Air Cargo & Freight Logistics Market Size, Share, Growth, and Industry Analysis, By Type (Domestic Logistics and International Logistics), By Application (Perishable Goods, Industrial, Pharmaceutical and Healthcare, and Others), Regional Insights, and Forecast To 2032

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AIR CARGO & FREIGHT LOGISTICS MARKET REPORT REVIEW

global air cargo & freight logistics market size was USD 231.94 billion in 2023 and market is projected to touch USD 387.19 billion by 2032 at CAGR 6.60% during the forecast period.

The global market is expected to experience significant growth in the forthcoming years, propelled by a variety of compelling factors. The market is a critical component of the global supply chain, facilitating the swift transport of goods via air transportation. It encompasses cargo carriers, freight forwarders, major cargo hubs, and airports, and plays a pivotal role in supporting international trade and the growing demands of industries such as e-commerce. With the rapid expansion of online shopping, air cargo services have become crucial for meeting customer expectations for fast deliveries.

Additionally, Technological advancements and sustainability efforts are reshaping the industry, while strict regulations and security measures ensure the safety of air transportation. Despite challenges alike capacity constraints and fluctuating fuel costs, the market remains integral to global trade, contributing to the efficient movement of goods worldwide.

COVID-19 IMPACT

"Pandemic Caused Supply Chain Disruptions and Delayed Cargo Activities"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels. During the pandemic, several airlines reduced or suspended passenger flights, which typically carry a significant amount of cargo in their lower decks. This led to reduced cargo capacity and increased competition for available space on cargo-only flights which resulted in higher airfreight rates.

As well as lockdowns, travel restrictions, and labour shortages in various regions disrupted the supply chain and cargo movement caused delays and uncertainty. As a result, the market experienced a decline in demand and revenue during the pandemic. While the market may eventually recover as the situation improves, the immediate impact of COVID-19 was predominantly negative for the global market.

LATEST TRENDS

"Automation and Digitization Transforming Logistics and Expanding Market Prospects"

Automation and digitization are the latest trends in the logistics industry, shaping an era dominated by e-commerce, a primary catalyst for the growth of air cargo services. With the transportation and warehousing sector holding the third-highest automation potential, technologies such as Artificial Intelligence, Machine Learning, computer vision, interconnected Internet of Things (IoT) networks. Besides, block chain are also being harnessed to streamline logistics operations, enhance efficiency, and optimize resource utilization. Considering this, the market is estimated to witness a substantial hike in the adoption of automation which is likely to contribute to this market growth during the forecast period.

AIR CARGO & FREIGHT LOGISTICS MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into domestic logistics and international logistics

Domestic air cargo and freight logistics involve the movement of goods or materials by air within the boundaries of a single country. Domestic flight routes vary in length, encompassing short-haul, medium-haul, and long-haul segments depending on the geographic distance covered. On the other hand, international logistics facilitate the transportation and delivery of goods beyond national borders.

By Application

on application the global market can be categorized into perishable goods, industrial, pharmaceutical and healthcare, and others.

Perishable Goods, which includes fresh produce and pharmaceuticals, Industrial for machinery and raw materials, Pharmaceuticals and Healthcare for life-saving medical supplies, and other categories encompassing various products such as electronics, fashion, and specialty items. These categories highlight the market's versatility in supporting a wide range of industries, ensuring the efficient and timely transport of goods, and meeting diverse cargo needs worldwide.

DRIVING FACTORS

"Rise in Global Trade to Spur Growth of the Market"

Global trade expansion is a crucial factor fuelling theair cargo & freight logistics market growth. The ongoing growth of international trade and globalization is driving increased demand for rapid, reliable, and efficient cargo transportation services. With the surge in cross-border trade, the complexity of global supply chains, and the time-sensitivity of certain industries such as e-commerce, air cargo plays a vital role in meeting these demands and projected to aid the market demand.

"Expansion of E-Commerce Industry to Escalate Market Demand"

The rapid growth of e-commerce is another major driving factor that has triggered a substantial increase in demand for air cargo services. Online retailers, striving to meet consumers' expectations for timely and global product delivery, rely heavily on air cargo for its speed and efficiency. Whether it's delivering perishable goods, managing just-in-time inventory, or handling seasonal spikes in demand, air cargo plays a vital role in the e-commerce supply chain.

RESTRAINING FACTOR

"Global Recessions to Confine Market Growth"

Additionally, in spite of growth factors, market expansion can be halted by some restraints such as global recessions. This can lead to reduced consumer spending and decreased manufacturing activity. This, in turn, can result in lower demand for air cargo services, particularly for non-essential and high-end goods. During economic contractions, businesses and consumers often become more price-sensitive, and there is a shift in preferences toward cost-effective transportation alternatives, potentially impacting the air cargo industry's demand.

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AIR CARGO & FREIGHT LOGISTICS MARKET REGIONAL INSIGHTS

"North America to Lead Market with its Thriving Economy and Advanced Infrastructure"

North America stands as the dominant market for air cargo logistics, and holds the majority of theair cargo & freight logistics market shares primarily due to its robust and wealthy economy. This economic strength results in heightened demand for a wide array of industrial goods, encompassing raw materials and equipment that necessitate efficient and timely transportation. Furthermore, the countries within the region boast well-established and sophisticated shipping infrastructure, including airports, cargo terminals, and road networks. These advanced logistics systems facilitate the rapid and streamlined distribution of products, allowing businesses to meet consumer demands promptly.

KEY INDUSTRY PLAYERS

"Key Players Offer a Wide Range of Logistics Services to Cater to Specific Needs"

leading air cargo and freight logistics companies play a critical role in stimulating market growth through their investments in infrastructure, innovative technology, global networks, diversified service offerings, and e-commerce partnerships. They offer customized solutions for various industries, prioritize sustainability, build strong customer relationships, provide essential support for global trade, and maintain adaptability. Furthermore, their strategic mergers and acquisitions reinforce their position in the market, contributing to the industry's expansion and resilience in a constantly evolving global supply chain landscape.

List of Top Air Cargo & Freight Logistics Companies

• FedEx (U.S.)
• UPS (U.S.)
• DSV (Denmark)
• Deutsche Post DHL Group (Germany)
• Bolloré (France)
• Expeditors International (U.S.)
• Qatar Airways (Qatar)
• Korean Air (South Korea)
• DB Schenker (Germany)

INDUSTRIAL DEVELOPMENT

September 2021:Emirates Sky Cargo announced its collaboration with WiseTech Global to introduce cutting-edge technology solutions. This innovative technology, known as Cargo Wise, was designed to enhance the user experience and streamline the booking process for cargo shipments, delivering improved efficiency and convenience to customers.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.