The global air freight market reached a volume of nearly 97.92 MMT in 2023 due to the surge in e-commerce, which has dramatically increased demand for fast and reliable shipping options. This has compelled businesses to focus on air freight for time-sensitive deliveries. The rise of same-day and next-day delivery services further intensifies this demand, particularly for high-value goods. As a result, the market is expected to grow at a CAGR of 12.00% during the forecast period of 2024-2032 to attain a volume of 271.54 MMT by 2032. The ongoing globalisation and expansion of international trade are also contributing to the need for efficient logistics solutions, such as air freight for cross-border transactions.
Base Year
Historical Year
Forecast Year
Historically, there has been some growth in the market, but trade volumes have fluctuated due to geopolitical concerns like the U.S.-China trade war. The demand for air cargo, expressed in cargo tonne-kilometres (CTKs), decreased globally by around 3.3% in the past year, which is the lowest level since 2009.
The air freight industry underwent a significant transformation with the start of the COVID-19 pandemic. As the number of passenger flights fell, the capacity for belly cargo decreased overall, but freighter planes became to be the mainstay of international supply lines. Global air cargo capacity decreased by about 25% in the first half of 2020, but demand for shipments of vital goods, such as vaccinations and personal protective equipment (PPE), increased, impeding the air freight demand growth.
Following the COVID scenario, the market started to rebound because to the rapid increase in e-commerce and the need for quick cross-border delivery. Air freight has grown to be an essential component of global supply chains in sectors such as consumer electronics, automobiles, and pharmaceuticals. In contrast to the previous year's decline, the global demand for air freight was tracking 0.8% below 2022 levels by mid-2023, indicating that the market was beginning to stabilize.
Value in MMT
2024-2032
Air Freight Market Outlook
*this image is indicative*
Key drivers boosting the air freight market revenue include the rapid expansion of e-commerce, which has significantly increased the demand for air cargo services, especially for time-sensitive shipments. Additionally, the rise of global supply chains and the manufacturing industry has boosted the need for international air freight services.
The demand for air cargo had almost recovered to pre-pandemic levels by the middle of 2023, and international freight operations had an 11.2% increase in cargo capacity available as compared to the previous year. This was due to rising belly-hold capacity as passenger flights returned, improving overall cargo availability.
According to the most recent data from supply chain data company Xeneta, the demand for air cargo rose by 12% in May compared to the previous year, marking the sixth consecutive month of double-digit growth. In the meantime, capacity climbed by 4% year over year, resulting in a three-percentage point increase in the month's dynamic load factor, reaching 58%.
Furthermore, the expansion of the retail industry, the development of the manufacturing sector, and the rise in domestic e-commerce contribute to the growing need for the quick and reliable delivery of goods within nations, aiding the air freight market growth.
Increasing international trade, expansion of global networks and partnerships, and growth of e-commerce sector are the key trends propelling the market growth.
Various technological advancements in air freight are bolstering the increasing demands for faster and more secure air freight services. A digital platform called Cargo.one makes it easier for freight forwarders to manage capacity and price by enabling them to reserve air cargo space in real-time. Airline bookings are expedited by its direct integration. As per air freight market analysis, companies like Lufthansa Cargo have implemented IoT sensors to monitor cargo conditions in real-time, ensuring the safe transport of sensitive goods. The AI-powered engines from Rolls-Royce can track their performance in real-time, alerting problems before they arise and increasing the effectiveness of air freight operations. Major ground services company Swissport has started utilizing robotic autonomous trucks to move cargo inside airport premises, greatly increasing loading and unloading efficiency. Raft recently announced that forwarder customers use its AI platform to successfully process more than $10bn in freight invoices. Complete digitization of a laborious process streamlines procedures and enables human teams to move from updating data to customer service.
Increasing international trade is one of the key air freight market trends. In 2024, global air cargo volumes saw a growth of 13.2% year-to-date, driven by trade on key routes, including Asia-Pacific, Europe, and North America. Cross-border e-commerce has been a primary contributor, with demand for air freight capacity expanding across major trade lanes. Additionally, air cargo demand on the Middle East-Europe route surged by 32.2%, highlighting the impact of increasing global trade. Growing trade between North America and Asia drove Los Angeles International Airport (LAX) to accommodate 200,000 tons of international freight by mid-2023. 485,000 tons of air cargo were handled at Singapore Changi Airport between April and June of 2024, a notable increase in air cargo volumes. By comparison, this is a 16% increase from the same time previous year. Strong cargo movements between Singapore and important markets like the US and China are credited with the development.
Leading players such as FedEx have been actively expanding their global networks and forming strategic partnerships to drive growth and add to air freight market development. An example is FedEx's acquisition of TNT Express, which significantly expanded its European network and service capabilities. In 2022, Maersk, traditionally a maritime giant, expanded into air freight by acquiring Senator International and launching the Chicago Air Freight Gateway near O’Hare Airport. This facility provides expedited handling and is designed to integrate Maersk’s global supply chain services. Such initiatives increase Maersk’s ability to move goods swiftly across major trade routes. Major airlines are collaborating with logistics companies to optimize supply chains and boost productivity. For instance, Air Canada transported goods from the United States to Europe, Latin America, and the Asia-Pacific area by expanding its freighter operations in North America and Latin America by acquiring additional cargo jets.
The rise of e-commerce has propelled the demand for air freight services, with companies like UPS developing specialized solutions to cater to this growing market segment. UPS's investment in automated sorting systems and dedicated e-commerce facilities exemplifies the industry's response to the e-commerce boom. In response to increased e-commerce air freight demand, airlines have expanded their cargo capacity. For instance, air exports from the Asia-Pacific region rose by 13% in April 2024. The strong customer demand in North America for online-ordered products like electronic devices and flowers is another factor fueling this expansion. In the first seven months of 2023, the amount of cross-border e-commerce handled by Shenzhen Bao'an International Airport doubled. Between January and July, the Chinese airport handled 93,000 tonnes of cross-border e-commerce traffic, an increase of 101% over the previous year.
Air freight providers are diversifying their service offerings to meet the diverse needs of customers across various industries. For instance, DHL offers specialised logistics solutions for the pharmaceutical sector, ensuring the safe and timely delivery of temperature-sensitive medical products. The growth of air freight market is also being shaped due to supply chain diversification by various companies to mitigate risks and the emergence of countries like Mexico and India as manufacturing hubs, which, in turn, is boosting air traffic and shaping air cargo as a significant mode of transport. The need for air freight is increasing due to India's expanding manufacturing base in industries like technology, textiles, and pharmaceuticals, where businesses depend on quick international shipping to fulfill their export requirements, aiding the air freight industry in India. Air freight is quickly emerging as a vital means of transportation for businesses that must guarantee the prompt delivery of high-value items as supply chain risks increase. Part of the reason for the recovery of global air cargo demand to approximate pre-pandemic levels is the increased air traffic between these new manufacturing hubs and large markets, with capacity growing by 11.2% in mid-2023.
Moreover, as airlines are increasingly extending their services to end-to-end services, various companies are utilising air freight as an omnichannel, which is likely to increase the air freight market value. In 2023, the International Air Transport Association (IATA) reported that the capacity of air freight increased by 11.2% year over year, in part because of the diversified logistics services provided by airlines. Notable airlines such as FedEx, DHL, and UPS have extended the scope of their logistics offerings beyond air freight, incorporating warehousing, customs clearance, and last-mile delivery into their offerings. As an example, FedEx recently introduced the FDX platform, an AI-driven system that connects the entire customer journey, from booking and shipping to last-mile delivery. The platform's goal is to optimize supply chains for businesses by providing a seamless end-to-end service.
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The EMR’s report titled “Air Freight Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup by Destination
Market Breakup by Service
Market Breakup by End Use
Market Breakup by Region
Market Analysis by Destination
Domestic air freight comprises the transportation of goods within a nation. As per air freight industry analysis, the domestic destination will gain traction during the forecast period. The strong growth in this region might be attributed to the increased demand for efficient and reliable domestic delivery of goods. Domestic e-commerce growth, retail industry expansion, and manufacturing sector development are among the causes driving this rise and providing new air freight market opportunities.
Domestic air freight is gaining popularity as firms try to meet customers' increased demand for rapid delivery and next-day services. Same-day and next-day delivery are driving development in the domestic air freight industry; in Q2 2024, US e-commerce sales hit $291.6 billion, up 1.3% from Q1. In response to the demand for expedited delivery, businesses use air freight to boost logistical efficiency and satisfy customer expectations for prompt service. This shift is causing the air freight industry to grow as businesses adapt to the requirement for high-speed delivery. Air freight is an essential component of modern supply chains because efficient logistics reduce inventory costs and increase customer satisfaction.
