Air Freight Software Market Analysis

Global Air Freight Software Market Overview

Air Freight Software Market Size was valued at USD 6.34 billion in 2022. The Air Freight Software Market is projected to grow to USD 8.2 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.5% during the forecast period (2022 - 2032).

The air freight software market size is projected to register a CAGR of 8.2% from 2020-2027. The air freight software market is one of the improved software advancements demonstrating its numerous benefits in the aviation sector. Aviation officials are even paying attention to air freight software technology for shipment purposes. Air freight software is a sophisticated solution for real-time freight acceptance control. Its improved feature speeds up and improves the performance of cargo management solutions. These factors are propelling the growth of the air freight software market size. The air freight industry software has a multi-purpose application to provide services for cost-effective shipment management. This software assists in automatically booking cargo shipments and even analyses the price. The demand for revenue management and other operational activities is also increasing the value of the air freight software market growth. Nonetheless, congested trade routes, cross-border trade risks, and environmental concerns associated with transportation and logistics may limit the market growth.

COVID-19 Impact Analysis

The aviation-related market suffered during the COVID-19 period. Due to various travel and transportation-related lockdown guidelines, the aviation sector saw a significant drop in growth. Covid-19 has also impacted the air freight software market because it is related to the aviation industry. Shipments of goods and services were halted, and customers got delayed delivery. However, the air freight software market is expected to regain its growth rate in the post-pandemic period on a  scale.

Air Freight Software Market Dynamics

More businesses rely on technologies to track, secure, monitor, and manage their in-transit freight. Big data analytics appears to be the most promising opportunity in freight software. International trade organizations such as the WTO (World Trade Organization) advocate for an open-door policy to promote trade with no tax barriers. Many business foundations leverage exchange motivations and unwinding guidelines to expand their organizations beyond public limits.

Market Drivers

• Increasing demand for air freight

Following the pandemic in the second half of 2020, air freight services improved noticeably, which continued into 2021. Cargo tonne kilometers (CTKs) increased by more than 7% from January 2021 to July 2021 compared to the same period in 2019. Air cargo also performed  goods trade to meet the increasing demand from various supply chain dynamics, such as exceptionally long supply delivery times and other high-cost transportation modes. Improved air cargo routes in multiple countries at varying rates contributed to the growth of the air freight market. The  air freighter fleet increased by about 12% to meet rising demand between January 2021 and July 2021.

• Increased demand for supply chain visibility for a variety of trade purposes


• Increased investment in modern autonomous trucking 

Market Restraints:

• Fuel costs hinder the growth of the market

The fuel cost is hindering the market growth for air freight software. Fuel now accounts for roughly half of the annual cost of operating an aircraft, whether for cargo or passengers, due to the recent increase in oil prices. Because fuel consumption is roughly proportional to aircraft weight and distance flown, the marginal cost for transporting cargo is calculated using weight and destination. The rate is typically set based on marginal cost and then adjusted for service level. Charter rates generally are higher, reflecting the incremental distance flown, including empty legs, and the balance between demand and available capacity. Air freight rates per kilometer are higher for shorter distances because more time is spent on the ground, and more time in the air is spent climbing and descending. As a result, it is frequently preferable to use road transportation between the domestic source or destination and the hub, restraining the user from using aircraft more.

• High expenses of commodities' delivery and the trade hazards connected to international trade

Market Opportunities: 

• Increasing freight traffic and an expanding e-commerce industry 

Rising air freight traffic due to increased ization and transportation of goods such as medicine and vaccine across countries has aided software for air freight. The increased adoption of air freight software is driven by the need to properly manage goods and cargo to ensure the smooth flow of freight services. Furthermore, the growing e-commerce industry is increasing demand for air freight transportation to ensure timely delivery across borders.

• Government's initiatives to increase revenue from air freight

Air freight software Market Segmentation

Type Insights

The air freight software market segmentation, based on the type, is on-premise and cloud-based. The on-premise segment dominated the market in 2021. The on-premise segment is typically installed and run on a company's computers and servers, and brokers widely use it. Besides this, the cloud-based segment is anticipated to be the fastest-growing segment in 2021 due to its uses for the vendor's server, which can be accessed via a browser.

