Air cargo and freight logistics play a pivotal role in the transportation of goods across borders and within countries. They facilitate seamless movement of various consumer and industrial products across long distances in a time-efficient manner. Air cargo involves the use of aircraft for transportation of goods, while freight logistics encompass coordination and planning regarding packaging, documentation, transportation and warehousing of shipments. Companies utilize air cargo and freight logistics services to efficiently import and export raw materials, components and finished products on a global scale. They offer cost and time savings compared to other modes of transport over long distances.
The global air cargo and freight logistics market involves complex operations ranging from customs clearance, tracking and freight forwarding. Major products shipped via air cargo include perishables, pharmaceuticals, electronics and automotive components. Their time-critical nature makes air transport an essential option. Freight logistics services ensure safe and compliant transport of goods via land, sea or air.
The global air cargo and freight logistics market value is estimated at US$ 164.48 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the period 2024-2031, according to a new report by Coherent Market Insights.
Market Key Trends
One of the key trends driving growth in the air cargo and freight logistics market includes the rising trend of outsourcing logistics operations. Manufacturers and retailers increasingly rely on third-party logistics providers for complex transportation, warehousing and distribution needs. This allows companies to focus on their core business areas while leveraging the domain expertise of logistics firms. On the supply side, major logistics players are substantially investing in advanced technologies such as IoT, big data analytics and blockchain to optimize operational efficiency, enhance visibility and develop innovative trade solutions. Such initiatives are helping boost cargo throughput and customer satisfaction levels.
Porter’s Analysis
Threat of new entrants: The air cargo and freight logistics market requires substantial investments in infrastructure like dedicated cargo planes, distribution networks etc. making it difficult for new players to enter.
Bargaining power of buyers: The buyers in this market include large retailers, manufacturers who can negotiate lower prices and demand better services due to their high purchase volumes.
Bargaining power of suppliers: Few dominant global players control majority of the market share giving them higher bargaining power over pricing and contracts.
Threat of new substitutes: No viable alternatives exist for air cargo transportation given the time critical nature of shipments and ability to connect globally.
Competitive rivalry: Intense competition exists among the top players to acquire market share and expand their global reach. Margins remain under pressure due to pricing wars.
Key Takeaways
The global Air Cargo And Freight Logistics Market Share is expected to witness high growth over the forecast period of 2024 to 2031. The global air cargo and freight logistics market value is estimated at US$ 164.48 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the period 2024-2031.
North America currently accounts for the largest share of over 30% of the global market owing to major freight hubs and presence of prominent logistics players. Countries like US and Canada are major exporters driving the demand from the region. Europe is another major market for air cargo and freight logistics accounting for around 25% share led by countries like Germany, UK, France etc. Asia Pacific is projected to witness fastest growth during the forecast period with China emerging as the global production hub increasing dependence on freight transportation for manufacturing and exports.
Key players operating in the air cargo and freight logistics market are AGRANA Beteiligungs-AG, Baor Products, CitroGlobe S.r.l., Döhler GmbH, FIL Industries Private Limited, Fructrum GmbH, FruitSmart, H&H Products Company, Hermann Pfanner Getränke GmbH, Himalyan Food Park, Ingredion, Lizaz Food Processing, Old Orchard Brands, LLC. The industry is marked by consolidation with top players focusing on expanding their global networks through acquisitions and partnerships. Technology innovation is another area witnessing investments to improve efficiencies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
