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US Air Freight Software Market

ID: MRFR/AD/17548-HCR
100 Pages
Garvit Vyas
October 2025

US Air Freight Software Market Research Report: By Type (On-Premise, Cloud-based), By Solution (Freight Tracking and Monitoring, Cargo Routing and Scheduling, Order Management, Transportation Management Systems (TMS), Electronic Data Interchange) and By End-User (Third-Party Logistics, Forwarders, Brokers, Shippers, Others) - Forecast to 2035

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US Air Freight Software Market Summary

As per analysis, the US air freight software market is projected to grow from USD 3.96 Billion in 2025 to USD 9.92 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 9.59% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US air freight software market is experiencing a transformative shift driven by technological advancements and evolving customer expectations.

  • The demand for real-time tracking solutions is surging, particularly within the Tracking and Visibility segment, which remains the largest in the market.
  • Artificial intelligence integration is becoming increasingly prevalent, enhancing operational efficiency and decision-making processes.
  • Sustainability initiatives are gaining traction, influencing software development and operational practices across the industry.
  • The growing e-commerce sector and rising fuel costs are key drivers propelling the adoption of cloud-based solutions, which dominate the market.

Market Size & Forecast

2024 Market Size 3.62 (USD Billion)
2035 Market Size 9.92 (USD Billion)
CAGR (2025 - 2035) 9.59%

Major Players

Oracle (US), SAP (US), Manhattan Associates (US), Descartes Systems Group (US), Cargowise (US), Kuebix (US), Freightos (US), Transporeon (US), Project44 (US)

US Air Freight Software Market Trends

The US air freight software market is currently experiencing a transformative phase, driven by advancements in technology and evolving customer expectations. As logistics and supply chain management become increasingly complex, the demand for sophisticated software solutions that enhance operational efficiency and visibility is on the rise. Companies are seeking tools that not only streamline processes but also provide real-time tracking and analytics capabilities. This shift indicates a growing recognition of the importance of data-driven decision-making in the air freight sector. Furthermore, regulatory changes and environmental considerations are prompting organizations to adopt more sustainable practices, which may influence software development priorities. In addition, the competitive landscape within the US air freight software market is intensifying. New entrants are emerging, offering innovative solutions that challenge established players. This dynamic environment encourages continuous improvement and adaptation among software providers. As businesses strive to differentiate themselves, there is a noticeable trend towards integrating artificial intelligence and machine learning into air freight software. These technologies promise to enhance predictive analytics, optimize routing, and improve overall service delivery. Overall, the US air freight software market appears poised for growth, with a focus on innovation and responsiveness to market demands.

Increased Demand for Real-Time Tracking

The US air freight software market is witnessing a heightened demand for real-time tracking capabilities. Customers increasingly expect transparency regarding their shipments, prompting software developers to prioritize features that provide live updates and notifications. This trend reflects a broader shift towards enhanced customer service and operational efficiency.

Integration of Artificial Intelligence

There is a notable trend towards the integration of artificial intelligence within air freight software solutions. AI technologies are being utilized to improve predictive analytics, optimize logistics operations, and enhance decision-making processes. This integration may lead to more efficient routing and reduced operational costs.

Focus on Sustainability

Sustainability is becoming a central theme in the US air freight software market. Companies are increasingly seeking software solutions that support environmentally friendly practices, such as optimizing fuel consumption and reducing carbon footprints. This focus on sustainability may drive innovation and influence software development priorities.

Market Segment Insights

By Application: Tracking and Visibility (Largest) vs. Cargo Management (Fastest-Growing)

The US air freight software market showcases a diverse range of applications, with Tracking and Visibility leading in market share. This segment has garnered substantial attention as logistics companies increasingly prioritize real-time tracking solutions. Cargo Management follows closely, representing a crucial function, enabling seamless integration of freight operations. Fleet Management and Warehouse Management are also essential components in the market, but they attract comparatively lesser shares. Customs Compliance, while important, is generally more niche due to regulatory constraints, yet it still plays a vital role in facilitating logistics. As the market evolves, growth trends indicate a significant shift towards Cargo Management solutions as more companies opt for integrated systems. The demand for enhanced Tracking and Visibility capabilities continues to soar, driven by customer expectations for transparency and efficiency. Key trends include automation and IoT integration, which are reshaping fleet and warehouse management functions. Furthermore, strict customs regulations are pushing businesses to adopt software that ensures compliance and reduces delays, thus supporting the growth trajectory in this sector.

