UNITED STATES AIR FREIGHT MARKET REPORT

KEY FINDINGS

• The United States air freight market is projected to grow at a CAGR of 4.8% from 2024 to 2030, driven by rising e-commerce, urgent medical shipments, and increasing demand for just-in-time delivery services.

• E-commerce has had a significant impact, contributing to over 35% of air freight volume in the U.S., with companies like Amazon and Walmart significantly boosting demand for quicker deliveries.

• The integration of AI and automation in cargo handling is helping streamline operations, reducing costs by an estimated 15%, and enhancing operational efficiency.

• Strict environmental regulations are forcing companies to invest in cleaner technologies, making compliance a key challenge, especially for smaller operators.

• The air freight sector faces capacity issues, particularly during peak seasons, where available space fails to meet rising demand, leading to price hikes.

• Unmanned aerial vehicles (UAVs) or drones are expected to revolutionize short-distance deliveries by 2030, with analysts predicting UAVs could handle up to 10% of U.S. air freight by then.

• Rising fuel costs, which account for about 25-30% of operational costs, have put pressure on profit margins, driving the need for fuel-efficient aircraft.

• Airports across the U.S. are investing in expanding their freight handling capacities, with over $3 billion allocated for upgrades through 2027.

• Airlines are increasingly investing in sustainable aviation fuel (SAF), with the U.S. air freight market likely to see a 20% increase in SAF usage by 2030.

• The air freight market in the U.S. has seen a surge in demand for temperature-sensitive shipments, particularly for pharmaceuticals and vaccines, contributing to around 18% of total air freight revenue.

UNITED STATES AIR FREIGHT MARKET OVERVIEW

The U.S. air freight market has experienced steady growth due to rising demand from key sectors like e-commerce, automotive, and pharmaceuticals. Technological advancements, such as the use of AI in logistics and automation in warehousing, are helping reduce operational costs and improve efficiency. However, the market faces challenges like capacity limitations during peak times and strict regulatory policies regarding emissions, which have led to higher operational costs for many carriers.

One of the key drivers is the shift toward faster delivery times, particularly in the e-commerce space, where companies like Amazon have set new standards for rapid shipping. Additionally, technology is transforming the industry, with innovations like blockchain for tracking and drones for short-distance deliveries expected to disrupt the traditional air freight model in the coming years.

INTRODUCTION TO UNITED STATES AIR FREIGHT MARKET

The United States air freight market refers to the transport of goods and cargo by air within and outside the U.S., driven primarily by the need for quick, efficient, and high-value deliveries. The sector plays a crucial role in global trade, accounting for approximately 35% of global cargo value despite representing only 1% of global tonnage.

There are different types of air freight services in the U.S., including express services for urgent deliveries, general freight for larger or less time-sensitive shipments, and specialized freight for sectors like pharmaceuticals and electronics. Each type caters to specific industry needs and operational frameworks.

The U.S. air freight market finds applications in various sectors such as e-commerce, automotive, pharmaceuticals, and high-value electronics. The surge in e-commerce demand has particularly increased reliance on air freight to ensure rapid delivery of goods across the country.

The benefits of air freight include speed and reliability, especially for urgent shipments, while challenges include high operational costs, capacity constraints, and environmental concerns. Companies need to balance efficiency with sustainability in an increasingly regulated market.

UNITED STATES AIR FREIGHT MARKET SIZE AND FORECAST

The U.S. air freight market was valued at $85 billion in 2023 and is expected to reach $130 billion by 2030, growing at a CAGR of 4.8% over the forecast period. Key drivers of this growth include the rise of e-commerce, increasing global trade, and advancements in technology. By 2030, the market will continue to be dominated by express services, driven by rising consumer expectations for faster deliveries.

UNITED STATES AIR FREIGHT MARKET TRENDS

1. Technological Integration: AI, blockchain, and automation are transforming logistics and cargo management, helping companies reduce costs and optimize routes. Blockchain is particularly useful for improving transparency in the supply chain.
2. Sustainability Push: With rising environmental concerns, air freight companies are focusing on cleaner technologies and adopting sustainable aviation fuels (SAFs) to meet emission regulations.
3. Growth in Cold Chain Logistics: The demand for temperature-controlled air freight, particularly for pharmaceuticals and perishables, is expected to rise, contributing to market expansion.
4. Increased Outsourcing: More companies are outsourcing logistics to third-party freight companies to manage complex supply chains, resulting in a growing market for 3PL (Third-Party Logistics) providers.

NEW PRODUCT DEVELOPMENT

• Boeing 777X Freighter: Boeing recently introduced the 777X freighter, offering increased cargo capacity and fuel efficiency. Analysts believe it will become the workhorse for long-haul shipments due to its 15% fuel savings.
• FedEx Drone Delivery: FedEx has initiated pilot projects using drones for last-mile deliveries, which could dramatically cut down on delivery times for local and short-distance routes.
• DHL AI-based Cargo Management System: DHL has implemented an AI-based cargo management system, streamlining operations and improving handling times by 25%.
• UPS Electric Cargo Planes: UPS has invested in electric cargo planes, set to be operational by 2025. These are expected to reduce emissions significantly and cut operational costs by up to 20%.

UNITED STATES AIR FREIGHT MARKET SEGMENTATION

By Service Type

• Express Services
• General Cargo
• Specialized Cargo (e.g., pharmaceuticals, electronics)

By Carrier Type:

• Dedicated Cargo Airlines
• Passenger-Cargo Airlines

By End User:

• E-commerce
• Automotive
• Pharmaceuticals

By Shipment Weight:

• Below 150 lbs
• 150 lbs – 500 lbs
• Above 500 lbs

TOP PLAYERS IN UNITED STATES AIR FREIGHT MARKET

1. FedEx Corporation
2. UPS Airlines
3. DHL Express
4. American Airlines Cargo
5. Delta Cargo
6. Southwest Cargo
7. United Cargo
8. Atlas Air Worldwide
9. Cargolux
10. Amazon Air

THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS

1. What are the main factors driving the U.S. air freight market’s growth?
2. How is the rise in e-commerce impacting the market?
3. What are the key challenges in maintaining capacity during peak demand?
4. How are companies addressing environmental regulations?
5. What role does technology play in shaping the future of air freight?
6. How are AI and automation changing logistics in air freight?
7. What are the most significant trends in cold chain logistics for air freight?
8. What are the investment opportunities in air freight infrastructure?
9. What impact will drones have on the market by 2030?
10. How is the U.S. air freight market addressing fuel cost challenges?
11. How are airports adapting to increasing freight volumes?
12. What are the future growth opportunities for third-party logistics providers?