Aviation Freight & Cargo

Aviation Freight & Cargo Market by Cargo Type (General Cargo, Special Cargo), Service (Express, Freight, Mail), Destination, End-Use - Global Forecast 2024-2030

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[180 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 & Cargo Market
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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.

Aviation Freight & Cargo Market - Global Forecast 2024-2030
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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.

Regional Insights

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.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Aviation Freight & Cargo Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis 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: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Aviation Freight & Cargo Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. 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 this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments
  • 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]

Key Company Profiles

The report delves into recent significant developments in the Aviation Freight & Cargo Market, highlighting leading vendors and their innovative profiles. These include AirBridgeCargo Airlines, Limited, All Nippon Airways Co. Ltd, Asiana Airlines Inc., Bollore Logistics LLC, British Airways PLC, Cathay Pacific Airways Limited, Deutsche Lufthansa AG, DHL International GmbH, FedEx Corporation, Hellmann Worldwide Logistics GmbH & Co. KG, International Consolidated Airlines Group SA, Kuehne + Nagel International AG, Magma Aviation Limited, Nippon Express Co. Ltd., Singapore Airlines Limited, The Emirates Group, and United Parcel Service Inc..

Market Segmentation & Coverage

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
    • Mail
  • 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

The report offers valuable insights on the following aspects:

  1. Market Penetration: It presents comprehensive information on the market provided by key players.
  2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
  3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
  4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
  5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

  1. What is the market size and forecast of the Aviation Freight & Cargo Market?
  2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Aviation Freight & Cargo Market?
  3. What are the technology trends and regulatory frameworks in the Aviation Freight & Cargo Market?
  4. What is the market share of the leading vendors in the Aviation Freight & Cargo Market?
  5. Which modes and strategic moves are suitable for entering the Aviation Freight & Cargo Market?

Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Aviation Freight & Cargo Market, by Cargo Type
  7. Aviation Freight & Cargo Market, by Service
  8. Aviation Freight & Cargo Market, by Destination
  9. Aviation Freight & Cargo Market, by End-Use
  10. Americas Aviation Freight & Cargo Market
  11. Asia-Pacific Aviation Freight & Cargo Market
  12. Europe, Middle East & Africa Aviation Freight & Cargo Market
  13. Competitive Landscape
  14. Competitive Portfolio
  15. List of Figures [Total: 24]
  16. List of Tables [Total: 370]
  17. List of Companies Mentioned [Total: 17]
How Digitalization and Automation are Transforming Aviation Freight and Cargo Industry
November 16, 2023
How Digitalization and Automation are Transforming Aviation Freight and Cargo Industry
Significant technological advancements led to the havoc of digitalization and automation in every industry. The aviation freight and cargo industry has seen a significant impact on their business. With the help of digitalization and automation, cargo handling and tracking have become more reliable, efficient, and cost-saving. No more paperwork and manual handling are required for airlines to track their parcels from departure to delivery. This blog post discusses how digitalization and automation are transforming the aviation freight and cargo industry.

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.

Frequently Asked Questions
  1. How big is the Aviation Freight & Cargo Market?
    Ans. The Global Aviation Freight & Cargo Market size was estimated at USD 142.03 billion in 2023 and expected to reach USD 153.24 billion in 2024.
  2. What is the Aviation Freight & Cargo Market growth?
    Ans. The Global Aviation Freight & Cargo Market to grow USD 242.13 billion by 2030, at a CAGR of 7.91%
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    Ans. Most reports are fulfilled immediately. In some cases, it could take up to 2 business days.
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