Air Freight Software Market Forecasts to 2030 - Global Analysis By Type, Solution, Air Freight Service, Application, End User and By Geography

According to Stratistics MRC, the Global Air Freight Software Market is accounted for $6.28 billion in 2023 and is expected to reach $8.43 billion by 2030 growing at a CAGR of 4.3% during the forecast period. Air freight software refers to specialized software solutions designed to facilitate the efficient management of air cargo operations. Businesses engaged in air freight transportation can automate and optimize a number of processes, such as inventory management, billing, tracking shipments, and documentation, with the help of these software programs. Businesses can increase operational effectiveness, cut expenses, boost customer satisfaction, and obtain a competitive edge in the market by utilizing air freight software.

According to a report by the IATA, in 2022, retail e-commerce sales increased by 21% when compared to 2021. Furthermore, according to the latest statistics from IATA, global demand measured in cargo tonne kilometers (CTK) increased by 2.7% in January 2022 compared to January 2021 (3.2% for international flights).

Market Dynamics:

Driver:

Customer demand for real-time tracking

Real-time tracking enables customers to instantly track the location and status of their shipments, which is beneficial for businesses that aim for efficiency. This ability lowers uncertainty, shortens wait times, and enhances logistics management as a whole. Additionally, proactive decision-making made possible by real-time tracking enables businesses to react quickly to any disruptions or modifications in the delivery process. The need for air freight software with real-time tracking features in an increasingly competitive market is a reflection of how crucial real-time information is helping in meeting customer expectations and optimizing operations.

Restraint:

Reluctance to alter new methods

Many industry participants are reluctant to accept new techniques and technologies. Innovative software solutions are often reluctantly adopted due to deeply ingrained traditional practices and established systems. Resistance is also exacerbated by worries about the learning curve, possible operations disruptions, and the requirement for further training. The difficulties of implementing change are further compounded by the complexity of the air freight industry and the wide range of stakeholders involved. In addition, the air freight sector is frequently subject to strict regulations and tight schedules, which makes it difficult for businesses to set aside time and funds for the installation of new software.

Opportunity:

Automation and optimization solutions

Automation technologies open the door to more efficient cargo handling, route planning, and inventory management as the need for more efficient logistics operations grows. Through the use of AI algorithms and data analytics, optimization solutions improve decision-making in real time while cutting expenses and delays. These developments tackle issues like capacity limitations and varying demand, in addition to increasing overall operational efficiency. By adopting automation and optimization in air freight software, airlines and logistics providers can enhance their competitiveness by providing dependable and expedited services in a constantly changing and dynamic market.

Threat:

Integration Issues

The air freight software market is highly vulnerable to integration problems because uninterrupted connectivity is essential for effective operations. Data inconsistencies, delays, and operational disruptions can result in incompatibilities between various software systems. Inadequate integration of diverse elements, like reservation platforms, monitoring instruments, and customs records, could impede seamless communication and jeopardize the overall efficiency of the supply chain. In order to guarantee real-time data exchange and stakeholder collaboration, these integration challenges must be resolved.

Covid-19 Impact:

The COVID-19 pandemic has caused major disruptions in global supply chains and logistics operations, which has had an impact on the air freight software market. The transportation industry experienced a notable upswing in the demand for sophisticated software solutions to effectively handle the intricacies stemming from transportation obstacles, border constraints, and heightened safety measures. Businesses in the air freight industry started using technology to manage inventory, track items in real time, and optimize routes. Despite early setbacks, the crisis spurred the use of cutting-edge software, increasing air freight operations' resilience and efficiency.

The freight tracking and monitoring segment is expected to be the largest during the forecast period

The freight tracking and monitoring segment is expected to grow significantly over the anticipated period, due to the growing need for real-time visibility and control over shipments. Businesses are implementing cutting-edge tracking systems to streamline logistics processes, increase productivity, and reduce downtime. Additionally, this growth has been further stimulated by the integration of technologies such as RFID and IoT, which offer precise and instantaneous information about the location and condition of cargo.

The warehouse management segment is expected to have the highest CAGR during the forecast period

The warehouse management segment is emphasised to grow substantially over the forecast period. The need for effective handling and tracking of goods within the supply chain has led to strong growth in the warehouse management segment. The incorporation of analytics, automation, and real-time tracking capabilities into these software programs has increased their appeal. Furthermore, as businesses prioritize resilience and adaptability in their logistics operations, the COVID-19 pandemic has accelerated the digitization of supply chain processes, creating a greater demand for warehouse management solutions in the air freight sector.

Region with largest share:

North America region is expected to become region with largest market due to increasing demand for efficient logistics and supply chain management. The adoption of advanced technologies, such as cloud-based solutions and real-time tracking, has contributed to improved operational efficiency and cost-effectiveness in air freight services. Additionally, the e-commerce boom and globalization have further fuelled the demand for sophisticated air freight software solutions in North America, supporting the overall growth of the market in the region.

Region with highest CAGR:

The growing need for streamlined and efficient logistics operations has led to steady growth in the air freight software market in Europe. The region's thriving manufacturing industry, global trade, and emphasis on supply chain technology adoption are some of the factors driving the growth of the market. Furthermore, in the European logistics sector, advanced air freight software solutions are heavily being adopted due to advancements in cloud-based solutions and the demand for real-time tracking and visibility.

Key players in the market

Some of the key players in Air Freight Software market include AirBridgeCargo Airlines, All Nippon Airways Co. Ltd (ANA), American Airlines , Azul Airlines, Cargojet Inc., Cargolux Airlines International SA, Cathay Pacific Airways Limited , China Airlines Ltd, Copa Airlines, Delta Airlines, Deutsche Lufthansa AG, Deutsche Post DHL, FedEx (Federal Express) Corporation, Gol Airlines, International Consolidated Airlines Group SA , Japan Airlines Co. Ltd, Kuehne + Nagel International AG, LATAM Airlines, Magma Aviation Limited, Qatar Airways Company QCSC, The Emirates Group, United Airlines and United Parcel Service Inc.

Key Developments:

In November 2023, The Emirates Airlines and Emirati Talent Competitiveness Council signed a Memorandum of Understanding, solidifying their commitment to fostering collaboration, coordination, and providing training opportunities at Emirates Airlines for Emiratis seeking employment within the aviation sector. Emirates Airlines will offer practical training through state-of-the-art laboratories, operational workshops, and training sessions to hone personal skills.

In October 2023, Copa Airlines and Embratur joined together to promote Brazilian tourism. This collaboration is poised to bring together the strengths and expertise of both organizations with the goal of promoting Brazil as a must-visit destination for travellers worldwide. Together, the two entities will embark on marketing and promotional campaigns geared towards showcasing the beauty and attractions of Brazil.

Types Covered:

• On Premise
• Cloud Based
• Web Based
• SaaS
• Mobile Installed

Solutions Covered:

• Freight Tracking and Monitoring
• Cargo Routing and Scheduling
• Transportation Management Systems (TMS)
• Order Management
• Electronic Data Interchange
• Other Solutions

Air Freight Services Covered:

• Deferred Service
• Standard Service
• Expedited Service
• Other Air Freight Services

Applications Covered:

• Delivery Tracking
• Price and Revenue Management
• Ocean Freight
• Warehouse Management
• Rail Freight
• Road Freight
• Other Applications

End Users Covered:

• Cargo Airlines
• Commercial Airlines
• E-Commerce Companies
• Third party Freight Service Providers
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances