Analyzing the Future of Air Cargo And Freight Logistics Market Dynamics 2025-2034: Growth Rate, Trends, and Major Opportunities
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What key factors are powering the surge in the air cargo and freight logistics market right now?
The market size for air cargo and freight logistics has been on a significant growth trajectory in the past few years. The market is projected to expand from $225.06 billion in 2024 to $241.87 billion in 2025, experiencing a compound annual growth rate (CAGR) of 7.5%. This substantial growth in the historic period can be ascribed to several factors, including the escalation in the number of internet users and the broad assortment of products, the spurring growth of global trade, the increased globalization resulting from the swift growth of certain developing nations, the rise in global trade fuelling demand for air cargo transportation, and the growing expanse of the e-commerce industry.
How fast Is the air cargo and freight logistics market expected to grow, and what’s its future value?
Expectations are high for a robust expansion in the air cargo and freight logistics market in the forthcoming years. The market is projected to surge to a value of $306.18 billion in 2029, following a compound annual growth rate (CAGR) of 6.1%. The anticipated growth within this forecast period chiefly results from a rise in consumer requirements for perishable items, an extension in the e-commerce sector which magnifies market need, an increasing appetite for pharmaceutical goods, chemicals and valuables, along with just in time production protocols for merchandise, the surging trend of online shopping, and the handling of time-sensitive and high-value consignments. Expected major trends during the forecast period encompass the evolution of logistics due to automation and digitization, thereby augmenting market possibilities, the implementation of blockchain technology, initiatives toward sustainability, and the emergence of urban air mobility (UAM).
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What are the leading drivers of growth in the air cargo and freight logistics market?
The anticipated surge in e-commerce is set to fuel advancements in the air cargo and freight logistics sectors. Essentially, e-commerce involves the online purchase and sale of goods and services, the transfer of funds, or broadcasting data over a digital network, typically the Internet. Global internet accessibility has broadened the potential customer base for e-tailers, facilitating their outreach to clients in remote locations. The methodology of air cargo and freight logistics acts as the critical infrastructure for quick and dependable transportation of goods. This enables e-commerce companies to satisfy online customers’ demands quickly and accurately. For instance, the International Trade Administration, an American government agency, stated in November 2023 that the UK’s eCommerce revenues are projected to see an average yearly growth rate of 12.6% by 2025. eCommerce by consumers represented 36.3% of the entire retail sector in the UK, with the eCommerce revenue anticipated to touch $285.60 billion by 2025. Consequently, escalating e-commerce and online retail sales are significant contributors to the expansion of the air cargo and freight logistics sectors.
What are the key segments defining the air cargo and freight logistics market?
The air cargo and freight logistics market covered in this report is segmented –
1) By Type: Domestic Logistics, International Logistics
2) By Service Type: Express, Regular
3) By Application: Food, Industrial Materials, Equipment, Other Applications
4) By End-use Industry: Retail, Manufacturing, Healthcare, Automotive, Agriculture
Subsegments:
1) By Domestic Logistics: Intra-Country Air Freight, Same-Day Delivery Services, Regional Distribution Services
2) By International Logistics: Global Air Freight Services, Cross-Border Shipping, Customs Clearance Services
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Who are the key players steering the development of the air cargo and freight logistics market?
Major companies operating in the air cargo and freight logistics market are Deutsche Post DHL Group, United Parcel Service, FedEx Corporation, Deutsche Lufthansa AG, DSV AS, DB Schenker, Expeditors International of Washington, Kuehne + Nagel International AG, Singapore Airlines Limited, Korean Air Co., Air China Limited, Cathay Pacific Airways Limited, Bolloré Logistics, China Airlines Limited, EgyptAir Cargo, Canada Air Cargo & Freight Logistics Inc., Kalitta Air LLC, CEVA Logistics, Titan Sea & Air Services, Horizon International Cargo Inc., Lavin Star Trading LLC, Rosan Sea Air Services, Velocity Freight, Air Cargo & Freight Logistics India Pvt Ltd., ENS Logistics India Pvt Ltd., Qatar Airways Group, SNCF Logistics, American Airlines Cargo
What emerging trends are influencing the growth of the air cargo and freight logistics market?
Significant players in the air cargo and freight logistics market are fortifying their positions through strategic alliances, broadening their footprint and elevating their overall industry performance. These collaborations enable them to diversify their network and penetrate previously untapped markets by capitalizing on shared infrastructure, expertise, and resources. For example, in May 2023, Speedcargo Technologies Pte Ltd., a Singaporean software firm, joined forces with Güdel Corporate, a Swiss automation firm, to launch the Air Cargo Automation System – a first-of-its-kind fully automated robotic freight handling solution for air freight. By melding Speedcargo’s advanced computer vision, optimization, and intelligent robotics software with Güdel’s state-of-the-art gantry robots and extensive experience in intralogistics automation, this system intends to streamline some of the vital ground handling processes. The automation system addresses important concerns of the air cargo industry, including labor and space limitations, and the demand for predictable, safe, and high-quality handling.
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Which regions are most influential in expanding the air cargo and freight logistics market?
North America was the largest region in the air cargo and freight logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the air cargo and freight logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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