Air Freight Software Market Size, Share, Demand, Growth, and Industry Trends by 2032
The global air freight software market size was valued at USD 6.02 billion in 2022 and is projected to reach a valuation of USD 6.34 billion in 2023. The market is expected to reach USD 7.41 billion by 2030 with a CAGR of 2.3% during the forecast period. Air freight transportation refers to arranging and planning the transportation of cargo from one point to another by air. Increasing cargo fleets by various airlines to meet the increasing demand for air cargo will propel market growth. Rising demand for air freight services by the e-commerce companies is set to drive the service demand. Fortune Business Insights™ shares this information in its report titled “Air Freight Software Market, 2023-2030.”
Informational Source:
https://www.fortunebusinessinsights.com/air-freight-software-market-104057
List of Key Players Profiled in the Air Freight Software Market Report:
Champ Cargosystems (Luxembourg)
Freight Pop (U.S.)
Freightdata 2000 (U.K.)
IBS (India)
Inform Software (U.S.)
Magaya (U.S.)
Riege Software (Germany)
The Descartes Systems Group Inc. (Canada)
TMSfirst (U.S.)
WiseTech Global (Australia)
Segments
Cloud-based to Have Highest Share as it Provides a Range of Features
On the basis of deployment, the market is divided into on-premise and cloud based. Cloud-based dominated the market as it is providing a range of functionalities and features such as cost effectives, automatic software updating, data security, ease of maintenance, and others.
Deferred Service Segment to Lead Due to Lower Rates
On the basis of air freight service, the market is divided into expedited service, standard service, and deferred service. The deferred service segment dominates the market and is set to be the fastest growing segment as customers have an advantage of lower rates and is suitable for non-urgent shipments with flexible delivery timeline due to longer transit time.
Freight Tracking and Monitoring Segment to Lead Due to Wide Applications
On the basis of application, the market is divided into freight handling, freight tracking and monitoring, warehouse management, price and revenue management, freight routing and scheduling, and delivery tracking. Freight tracking and monitoring segment dominates the segment and have highest CAGR owing to its wide applications.
Cargo Airlines Segment to Lead Due to Increase in Aircraft Fleet Size
On the basis of end-user, the market is divided into cargo airlines, commercial airlines, e-commerce companies, third party freight service providers, and others. The cargo airlines segment dominated in the year 2022 and is set to be the fastest growing due to increase in aircraft fleet size and demand for cargo aircraft.
In terms of geography, the market is divided into North America, Europe, Asia Pacific, and the Rest of the World.
COVID-19 Impact:
Aviation Industry Faced Unprecedented Challenges as Demand for Airline Tickets Declined
During the time of COVID-19 pandemic, the aviation industry faced unprecedented challenges as demand for airline tickets declined and precautionary measures. The market faced a decline due to disruptions in global supply chain, reduced air cargo capacity, and suspension of passenger flights hampering the cargo demand in various regions.
Report Coverage
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.
Drivers and Restraints
Rise in Demand for Air Freight Services by E-Commerce Companies to Propel the Demand for the Software
Rise in demand for air freight services by e-commerce companies is anticipated to drive the air freight software market growth. Online shopping has allowed businesses and consumers to have transactions without the need for a physical storefront. Rise in social media is one of the reasons for growth of the e-commerce industry. The trend of online shopping has increased demand for domestic and international courier services.
However, risks of data breaches and increasing number of cyber-attacks are expected to hamper the market growth.
Regional Insights
North America to Lead Due to Adoption of the Software in the Region
North America holds the largest air freight software market share due to the adoption of the software in the region. The market stood at USD 1.70 billion in 2022 due to increasing demand for air freight transportation and rise in fleet size.
Europe to have second-largest market share due to rising adoption of cargo software in the aviation industry. Growth in the number of service providers related to air freight software is one of the major factors in the market growth.
Competitive Landscape
Market Players are Opting for Strategic Acquisitions and Increasing Investments
The key players of air freight software are Champ Cargosystems, Freight Pop, Freightdata 2000, IBS, Infrom Software, Magaya, and others. The players have been opting for strategic acquisitions and increasing investments for driving the competition in the market.
Key Industry Development
May 2023- Speedcargo partnered with Güdel for the development of robotic cargo handling solution for air cargo. The robotic system is able to handle cargo of numerous sizes and weights, even oddly shaped cargo.