the evolution of the air cargo and freight logistics sectors.
What Are The Key Segments Within The Global Air Cargo And Freight Logistics Market?
The air cargo and freight logistics market covered in this report is segmented –
1) By Type: Domestic Logistics, International Logistics
2) By Service Type: Express, Regular
3) By Application: Food, Industrial Materials, Equipment, Other Applications
4) By End-use Industry: Retail, Manufacturing, Healthcare, Automotive, Agriculture
Subsegments:
1) By Domestic Logistics: Intra-Country Air Freight, Same-Day Delivery Services, Regional Distribution Services
2) By International Logistics: Global Air Freight Services, Cross-Border Shipping, Customs Clearance Services
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How Are New Trends Impacting The Size Of The Air Cargo And Freight Logistics Market?
Prominent firms in the air cargo and freight logistics market are creating strategic alliances to boost their competitive standing, extend their influence, and enhance their overall performance in the sector. Collaborative ventures enable such companies to widen their network and penetrate new markets, capitalising on each other's infrastructure, expertise, and resources. As an example, in May 2023, Speedcargo Technologies Pte Ltd., a software company from Singapore, teamed up with Güdel Corporate, a Swiss automation company, to introduce the Air Cargo Automation System, the first fully automated robotic freight handling solution in the world for air freight. This remarkable system will revamp three critical ground handling procedures by blending Speedcargo's advanced computer vision, optimization and intelligent robotics software with Güdel's state-of-the-art gantry robots and their extensive experience in the field of intralogistics automation. This ground-breaking automation system effectively tackles the key issues confronted by the air cargo industry such as labor and space restrictions and the need for constant, safe, and quality handling.
Who Are the Key Players In The Air Cargo And Freight Logistics Market?
Major companies operating in the air cargo and freight logistics market are:
• Deutsche Post DHL Group
• United Parcel Service
• FedEx Corporation
• Deutsche Lufthansa AG
• DSV AS
• DB Schenker
• Expeditors International of Washington
• Kuehne + Nagel International AG
• Singapore Airlines Limited
• Korean Air Co.
• Air China Limited
• Cathay Pacific Airways Limited
• Bolloré Logistics
• China Airlines Limited
• EgyptAir Cargo
• Canada Air Cargo & Freight Logistics Inc.
• Kalitta Air LLC
• CEVA Logistics
• Titan Sea & Air Services
• Horizon International Cargo Inc.
• Lavin Star Trading LLC
• Rosan Sea Air Services
• Velocity Freight
• Air Cargo & Freight Logistics India Pvt Ltd.
• ENS Logistics India Pvt Ltd.
• Qatar Airways Group
• SNCF Logistics
• American Airlines Cargo
What Are The Regional Insights Into The Air Cargo And Freight Logistics Market?
North America was the largest region in the air cargo and freight logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the air cargo and freight logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
