Air Freight Forwarding System Market Strategic Growth, Innovation & Investment Trends

Air Freight Forwarding System Market Size, Demand and Trends Analysis

The air freight forwarding system market is projected to reach USD 13.27 billion by 2034, expanding from USD 9.22 billion in 2025, at an annual growth rate of 4.13% during the forecast period from 2025 to 2034.

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The rapid expansion of the e-commerce sector coupled with technological advancements in the logistics industry has boosted the market expansion. Additionally, the growing investment by airline companies to enhance international goods transportation along with integration of cloud-based transportation management system (TMS) for enhancing air cargo services is adding to the overall industrial expansion. The rising geopolitical issues and integration of AI in transportation management platforms is expected to create ample growth opportunities for the market players in the upcoming days.

Introduction

The air freight forwarding system market is a crucial segment of the logistics industry. This industry deals in delivering services to facilitate air cargo transportation. There are various types of services provided by this sector consisting of international air freight forwarding and domestic air freight forwarding. The end-user of this sector includes freight forwarders, cargo airlines, shippers & manufacturers, 3pl (third-party logistics) providers, e-commerce retailers and some others. The integration of advanced technologies such as AI and IoT in cargo handling is playing a vital role in shaping the industrial landscape. This market is expected to rise significantly with the growth of the airlines sector across the globe.

Highlights of the Air Freight Forwarding System Market

• North America generated highest revenue of the air freight forwarding system market.
• Asia Pacific is expected to grow with a significant CAGR during the forecast period.
• By system, the transportation management system (TMS) segment held the largest share of the market.
• By system, the warehouse management system (WMS) segment is expected to grow with a considerable CAGR during the forecast period.
• By end use, the cargo airlines segment led the industry.
• By end use, the shippers and manufacturers segment is expected to rise with a notable CAGR during the forecast period.

Key Metrics and Overview

What are the Trends of Air Freight Forwarding System Market in 2025?

The major trends in this market consists of exploration of new trade routes, integration of AI in freight management platforms and export of artilleries.

Exploration of New Trade Routes

Several logistics providers are launching air cargo services in new areas for strengthening the cross-border trading activities.

Integration of AI in Freight Management Platforms

Nowadays, the software developers have started integrating AI in their platforms to enhance the supply chain operations of air freight.

Export of Artilleries

The export of military equipment from major supplying nations such as the U.S., Russia, China, Israel and some others has increased the demand for defense-based air cargo services.

System Insights

How Did the Transportation Management System (TMS) Segment Led the Air Freight Forwarding System Market in 2025?

The transportation management system (TMS) segment dominated the highest share of the market. The growing adoption of advanced TMS in cargo flights to gather real-time updates has driven the market expansion. Additionally, rising popularity of air transport management platform for booking freights conveniently has boosted the growth of the air freight forwarding system market.

• In June 2025, Cargo.one launched a new transportation management system. This system is designed by Descartes and finds application in air freight booking. (Source: AJOT)

The warehouse management system (WMS) segment is expanding with a considerable CAGR during the forecast period. The growing adoption of advanced WMS solutions in air freight management sector has driven the market expansion. Additionally, numerous applications of WMS such as real-time inventory tracking, automated order fulfillment, optimized warehouse layout and processes, customizable reporting and analytics, and some others is driving the growth of the air freight forwarding system market.

• In February 2025, OKI launched SHO-XYZ. SHO-XYZ is a warehouse management system that enables real-time tracking of goods that are stored in warehouses from a smartphone application. (Source: Business Wire)

End Use Insights

What Made Cargo Airlines to be the Most Dominant Segment of Air Freight Forwarding Market in 2025?

The cargo airlines segment held the highest share of the industry. The growing adoption of advanced freight forwarding systems in cargo airlines for handling goods accurately has driven the market expansion. Moreover, partnerships among logistics companies and software providers to deploy cloud-based freight management solutions for facilitating airline cargo is expected to boost the growth of the air freight forwarding system market.

The shippers and manufacturers segment is expanding with a notable CAGR during the forecast period. The rising use of WMS software by shipping companies for tracking goods that are kept in warehouses has boosted the market expansion. Also, collaborations among manufacturing companies and logistics brands to provide air-based freight services in different parts of the world is expected to drive the growth of the air freight forwarding system market.

