Air Freight Services Market Growth driven by Rising International Trade
The air freight services market will grow at highest pace owing to rising international trade. Air freight services involve the use of aircraft for transportation of cargo to domestic or international destinations. Key players in the air freight services industry provide freight forwarding services which include transportation of goods through air along with customs clearance, warehousing and track & trace capabilities. They play a vital role in transportation of temperature sensitive healthcare products, perishable foods and specialty chemicals needing quick delivery across the globe. With growing e-commerce industry and increasing demand for just-in-time manufacturing, air freight services experience higher demand for timely delivery of orders.
The Global air freight services market is estimated to be valued at US$ 151.02 Bn in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the air freight services are Kuehne + Nagel, Deutsche Post DHL, DB Schenker, Nippon Express, and UPS. Second paragraph is talking about the key growing Air Freight Services Market Demand in market and third paragraph is talking about technological advancement of market.
Market trends
The air freight services market is witnessing rise in adoption of digitization and automation solutions. Freight forwarders are increasingly leveraging technologies like machine learning, Internet of Things and predictive analytics for demand forecasting, route optimization and real-time tracking of shipments. This is helping improve operational efficiencies and service delivery. Furthermore, focus on sustainability is increasing with adoption of electric and hybrid aircrafts for cargo transportation to lower carbon footprint.
Market Opportunities
Growing e-commerce sector worldwide relying more on faster delivery modes like air freight presents significant growth prospects. Second key Air Freight Services Market Challenges And Opportunities is expansion of pharmaceutical manufacturing based in Asia and establishment of regional distribution centers requiring reliable air logistics.
Impact of COVID-19 on Air Freight Services Market Growth
The COVID-19 pandemic severely disrupted global supply chains and international trade due to nationwide lockdowns and travel restrictions implemented across the world. This adversely impacted the air freight services market as cargo capacity reduced significantly due to grounding of passenger aircraft. According to IATA, global scheduled cargo capacity in 2020 was around 40% lesser compared to pre-pandemic levels. Further, strict regulations regarding container movements across borders increased delivery times and transportation costs. However, demand for time-sensitive medical supplies and personal protective equipment rose sharply during the crisis. Major airlines converted some passenger aircraft into freighters to meet this surge in demand for air cargo services.
With vaccine rollouts accelerating globally in 2021, manufacturing and economic activities have resumed. This has boosted demand for air freight services again. However, supply bottlenecks caused by labor shortages, port congestions and equipment shortages continue posing challenges. Airlines and freight forwarders are focusing on developing digital solutions, employing advanced technologies like blockchain and expanding multimodal transport capabilities to enhance supply chain visibility and resilience in the post-COVID era. Sustained recovery in global trade and investments in digital transformation could help the market gain momentum over the coming years.
North America is the Largest Regional Market for Air Freight Services
North America dominates the global air freight services market, accounting for over 30% of the total market value. Major economies in the region like the United States and Canada have well-established air cargo industries. Abundance of cargo volumes, especially between Asia and North America due to large-scale imports, drive air freight demand. Major airports present in the region have huge cargo handling capabilities. Further, presence of leading freight forwarders, carriers, integrated logistics providers boosts market growth.
Asia Pacific is the Fastest Growing Regional Market
The Asia Pacific region is expected to witness the fastest growth in the air freight services market over the forecast period. Intra-regional trade between China, India, Japan, South Korea and Southeast Asian nations is surging rapidly. This generates significant cargo traffic. Shorter delivery times afforded by air freight ensure timely supply of parts and components to manufacturing industries. Expanding e-commerce sector and low-cost carriers facilitating door-to-door deliveries are also fueling market expansion. India and China are emerging as major production and export hubs, augmenting air freight volumes in Asia Pacific.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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