AIR FREIGHT SERVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Air Freight Services Market Size and Trends

The global air freight services market is estimated to be valued at US$ 151.02 Bn in 2024 and is expected to reach US$ 223.43 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.

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The market is expected to witness positive growth over the forecast period. There is an increase in overseas manufacturing and international trade which is driving the growth of air freight services. Many companies are increasingly adopting air freight to transport time-sensitive cargo such as perishable items and high-value goods. Adoption of digital technologies by major players is helping improve supply chain efficiency and attract more customers. However, issues related to high operating costs and global economic uncertainties remain challenges to market players. Still, initiatives to expand services through strategic partnerships and improve infrastructure will provide new opportunities for growth in the coming years.

Growing volume of international trade

The rise in globalization and liberalization of trade policies across the world has greatly facilitated the growth of international trade in recent decades. With nations increasingly specializing in the production of goods that they have a comparative advantage in and trading with other countries, the total volume of goods being traded globally has grown substantially year on year. Air cargo transport plays a vital role in facilitating this booming trade in goods between various economies located around the world. As the manufacturing capacities of developing nations continue to ramp up to meet the demands of both domestic as well as global markets, there has been a steady rise in the exports of these nations. Time-sensitive commodities, consumer electronics, pharmaceuticals, machinery parts, etc. are some major categories of goods being transported internationally in huge volumes daily using air freight services. Major exporting nations like China, Germany, South Korea, etc. have massive manufacturing bases generating enormous freight every year that use air cargo to reach overseas markets quickly.

Furthermore, the expansion of e-commerce and online retail has opened up new opportunities for international trade. Many online retailers now ship goods directly to customers located in other countries, relying majorly on air freight services to transport smaller consignments like clothes, accessories, electronics, etc. in a cost effective yet timely manner. This has further augmented the volumes being handled by air freight operators. As developing economies progress and their consumer markets evolve considerably, both domestic as well as international e-commerce activities are expected to witness strong growth trajectories well into the future. Besides finished consumer products, air transport remains the mode of choice for shipping raw materials and components required for manufacturing across borders. The ever-growing appetite of different industries for just-in-time delivery of inputs ensures continued growth in air freight volumes driven by trade.

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Rapid growth of the express and logistics industry

The express and logistics industry has matured considerably in the past couple of decades following the adoption of advanced technologies and integration of various modes of transport. Major global players in the industry have built expansive networks and infrastructure to offer time-definite delivery of shipments across broad coverage areas. By consolidating smaller consignments and ensuring swift transfers between trucks, trains, vessels and aircraft, the industry has made international trade more accessible for businesses of all sizes. The high reliability, flexibility of services as well as real-time tracking offered by express companies have popularized the concept of door-to-door international freight shipping.

For instance, in February 2024, A.P. Moller - Maersk (Maersk) introduced a fully digital solution for customers seeking air freight services as part of its integrated logistics offerings. The new online platform, accessible through Maersk.com, empowers customers to easily book their air cargo requirements using a simple online tool that provides instant pricing for up to 70,000 connections between virtually all relevant airports worldwide.