The air freight forwarding system market is poised for substantial growth, projected to reach USD 13.27 billion by 2034 from USD 9.22 billion in 2025, expanding at a 4.13% CAGR during 2025-2034. The surge in e-commerce demand, combined with technological advancements in logistics, has significantly driven this market’s growth trajectory. Cloud-based transportation management systems (TMS) and artificial intelligence integration are enhancing efficiency, while the defense sector’s growing air cargo needs are opening new revenue streams.
Key Market Drivers
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E-commerce Boom: Increasing cross-border online retail trade is fueling demand for efficient air freight solutions.
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Technological Advancements: AI, IoT, and cloud-based TMS platforms are transforming cargo handling operations.
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Infrastructure Investments: Airlines and governments are expanding airport and cargo terminal capabilities.
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Defense & Strategic Logistics: Rise in military equipment exports is driving specialized cargo services.
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Market Segmentation Insights
By System
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Transportation Management System (TMS): Largest market share in 2025 due to real-time tracking, booking convenience, and enhanced operational control.
Example: In June 2025, Cargo.one, in partnership with Descartes, launched an advanced TMS for air freight booking. -
Warehouse Management System (WMS): Growing at a considerable CAGR, supported by real-time inventory tracking, automation, and analytics features.
Example: OKI’s February 2025 launch of SHO-XYZ allows smartphone-based warehouse tracking.
By End Use
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Cargo Airlines: Dominated in 2025 with strong adoption of cloud-based freight management solutions.
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Shippers & Manufacturers: Expected to grow notably with the adoption of WMS for better storage and goods tracking.
Regional Analysis
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North America: Largest market share in 2025, boosted by e-commerce growth, expanding warehouse networks, and advanced logistics solutions. Major companies like Flexport and Expeditors International are based here.
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Asia Pacific: Significant growth expected due to rising pharmaceutical exports and government investments in airport infrastructure. Companies like Nippon Express and Kerry Logistics are expanding services in the region.
Leading Companies in the Air Freight Forwarding System Market
1. Nippon Express
About: A Japan-based global logistics company offering comprehensive air, sea, and ground transportation services.
Products: Air freight services, warehousing, logistics consulting, customs clearance.
Market Cap: Approx. USD 5.4 billion.
2. C.H. Robinson Worldwide
About: A U.S.-based third-party logistics provider specializing in freight transportation and supply chain management.
Products: Air, ocean, and truckload freight services, logistics technology solutions.
Market Cap: Approx. USD 11.5 billion.
3. DHL Global Forwarding
About: A division of Deutsche Post DHL Group, specializing in air and ocean freight forwarding globally.
Products: Air freight forwarding, customs brokerage, temperature-controlled transport.
Market Cap: Parent company Deutsche Post DHL approx. USD 57 billion.
4. Kuehne + Nagel
About: A Switzerland-based global transport and logistics company operating in over 100 countries.
Products: Airfreight forwarding, sea freight, contract logistics, integrated supply chain solutions.
Market Cap: Approx. USD 31 billion.
5. Expeditors International
About: A U.S.-based logistics company offering supply chain solutions with a focus on customer service and technology integration.
Products: Air and ocean freight, customs brokerage, warehousing, distribution.
Market Cap: Approx. USD 16 billion.
6. DB Schenker
About: A German logistics company providing transportation and supply chain management worldwide.
Products: Air freight forwarding, contract logistics, supply chain consulting.
Market Cap: Subsidiary of Deutsche Bahn AG (state-owned, no separate listing).
7. UPS Supply Chain Solutions
About: A logistics division of UPS offering freight forwarding, warehousing, and distribution.
Products: Air freight services, customs brokerage, contract logistics.
Market Cap: Parent company UPS approx. USD 121 billion.
8. FedEx Logistics
About: A division of FedEx Corporation, specializing in freight forwarding and supply chain solutions.
Products: Air and ocean freight, customs brokerage, cross-border e-commerce solutions.
Market Cap: Parent company FedEx approx. USD 63 billion.
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Recent Developments
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June 2025: DHL launched Xcelerate, a premium cargo service with faster delivery times.
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June 2025: Geodis introduced AirSmart, a sustainable air cargo solution for Europe.
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January 2025: DB Schenker launched a new Europe-China air cargo route.
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September 2024: Pattaya Airway launched Bangkok-Myanmar cargo service.
FAQs
Q1. What is the growth forecast for the air freight forwarding system market?
The market is expected to grow from USD 9.22 billion in 2025 to USD 13.27 billion by 2034 at a CAGR of 4.13%.
Q2. Which region dominates the air freight forwarding system market?
North America leads the market, driven by strong e-commerce growth, advanced logistics infrastructure, and major industry players.
Q3. What are the key growth drivers in the air freight forwarding system market?
E-commerce expansion, AI and IoT integration, cloud-based TMS adoption, and rising defense cargo demand.
Q4. Who are the major players in the market?
Key players include Nippon Express, C.H. Robinson Worldwide, DHL Global Forwarding, Kuehne + Nagel, Expeditors International, DB Schenker, UPS Supply Chain Solutions, and FedEx Logistics.
Q5. Which system segment holds the largest market share?
The transportation management system (TMS) segment holds the largest share due to its role in real-time tracking, booking efficiency, and operational optimization.
Source : https://www.towardsautomotive.com/insights/air-freight-forwarding-system-market-sizing
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