Air Freight Services Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Air Freight Services Market reached a value of about USD 250.50 Billion in 2021. The industry is projected to grow at a CAGR of around 4.73% in the forecast period of 2022-2027 to reach a value of about USD 315.7 Billion by 2027.

The global Air Freight Services industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The market is expected to develop due to faster cargo delivery than alternative logistics solutions and the growing popularity of consolidated airfreight services. The key demand indicator is the highest category spender in the industry report by region—North America.

Industry Definition and Segmentation

Airfreight is the sum paid for the shipment of goods by air as they are moved from one location to another. As a result, air freight refers to the costs of air transportation. The transfer and transportation of products by an air carrier, whether charter or commercial, is known as air freight package delivery. Shipments of this nature depart from commercial and passenger aviation hubs and proceed to any location where planes mayfly and land. Airfreight, like commercial or passenger airlines, uses the same airports. The Air Freight Services industry report comprises segments by region (North America, Europe, Asia Pacific, the Middle East, Africa, and South America).

North America Region is Driving the Growth of the Industry

The North American region carries a substantial stake in the market. Because market fluctuations are modest and substantial volumes, carriers and freight forwarders are eager to bargain on established US–EU lines.

The market is being driven by the growing reliance of the global economy on the capacity to carry valuable and superior quality items quickly to customers all over the globe. Airfreight is critical in ensuring the safe delivery of temperature-sensitive drugs using cutting-edge methods and technology. Vaccinations are typically supplied through aeroplanes due to the high delivery rates and temperature-sensitive areas in aircraft. This helps vaccines reach their needed location in time to be effective. It is a highly lucrative form of transportation for jewels, perishable goods, medications, high-value electronics, and other products. Furthermore, air freight is the safest means of transport since items delivered by air undergo the least amount of handling, and airport safety standards are tightly enforced. Consolidated airfreight service provides consumers with a cost-effective mode of transportation with lower prices and consistent timetables, allowing them to manage their supply chains flawlessly, resulting in market growth.

However, the high prices associated with air freight solutions are likely to act as a market restraint.

Best Procurement Practices

The global Air Freight Services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Air Freight Services regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

The procedure is simple, from pickup to delivery. The logistics provider will schedule a pickup at the warehouse or holding facility with a local carrier. The carrier will convey the package to the airport, where it will be loaded into a plane. After it has been loaded, the carrier will arrange for collection and delivery when the cargo arrives at the destination airport.

The Rapid Technological Advancements in the Sector, Further Raising the Air Freight Services Market

The technological advancements in the sector are propelling the industry. The growing use of cool-chain technology, robots, automated systems, artificial intelligence (AI), Big Data, deep learning, IoT, and augmented & virtual reality across various processes will propel the global air freight market forward. In addition, the rising trend of online shopping boosts demand for package delivery services throughout the world; e-commerce is predicted to be the leading growth factor for the air freight business. The growing use of air freight for e-commerce shipments across the globe is expected to boost the industry's expansion. Express services are rapidly expanding as more people turn to e-commerce, desiring faster product delivery and are willing to pay a premium.

The regional markets for the industry can be divided into Europe, the Asia Pacific, North America, South America, and the Middle East and Africa.

Key Industry Players Mentioned in the Air Freight Services Industry Report

• DHL Express
• FedEx Corporation
• Emirates SkyCargo
• UPS Parcel Service
• Cathay Pacific Cargo

Market Landscape

The air freight sector is somewhat fragmented, and some of the largest firms in the industry operate in different areas throughout the world. Air cargo service companies face new hurdles as demand for air freight transportation services grows. Airlines must focus on developing fuel-efficient solutions and accommodating emerging technology to deliver cost-effective services. Companies have invested in digital capabilities with their e-booking and now wish to make their bookings available to others via the Application Programming Interface so that the inventory in the systems may be accessed.

Key Initiatives by Companies

• WiseTech Global and Emirates SkyCargo were releasing new technological solutions in September 2021, "CargoWise", to provide a better user experience and increase the efficiency of the cargo shipment booking process for the client.
• The International Air Transport Association (IATA) developed the Enhanced Partner Identification and Connectivity (EPIC) platform to digitalise the international cargo supply chain in March 2021. EPIC allows for rapid and easy digital connections in the supply chain, which saves time and money to obtain income. EPIC is now used by over 30 airlines and 900 freight forwarder branches.