Air Freight Forwarding Market Report

The rapid expansion of e-commerce has greatly boosted the air freight forwarding industry, resulting in a rise in parcel deliveries and transforming logistics functions. The International Trade Administration report of the U.S. Department of Commerce states that more than 33% of the global population is purchasing online, the revenue from Global B2C e-commerce is anticipated to reach USD 5.5 trillion by 2027 with a consistent compound annual growth rate of 14.4%. Air freight, managing about 80% of international e-commerce products, has emerged as the preferred option for rapid global shipments. As buyers increasingly acquire goods from international markets, the need for air freight services grows, guaranteeing prompt deliveries and satisfying elevated customer demands for speed and dependability.

Globalization and trade expansion have greatly increased international trade volumes as nations focus on manufacturing products in which they possess a comparative advantage. Industries such as consumer electronics, pharmaceuticals, and machinery components, which need prompt delivery, are increasingly dependent on-air freight. Trade pacts like the Regional Comprehensive Economic Partnership enhance international trade by removing tariffs and boosting market access, thereby increasing air freight demand.

Moreover, sectors implementing just-in-time manufacturing methods require swift delivery of parts and raw materials, frequently through air transport, to align with production timelines. This trend has increased in air freight volume, as companies emphasize speed and efficiency in their supply chains to remain competitive in a global market. Integration of technology has been revolutionizing the air freight forwarding sector with better efficiency, transparency, and customer satisfaction. IoT allows instant cargo monitoring using sensors and RFID tags, and for items that are sensitive to time and environmental factors, like perishables and pharmaceuticals, such information becomes vital. Automated cargo handling systems, like robotic palletizers and rapid sorters, improve operations, boosting efficiency, accuracy, and space utilization.

Technologies such as autonomous forklifts and drones boost efficiency even more. Digital freight platforms compile information from various carriers, streamlining the reservation process and minimizing human mistakes. Moreover, telematics technology delivers immediate data on aircraft performance, enhancing the synchronization of ground activities and flight timings, leading to improved cargo handling and reduced delays. These advancements are enhancing service quality and operational efficiency in the air freight industry.

Upgraded airport infrastructure, including expanded cargo terminals and enhanced handling facilities, improves the efficiency of air freight processing. Investments in contemporary cargo systems decrease aircraft and truck turnaround times, reducing delays and improving supply chain efficiency. Insufficient infrastructure may lead to delays, disrupting activities and obstructing economic expansion. Investments in air transport infrastructure boost local economies by generating employment and drawing businesses that depend on effective logistics. Airports act as economic hubs, fostering trade and investment by connecting regions to global markets. In emerging economies, improved air transport links help integrate these regions into global supply chains, enabling faster export of high-value goods and contributing to their economic development and competitiveness in the global market.

The air freight forwarding industry operates in a strict regulatory framework of both national and international authorities which is essential to keep shipments safe and complying with the laws during cross-border shipping as well as help businesses function more effectively. The International Air Transport Association (IATA) enforces regulations for safe and efficient global air cargo transportation and oversight is provided by specialized groups including the Hazardous Goods Board (DGB), Time and Temperature Working Group (TTWG), and the Live Animals and Perishables Board (LAPB) which manage rules for special cargo distribution. Additionally, IATA manuals are updated annually to reflect the latest regulations, trends, and best practices in air cargo and ground handling. Expert working groups including the Dangerous Goods Board and Live Animals and Perishables Board, ensure accuracy and compliance with evolving standards.
 

To overcome the rising worldwide demand for air cargo, airlines and lessors are progressively opting for passenger-to-cargo (P2F) conversions. In 2022, Cirium reported that approximately 164 aircraft were transformed into freighters. Transforming ageing passenger planes, generally 12-15 years old, presents an economical option, enabling these aircraft to remain operational as freighters for an additional 20 years. P2F conversions can enhance cargo capacity by as much as 30% and lower fuel consumption per tonne by 20%. This approach enables operators to expand their cargo fleet without the high costs of purchasing new freighters, addressing the demand for additional capacity while maintaining fleet commonality and efficiency.

The growing worldwide demand for fresh and premium agricultural goods is fuelling the necessity for air freight services. As people become increasingly aware of health issues, there is a rising inclination toward fresh fruits and vegetables, typically obtained from various regions globally. Air freight allows manufacturers to quickly reach international markets, meeting customer demands and improving product quality.

The United States Department of Agriculture states that the agricultural sector makes up 5.5% of the GDP of the nation which is approximately US$1.537 trillion, this greatly depends on efficient logistics for product distribution. Air freight is essential for the prompt delivery of perishable and time-sensitive products from these industries, contributing significantly to the effectiveness and dependability of supply chains at both domestic and global levels.

Manufacturing sectors like automotive and electronics depend significantly on Just-in-Time techniques; thus, air transport is essential for lowering inventory expenses and guaranteeing prompt delivery. Items of considerable monetary worth, like pharmaceuticals and cutting-edge technology products, necessitate air freight services. As global supply chains procure materials from various areas, the need for effective, dependable air freight services increases to uphold production timelines and guarantee quick delivery. In 2023, U.S. manufacturing added US$ 2.3 trillion to GDP, representing 10.2% of the overall total, based on BEA statistics. Manufacturing represented 17.1% of GDP, encompassing both direct and indirect value-added, driving the growth of the air freight forwarding market.
 