Geographical Insights

Why North America Dominated the Air Freight Forwarding System Market in 2025?

North America held the highest share of the air freight forwarding system market. The growing development in the e-commerce industry along with rise in number of warehouses in the U.S. and Canada has driven the market expansion. Also, numerous government initiatives aimed at developing the airlines sector coupled with rapid adoption of airways for secure logistics operations is playing a vital role in shaping the industrial landscape. Moreover, the presence of several market players such as Flexport, WNS Global Services, Expeditors International and some others is expected to boost the growth of the air freight forwarding system market in this region.

• According to the Census.gov, the total retail e-commerce sales of the U.S. during the 1st quarter of 2025 was estimated to be around US$ 1,858.5 billion. (Source: Census)

Asia Pacific is expanding with a significant CAGR during the forecast period. The growing adoption of air freight services for exporting pharmaceutical goods such as medicines, vaccines, medical equipment and some others has boosted the market expansion. Additionally, rapid investment by government of several countries such as India, China, Japan, South Korea and some others for developing the airport infrastructure is further contributing to the industrial growth. Moreover, the presence of numerous market players such as Nippon Express, MOL Logistics, Kerry Logistics, Pattaya Airway and some others is expected to propel the growth of the air freight forwarding system market in this region. 

• In September 2024, Pattaya Airway launched a new air cargo service. This service is designed for transporting goods from Bangkok to Myanmar. (Source: air cargo)

Industry Leader Announcement

• In June 2025, Kenneth Wood, the Executive Vice President of Product Management at Descartes made an announcement stating that,” Integrating cargo.one’s global carrier connectivity within our TMS helps customers gain ground in delivery performance, differentiate themselves from competitors, and grow their revenue. Descartes TMS and cargo.one functionality working in unison is enhancing user experiences and helping forwarders to do their best work.”

Competitive Landscape

The air freight forwarding system market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Nippon Express, C.H. Robinson Worldwide, DHL Global Forwarding, Kuehne + Nagel, Expeditors International, DB Schenker, Panalpina, UPS Supply Chain Solutions, Agility Logistics, FedEx Logistics and some others. These companies are constantly engaged in delivering goods through air transportation and adopting numerous strategies such as collaborations, launches, partnerships, acquisitions, joint ventures and some others to maintain their dominance in this industry.

• In January 2025, DB Schenker launched a new air cargo service. This air-based logistics service is designed for transporting goods between Europe and China. (Source: DB Schenker)
• In June 2024, Nippon Express launched an airfreight service. This service is designed for transporting cargo among U.S. and Japan. (Source: Air Cargo News)

• According to the annual report of UPS Supply Chain, the revenue of the company in 2023 was around US$ 90,958 million that increased to US$ 91,070 million in 2024.(Source: Investors)

Recent Developments

• In June 2025, DHL launched Xcelerate. Xcelerate is a premium cargo service that provides fastest shipping services through airways. (Source: DHL Group)
• In June 2025, Geodis launched GEODIS AirSmart. GEODIS AirSmart is a sustainable air cargo solution designed for delivering efficient logistics solutions in the European region. (Source: AJOT)
• In April 2025, Jet Freight Logistics announced to launch a new air cargo service in 2026. This new service is designed for exporting Indian goods to different parts of the world. (Source: Indian Transport & Logistics News)

Air Freight Forwarding System Market Segments

By System

• Transportation management system (TMS)
• Warehouse management system (WMS)
• Customized solutions

By Deployment Mode

• Cloud-based
• Transportation management system (TMS)
• Warehouse management system (WMS)
• Customized solutions
• On-Premises
• Transportation management system (TMS)
• Warehouse management system (WMS)
• Customized solutions

By Organization Size

• SME
• Large organization

By Application

• Cargo tracking & visibility
• Route planning & optimization
• Documentation & compliance
• Billing & invoicing
• Warehouse management
• Others

By End Use

• Freight forwarders
• Cargo airlines
• Shippers & manufacturers
• 3PL (Third-Party Logistics) providers
• E-commerce retailers

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa