Global Air Freight Software Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Type;
On-Premise, and Cloud-Based.By Application;
Freight Handling, Freight Tracking and Monitoring, Warehouse Management, Price and Revenue Management, Freight Routing and Scheduling, and Delivery Tracking.By End User ;
Third-Party Logistics, Forwarders, Brokers, Shippers, and Others.By Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Air Freight Software Market (USD Million), 2021 - 2031
In the year 2024, the Global Air Freight Software Market was valued at USD 1201.26 million. The size of this market is expected to increase to USD 2340.91 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 10.0%.
Air freight software solutions have emerged as critical enablers for logistics providers, airlines, and shippers, facilitating efficient management of air cargo operations, optimizing resource utilization, and enhancing overall supply chain visibility and control. These software solutions encompass a wide range of functionalities, including freight management, booking and scheduling, route optimization, cargo tracking, and regulatory compliance, tailored to address the unique challenges and requirements of the air freight industry. The integration of advanced technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and Blockchain further augments the capabilities of these software solutions, enabling automation, real-time data analytics, and seamless connectivity across the air freight ecosystem.
As the demand for faster deliveries, real-time tracking, and customized logistics solutions continues to rise, the Global Air Freight Software Market is witnessing robust growth, with organizations increasingly investing in digital solutions to stay competitive and meet evolving customer demands. The shift towards cloud-based platforms, the proliferation of Software as a Service (SaaS) models, and the emphasis on data-driven decision-making are further driving the adoption of air freight software solutions across the industry. The increasing focus on sustainability, regulatory compliance, and operational efficiency is propelling the development of innovative software solutions that not only streamline operations but also contribute to reducing carbon footprints and enhancing environmental sustainability.
Global Air Freight Software Market Recent Developments
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In May 2023, Speedcargo and Güdel partnered to create the first fully-automated robotic cargo handling system for air cargo, capable of handling diverse cargo sizes and shapes.
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In December 2022, WiseTech Global integrated IAG Cargo with CargoWise, enabling real-time package selection, booking, and modifications on the leading logistics platform.
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In October 2022, Magaya corporation launched its Digital Freight Portal with Andes Logistics (ANDES), enhancing customer experience and efficiency.
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In October 2022, Air Canada Cargo expanded its Latin America network and added cargo flights to Dallas and Atlanta, converting eight B767s into cargo planes and ordering two B767-300Fs and two B777Fs.
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In March 2022, IBS Software signed a long-term agreement with Alaska Air Cargo to modernize its air cargo IT system.
Segment Analysis
The Global Air Freight Software Market is categorized by type into On-Premise and Cloud-Based solutions. On-premise software provides businesses with greater control and customization over their data and systems but comes with higher upfront costs and maintenance needs. In contrast, cloud-based solutions offer flexibility, scalability, and reduced upfront costs, with the added benefit of real-time updates and easier integration with other technologies. Cloud-based software is growing in popularity due to the increasing demand for flexibility and cost-effectiveness, as well as the ability to access systems from any location.
In terms of applications, the air freight software market is segmented into freight handling, freight tracking and monitoring, warehouse management, price and revenue management, freight routing and scheduling, and delivery tracking. Freight handling and freight tracking are key drivers of the market, as they allow companies to streamline operations, reduce errors, and ensure timely deliveries. Warehouse management applications help in optimizing storage and inventory control. Price and revenue management software is crucial in managing dynamic pricing and optimizing profit margins, while freight routing and scheduling improve the efficiency of transportation planning. Delivery tracking provides transparency, allowing customers to track their goods in real-time, enhancing customer satisfaction.
The market also has a diverse set of end-users, including third-party logistics (3PL), forwarders, brokers, shippers, and others. Third-party logistics providers benefit greatly from air freight software due to their need for efficient, cost-effective solutions to manage multiple clients and shipments. Forwarders and brokers rely on such systems for streamlined communication and transaction handling. Shippers, who need to ensure timely and cost-effective transportation, use the software to monitor and optimize their logistics processes. Each of these segments is expected to grow as air freight continues to be an integral part of global trade and e-commerce.
Geographically, the global air freight software market is divided into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. North America and Europe currently hold the largest market shares due to advanced logistics infrastructure and the high adoption rate of technology. However, Asia Pacific is expected to witness the fastest growth due to the booming e-commerce industry, increasing trade activities, and the rapid digital transformation of logistics services in countries like China and India. The Middle East & Africa and Latin America are also seeing steady adoption as businesses look to enhance their logistics and freight management systems, despite regional challenges.
Global Air Freight Software Segment Analysis
In this report, the Global Air Freight Software Market has been segmented by Type, Application, End User, and Geography.
Global Air Freight Software Market, By Type
The Global Air Freight Software Market has been segmented by Type into On-Premise and Cloud-Based.
On-Premise software solutions are traditional systems that are installed and operated on the premises of the organization's own servers and computers. These solutions offer a high level of customization and control, allowing companies to tailor the software to specific business needs and integrate it seamlessly with existing infrastructure. While On-Premise solutions provide robustness and security, they often require significant upfront investment in terms of hardware, maintenance, and IT personnel to manage and update the system regularly.
Cloud-Based software solutions have gained immense popularity in the Global Air Freight Software Market due to their scalability, flexibility, and cost-effectiveness. Cloud-based solutions are hosted on remote servers, accessible via the internet, eliminating the need for physical hardware and reducing the burden of software maintenance and updates. These solutions offer real-time data accessibility, seamless integration capabilities, and enhanced collaboration features, enabling air freight companies to adapt quickly to changing market dynamics and scale operations efficiently. Cloud-based solutions facilitate remote access, enabling stakeholders to access critical information anytime, anywhere, fostering agility and responsiveness in air freight operations.
Global Air Freight Software Market, By Application
The Global Air Freight Software Market has been segmented by Application into Freight Handling, Freight Tracking and Monitoring, Warehouse Management, Price and Revenue Management, Freight Routing and Scheduling, and Delivery Tracking.
The global air freight software market has been divided into several applications to cater to the diverse needs of the logistics and transportation sectors. Freight handling is one of the key segments, focusing on the management and automation of the loading, unloading, and transportation processes of goods. Air freight software in this segment streamlines operations, ensuring efficiency and accuracy in handling large volumes of cargo, thereby reducing delays and human errors.
Another prominent segment is freight tracking and monitoring, which enables real-time visibility of shipments, from departure to arrival. This application provides valuable insights into the status of cargo, allowing stakeholders to track the movement of goods, ensure timely deliveries, and optimize routes. With the rise of customer demand for transparent and reliable shipping, the demand for robust tracking and monitoring solutions is increasing.
The warehouse management segment within the air freight software market focuses on the automation of storage, inventory control, and order fulfillment processes. This application enables the efficient management of warehouses, allowing for quicker turnaround times and better space utilization. Additionally, other segments like price and revenue management, freight routing and scheduling, and delivery tracking further enhance the overall efficiency of the supply chain, driving greater accuracy, cost-effectiveness, and customer satisfaction. These solutions are increasingly becoming indispensable for air freight businesses aiming to stay competitive in a rapidly evolving market.
Global Air Freight Software Market, By End User
The Global Air Freight Software Market has been segmented by End User into Third-Party Logistics, Forwarders, Brokers, Shippers and Others.
Third-Party Logistics (3PL) companies play a pivotal role in the Global Air Freight Software Market, leveraging specialized software solutions to manage and optimize complex logistics operations. These solutions enable 3PL providers to streamline processes, enhance visibility, and improve operational efficiency across the supply chain. By integrating advanced features such as real-time tracking, automated booking, and predictive analytics, air freight software empowers 3PLs to deliver value-added services, meet customer expectations, and gain a competitive edge in the marketplace.
Forwarders and Brokers represent another significant end-user segment in the Global Air Freight Software Market, relying on software platforms to facilitate freight forwarding, customs brokerage, and documentation management. These solutions enable forwarders and brokers to automate manual tasks, reduce errors, and ensure compliance with international trade regulations. Shippers, comprising manufacturers, retailers, and distributors, utilize air freight software to manage shipping schedules, optimize route planning, and track cargo movements, thereby gaining greater control and visibility over their logistics operations. The 'Others' category encompasses various stakeholders such as ground handlers, airport authorities, and cargo agents, who also benefit from specialized software solutions tailored to their unique requirements.
Global Air Freight Software Market, By Geography
In this report, the Global Air Freight Software Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Air Freight Software Market Share (%), by Geographical Region, 2024
North America has consistently maintained a leading position in the global air freight software market, supported by a robust demand for air freight transportation and an expanding fleet size across the region. The surge in the number of air cargo airlines and the development of new cargo routes have been pivotal in driving the adoption of air freight software solutions in North America. European countries, particularly Germany, the UK, and France, are witnessing a surge in the development and deployment of advanced air freight software platforms, aimed at enhancing operational efficiency, compliance management, and customer satisfaction. As the European air freight industry continues to evolve, driven by regulatory changes and market dynamics, the adoption of innovative air freight software solutions is expected to further accelerate, fostering a competitive and technologically advanced landscape across the region.
Asia Pacific emerges as a high-growth region in the global air freight software market, propelled by the increasing adoption of advanced software systems by airline carriers and the burgeoning e-commerce sector. As Asia Pacific continues to invest in modernizing its logistics and transportation sectors, the adoption of air freight software solutions is poised to play a pivotal role in shaping the future of the region's air freight industry, driving efficiency, and facilitating seamless integration with global supply chains. In the Middle East & Africa, strategic initiatives aimed at enhancing the cargo handling experience and improving operational efficiency are fostering the adoption of advanced air freight software solutions. In other parts of the world, a growing emphasis on modernizing logistics infrastructure and meeting the demands of an evolving global market landscape is fueling the adoption of innovative air freight software platforms.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Air Freight Software Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Growth of E-Commerce and Global Trade
- Rising Adoption of Cloud-Based Solutions
- Automation of Logistics Processes
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Increasing Demand for Real-Time Tracking - The increasing demand for real-time tracking is largely driven by advancements in technology, particularly in GPS, IoT (Internet of Things), and cloud computing. These technologies have significantly enhanced the ability to monitor and track assets, goods, and individuals in real time. With the proliferation of smartphones and connected devices, real-time data can be accessed from virtually anywhere, making tracking more reliable and efficient. GPS technology enables precise location data, while IoT sensors can provide continuous updates, leading to more seamless tracking across various sectors like logistics, supply chain, healthcare, and transportation.
Another key driver is the rising consumer demand for better service and personalized experiences. Customers today expect quick, transparent, and accurate updates, especially in industries like e-commerce and delivery services. Real-time tracking allows companies to provide customers with live updates on their orders, increasing customer satisfaction and loyalty. In logistics and supply chain management, real-time tracking allows businesses to optimize routes, reduce delays, and manage inventory more effectively, ultimately driving operational efficiency and improving service levels.
Regulatory requirements and safety standards have increased the need for real-time tracking in industries such as healthcare, pharmaceuticals, and transportation. For instance, in the pharmaceutical industry, regulatory agencies demand strict monitoring of drug shipments to ensure safety and compliance. In transportation, real-time tracking enhances fleet management and ensures driver safety, reducing accidents and improving productivity. As more industries recognize the benefits of real-time tracking in ensuring compliance, reducing risk, and enhancing customer trust, the demand for such solutions continues to grow.
Restraints
- Security and Data Privacy Concerns
- Lack of Skilled IT Professionals
- Complexity of International Trade Regulations
- Potential System Downtimes and Technical Glitches - One significant restraint for many industries, especially in sectors reliant on digital infrastructures, is the risk of system downtimes. These downtimes can be caused by a variety of factors, including software bugs, hardware failures, or network issues, which can disrupt the normal operation of services. A system downtime can halt or slow down critical processes, causing delays in operations and reducing the overall efficiency of an organization. For businesses that depend on continuous data flow and real-time transactions, even a brief disruption can lead to a loss of productivity, missed opportunities, or customer dissatisfaction. The longer the downtime lasts, the higher the risk of losing customer trust and competitive advantage.
Restraint: Technical Glitches
Another restraint factor is technical glitches, which can arise unexpectedly during the operation of digital platforms or hardware systems. These glitches may be minor, such as slow system responses or occasional errors, but they can accumulate over time and cause serious disruptions to business activities. For example, a technical glitch in an e-commerce platform might prevent users from completing transactions, or a glitch in a customer relationship management system could cause data to be improperly stored or accessed. Although many glitches can be fixed with regular maintenance or software updates, the unpredictability of such events can undermine the stability and reliability of the system, leading to operational inefficiencies and loss of business continuity.
Impact on Long-term Performance
The potential for system downtimes and technical glitches is not just an immediate concern but can also affect long-term performance. Repeated downtimes or unresolved technical issues can erode the reputation of a company, especially in industries where uptime and reliability are crucial. Customers and clients may start to lose confidence in the business, leading to decreased customer retention and reduced market share. Additionally, the resources required to constantly troubleshoot, repair, and maintain systems can result in significant operational costs. If these issues are not addressed proactively, they can become an ongoing burden that impedes the company’s ability to innovate or expand its offerings.
Opportunities
- Emergence of IoT and Blockchain Technologies
- Customized Solutions for Specific Industry Verticals
- Market Penetration through Digital Platforms
- Adoption of Mobile and On-Demand Platforms - The adoption of mobile and on-demand platforms has emerged as a transformative trend reshaping the Global Air Freight Software Market. In today's fast-paced business environment, stakeholders across the air freight industry are increasingly relying on mobile applications and on-demand platforms to enhance operational agility, streamline logistics processes, and improve overall efficiency. These mobile solutions offer real-time access to critical information, enabling users to track shipments, manage bookings, and communicate with various stakeholders anytime, anywhere.
By leveraging the power of mobile technology, air freight software providers are facilitating seamless collaboration among shippers, carriers, and logistics service providers, thereby reducing communication barriers and accelerating decision-making processes. On-demand platforms are revolutionizing the way air freight services are procured and managed. These platforms enable users to access a range of services on a pay-as-you-go basis, offering flexibility, scalability, and cost-effectiveness.
Whether it's booking cargo space, procuring insurance, or managing customs clearance, on-demand platforms provide a one-stop solution for all logistics requirements. The integration of advanced features such as Artificial Intelligence (AI), Machine Learning (ML), and Internet of Things (IoT) in mobile and on-demand platforms is driving innovation and unlocking new opportunities in the Global Air Freight Software Market.
Competitive Landscape Analysis
Key players in Global Air Freight Software Market include:
- Champ Cargosystems
- Freight Pop
- Freightdata 2000
- IBS
- Inform Software
- Magaya
- Riege Software
- The Descartes Systems Group Inc.
- TMSfirst
- WiseTech Global
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, BY Type
- Market Snapshot, BY Application
- Market Snapshot, By End User
- Market Snapshot, By Region
- Global Air Freight Software Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Growth of E-Commerce and Global Trade
- Rising Adoption of Cloud-Based Solutions
- Automation of Logistics Processes
- Increasing Demand for Real-Time Tracking
- Restraints
- Security and Data Privacy Concerns
- Lack of Skilled IT Professionals
- Complexity of International Trade Regulations
- Potential System Downtimes and Technical Glitches
- Opportunities
- Emergence of IoT and Blockchain Technologies
- Customized Solutions for Specific Industry Verticals
- Market Penetration through Digital Platforms
- Adoption of Mobile and On-Demand Platforms
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Air Freight Software Market, By Type, 2021 - 2031 (USD Million)
- On-Premise
- Cloud-Based
- Global Air Freight Software Market, By Application, 2021 - 2031 (USD Million)
- Freight Handling
- Freight Tracking and Monitoring
- Warehouse Management
- Price and Revenue Management
- Freight Routing and Scheduling
- Delivery Tracking
- Global Air Freight Software Market, By End User, 2021 - 2031 (USD Million)
- Third-Party Logistics
- Forwarders
- Brokers
- Shippers
- Others
- Global Air Freight Software Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Air Freight Software Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape Analysis
- Company Profiles
- Champ Cargosystems
- Freight Pop
- Freightdata 2000
- IBS
- Inform Software
- Magaya
- Riege Software
- The Descartes Systems Group Inc.
- TMSfirst
- WiseTech Global
- Company Profiles
- Analyst Views
- Future Outlook of the Market