Air Freight Forwarding Market Size - By Services (Freight Transportation, Warehousing & Distribution, Customs Brokerage, Freight Consolidation, Value-Added Services), Destination (Domestic, International), Customer, End User, Cargo & Forecast, 2024 - 2032

Air Freight Forwarding Market Size

Air Freight Forwarding Market size was valued at USD 30.2 billion in 2023 and is estimated to register a CAGR of over 4.5% between 2024 and 2032. The rapid growth of the e-commerce industry is significantly increasing the demand for air freight services. Air freight forwarding facilitates the swift and reliable movement of goods across countries and continents, thus aiding businesses in maintaining seamless global operations. The demand for fast deliveries surges during peak shopping periods such as Black Friday, Cyber Monday, and other holiday seasons, a demand that air freight efficiently meets.
 

In addition, the surge in e-commerce has led to significant demand for prompt and reliable delivery services. Online retailers depend on swift transportation to meet consumer expectations for rapid deliveries, thereby propelling growth in the air freight forwarding market. For instance, in February 2024, the U.S. Department of Commerce reported a 20% increase in e-commerce sales in 2023, highlighting air freight's pivotal role in meeting online retailers' urgent delivery needs. An increase in e-commerce sales incentivizes air freight companies to expand their capacity by adding more cargo planes, increasing flight frequencies, or optimizing existing routes to accommodate the escalating volume of e-commerce goods.
 

Moreover, the growth of global trade has significantly heightened the demand for air freight services. A larger number of companies rely on air freight forwarding to swiftly transport goods across international borders. Further, modern supply chains are increasingly globalized, with components and finished products moving frequently between countries at various stages of production. This intricate network depends on air freight for expedited and efficient movement of goods. Furthermore, international trade agreements play a pivotal role in boosting trade volumes among member countries.
 

For instance, in February 2023, the UK signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade pact encompassing countries representing 15% of global GDP upon the UK's entry. This agreement eliminates or reduces tariffs and other trade barriers among member nations, potentially lowering costs and simplifying the export process for UK businesses. Consequently, this is expected to drive increased trade volumes and, consequently, demand for air freight services.
 

However, global trade tensions, political instability in certain regions, and natural disasters disrupt the movement of air cargo, leading to unforeseen events such as delays, rerouting, and potential losses. In addition, economic slowdowns reduce demand for air freight services, due to cost cutting among businesses, thus impacting the overall revenue of air freight forwarding companies. Further, the air freight industry is a significant contributor to greenhouse gas emissions, necessitating investments in sustainable practices and carbon-offsetting programs as environmental regulations become more stringent, which can affect their profitability.
 

Air freight forwarding is heavily regulated, with international customs clearance procedures and stringent security protocols adding complexity to the process. Delays resulting from incomplete paperwork or security checks can disrupt shipments.  Therefore, adherence to these regulations and protocols is crucial for ensuring smooth operations and maintaining reliable service for customers.
 

Air Freight Forwarding Market Trends

Advancements such as Internet of Things (IoT) sensors and Radio Frequency Identification (RFID) tags enable real-time tracking of shipments throughout the air freight journey. This enhanced visibility provides valuable information on location, temperature, and potential delays. Big Data and business analytics empower air freight forwarders to analyze extensive data on historical trends, market conditions, and competitor pricing.
 

Moreover, technologies such as warehouse and cargo handling automation, coupled with real-time tracking systems, streamline the air freight forwarding process, resulting in quicker processing times, enhanced cargo handling, and ultimately, expedited deliveries. For instance, in April 2024, FedEx introduced a new AI-powered logistics platform aimed at optimizing routing and enhancing real-time tracking capabilities. By optimizing routes and proactively managing potential delays, this initiative leads to faster delivery times for air freight shipments. Real-time tracking and faster deliveries significantly boost customer satisfaction and overall efficiency in air freight forwarding services.
 

The expansion of manufacturing and industrial production has propelled the demand for efficient transportation of raw materials and finished goods. Air freight forwarding provides the speed and reliability necessary to bolster manufacturing supply chains, ensuring timely delivery of components and materials to sustain uninterrupted production lines. Furthermore, industries such as pharmaceuticals and high-tech manufacturing, which rely on temperature-controlled or time-sensitive materials, benefit from air freight forwarding's capabilities to swiftly and securely transport perishable supplies, thereby reducing the risk of spoilage or production delays.
 

Industrial production stimulates the demand for swift and dependable transportation of high-value, time-sensitive goods. For instance, based on data released by the World Bank, a 15% increase in industrial production has been reported in the Asia-Pacific region in September 2023, highlighting a substantial surge in manufactured goods volume. This surge drives the requirement for efficient air freight forwarding services to uphold manufacturing supply chains.
 

Air Freight Forwarding Market Analysis

Based on services, the market is divided into freight transportation, warehousing & distribution, customs brokerage, freight consolidation, value-added services. The freight transportation segment accounted for a market share of over 45% in 2023. The air freight forwarding market is categorized into various freight transportation services, including express, deferred, and charter services. This market is influenced by several factors such as global trade dynamics, technological advancements, and the rising need for swift and dependable shipping solutions. The express services prioritize the rapid delivery of goods, typically within a few days, making them ideal for high-value and time-sensitive shipments.
 

Moreover, deferred services offer a more economical choice for less urgent shipments, with longer transit times compared to express services. Further, charter services involve the rental of an entire aircraft for transporting goods, suitable for oversized cargo, urgent shipments, or destinations unserviceable by regular flights. To gain business capabilities market players are focusing on the introduction of new services.
 

