by The air freight services market involves the transportation of goods mainly by use of aircraft. Key products transported via air freight include perishables such as fruits, flowers, vegetables and seafood. Other commodities include pharmaceuticals, electronic items and machinery among others. Air freight offers advantages such as time efficiency and ability to transport emergency goods and highly sensitive items. With the growth of global trade, there has been a significant rise in demand for faster mobility of goods across borders.
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 from 2024 to 2031.
Key Takeaways
Key players operating in the air freight services market are Deutsche Post DHL, FedEx, DB Schenker, Kuehne + Nagel, and United Parcel Service of America.
Growing international trade has significantly boosted for Air Freight Services Market Demand services over the past decade. Time-efficiency and ability to transport high-value and perishable goods make air transport highly conducive for cross-border movement of goods.
Major players are focusing on expanding their geographic footprint by enhancing presence in emerging economies experiencing strong export growth. Growing free trade agreements are also enabling greater international exchange of goods, propelling opportunities in the global air freight market.
Market Drivers
Rising international trade volumes are a key driver for the air freight services market. As globalization intensifies economic integration between countries, there has been rapid growth in seaborne and air trade. According to World Trade Organization, the total value of world merchandise exports grew by 13% year-on-year to $5.6 trillion in the first quarter of 2022. Growing cross-border e-commerce is also relying increasingly on air transport, driving market growth.
Impact of geopolitical situation on the growth of the Air Freight Services Market
The air freight services market is witnessing immense challenges in its growth due to the volatile geopolitical environment across major economies. The ongoing Russia-Ukraine conflict and rising political tensions between the US and China are disrupting global supply chains. This is hampering the movement of cargo via airways. Additionally, changing trade policies and sanctions imposed by nations are restricting cross-border movement of goods. The air freight industry is highly dependent on smooth international trade and political stability across regions. Any disturbance in free trade or diplomatic relations negatively impacts cargo volumes and freight rates. The air freight services companies need to closely monitor geopolitical developments and devise contingency plans to mitigate risks. They must also explore opportunities in politically stable regions and diversify routes to sustain operations amid uncertainties.
Geographical regions with highest concentration in terms of value in Air Freight Services Market
The North American region dominates the air freight services market in terms of value, accounting for over 35% of the global market revenue. Strong transportation infrastructure, robust trade activities between the US, Canada and Mexico contribute to the high volumes of air cargo transported via this region. The presence of major pharmaceutical, technology and e-commerce companies further drives the demand. Apart from North America, Asia Pacific region especially China, Japan and South Korea collectively holds second largest share and is anticipated to grow at a CAGR of 6.2% during the forecast period. Rapid growth of manufacturing sector and transportation & logistics industry supports the demand from Asia Pacific region. Strong economic growth and rising exports are expected to propel the regional market in forthcoming years.
Fastest growing region in the Air Freight Services Market
The Asia Pacific region is projected to witness fastest growth in the global air freight services market during the forecast period. This can be attributed to increased globalization of manufacturing activities to emerging economies in Asia such as China, India and Vietnam coupled with expanding middle-class population propelling E-commerce market. Moreover, development of transport infrastructure especially airports and air cargo terminals, improving competitiveness and openness of trade policies is fueling regional demand. Initiatives by governments to promote foreign trade and investments are also positive drivers. Multinational companies continue to set up production bases to leverage low cost manufacturing advantages in Asia, benefiting the freight forwarding industry. The Asia Pacific air freight services market is estimated to register a CAGR of over 7% during 2024-2031.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya
Ravina Pandya,Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. LinkedIn