Tracking and Visibility: Dominant vs. Cargo Management: Emerging

Tracking and Visibility has established itself as a dominant force in the US air freight software market due to rising consumer expectations and the necessity for transparency in logistics. This segment emphasizes the importance of real-time data and communication, allowing businesses to efficiently monitor shipments, reducing potential delays. On the other hand, Cargo Management, characterized by its emerging prominence, is rapidly gaining traction as companies seek to optimize freight operations. This segment focuses on the effective handling of cargo from origin to destination, leveraging integrated software solutions to enhance operational efficiency. As both segments evolve, the integration of advanced technologies such as AI and big data analytics will play a critical role in driving future innovations and adoption.

By Deployment Type: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

In the US air freight software market, deployment types are critically divided into cloud-based, on-premises, and hybrid solutions. Currently, cloud-based deployment holds the largest market share due to its flexibility, scalability, and cost-effectiveness, preferred by many logistics companies for its reduced infrastructure overhead. On-premises solutions, while traditionally popular due to their security and control features, are gradually falling behind as businesses look for more agile methods to manage freight operations, influencing a shift towards cloud.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

Cloud-based air freight software is recognized for its dominantly flexible and scalable features that cater to the growing needs of logistics providers. This segment allows for easier updates, remote access, and collaboration across operational departments, enhancing efficiency. Conversely, on-premises software is viewed as an emerging choice for specific sectors prioritizing high control and security. Organizations in regulated industries often gravitate toward on-premises solutions to maintain their compliance and data protection standards. While cloud continues to lead, the on-premises segment shows a steady resurgence as businesses seek tailored solutions that leverage existing infrastructure.

By End User: Freight Forwarders (Largest) vs. Logistics Companies (Fastest-Growing)

In the US air freight software market, the distribution of market share among end users reveals Freight Forwarders as the largest segment. This segment has a significant foothold due to their extensive networks and the critical role they play in international shipping logistics. Logistics Companies also command a noteworthy share, but their growth trajectory is accelerating at an impressive pace, making them a contentious competitor in the space. This dynamic indicates a vibrant shift where traditional forwarders may be challenged by innovative logistics solutions. The trends affecting this segment are largely driven by the increasing demand for time-sensitive deliveries and the rise of e-commerce. Freight Forwarders benefit from established relationships and a deep understanding of regulations, allowing them to optimize shipping solutions effectively. Meanwhile, Logistics Companies are aggressively adopting advanced technology to improve visibility and efficiency in operations, adapting to changing consumer expectations and fostering rapid growth in this sector.

Freight Forwarders (Dominant) vs. Airlines (Emerging)

Freight Forwarders dominate the US air freight software market due to their extensive operational networks and established protocols in managing international shipments. They have mastered the art of coordinating multiple transportation methods and have leveraged robust technology to enhance service reliability and speed. As the largest segment, they continue to influence market standards while adapting to regulatory changes and customer demands. Conversely, Airlines, as an emerging player, are increasingly integrating sophisticated software solutions to streamline their air freight operations. They focus on improving load factors and optimizing route efficiency to remain competitive. This shift reflects a broader trend of carriers expanding their traditional roles to encompass more logistics services, reshaping the competitive landscape.

By Functionality: Order Management (Largest) vs. Inventory Management (Fastest-Growing)

In the US air freight software market, the functionality segment is primarily dominated by Order Management, which captures the largest market share. This segment facilitates seamless processing of shipments and tracking of delivery status, making it essential for logistics companies aiming to optimize their operations. Meanwhile, Inventory Management is witnessing the fastest growth, driven by increasing demand for real-time tracking and automated inventory replenishment systems that enhance supply chain efficiency. The growth trends within the functionality segment indicate a strong shift towards advanced technologies in both Order Management and Inventory Management. Businesses are investing significantly in software that offers improved analytics and reporting capabilities to meet evolving customer expectations. Moreover, the rise of e-commerce and changing consumer behaviors are pushing companies to adapt quickly, creating opportunities for innovative solutions that drive efficiency and visibility in air freight operations.

Order Management: Dominant vs. Inventory Management: Emerging

Order Management continues to be the dominant force in the US air freight software market due to its critical role in coordinating shipments, streamlining processes, and providing visibility throughout the logistics chain. Its ability to integrate with various platforms allows companies to enhance their operational efficiency, improve customer satisfaction, and effectively manage the complexities of air freight logistics. Conversely, Inventory Management has emerged as a key player, rapidly gaining traction among companies seeking to improve inventory accuracy and reduce overhead costs. With features like automated reporting and predictive analytics, it serves as a vital tool in aligning supply with demand, ensuring that businesses can respond swiftly to market changes and customer needs. Together, these functionalities are essential for modern logistics strategies.

By Integration: Transportation Management System (Largest) vs. Enterprise Resource Planning (Fastest-Growing)

The Integration segment within the US air freight software market showcases diverse functionalities, primarily revolving around Transportation Management Systems (TMS), Enterprise Resource Planning (ERP), and Customer Relationship Management (CRM) solutions. TMS currently holds the largest market share due to its vital role in optimizing logistics, streamlining operations, and enhancing supply chain efficiencies. In contrast, ERP solutions are rapidly gaining traction as they incorporate broader business resource management features that significantly support air freight operations.

Software: TMS (Dominant) vs. ERP (Emerging)

Transportation Management Systems (TMS) are the dominant force in the integration landscape, providing specialized solutions designed to manage and optimize logistics operations efficiently. They enable businesses to plan, execute, and oversee the transportation of goods, improving delivery reliability and reducing costs. In contrast, Enterprise Resource Planning (ERP) software is emerging as a critical player given its capability to integrate various business processes into a unified system. It empowers air freight companies by enhancing visibility across operations and facilitating better decision-making through comprehensive data analytics. This growing trend towards ERP adoption reflects a shift toward integrated business management practices, positioning it for rapid growth in the upcoming years.

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Key Players and Competitive Insights

The air freight software market is currently characterized by a dynamic competitive landscape, driven by the increasing demand for efficient logistics solutions and the ongoing digital transformation within the sector. Major players such as Oracle (US), SAP (US), and Descartes Systems Group (US) are strategically positioning themselves through innovation and partnerships. Oracle (US) focuses on enhancing its cloud-based solutions, while SAP (US) emphasizes integration capabilities across supply chains. Descartes Systems Group (US) is leveraging its extensive network to provide real-time visibility and analytics, which collectively shapes a competitive environment that is increasingly reliant on technological advancements and customer-centric solutions.

The market structure appears moderately fragmented, with a mix of established players and emerging startups. Key business tactics include localizing services to meet regional demands and optimizing supply chains for greater efficiency. This competitive structure allows for a diverse range of offerings, enabling companies to cater to specific customer needs while also fostering innovation through competition.

In November 2025, Oracle (US) announced a strategic partnership with a leading logistics provider to enhance its air freight software capabilities. This collaboration aims to integrate advanced AI-driven analytics into Oracle's existing platform, thereby improving operational efficiency and decision-making processes for clients. The significance of this partnership lies in its potential to position Oracle as a frontrunner in the market, particularly in terms of leveraging AI for predictive logistics.

In October 2025, SAP (US) launched a new module within its logistics suite that focuses on sustainability metrics for air freight operations. This initiative is designed to help companies track and reduce their carbon footprints, aligning with the growing emphasis on environmental responsibility in logistics. The strategic importance of this launch is underscored by the increasing regulatory pressures and consumer demand for sustainable practices, which could enhance SAP's competitive edge.

In September 2025, Descartes Systems Group (US) expanded its service offerings by acquiring a smaller tech firm specializing in blockchain solutions for air freight. This acquisition is expected to enhance Descartes' capabilities in providing secure and transparent logistics solutions. The strategic move reflects a broader trend towards integrating blockchain technology in supply chain management, which may significantly improve trust and efficiency in air freight operations.

As of December 2025, the air freight software market is witnessing trends such as digitalization, sustainability, and AI integration, which are redefining competitive dynamics. Strategic alliances are increasingly shaping the landscape, as companies recognize the value of collaboration in enhancing service offerings. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability, suggesting a transformative shift in how companies compete in this sector.

