by Air freight is the preferred option for transporting high-value and time-sensitive goods across the globe. Cargo planes allow suppliers to deliver components and products to manufacturers within tight deadlines. Additionally, the booming e-commerce industry relies heavily on air transport to ship purchases directly to consumers within a short time period. A recent surge in online retail sales during the pandemic further accelerated the demand for air cargo services. The global air cargo and freight logistics market plays a crucial role in maintaining complex supply chains and satisfying next-day delivery expectations. Air cargo and freight logistics help businesses minimize expenses associated with inventory carrying costs and storage by adopting a just-in-time manufacturing model.
The global Air Cargo and Freight Logistics Market is estimated to be valued at US$ 115 billion in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key Trends:
The adoption of blockchain technology provides one of the major trends in the air cargo and freight logistics market. Blockchain allows real-time tracking of shipments across different modes of transport through an immutable digital ledger. This helps increase transparency, enhances security, and enables instant sharing of document status with all stakeholders. Airlines and freight forwarders are exploring blockchain solutions to simplify customs clearance procedures, reduce waiting times at airports, combat dangerous goods declaration frauds, and enable smart contracts between shippers and carriers. The implementation of blockchain in cargo transport is still in its early stages but is expected to revolutionize processes and drive efficiencies in the coming years.
Porter’s Analysis
Threat of new entrants: The threat for new entrants is moderate as it requires high investment and infrastructure to enter this market. Intense competition from existing players also poses a threat.
Bargaining power of buyers: The bargaining power of buyers is high as there are many existing players providing similar services and buyers can switch between them easily based on price and quality of service.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as cargo planes, trucks and other transportation infrastructure can be sourced from multiple suppliers globally.
Threat of new substitutes: The threat of substitutes is low as air cargo transportation is unique and irreplaceable for shipping high-value and time-sensitive goods across long distances.
Competitive rivalry: The competitive rivalry is high due to presence of many international players providing similar services.
Key Takeaways
The global Air Cargo And Freight Logistics Market Share is expected to witness high growth. The global Air Cargo and Freight Logistics Market is estimated to be valued at US$ 115 billion in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.
Regional analysis:
Asia Pacific region dominates the market currently due to high volume of exports from China. North America and Europe are also sizable markets driven by presence of international logistics hubs and time-critical shipments. Countries like China, USA, Germany etc. account for majority of global air freight.
Key players:
Key players operating in the Air Cargo and Freight Logistics market are Deutsche Post DHL, United Parcel Service, FedEx, Kuehne + Nagel, DB Schenker, DSV Panalpina, C.H. Robinson Worldwide, Nippon Express, AP Moller-Maersk, Expeditors International of Washington.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
