PUBLISHER: Astute Analytica | PRODUCT CODE: 1905010
PUBLISHER: Astute Analytica | PRODUCT CODE: 1905010
The air freight forwarding system market experienced a notable surge in demand, marking the beginning of a robust period of expansion. Valued at approximately US$ 9.1 billion in 2025, the market is projected to reach a valuation of US$ 14.1 billion by 2035. This growth trajectory corresponds to a compound annual growth rate (CAGR) of 4.4% over the forecast period from 2026 to 2035, reflecting sustained and steady market development. The increasing demand for air freight forwarding services is driven by several interrelated factors that are reshaping global logistics.
A primary catalyst for this expansion is the rapid growth of e-commerce, which continues to redefine consumer expectations by demanding faster, more reliable delivery of goods across borders. As online shopping penetrates deeper into global markets, air freight becomes an essential mode of transportation, especially for time-sensitive and high-value products. Additionally, the ongoing globalization of trade enhances the volume and complexity of international shipments, further fueling the need for efficient air freight forwarding solutions. Companies are under increasing pressure to optimize supply chains, reduce transit times, and improve reliability to stay competitive in a global marketplace.
The competitive landscape of the air freight forwarding system market is marked by an intense rivalry between established industry leaders and rapidly expanding integrators. In this high-stakes environment, scale and control over critical assets have emerged as the key sources of competitive advantage, shaping how companies position themselves for long-term success. The nature of competition has evolved well beyond traditional price wars, transforming into a strategic contest focused on securing infrastructure sovereignty and enhancing digital capabilities.
Significant developments in 2025 illustrate this dynamic shift. In December, KW International, a major global logistics provider, expanded its collaboration with Amazon by launching ocean freight services as part of Amazon Global Selling's SEND program. This move broadens KW International's footprint beyond air freight and demonstrates the growing importance of multi-modal capabilities and strategic partnerships in the logistics sector. Similarly, in September 2025, Turkish Cargo introduced a specialized logistics product tailored to the aviation industry, focusing on the transportation of sensitive and time-critical components. This innovation highlights the increasing demand for customized, high-value services that cater to specific market niches requiring precision and reliability.
In June 2025, GEODIS further underscored the evolving competitive priorities by launching GEODIS AirSmart, a new low-carbon air freight solution designed to reduce greenhouse gas emissions. This initiative addresses the rising environmental concerns within the industry and reflects a broader commitment to sustainability. By leveraging performance-driven approaches to minimize the carbon footprint of air transport, GEODIS is positioning itself as a forward-thinking leader attuned to both regulatory pressures and customer expectations.
Core Growth Drivers
The most striking insight emerging from the 2024 data in the air freight forwarding system market is the remarkable speed at which demand is growing. According to the International Air Transport Association (IATA), global cargo ton-kilometers experienced an impressive 11.3 percent increase in 2024. Far from being a temporary spike or statistical outlier, this surge represents a fundamental upward adjustment in the market's trajectory. It reflects a sustained and meaningful rise in air freight activity, signaling that the industry is entering a new phase of heightened demand. Notably, this growth has surpassed the previous all-time highs reached during the tumultuous peaks of 2021, which were characterized by pandemic-induced supply chain disruptions and unprecedented market volatility.
Emerging Opportunity Trends
The explosive growth of e-commerce has created substantial and lasting opportunities in the cross-border logistics sector, significantly benefiting the air freight forwarding system market. As a complement to the logistics industry, it has evolved into a dominant force, fundamentally reshaping how goods are transported globally. E-commerce's rapid expansion has led to a surge in demand for fast, reliable delivery services, making air freight an essential component in meeting consumers' expectations for quick and efficient cross-border shipments. Currently, e-commerce accounts for an estimated 20 to 25 percent of total air cargo volumes, underscoring its critical influence on the market.
Barriers to Optimization
The ongoing crisis in the Red Sea is causing significant disruptions in ocean freight routes, which in turn is driving a shift toward increased reliance on air freight. While this shift may initially seem like an opportunity for growth in the air freight forwarding market, it also presents challenges that could ultimately hamper long-term market expansion. The disruption of major maritime shipping lanes forces companies to seek alternative transportation methods to maintain supply chain continuity, and air freight offers a faster, albeit more expensive, option for moving goods. However, the sudden surge in demand for air freight capacity can strain existing infrastructure and logistics networks, leading to congestion, increased costs, and potential delays.
By Solution Type, Freight management software has established itself as the leading solution type within the air freight forwarding system market, commanding a significant 39.06% share. This dominance is driven by the urgent need across the industry for automated transaction processing and enhanced real-time visibility into shipments. As global trade volumes increase and supply chains grow more complex, manual processes become increasingly inefficient and prone to errors. Freight management software addresses these challenges by streamlining workflows, reducing paperwork, and accelerating transaction cycles, enabling companies to operate with greater speed and accuracy.
By Deployment, Cloud-based and Software-as-a-Service (SaaS) deployments have come to dominate the air freight forwarding system market, capturing an impressive 51.25% share. This overwhelming preference reflects a significant shift among logistics providers who are moving away from traditional, rigid on-premise infrastructure in favor of more flexible and scalable solutions. The dynamic nature of global supply chains demands technologies that can quickly adapt to changing conditions, and cloud-based platforms offer precisely that level of agility.
By Service Type, Transportation management services have emerged as a vital segment within the air freight forwarding market, generating a significant 40.32% of the total market revenue. This substantial revenue share reflects the critical importance of coordinating and managing the vast physical volume of goods moving through global supply chains. As the flow of goods becomes increasingly complex, involving multiple modes of transport and intricate regulatory requirements, the need for sophisticated transportation management systems (TMS) has grown exponentially.
By End Users, freight forwarding companies stand out as the clear leaders in the adoption of advanced air freight forwarding systems, commanding a substantial 41% share of the market. This dominant position reflects the critical role these companies play in the global logistics and supply chain ecosystem, where efficiency, speed, and reliability are paramount. To maintain their competitive edge in an increasingly consolidated and competitive industry, air freight forwarders are making significant investments in cutting-edge technologies, infrastructure, and operational capabilities.
By Solution Type
By Deployment
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Geography Breakdown