[186 Pages Report] The Aviation Freight & Cargo Market size was estimated at USD 142.03 billion in 2023 and expected to reach USD 153.24 billion in 2024, at a CAGR 7.91% to reach USD 242.13 billion by 2030.
Aviation freight and cargo refer to the transportation of goods, products, and materials via air. This mode of transport is a vital component of the global supply chain as it facilitates international trade, economic growth, and connectivity between countries and regions. Aviation freight and cargo are used for the transport of dangerous goods, live animals, perishable cargo, wet cargo, and time and temperature-sensitive products. The growth and demand for aviation freight & cargo can be attributed to rising globalization and increased cross-border trade activities. Additionally, the rise in e-commerce has significantly contributed to the demand for rapid parcel delivery services. However, high operational costs due to fuel price volatility or maintenance expenses are major concerns affecting profit margins for stakeholders within this sector. Furthermore, environmental concerns and security issues of using aviation freight and cargo services for the delivery of goods also contribute to reduced adoption. However, efforts by major players to invest in the adoption of renewable and clean energy and sustainable practices in cargo delivery and the upgradation of aviation infrastructure can help circumvent issues related to environmental and security concerns. Incorporation of technologies such as artificial intelligence, sensor devices, machine learning, or IoT in streamlining logistics processes can improve tracking capabilities and reduce human errors.
The aviation freight and cargo industry in the Americas is highly competitive, with major players operating extensive networks to cater to a broad range of industries such as e-commerce, pharmaceuticals, perishables, and high-value electronics. The robust growth in e-commerce has fueled the demand for expedited shipping services, which have further driven investments in air freight fleet expansions as well as innovative technologies for optimizing operations. Efforts are being made by governments in Latin America to invest in airport development projects to facilitate seamless trade with North America and beyond. The aviation freight & cargo industry in Asia is growing rapidly due to strong economic growth in countries including China and India. Technological advancements such as the implementation of electronic air waybills (e-AWB) have streamlined cargo handling processes across major Asian hubs, providing greater efficiency to shippers worldwide. Moreover, strategic alliances among key airlines and market players have expanded their service offerings, enabling them to cater to diverse customer needs more effectively. Europe’s aviation freight & cargo industry has a long history of innovation and collaboration. Major regional players provide extensive coverage across the European continent as well as international routes.
The market dynamics represent an ever-changing landscape of the Aviation Freight & Cargo Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
- Market Drivers
- Growing international trade of high-value or temperature-sensitive pharmaceuticals
- Expansion of online retail with emphasis on fast delivery of products
- Wide availability of third-party airfreight services offering multiple services
- Market Restraints
- Capacity limitations and weight & size restrictions
- Market Opportunities
- Digitalization and automation in cargo handling and tracking of the freight
- Investments in the expansion of aviation cargo and freight hubs
- Market Challenges
- Security concerns related to aviation cargo & freight
Cargo Type: Advancements in special cargo to improve its potential to maintain product integrity throughout transit
General cargo refers to the shipment of non-perishable goods that do not require any special handling or storage conditions during transport. These typically include consumer goods, textiles, machinery parts, and electronics. General cargo costs less compared to special cargo, as these items do not require additional equipment or specialized personnel for handling. Special cargo pertains to items requiring particular attention during transportation, such as perishable goods, dangerous goods, valuable items, live animals, vulnerable electronics, and pharmaceuticals. Special cargo ensures proper care is taken throughout the transport process to maintain the integrity of these specialized products.