For instance, in September 2023, UPS launched a new suite of charter services to meet rising demands for specialized cargo solutions. This service provides tailored logistics solutions for industries such as automotive, aerospace, and healthcare, thus aiming to offer businesses a personalized approach to transporting critical, time-sensitive, or oversized cargo.
 

Based on destination, the air freight forwarding market is categorized into domestic and international. International segment is expected to hold over USD 14.4 billion by 2032. The market is shaped by various factors including trade relationships, economic conditions, and logistical infrastructure across different regions. The growth of e-commerce in countries such as China and India are driving the increased demand for air freight services. In addition, strong trade routes between North America and Europe are fueled by the growing need for automotive components and perishable goods such as food and pharmaceuticals, necessitating fast and reliable air transport.
 

Various companies are shifting towards integration of advanced technologies such as AI and IoT for efficient cargo tracking and management. North America possesses a strong logistics infrastructure and handles significant trade volumes with regions, especially Asia and Europe. For instance, in January 2024, UPS announced an expansion of its air cargo operations to enhance connectivity and service capabilities in key Asian and European markets. This initiative aims to bolster connectivity and service offerings for businesses operating within these regions.
 

Asia-Pacific had a significant share in the air freight forwarding market with around 35% of the revenue share in 2023, driven by several factors, including the thriving e-commerce sector, a solid manufacturing base, and substantial investments in logistics infrastructure. Additionally, regional trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) has been facilitating smoother trade flows. The rapid expansion of e-commerce in countries such as China and India is notably boosting the demand for air freight services.
 

The high export volumes, particularly in electronics, automotive parts, and textiles, highlight the need for efficient and reliable air cargo solutions. Major logistics firms are focused on product and geographical expansion to meet this growing demand. For instance, in May 2023, DHL Express announced enhancements to its Asia-Pacific air network, including new routes and increased flight frequencies connecting major hubs in China, Japan, and Southeast Asia, aimed at bolstering express delivery services.
 

In North America, the air freight forwarding market is propelled by robust economic activities, technological advancements, and the region's pivotal role as a global trade hub. Moreover, other key drivers include the surge in e-commerce, demand for expedited shipping, and advanced logistics infrastructure. Furthermore, the adoption of technologies such as AI, IoT, and blockchain for cargo tracking, route optimization, and supply chain transparency is being rapidly adopted in recent years. Moreover, the proliferation of international trade agreements and partnerships is enhancing connectivity and service offerings across the region.
 

Europe's air freight forwarding market is characterized by its strategic geographical position, linking major global trade routes spanning Asia, North America, and Africa. The market thrives on robust industrial activity, continuous technological advancements, and evolving trade policies. The region has been witnessing an increased adoption of digital freight platforms and automated systems, aimed at improving operational efficiency and enhancing customer experience. Further, companies are actively complying with new trade regulations and customs procedures, which are influencing logistics and freight patterns across Europe.
 

Air Freight Forwarding Market Share

FedEx and DHL Global Forwarding dominate the market with around 6% market share. FedEx Corporation is a prominent global player in transportation, e-commerce, and business services, offering a robust portfolio tailored to diverse customer requirements. The company operates through core business units including FedEx Express, FedEx Ground, and FedEx Freight, providing a comprehensive array of shipping solutions. FedEx Freight specializes in handling larger freight shipments, offering both less-than-truckload (LTL) and full-truckload (FTL) options for businesses dealing with palletized or bulky goods. By focusing on improve efficiency, reliability, and customer satisfaction, FedEx is continuously taking initiatives to meet growing demand in global air freight forwarding market.
 

DHL provides a diverse array of services, including express delivery through DHL Express, supply chain management, contract logistics, and e-commerce solutions. The company excels in time-definite international (TDI) services, ensuring swift and dependable deliveries across international borders.  Further, DHL is characterized by its strong brand identity, extensive infrastructure, and commitment to innovation and technological advancements in the logistics industry.
 

Air Freight Forwarding Market Companies

Major players operating in the air freight forwarding industry are:

• C.H. Robinson
• DB Schenker
• DHL
• DHL Express
• DSV
• Expeditors
• FedEX
• Kuehne + Nagel
• Nippon Express
• UPS

Air Freight Forwarding Industry News

• In April 2024, FedEx unveiled new direct flights between China and the U.S., aimed at meeting the rising need for expedited shipping services. This initiative promises faster transit times, improved reliability, and increased capacity, strategically addressing the growing demand for expedited shipping.
   
• In November 2023, Kuehne + Nagel announced a strategic partnership with AI logistics firm ClearMetal to integrate advanced AI and blockchain technologies into their air freight forwarding operations. This collaboration seeks to boost supply chain transparency and efficiency by harnessing ClearMetal's proficiency in predictive logistics and real-time data analytics.
   

The air freight forwarding market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Bn) and Volume (OOO’ tons) from 2021 to 2032, for the following segments:

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Market, By Services

• Freight transportation
• Warehousing and distribution
• Customs brokerage
• Freight consolidation
• Value-added services

Market, By Cargo

• General cargo
• Perishable goods
• High-value goods
• Dangerous goods
• Project cargo
• Others

Market, By Customer

• B2B
  • Freight transportation
  • Warehousing and distribution
  • Customs brokerage
  • Freight consolidation
  • Value-added services
• B2C
  • Freight transportation
  • Warehousing and distribution
  • Customs brokerage
  • Freight consolidation
  • Value-added services

Market, By Destination

• Domestic
• International

Market, By End User

• Manufacturing
• E-commerce & retail
• Automotive
• Healthcare & pharmaceuticals
• Oil & gas.
• Food & beverage
• Consumer goods
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA