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Air Freight Forwarding System Market Size
Air Freight Forwarding System Market size was valued at USD 7.6 billion in 2022 and is projected to grow at a CAGR of over 2.5% between 2023 and 2032, due to the expansion of e-commerce. As online retail surges, businesses require seamless & automated solutions to manage their logistics. Air freight forwarding systems play a pivotal role by integrating with e-commerce platforms, automating order processing, tracking shipments in real-time, and efficiently managing inventory. They not only enhance operational efficiency but also enable e-commerce businesses to meet the demands of swift, accurate, and transparent deliveries, thus fueling their adoption.
The air freight forwarding system market is being propelled by the surge in global trade. As international commerce continues to expand, businesses require efficient solutions to manage the complexities of moving goods across borders. Air freight forwarding systems offer advanced automation and optimization, ensuring smooth operations amidst the growing shipment volumes. They streamline logistics processes, enabling companies to handle the intricate demands of global trade, from booking cargo space to real-time tracking. The need for swift, accurate, and cost-effective solutions to handle escalating trade activities is driving market growth.
Report Attributes | Details |
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Base Year: | 2022 |
Market Size in 2022: | USD 7.6 Billion |
Forecast Period: | 2023 to 2032 |
Forecast Period 2023 to 2032 CAGR: | 2.5% |
2032 Value Projection: | USD 9.6 Billion |
Historical Data for: | 2018 – 2022 |
No. of Pages: | 270 |
Tables, Charts & Figures: | 312 |
Segments covered: | Solution, Deployment Mode, Application, End-User, and Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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The high implementation costs associated with advanced air freight forwarding systems pose a significant challenge for businesses, particularly smaller enterprises with limited budgets. Investing in cutting-edge technology, software, and staff training can strain financial resources. This financial barrier often hampers the widespread adoption of these systems, hindering companies from reaping the benefits of streamlined logistics and optimized operations. Overcoming this challenge requires innovative pricing models, government incentives, and scalable solutions tailored to the diverse needs of businesses of all sizes.
COVID-19 Impact
The COVID-19 pandemic had detrimental impacts on the air freight forwarding system market. Widespread lockdowns, travel restrictions, and disruptions in global trade significantly reduced shipment volumes. Many industries experienced decreased demand, leading to a decline in air cargo services. Uncertainties in the market, supply chain interruptions, and reduced business activities negatively affected the adoption of these systems as companies prioritized cost-cutting measures amidst economic uncertainties.
Air Freight Forwarding System Market Trends
Enhanced digital customer portals in the air freight forwarding system industry are proving to be lucrative by significantly improving operational efficiency and customer satisfaction. These portals streamline booking processes, provide real-time tracking, and enhance communication between stakeholders. For instance, in May 2023, DHL Global Forwarding unveiled its enhanced digital customer portal at the transport logistic trade fair in Munich. The demonstration showcased the portal's capabilities and the benefits it offers to DHL customers. By examining aspects, such as performance, resilience, and sustainability, the myDHLi development team collected user feedback to identify ways to enhance customers' performance & productivity through the portal.
Air Freight Forwarding System Solution Market Analysis
The air freight forwarding system market from transportation management system segment is posed to expand at a CAGR of 2% during the forecast period. Collaborations between air cargo service providers and air freight software companies are driving the growth of Transportation Management Systems (TMS) in the market. These partnerships enable the seamless integration of advanced software solutions, enhancing operational efficiency and customer services.
For instance, in June 2023, MSC Air Cargo chose IBS Software's iCargo platform for its cargo management system as part of its expansion efforts. iCargo will offer MSC a comprehensive oversight of its air cargo operations including sales, operations, and accounting. This implementation will provide valuable insights, facilitating ongoing business enhancements and optimization.
The air freight forwarding system market from cargo airlines segment dominated around USD 2 billion revenue in 2022. Improved operational efficiency and real-time tracking are driving cargo airlines' adoption of air freight forwarding systems. Streamlined operations, facilitated by these systems, reduce manual errors and enhance productivity. Real-time tracking offers visibility into cargo movements, enabling proactive decision-making and timely interventions. This heightened efficiency ensures on-time deliveries, boosts customer satisfaction, and strengthens the reputation of the airlines. As a result, cargo airlines utilizing these systems gain a competitive edge, attracting more clients and expanding their presence in the market.
North America air freight forwarding system market accounted for 35% of the revenue share in 2022. North America's prominent role in global trade networks is propelling regional market growth. With the rise of e-commerce, businesses demand efficient logistics solutions, fueling the adoption of advanced systems. The region's focus on technological advancements, coupled with its strategic transportation infrastructure, ensures seamless operations. Additionally, stringent regulatory compliance requirements and a commitment to sustainability drive the need for sophisticated air freight forwarding solutions, making North America a thriving hub for innovation and customization.
Air Freight Forwarding System Market Share
Major companies operating in the air freight forwarding system market are:
- Kuehne+Nagel
- DHL Global Forwarding
- DB Schenker
- DSV A/S
- Expeditors International
- Nippon Express
- Bolloré Logistics
Kuehne+Nagel and DHL Global Forwarding are dominant players in the global market, holding over 7% of the revenue share in 2022. The competitive outlook of the dominating companies in this market is characterized by innovation, global networks, diverse services, and strategic collaborations to enhance efficiency & customer satisfaction.
Air Freight Forwarding System Industry News
- In July 2023, Quantum-South, a trailblazing quantum computing software company, introduced its enhanced version of air cargo optimization solutions. Expanding upon its initial release, Quantum-South developed state-of-the-art software utilizing quantum-inspired optimization algorithms, aiming to transform the air cargo industry with groundbreaking technology.
- In February 2023, IBS Software acquired Accenture Freight and Logistics Software (AFLS), thus solidifying its position as a leading technology provider in the air freight industry. This strategic move combines complementary solutions and aligns with a shared vision for innovating & transforming air cargo businesses, enhancing IBS Software's capabilities in the market.
This air freight forwarding system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:
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Market, By Solution
- Transportation Management System (TMS)
- Warehouse Management System (WMS)
- Customized solutions
Market, By Deployment Mode
- Cloud-based
- On-premises
Market, By Application
- Cargo tracking & visibility
- Route planning & optimization
- Documentation & compliance
- Billing & invoicing
- Warehouse management
- Others
Market, By End User
- Freight forwarders
- Cargo airlines
- Shippers & manufacturers
- 3PL (Third-Party Logistics) providers
- E-commerce retailers
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Latin America
- Brazil
- Mexico
- MEA
- UAE
- South Africa
- Saudi Arabia
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