Service: Preference for express services by industries requiring rapid delivery times
Express services cater to time-sensitive shipments that demand rapid delivery times, even on short notice. The key differentiating factor for express services is the expedited transit times they offer compared to other segments. Customers in industries such as e-commerce, healthcare, and automotive prefer express services due to their ability to minimize disruptions in supply chains. Freight services comprise the transportation of large volumes of commercial goods via air cargo carriers. This segment prioritizes cost-efficiency over speed and typically serves customers looking for reliable transport solutions without the added expense associated with expedited shipping methods. Industries such as manufacturing, retail, and agriculture are primary users of air freight services. Airmail services are responsible for the delivery of postal items, including letters, parcels, and financial documents. These services focus on providing secure transportation at relatively lower costs compared to express shipping. Customers in sectors such as finance, insurance, and government agencies often have a strong preference for air mail due to its cost-effectiveness and security features.
Destination: Rising number of cross-border trade activities leading to adoption of aviation freight and cargo
In the domestic aviation freight and cargo sector, a need-based preference focuses on meeting the demands for local distribution of goods, including perishables, pharmaceuticals, e-commerce packages, and industrial equipment. The international aviation freight and cargo sector caters to global trade requirements by transporting goods across borders. In terms of need-based preferences for international air cargo services, critical factors include efficient customs clearance processes, adherence to safety regulations in transporting hazardous materials, cold-chain management for temperature-sensitive goods such as pharmaceuticals or perishable items, and reliable tracking systems to monitor shipments' progress.
End-Use: Demand of commercial users for efficient logistics operations driving utilization of aviation freight and cargo services
Commercial aviation freight and cargo primarily involve the transportation of goods via large-scale air carriers for business purposes. The need-based preferences in this segment include efficient logistics, high cargo capacity, and appropriate regulatory compliance. Private aviation freight and cargo typically involve smaller-scale air transport providers catering to individual clients or niche markets. The need-based preferences in this segment include the ability of customization, flexibility, and high-quality service.
The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Aviation Freight & Cargo Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Aviation Freight & Cargo Market.
The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Aviation Freight & Cargo Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.
The value chain of the Aviation Freight & Cargo Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.
The pricing analysis comprehensively evaluates how a product or service is priced within the Aviation Freight & Cargo Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Aviation Freight & Cargo Market.
The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Aviation Freight & Cargo Market.
The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Aviation Freight & Cargo Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.
The trade analysis of the Aviation Freight & Cargo Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.
The regulatory framework analysis for the Aviation Freight & Cargo Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Aviation Freight & Cargo Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Aviation Freight & Cargo Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
WestJet Cargo Continues Expansion with New Cargo Route
WestJet Cargo has launched its first cargo route to Havana, the capital of Cuba. While initially focusing on service within North America, the airline has plans to expand into Latin America to further enhance the efficiency and effectiveness of WestJet's cargo operations. [Published On: 2023-09-27]
Forward Air and Omni Logistics Merge
The aviation freight and cargo industry has witnessed a significant development with the merger of Omni Logistics and Forward Air. The newly formed company specializes in providing high-value less-than-truckload (LTL) services, catering to local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, customs brokerage, and value-added services for time-sensitive freight. This strategic merger is aimed to foster stronger customer relationships and deliver unparalleled service by leveraging the combined capabilities of both companies. [Published On: 2023-08-11]
MSC Boosts Air Freight Operations with Takeover of Italian Carrier AlisCargo
Mediterranean Shipping Co. has acquired AlisCargo Airlines, an Italian all-cargo carrier, as part of its expansion in the airfreight industry. This strategic acquisition aims to enhance and provide customers with a consistent and high-quality offering. [Published On: 2023-08-07]
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Aviation Freight & Cargo Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
The report delves into recent significant developments in the Aviation Freight & Cargo Market, highlighting leading vendors and their innovative profiles. These include International Consolidated Airlines Group SA, DHL International GmbH, The Emirates Group, British Airways PLC, Cathay Pacific Airways Limited, Hellmann Worldwide Logistics GmbH & Co. KG, Magma Aviation Limited, Nippon Express Co. Ltd., United Parcel Service Inc., Singapore Airlines Limited, Deutsche Lufthansa AG, AirBridgeCargo Airlines, Limited, All Nippon Airways Co. Ltd, Kuehne + Nagel International AG, Bollore Logistics LLC, FedEx Corporation, and Asiana Airlines Inc..
This research report categorizes the Aviation Freight & Cargo Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Cargo Type
- General Cargo
- Special Cargo
- Service
- Express
- Freight
- Destination
- Domestic
- International
- End-Use
- Commercial
- Private
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
- Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
- Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
- Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
- Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
- Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.
- What is the current market size and projected growth?
- Which products, segments, applications, and regions offer promising investment opportunities?
- What are the prevailing technology trends and regulatory frameworks?
- What is the market share and positioning of the leading vendors?
- What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
- Preface
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- Aviation Freight & Cargo Market, by Cargo Type
- Aviation Freight & Cargo Market, by Service
- Aviation Freight & Cargo Market, by Destination
- Aviation Freight & Cargo Market, by End-Use
- Americas Aviation Freight & Cargo Market
- Asia-Pacific Aviation Freight & Cargo Market
- Europe, Middle East & Africa Aviation Freight & Cargo Market
- Competitive Landscape
- Competitive Portfolio
- List of Figures [Total: 24]
- List of Tables [Total: 370]
- List of Companies Mentioned [Total: 17]
Automating Cargo Handling:
The manual handling of bulky goods and cargo can be labor-intensive and time-consuming. Digitalization and Automation have made it possible to automate the cargo handling process, which saves both time and money. Integrating robotic technology in cargo handling systems has emerged as a cost-effective way to minimize manual labor and the risk of human injury. As a result, Robotic cargo handling systems are being increasingly used by airlines to streamline their cargo handling process.
Digital Tracking of Freight:
Digital tracking systems have outsmarted manual paperwork and manual handling of cargo tracking. The advanced digital tracking system helps airlines to track cargo right from the departures to the destination with ease. The airline's staff can follow the cargo's location, delivery time, delays, and other critical information in real-time, which helps in decision-making and better cargo management.
Improving Customer Service:
Automation is helping airlines to improve customer satisfaction by reducing delivery times and delays. The digitalization of the freight industry is enabling airlines to offer B2B or B2C service, meet customers' delivery expectations, and improve their overall experience. Moreover, collaboration with customs authorities and other logistics service providers is becoming more accessible with digitalization, ensuring the smooth and timely delivery of goods.
Cost-saving and Revenue Generation:
With Automation and digitalization, airlines are witnessing a significant reduction in labor costs and logistics expenses. The Automation of cargo handling and digital tracking systems in place is reducing manual errors and loss of goods. Airlines can save costs, increase efficiency, and generate more revenue. As a result, airlines can offer competitive pricing to their customers and achieve more business opportunities.
Challenges Faced:
Despite the benefits, digitalization, and Automation face challenges such as the high cost of investment, network and technology integration, digital literacy, and cybersecurity issues. Safeguarding the automated system's data from cyber threats and ensuring a secure supply chain is becoming more critical to the aviation freight and cargo industry. However, with the collaboration of industry leaders, policymakers, and cybersecurity experts, the challenges associated with digitalization and Automation can be quickly addressed.
Digitalization and Automation are revolutionizing the aviation freight and cargo industry by improving cargo handling, digital tracking, customer service, cost-saving, and revenue generation. Despite the challenges, digitalization and Automation are expected to bring several benefits to the industry. The aviation freight and cargo industry is expected to experience an upward trend owing to advanced digitalization and automation processes. Airlines and logistics service providers should embrace digitalization and Automation to stay ahead in the competitive industry and provide world-class services to their customers.
- How big is the Aviation Freight & Cargo Market?
- What is the Aviation Freight & Cargo Market growth?
- When do I get the report?
- In what format does this report get delivered to me?
- How long has 360iResearch been around?
- What if I have a question about your reports?
- Can I share this report with my team?
- Can I use your research in my presentation?