The global Air Cargo And Freight Logistics Market is estimated to be valued at US$ 142.77 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Air cargo transportation involves shipment of goods via aircraft. It is an efficient transportation mode used for delivery of urgent, perishable, fragile, and valuable goods across great distances over land transport networks. Rapid logistics, timely deliveries, and transportation of goods unsuitable for other means of freight are key advantages of air cargo transportation.
Market key trends:
One of the major trends in the air cargo and freight logistics market is the increasing trend of e-commerce. Boost in online shopping has augmented the demand for fast logistics and delivery of goods. E-retailers and third-party logistics providers are increasingly leveraging air cargo for efficient order fulfillment and faster deliveries to customers. For instance, Amazon substantially increased air cargo shipments in recent years to streamline and shorten delivery windows for online orders. Growth of e-commerce is thereby creating significant opportunities for air cargo transportation of consumer goods.
Strength: Air cargo and freight logistics benefits from extensive transportation networks and large aircraft fleets that enable efficient global transport of goods. It provides fast delivery times over long distances compared to sea and road freight.
Weakness: Air cargo transport is heavily dependent on oil prices and faces higher fuel costs compared to other modes of transport. There are also increased security checks that lead to delays.
Opportunity: Growing e-commerce sector fuels demand for fast delivery of consumer goods. Rising global trade flows especially between Asia and North America present major opportunities.
Threats: Economic downturns reduce industrial and consumer demand for air freight. Natural calamities and global health crises disrupt flight operations and supply chains.
The Global Air Cargo and Freight Logistics Market Size is expected to witness high growth, exhibiting a CAGR of 5.9% over the forecast period, due to increasing e-commerce sales and international trade volumes.
Regional analysis: Asia Pacific region dominates the market and is expected to grow the fastest during the forecast period led by countries like China. This is due to the presence of leading export nations, major manufacturing hubs and expanding intra-Asian trade routes. North America is another major regional market for air freight driven by strong imports from Asia.
Key players operating in the air cargo and freight logistics market are FedEx (Federal Express) Corporation, United Parcel Service Inc., The Emirates Group, Japan Airlines Co. Ltd and All Nippon Airways Co. Ltd (ANA). FedEx and UPS have enormous fleets and global networks to benefit from the growing demand for cross-border cargo transportation by air. Middle Eastern carriers like Emirates have expanded freighter networks to connect Europe and Asia.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it