• Increased use of AI, real-time tracking, and automated warehouses to improve operational efficiency and customer satisfaction in air freight
• Increasingly offering tailored solutions, including specialized services for perishable goods, pharmaceuticals, and high-value items
• Use of blockchain for improved transparency, security, and efficiency in cargo tracking, documentation, and reducing administrative burdens in air freight
• Implementation of advanced security measures and stricter regulations to combat risks like cargo theft, terrorism, and cyber-attacks in air freight operations
• Focus on real-time shipment tracking, personalized services, and streamlined communication to improve the overall experience for shippers and recipients

The air freight industry faces several challenges, including heightened security measures can slow processing times and increase operational complexity. Although these precautions are essential for safety, they may also delay processing times at airports and heighten operational complexities for freight forwarders. Issues related to the environment, such as sustainability standards and more stringent emissions rules, also create obstacles for the industry.

Furthermore, global disruptions like as aircraft cancellations, staff shortages, and natural disasters can cause significant delays and higher operational costs. Furthermore, the sector's reliance on e-commerce expansion renders it subject to threats posed by regulatory changes or shifts in customer preferences. Geopolitical strains, such as trade disputes and tariffs, create major risks for the air freight sector by interrupting supply chains and leading to variations in demand.

These uncertainties may complicate logistics activities, particularly as e-commerce platforms encounter greater scrutiny and possible tariffs. A decline in economic activity, especially in manufacturing industries within areas like Europe, may reduce the demand for air freight services, impacting market expansion. Capacity limitations, like restricted air cargo availability and crowded airports, result in delays and higher expenses, particularly during busy seasons. 
 

In the rapid logistics landscape, the demand for immediate access to air freight prices and smooth booking procedures is essential. Air freight forwarding frequently faces strict deadlines, and any delays in reservations can disturb entire supply chains. Therefore, partnerships among logistics companies offer quicker rate comparisons and booking alternatives, essential for staying competitive in the industry. For instance, in November 2024, Freightos and e2open partnered to streamline air cargo bookings by integrating WebCargo by Freightos into e2open’s Transportation Management System (TMS). This collaboration allows forwarders to instantly access dynamic air freight rates and book shipments directly within e2open, improving speed and accuracy.

Global logistics providers, including Crane Worldwide Logistics, benefit from real-time rate comparison, faster responses, and reduced manual processes, enhancing efficiency in the logistics industry. The rise of e-commerce has led to a growing need for efficient logistics solutions to meet rapid order fulfilment demands. Maersk’s Miami gateway addresses this by providing fast shipping options to serve the Latin American market, aligning with the global e-commerce growth that drives air freight demand.

For instance, in January 2025, DB Schenker launched a new air cargo route between Ezhou, China, and Frankfurt, Germany, operated by Etihad Cargo with a Boeing 777 freighter. The weekly flight, which includes a stopover in Abu Dhabi, offers capacity for e-commerce, electronics, and industrial goods. The route, estimated to carry 5,200 tons annually, enhances DB Schenker’s Chinese market presence, leveraging Ezhou Huahu International Airport’s advanced infrastructure. Businesses are increasingly looking for speed, efficiency and cost-effective air cargo services due to e-commerce growth, especially in North America, Europe, the Middle East, and Asia. With customer expectations for quicker delivery timelines, market players are driving market innovation and reshaping logistics and air freight offerings.

For instance, in October 2024, Amazon launched its air cargo service, expanding its logistics beyond parcel delivery. Amazon Air, created in 2016, now operates over 100 aircraft across 54 U.S. airports and offers direct booking for freight forwarders and businesses. This service, available in North America, Europe, the Middle East, and Asia, provides fast, reliable airfreight options, including one-day shipping and charter services.
 

The North American air freight forwarding market is driven by e-commerce growth, high-value, time-sensitive goods, and robust international trade, especially under agreements like USMCA. Key drivers include the demand for fast deliveries, particularly for electronics, pharmaceuticals, and perishables. Leading players like DHL, Kuehne + Nagel, and FedEx dominate, focusing on digital transformation, customer service, and enhanced technology. Trends such as digitalization, automation, increased air cargo capacity, and sustainability initiatives, including green logistics, are shaping the market. The rise of cargo-only flights and investments in infrastructure address capacity challenges, while fostering greater flexibility and environmental responsibility.

The report provides a detailed overview of the air freight forwarding market insights in regions including North America, Latin America, Europe, Asia-Pacific and the Middle East and Africa. The country-specific assessment for the air freight forwarding market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the air freight forwarding market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the air freight forwarding market. Some key countries and regions included in the air freight forwarding market report are as follows:

• Air freight forwarding market detailed segments and segment-wise market breakdown
• Air freight forwarding market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in air freight forwarding industry)
• Current, historical and forthcoming 10 years market valuation in terms of air freight forwarding market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
• Air freight forwarding market demand analysis
• Air freight forwarding market regional insights with a region-wise market breakdown
• Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
• Latest developments and innovations in the air freight forwarding market
• Regulatory landscape by key regions and key countries
• Air freight forwarding market sales and distribution strategies
• A comprehensive overview of the parent market
• A detailed viewpoint on the air freight forwarding market forecast by countries
• Mergers and acquisitions in the air freight forwarding market
• Essential information to enhance market position
• Robust research methodology