Air Freight Software Market Size

Air Freight Software Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Airfreight software is expected to grow steadily, from an estimated $US6.9 billion in 2022 to $US8.2 billion by 2032, growing at a CAGR of 3.6% over the forecast period. This growth reflects a strong demand for airfreight solutions, driven by the increasing globalization of trade and the rising need for efficient logistics management in response to changing customer expectations. The demand for faster and more reliable delivery systems is set to continue, and the airfreight software market is expected to expand in tandem with these trends. There are many reasons for this growth. For example, technological advancements in the form of artificial intelligence, machine learning, and the Internet of Things (IoT) are improving the efficiency of supply chains and enabling real-time tracking of shipments. E-commerce is also increasing the volume of airfreight shipped, and this requires complex and highly developed software to manage it. The market is dominated by companies such as SAP SE, Oracle, and Descartes, which are investing in new technology and forming strategic alliances to improve their offerings. Recent deals to integrate artificial intelligence (AI) into airfreight operations, for example, are expected to boost the market further.

Regional Market Size

Regional Deep Dive

The Air Freight Software Market is experiencing significant growth in all regions, driven by the increasing demand for efficient logistics solutions and the rise of e-commerce. In North America, the market is characterized by the early adoption of technology and the strong presence of major players. In Europe, the market is characterized by the development of regulatory frameworks aimed at improving the security and efficiency of air cargo. In the Asia-Pacific region, the market is growing rapidly, driven by the growing manufacturing sector and the growing trade activity, while in the Middle East and Africa, the market is characterized by the development of supporting logistics infrastructure. Latin America, although still in its infancy, is gradually adopting air freight software solutions to improve supply chain management and logistics efficiency.

North America

• The integration of artificial intelligence and machine learning into the airfreight industry is transforming the operational efficiency of the industry, and Descartes is leading the way.
• Regulatory changes such as the FAA’s new guidelines for the use of unmanned aerial vehicles in cargo transport are opening new avenues for the air freight industry, and in response, the software industry is innovating.
• The rise of the e-commerce giants is driving the need for more and more sophisticated airfreight solutions, and it is pushing companies to develop more and more complex software to meet the growing logistics needs.

Europe

• The European Union’s measures to strengthen air transport security, such as the implementation of the EU Air Cargo Security Regulation, are driving the suppliers of IT solutions to adapt their products to the new standards.
• In order to improve transparency and traceability, companies such as the cargo division of the Lufthansa Group are investigating the possibilities offered by the new blockchain technology.
• The increasing emphasis on sustainable development is leading to the development of software solutions which optimize the use of fuel and reduce the carbon footprint in the field of air freight.

Asia-Pacific

• The rapid development of e-commerce in China and India has led to a great demand for advanced air freight solutions, and e-commerce companies such as Alibaba have invested heavily in logistics technology.
• ‘Make in India’, a government programme, has encouraged the development of local start-ups, which are competing to develop new air-freight software.
• The development of the airfreight industry in this region is a major concern for the logistics industry. The logistics industry and the IT industry have developed a close relationship, and are developing a number of integrated airfreight solutions.

MEA

• In the UAE, the country’s investments in logistics, including the expansion of Dubai International Airport, are creating opportunities for air freight software companies to enhance operational efficiency.
• IT systems are adapted to the new regulations.
• In the logistics sector, the digital transformation is driving the need for new and more efficient airfreight software solutions.

Latin America

• The growth of the Brazilian logistics industry, in turn stimulated by the increase in the number of trade agreements, is increasing the demand for the air freight industry to improve the supply chain.
• In Mexico, the National Logistics Plan has paved the way for the development of air-freight-related software.
• The trend in the region is towards cloud-based airfreight solutions, which enable smaller companies to access advanced technology without requiring a large initial investment.

Did You Know?

“The fact that about half of all air cargo is transported in the holds of passenger planes illustrates the importance of air transport in providing the cargo capacity.” — International Air Transport Association (IATA)

Segmental Market Size

The Air Freight Software Market is currently experiencing steady growth, driven by an increasing demand for efficient logistics and supply chain management. The growth of e-commerce, which requires faster delivery, and the regulatory emphasis on transparency and tracking in air freight operations are two key factors driving the market. In addition, technological developments in automation and data analytics are increasing the operational efficiency of air freight systems, thus making them an indispensable tool for logistics companies.

It is the time of the emergence of the market, with FedEx and DHL as the leaders in the field of air freight. These companies have a very high market share and are the first to adopt ICT. Their main applications are the tracking of shipments, the optimisation of routes and the management of inventories, which are the basic tools of logistics. These two companies, which are very much in favour of the green economy, also develop the concept of e-logistics, which is based on the concept of virtual logistics. Today, they are the most important players in the industry. Artificial intelligence and the Internet of Things are the main tools of evolution, which enable the logistics companies to meet the growing demands of their customers.

Future Outlook

AIR FREIGHT SOFTWARE MARKET: Air Freight Software Market is expected to grow steadily from 2022 to 2032, with a CAGR of 3.5% from $ 6,34 billion to $ 8,200 billion. The growth of the market is mainly due to the increasing demand for logistics solutions and the growing volume of international trade. Air freight solutions that are able to manage complex supply chains and provide real-time tracking and analysis are increasingly in demand. By 2032, it is expected that the penetration of advanced air freight solutions will be around 60%, mainly due to the adoption of cloud platforms and integrated logistics systems.

AI, machine learning, and IoT are going to revolutionize the air cargo software market. These new developments will make it easier to optimize route planning and operations, and make it easier to track shipments. In addition, regulatory changes aimed at improving security and the sustainability of air cargo will spur the adoption of new solutions. These new developments, as well as the growing digitalization of the industry and the increased focus on logistics and sustainability, will have a profound effect on the market. The market will have to develop new solutions and respond to changing customer requirements. The air cargo software market will become an important enabler of global trade and logistics, facilitating greater transparency and efficiency.