Air freight market is anticipated to grow at a considerable CAGR of 5.6% during the forecast period (2024-2031). The air freight market plays a pivotal role in global trade and commerce, serving as a vital link in the supply chain for businesses across various industries. This dynamic sector encompasses the transportation of goods by air, offering speed, reliability, and efficiency for time-sensitive shipments. 

Market Dynamics

Faster Delivery of Shipments

The delivery of items through cargo planes is the fastest among other modes of transportation. While different types of vehicles, such as shipping, rail, or road transport, can take days or weeks to deliver things, air transport can do so in hours. Because there are more miniature goods to offload than cargo ships, customs clearance is rapid, and local warehousing is not required. Furthermore, air freight is the safest means of transport among the others as the items delivered by air undergo minimal handling, and airport safety standards are tightly enforced. The risk of theft and damage to the package is reduced. Furthermore, due to the short duration of the shipment, air freight insurance costs are typically modest.The growing adoption of air cargo delivery option owing to its offered benefits is a key factor driving the growth of the global market.

Rising Popularity of Consolidated Air Freight Service

Four delivery alternatives are available from air freight service companies. Charter, standard, postponed, and consolidated are the four options. Consolidated air freight service provides users with a cost-effective mode of transportation that benefits from lower prices and consistent timetables, allowing them to arrange their supply chains flawlessly.Clients who choose the Consolidated air freight option can combine their shipment with numerous other items to produce a full load. Consolidated air freight becomes a very cost-effective way to transport goods by plane. Furthermore, transportation service firms and airlines benefit from consolidated shipments since flying an airplane with a full cargo load is more cost-effective than flying an aircraft with a partial cargo load. Consolidated air freight is the most cost-effective way to send goods faster and safer, and the increased popularity of this service is likely to propel the global market forward over the forecast period.

Market Segmentation

Our in-depth analysis of the global air freight market includes the following segments by service, destination, carrier type, and end-user:

• Based on service, the market is sub-segmented into freight, express, mail  and other services.

• Based on destination, the market is bifurcated into domestic and international.

• Based on carrier type, the market is augmented into belly cargo and freighter.

• Based on end-user, the market is sub-segmented into private and commercial.

Domestic Segment is Projected to Emerge as the Largest Segment

The domestic segment is the dominant segment.The domestic air freight segment is the fastest-growing segment in the market. Domestic air freight refers to the movement of goods within a country. The growth of the domestic air freight market is attributed to the increasing need for fast and reliable delivery of goods within the country. The rise in domestic e-commerce, the expansion of the retail industry, and the growth of the manufacturing sector have fueled the demand for domestic air freight services. The domestic air carrier can closely check flight schedules and link connecting flights as soon as the delivery request is made. Air freight firms also establish a national air charter that employs an aircraft to deliver any specific order. Moreover, charter freight services allow the companies to address emergency deliveries and provide them a standby preference in case standard freight cannot be arranged.

Commercial Sub-segment to Hold a Considerable Market Share

The extensive utilization of air freight by commercial end users, such as manufacturers, retailers, wholesalers, and  other industries to transport their goods efficiently is propelling the market growth. For instance, ATA's e-commerce monitor revealed that 18.0% of air cargo comprised e-commerce shipments—a figure expected to rise as consumer behaviors evolve. The air cargo industry, boasting global networks, adaptable capacity, and digitalization initiatives, stands well-equipped to bolster e-commerce growth. These initiatives promise to augment operational efficiency and shipment visibility throughout transit.

Regional Outlook

The globalair freightmarket is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). North Americais anticipated to exhibit considerable growth during the forecast period.. Presence of large scaled organizations in the region is estimated to generate rewarding opportunities in the market. Financial support and initiatives by the government is anticipated to drive market expansion. Increasing presence of e-commerce channels and websites that promise fast delivery is anticipated to facilitate market progress. Focus on optimization of supply chains by the air freight companies is estimated to drive market growth in the region. 

Global Air Freight Market Growth by Region 2024-2031

Asia-Pacific Holds Major Market Share

Among all the regions, Asia-Pacific holds a significant market share. The Asia-Pacific region includes China, India, Japan, South Korea, and the rest of Asia-Pacific. Increased growth of the e-commerce industry throughout Asia-Pacific further increases the development of the air freight market over the forecast period. China holds the majority of the Asia-Pacific air freight market share. Moreover, an increase in global demand for automotive and electronics parts is expected to boost the direction of air freight. Furthermore, the improving economy of Japan, development of infrastructure, and rise in trade facilitation through agreements, such as the South Asian Preferential Trade Agreement (SAPTA), further support the growth of the air freight market.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global air freightmarket includeFedEx (Federal Express) Corporation, United Parcel Service Inc., The Emirates Group, Cathay Pacific Airways Limited,   among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in May 2023, FedEx launched FedEx Sustainability Insights for customer emissions tracking. This cloud-based engine uses near-real-time FedEx network data to estimate CO2e emissions for both individual tracking numbers and FedEx.com accounts.

The Report Covers

• Market value data analysis of 2023and forecast to 2031.Annualized
• market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global air freightmarket. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.