Air Freight Services Market to Witness Significant Growth Driven by Growing E-Commerce Industry

Air freight services provide a critical mode of transportation for air cargo globally. It involves the carriage of goods and cargo aircraft. The services play a pivotal role in delivering time-sensitive shipments such as perishables, electronics, medicines, and other freight that requires speedy delivery. Air freight services enable enterprises to maintain consistent supply lines for inventory and raw materials while facilitating trade across borders rapidly.

The global air freight services market is estimated to be valued at US$ 151.02 Bn in 2024 and is expected to reach US$ 223.43 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.
​
Air Freight Services Market Demand is indispensable for moving goods by air transport within and across countries worldwide. It facilitates the transportation of cargo that has specific temperature requirements or needs speedy movement. The growth of the e-commerce industry relying on faster deliveries has augmented the demand for air cargo transportation significantly.

Key Takeaways

Key players operating in the air freight services market are Deutsche Post DHL, FedEx, Kuehne + Nagel, DB Schenker, and UPS.

The growing e-commerce sector generating higher volumes of smaller and time-critical shipments presents substantial opportunities for air freight services. E-commerce firms extensively use air cargo to accelerate deliveries and meet consumer expectations of swift transport.

Major players are expanding their global footprint by augmenting their fleet capacity and networks. Strategic partnerships and acquisitions allow companies to penetrate new markets and enhance operational efficiencies through integrated logistics solutions. The market is likely to witness further consolidation as players seek global scale.

Market Drivers

The rising e-commerce industry is majorly driving the air freight services market. E-commerce enterprises extensively rely on air cargo to accelerate deliveries, especially for international shipments. The growth in online shopping and expectations of timely product receipt have augmented the demand for speedy air transport. Additionally, stringent timelines associated with global supply chain networks of industries such as electronics, pharmaceuticals, and autos propel the need for fast and consistent transportation of shipments via air freight.

PEST Analysis

Political: The air freight service market is regulated by governmental aviation authorities in countries across the world. Regulations regarding licensing of carriers, freight security, emission norms etc. influence the business environment.

Economic: Fluctuations in global trade volumes and economic growth impact demand for air freight services. Recession can reduce cargo volumes while recovery boosts it. Fuel prices also affect operating costs.

Social: E-commerce trends driving demand for fast deliveries support growth. Just-in-time manufacturing needing reliable logistics further supports the industry.

Technological: Adoption of technologies like RFID, blockchains, automated warehouses helps improve supply chain visibility, track records and efficiency. Drones and autonomous vehicles may transform last mile delivery.

North America accounts for the largest share of the Air Freight Services Market Regional Analysis in terms of value. This can be attributed to high demand for express and e-commerce deliveries in countries like the US. It also has a large pharmaceuticals sector exporting temperature-controlled drugs worldwide.

The Asia Pacific region is expected to experience the fastest growth during the forecast period. Rapid growth of international trade involving China, strong manufacturing sectors in various countries, and rising incomes driving online purchases are some factors driving the demand for air cargo. Countries like India and Indonesia are emerging as major export hubs adding to cargo volumes in the region.

Get More Insights on- Air Freight Services Market

About Author:

Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement.
(LinkedIn- https://www.linkedin.com/in/priya-pandey-8417a8173/)