Market Size of Air Freight Forwarding Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 110.91 Billion |
Market Size (2029) | USD 147.35 Billion |
CAGR (2024 - 2029) | 4.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Air Freight Forwarding Market Analysis
The Air Freight Forwarding Market size is estimated at USD 110.91 billion in 2024, and is expected to reach USD 147.35 billion by 2029, growing at a CAGR of 4% during the forecast period (2024-2029).
Although land and ship cargo transportation remain outstanding options, goods transport by air is considered the quickest and unhindered mode. Global air cargo demand, measured by cargo tonne-kilometers (CTKs), was 21.1 billion in October, increasing by 3.5% month-on-month (MoM). However, industry CTKs fell by 13.6% YoY compared to the same month in 2022 and were also 6.2% lower than the pre-pandemic levels in 2019. Seasonally adjusted (SA) air cargo demand softened slightly in October 2022, with a 2.3% MoM decline compared with September. Similar to the CTKs, SA CTKs contracted by 13.1% YoY and were 6.1% lower than in October 2019.
The air cargo industry persisted in October 2022, including high inflation rates in advanced economies, weak performance in the global flows of goods and services, the ongoing war in Ukraine, and the unusual strength of the US dollar. All of these factors put downward pressure on air cargo growth. The new export orders, historically a leading indicator for air cargo shipments, were still not buoyant. The global PMI remains below the critical 50 lines, suggesting continued contraction on average globally. China and Korea registered slightly higher new export orders in October 2022 than in September 2022, although they remained below 50. Other significant economies maintained a downward trend. Notably, Germany moved sideways at levels below 50 since March, signaling the continuous impact on the economy of the war in Eastern Europe.
Industry-wide air cargo capacity, measured by available cargo tonne-kilometers (ACTKs), increased by 2% compared with September. It produced an industry cargo load factor (CLF) of -7.4% in October, down from -7.0% in September. Industry SA ACTKs remained at about the same level compared with October 2021. Latin America achieved the highest YoY growth in SA ACTKs, at 20.3%. North America follows this with 3% YoY and the Middle East with 1.1% on the same basis. In comparison, regions that saw negative YoY growth in SA ACTKs this October were Africa (-7.5%), Europe (-5%), and Asia Pacific (-2.1%).
Air Freight Forwarding Industry Segmentation
Air freight is another name for air cargo, which is the shipment of goods via an air carrier. The value of air transport services is highest when it comes to the transportation of express shipments around the world. Like commercial or passenger air carriers, air freight operates through the same gateways.
The report provides a comprehensive background analysis of the market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study. The Air Freight Forwarding market is segmented by service (airlines, mail, and other services), destination (domestic and international), Geography (North America, Europe , Asia-Pacific , Middle East & Africa , South America). The report offers the market sizes and forecasts for the Air Freight Forwarding Market in value (USD) for all the above segments.
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Air Freight Forwarding Market Size Summary
The air freight forwarding market is poised for steady growth over the forecast period, driven by the increasing demand for rapid goods transportation. Despite challenges such as high inflation, geopolitical tensions, and currency fluctuations, the sector remains resilient. The market is expected to benefit significantly from the expansion of the global e-commerce industry, which is anticipated to double in size, thereby boosting the demand for air cargo services. Air freight is particularly well-suited for e-commerce due to its speed and efficiency, making it the preferred choice for high-value items like electronics. The market's growth is further supported by strategic initiatives from major players aiming to capture a larger share of the door-to-door delivery market, dominated by online retail giants.
The Asia-Pacific region, particularly South Korea, has emerged as a key player in the air cargo market, leveraging its robust carrier industry and strategic use of passenger aircraft for cargo transport. The region's growth is bolstered by the increasing demand for air freight services, driven by the need for quick delivery of goods such as COVID-19 diagnostic kits and auto parts. The market is moderately concentrated, with prominent international players offering comprehensive logistics solutions. Recent partnerships and expansions, such as those by DHL and Cargojet, highlight the industry's focus on enhancing capacity and efficiency to meet rising demand. Overall, the air freight forwarding market is well-positioned to capitalize on emerging opportunities, despite the lingering impacts of the COVID-19 pandemic and global economic uncertainties.
Air Freight Forwarding Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Current Market Scenario
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1.2 Value Chain / Supply Chain Analysis
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1.3 Technological Trends
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1.4 Investment Scenarios
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1.5 Government Regulations and Initiatives
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1.6 Spotlight - Air Freight Transportation Costs/Freight Rates
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1.7 Insights on the E-commerce Industry
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1.8 Impact of Covid-19 on Air Freight Forwarding Market
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2. MARKET SEGMENTATION
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2.1 By Service
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2.1.1 Airlines
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2.1.2 Mail
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2.1.3 Other services
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2.2 By Destination
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2.2.1 Domestic
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2.2.2 International
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2.3 By Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 France
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2.3.2.3 Netherlands
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2.3.2.4 United Kingdom
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2.3.2.5 Italy
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2.3.2.6 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 Australia
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2.3.3.4 India
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2.3.3.5 Singapore
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2.3.3.6 Malaysia
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2.3.3.7 Indonesia
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2.3.3.8 South Korea
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2.3.3.9 Rest of Asia-Pacific
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2.3.4 Middle East & Africa
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2.3.4.1 South Africa
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2.3.4.2 Egypt
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2.3.4.3 GCC Countries
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2.3.4.4 Rest of Middle East & Africa
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2.3.5 South America
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2.3.5.1 Brazil
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2.3.5.2 Chile
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2.3.5.3 Rest of South America
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Air Freight Forwarding Market Size FAQs
How big is the Air Freight Forwarding Market?
The Air Freight Forwarding Market size is expected to reach USD 110.91 billion in 2024 and grow at a CAGR of 4% to reach USD 147.35 billion by 2029.
What is the current Air Freight Forwarding Market size?
In 2024, the Air Freight Forwarding Market size is expected to reach USD 110.91 billion.