Solution Insights

The air freight software market segmentation, based on the solution, is freight tracking and monitoring, cargo routing and scheduling, order management, transportation management systems (TMS), and electronic data interchange. The freight tracking and monitoring segment had a prominent share in 2021 due to increased demand for visibility, tracking, tracing, security, and monitoring applications. Hence, the market is expected to surge significantly in the coming years. However, the order management segment was the fastest growing as the number of shipments across the border increased. Increased shipments lead to the growth of order management applications.

End-User Insights

The  air freight software market segmentation, based on end-users, is third-party logistics, forwarders, brokers, shippers, and others. The third-party logistics segment had a prominent share in 2021 due to ization and the expansion of  trade volumes. Besides this, the forwarders segment was the fastest growing because of the increased use of forwarders which helps to reduce delivery time.

Air Freight Software Market Overview, by Region

By region, the  air freight software market report has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Europe is projected to exhibit the highest CAGR during the review period.

North America

North America dominated the air freight software market forecast in 2021. Adopting freight management products and services by many regional users has made this possible. The future growth of the North American freight management system market is influenced by a high degree of technological adoption and the existence of key solution providers. Two countries in North America, the US and Canada, also utilize a significant amount of freight management software. The US is anticipated to dominate the market due to its established and stable economy, partly due to its considerable investment in R&D activities, which is introducing new goods and services.

Europe

Europe was the fastest-growing market in 2021. This can be ascribed to the region's logistics industry's growing volume of cargo freight. Additionally, it is expected that the region's industry will increase due to the leading market participants' increasing investments in creating better air freight software. The growth is also attributed to the presence of various key players in this region, which include CHAMP Cargosystems S.A, Freightdata 2000, and Riege Software International GmbH. In Europe, the rising adoption of air freight software in the e-commerce industry is projected to boost the market.

 Air Freight Software Market Competitive Landscape

The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach with diverse product portfolios. Air freight software companies are attempting to introduce new goods, increase business operations, and form strategic alliances with other producers. Key players also expand their product ranges, manufacturing capacities, and presence. Leading providers of air freight software invest time and money in developing cutting-edge technologies. For instance, in March 2020, the leading enterprise platform of the air freight software vendor, Containers, now offers transportation, worldwide schedules, bills of lading, dashboard analytics, chat assistance, and cargo management in addition to air freight. Furthermore, in February 2020, A five-year agreement for air cargo software solutions was struck by Oman Air Cargo and CHAMP Cargosystems S.A. for Oman Air Cargo's digital transformation of cargo management services, CHAMP Cargosystems S.A. is supplying air cargo software solutions.

Prominent air freight software market players include CHAMP Cargosystems S.A., Freightos Limited, Infor (US), Inc, Freightdata 2000 Ltd, Riege Software International GmbH, The Descartes Systems Group Inc, Magaya Corporation, among others.

Scope of the Air Freight Software Market Report

Type Outlook

• On-Premise


• Cloud-based

Solution Outlook

• Freight Tracking and Monitoring


• Cargo Routing and Scheduling


• Order Management


• Transportation Management Systems (TMS)


• Electronic Data Interchange

End-User Outlook

• Third-Party Logistics


• Forwarders


• Brokers


• Shippers


• Others

Region Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 
  Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa
  
  
  
  

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

Air Freight Software Market Forecast & Size:

To identify and estimate the market size for the air freight software market segmented by form, routes of administration, product, application, end-user, and source by value (in US dollars). Also, to understand the consumption/demand created by consumers of air freight software between 2022 and 2030

Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the air freight software market

Market Influencing Factors:

To find out the factors which are affecting the sales of air freight software among consumers

Impact of COVID-19:

To identify and understand the various factors involved in the air freight software market affected by the pandemic

Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

• Air Freight Software Providers


• Developers


• Governments Associations and Industrial Bodies

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