Market Analysis by Service
The express market is expected to grow at the highest CAGR due to increasing demand from consumers for timely delivery and real-time tracking. Due to the growing e-commerce market, businesses are moving toward offering reliable and speedy delivery services that meet customer expectations of the same-day or next-day shipping facility, accelerating the air freight market dynamics and trends This change propels the express market's expansion as businesses look to boost their competitiveness by providing convenience and speed. Furthermore, the rise of express services is further supported by enhanced logistical networks and technical advancements, which makes them an essential part of contemporary supply chains.
Market Analysis by End Use
The commercial segment is the leading end-use category in the global air freight market. The exponential growth of e-commerce has significantly contributed to the demand for air freight services. Global e-commerce giants like Amazon, Alibaba, and Shopify rely heavily on air freight to meet the increasing demand for fast and reliable delivery of products across international markets. Industries such as electronics, automotive, fashion, and pharmaceuticals rely heavily on air freight for the transportation of raw materials and finished goods, particularly for international shipments. The pharmaceutical industry frequently uses air freight to transport temperature-sensitive products like vaccines and medicines, which require specialized handling and timely delivery.
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North America Air Freight Market Dynamics
With a strong cargo network and a rapidly expanding e-commerce industry, the air freight industry in North America leads the global market. About 40% of the world's air freight is handled by the United States, with significant hubs like Louisville (UPS), Memphis (FedEx), and Los Angeles generating significant cargo volumes. The fact that the United States and foreign airlines carried 11.9 million freight tons in the year ending in March 2024, of which it owned 47%, highlights the importance of the American cargo network in the global air freight market.
Rapid shipping is becoming more and more necessary due to the growth of e-commerce, which saw a 14% increase in global online sales in 2023. In order for things to arrive on schedule, air freight is required. For the year ending in March 2024, American airlines handled 11.9 million freight tons, or 47% of the total amount handled by domestic and international flying. In the second quarter of 2024, $291.6 billion in sales from online retailers drove demand for air freight. Infrastructure and market trends are in sync, which reinforces North America's leadership position.
Asia Pacific Air Freight Market Trends
The air freight market share in Asia Pacific has a substantial importance in the global market, due to its solid manufacturing base, particularly in China, South Korea, Japan, and Southeast Asia. The main hubs in the region include Hong Kong International Airport, Incheon International Airport, and Shanghai Pudong International Airport. E-commerce is also developing at a very rapid rate in the Asia Pacific-the online sales are projected to grow 15% by 2023. This need for rapid delivery options in countries such as China, Japan, and South Korea has so far mainly been driven by the large e-commerce giants such as Alibaba and Rakuten, which rely mostly on air freight.
The other factor contributing to air freight market revenue in China is e-commerce through live broadcasting. It is a very popular form of e-commerce in the People's Republic of China whereby KOLs conduct a live video broadcast to promote various commodities to their followers. It has surged into popularity ever since the pandemic. In fact, according to a poll conducted by the Ali Research Institute, there are 388 million Chinese internet users, 39.2% of the whole population, using online live broadcasting for e-commerce.
Since the start of the year, the air freight sector from India to Europe has seen a significant increase in volume. The dynamic load factor from India to Europe increased to 87% in the week ending March 24, the highest since April 2022, while cargo capacity remained comparatively unchanged.
Europe Air Freight Market Analysis
The need for air freight is mostly driven by Europe's industrial backbone, especially in Germany, France, and the United Kingdom. These nations are major exporters of high-value products, including luxury items, machinery, car parts, and pharmaceuticals. Over the course of the forecast period, increased investment in the construction of contemporary airports with increased capacity for freight accommodations, such as automated airports, is anticipated to propel market expansion. Due to the increased demand for quick deliveries brought about by the rise in online shopping, air freight is now the most popular method of shipping goods across European borders. Large online retailers like Amazon mostly depend on air freight to fulfil customer demands for prompt delivery, especially for items that must be delivered quickly.
European carriers saw 16.1% year-on-year demand growth for air cargo in June. Intra-European air cargo rose by 16.7% compared to June 2023, the sixth month in a row of double-digit annual growth. Europe–Middle East and Europe–Asia routes saw demand increase by 30.2% and 20.3% respectively. June capacity increased 9.1% year-on-year.
Latin America Air Freight Market Trends
One distinct element influencing the air freight demand in Latin America is regional trade agreements. Trade agreements such as the USMCA facilitate trade and demand speedier logistics to satisfy import and export demands. High-Value Exports are also very important. Important goods from Latin America are exported, including electronics and perishables, which need to be transported quickly to retain their quality and competitiveness in the market. For example, exports of fresh produce require rapid air transportation to international markets, which increases the need for effective air freight solutions.
Middle East and Africa Air Freight Industry Trends
The main driver of demand for air freight from the MEA is the oil and gas industry. Indeed, the region has a very large oil and gas industry with a vital dependence on the timely supply of parts and equipment, mainly through air freight, to reduce losses due to productive time. The requirement for aviation freight is also impacted by humanitarian aid and relief operations. Delivering humanitarian aid to areas affected by disasters and conflict zones quickly is often necessary for MEA. For instance, the UN and other organisations frequently utilise air cargo to provide disaster help, highlighting its vital role in the area. In the Middle East and Africa, there is consequently a larger need for reliable and timely flights.
The current trend in the Middle East and Africa has become the emergence of Dubai's World Central Airport as one of the major air freight hubs, boosting the air freight market statistics in the MEA. The Emirate of Dubai hopes to capture the region's growing appetite for aviation cargo in 2023 when it expands DWC's cargo handling capacity. This expansion now really seals Dubai's position as a major logistics center, connecting the Middle East and North Africa to global markets with just-in-time state-of-the-art infrastructure and services designed to handle both general and specialized cargo.
To improve scalability and run more efficient operations, the key players within the global air freight industry are investing in cutting-edge technology like automation and artificial intelligence. By means of new international air cargo routes and strategic collaborations, they are augmenting their networks and capacity. By using digital platforms to increase supply chain visibility and include sustainable practices, they might be able to manage the increasing demand more efficiently and at faster speeds, thereby propelling the growth of air freight market.
Deutsche Post AG was founded in 1949 and is headquartered in Bonn, Germany. The company offers a broad range of services under the DHL, DHL Express, DHL Global Forwarding, and DHL Supply Chain brands-from letter mail and parcel delivery to comprehensive logistics services.
Headquartered in Brøndby, Denmark, DSV A/S was founded in 1976 and primarily deals in transportation and logi...
International Kuehne + Nagel AG is a Swiss-headquartered international leading provider in logistics and suppl...
FedEx Corporation is an American holding company that provides shipment, transportation, and e-commerce soluti...
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the global market for air freight include Schenker AG, United Parcel Service of America, Inc., The Emirates Group, Cargolux International Airlines S.A., Nippon Express Co., Ltd., and Hellmann Worldwide Logistics SE & Co. KG, among others.
By utilising cutting-edge technology like blockchain for transparent tracking and AI for optimum routing, startups are breaking into the air freight business. AI and automation in air freight is opening up new avenues for the new entrants in the market. With an emphasis on specialised freight and on-demand cargo, they hope to challenge old models with efficiency and agility powered by technology.
Shippo
Shippo provides a new address validation, parsing, and administration stand-alone Addresses API to improve air freight. For high-volume shippers, this enhances shipping and fulfilment while optimising post-purchase experiences and streamlining procedures. The technology-driven solutions offered by Shippo improve logistics operations' accuracy and efficiency, pushing the demand of air freight market.
Flexport
With the help of its new tool, Flexport Revolution, which provides integrated services including finance, fulfilment, and replenishment, Flexport is revolutionising air freight. With this launch—which comes after Shopify Logistics was acquired—supply chain management is made more efficient, and organisations in the logistics industry can benefit from all-inclusive solutions.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2023, the market reached an approximate value of 97.92 MMT.
The air freight market is assessed to grow at a CAGR of 12.00% between 2024 and 2032.
The market is being driven by the increased demand for high-technology products, rising consumer disposable income, robust growth in its automobiles industry, rise in construction activities, and rising investments.
Key trends aiding the market expansion include the high demand for pharmaceuticals and medical equipment and the growing need for oil and mining equipment.
Regions considered in the market are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
Based on destination, the market is divided into domestic and international.
The leading end-use sectors in the industry are pharmaceutical, personal care, chemicals, automobile, and fashion, among others.
Key players in the market are Deutsche Post AG, DSV A/S, Kuehne + Nagel International AG, FedEx Corporation, Schenker AG, United Parcel Service of America, Inc., The Emirates Group, Cargolux International Airlines S.A., Nippon Express Co., Ltd., and Hellmann Worldwide Logistics SE & Co. KG, among others.
The market is estimated to witness healthy growth in the forecast period of 2024-2032 to reach a value of around 271.54 MMT by 2032.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Destination |
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| Breakup by Service |
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| Breakup by End Use |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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