Key Companies in the US Air Freight Software Market market include

Industry Developments

The US Air Freight Software Market has seen several significant developments in recent months. In September 2023, FedEx launched a new line of software aimed at enhancing operational efficiency, reflecting the ongoing demand for advanced logistics solutions. Additionally, in August 2023, UPS announced a collaboration with Project44 to streamline visibility and tracking processes across their air freight services, boosting customer experience in the sector. On the mergers and acquisitions front, Cerasis was acquired by the freight management company, providing insights into a consolidation trend within the industry.

This acquisition, publicly confirmed in July 2023, signifies a strategic move toward integrated service offerings within the air freight domain. Companies such as Manhattan Associates and XPO Logistics continue to innovate in terms of air freight software solutions, aiming to keep pace with technological advancements. The growth trajectory is highlighted by a reported increase in market valuation, reflecting the rising demand for efficient air cargo logistics solutions spurred by e-commerce growth and global supply chain complexities. Overall, the market's dynamics are being shaped by technological advancements and strategic partnerships, which are essential as businesses adapt to evolving customer expectations.

Future Outlook

US Air Freight Software Market Future Outlook

The US air freight software market is projected to grow at a 9.59% CAGR from 2024 to 2035, driven by technological advancements, increased e-commerce demand, and enhanced logistics efficiency.

New opportunities lie in:

  • Integration of AI-driven predictive analytics for route optimization.
  • Development of blockchain solutions for enhanced shipment transparency.
  • Expansion of cloud-based platforms for real-time tracking and management.

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

US Air Freight Software Market End User Outlook

  • Freight Forwarders
  • Logistics Companies
  • Airlines
  • E-commerce Companies

US Air Freight Software Market Application Outlook

  • Cargo Management
  • Fleet Management
  • Warehouse Management
  • Tracking and Visibility
  • Customs Compliance

US Air Freight Software Market Integration Outlook

  • Enterprise Resource Planning
  • Transportation Management System
  • Customer Relationship Management

US Air Freight Software Market Functionality Outlook

  • Inventory Management
  • Order Management
  • Reporting and Analytics
  • Customer Relationship Management

US Air Freight Software Market Deployment Type Outlook

  • Cloud-Based
  • On-Premises
  • Hybrid

Report Scope

MARKET SIZE 20243.62(USD Billion)
MARKET SIZE 20253.96(USD Billion)
MARKET SIZE 20359.92(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)9.59% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledOracle (US), SAP (US), Manhattan Associates (US), Descartes Systems Group (US), Cargowise (US), Kuebix (US), Freightos (US), Transporeon (US), Project44 (US)
Segments CoveredApplication, Deployment Type, End User, Functionality, Integration
Key Market OpportunitiesIntegration of artificial intelligence for enhanced logistics optimization in the US air freight software market.
Key Market DynamicsRising demand for automation in logistics drives innovation in the US air freight software market.
Countries CoveredUS

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FAQs

What is the expected market size of the US Air Freight Software Market in 2024?

The US Air Freight Software Market is expected to be valued at 1.5 billion USD in 2024.

What is the anticipated market size of the US Air Freight Software Market by 2035?

By 2035, the market is expected to reach a value of 2.3 billion USD.

What is the CAGR for the US Air Freight Software Market from 2025 to 2035?

The compound annual growth rate for the market during this period is projected to be 3.962 percent.

Which segment of the US Air Freight Software Market has a larger value in 2024?

In 2024, the Cloud-based segment is valued at 0.9 billion USD, making it larger than the On-Premise segment valued at 0.6 billion USD.

What is the expected market size for the On-Premise segment by 2035?

The On-Premise segment is expected to grow to 0.9 billion USD by 2035.

How much is the Cloud-based segment projected to be worth by 2035?

The Cloud-based segment is projected to reach a value of 1.4 billion USD in 2035.

Who are some of the key players in the US Air Freight Software Market?

Major players in the market include Manhattan Associates, Cerasis, Freightos, UPS, and DHL among others.

What is the growth rate for the US Air Freight Software Market during the forecast period?

The market is expected to grow at a rate of 3.962 percent from 2025 to 2035.

What are the key applications driving growth in the US Air Freight Software Market?

Key applications include logistics management, supply chain management, and freight tracking.

What challenges does the US Air Freight Software Market currently face?

Challenges include fluctuating fuel prices and regulatory changes affecting logistics and freight transport.

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