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Air Freight Software Market

ID: MRFR/AD/7129-HCR
173 Pages
Sejal Akre
October 2025

Air freight software Market Research Report Information By Based (On-Premise and Cloud-based), By Solution (Freight Tracking and Monitoring, Cargo Routing and Scheduling, Order Management, Transportation Management Systems (TMS), and Electronic Data Interchange), By End-User (Third-Party Logistics, Forwarders, Brokers, Shippers, and others), and Region (North America, Europe, Asia-Pacific, and the Rest of the World) - Forecast till 2035

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Air Freight Software Market Summary

As per MRFR analysis, the Air Freight Software Market Size was estimated at 16.1 USD Billion in 2024. The Air Freight Software industry is projected to grow from 17.6 in 2025 to 44.1 by 2035, exhibiting a compound annual growth rate (CAGR) of 9.62 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Air Freight Software Market is experiencing robust growth driven by automation and real-time analytics.

  • North America remains the largest market for air freight software, driven by advanced logistics infrastructure.
  • Asia-Pacific is emerging as the fastest-growing region, fueled by increasing e-commerce activities.
  • Cargo management solutions dominate the market, while tracking and visibility software is witnessing rapid growth.
  • Rising e-commerce demand and technological advancements are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 16.1 (USD Billion)
2035 Market Size 44.1 (USD Billion)
CAGR (2025 - 2035) 9.62%

Major Players

SAP (DE), Oracle (US), Cargowise (AU), Descartes Systems Group (CA), Kuebix (US), Freightos (US), Transporeon (DE), CargoSmart (HK), BluJay Solutions (US)

Air Freight Software Market Trends

The Air Freight Software Market is currently experiencing a transformative phase, driven by advancements in technology and the increasing demand for efficient logistics solutions. Companies are increasingly adopting software that enhances visibility, optimizes routes, and streamlines operations. This shift appears to be influenced by the need for real-time data and analytics, which facilitate better decision-making and improve overall supply chain management. As businesses seek to enhance their competitive edge, the integration of artificial intelligence and machine learning into air freight software is becoming more prevalent, suggesting a future where automation plays a crucial role in logistics operations. Moreover, the growing emphasis on sustainability within the logistics sector is prompting software developers to create solutions that minimize environmental impact. This trend indicates a potential shift towards greener practices, as companies strive to meet regulatory requirements and consumer expectations. The Air Freight Software Market seems poised for continued growth, with innovations that not only enhance operational efficiency but also align with broader sustainability goals. As the landscape evolves, stakeholders must remain vigilant to emerging technologies and changing market dynamics to capitalize on new opportunities and address challenges effectively.

Increased Automation

The Air Freight Software Market is witnessing a notable trend towards automation, as companies seek to streamline their operations. This shift is characterized by the integration of advanced technologies that reduce manual intervention, thereby enhancing efficiency and accuracy in logistics processes.

Focus on Real-Time Data Analytics

Another prominent trend involves the growing reliance on real-time data analytics within the Air Freight Software Market. Organizations are increasingly utilizing data-driven insights to optimize their supply chain operations, enabling them to make informed decisions and respond swiftly to market changes.

Sustainability Initiatives

The emphasis on sustainability is becoming increasingly significant in the Air Freight Software Market. Companies are developing software solutions that not only improve operational efficiency but also address environmental concerns, reflecting a broader commitment to sustainable practices in logistics.

Air Freight Software Market Drivers

Global Trade Growth

The expansion of global trade is a significant driver for the Global Air Freight Software Industry. As countries engage in international trade, the demand for efficient air freight solutions rises. The increasing volume of goods transported across borders necessitates robust logistics management systems, which air freight software provides. In 2035, the market is projected to reach 9.09 USD Billion, underscoring the importance of air freight in supporting global commerce. This growth is fueled by trade agreements and economic partnerships that facilitate cross-border transactions, further driving the need for sophisticated air freight software to manage logistics effectively.

Regulatory Compliance

Regulatory compliance is an essential factor influencing the Global Air Freight Software Industry. As governments implement stricter regulations regarding safety, security, and environmental standards, companies must adapt their logistics operations accordingly. Air freight software assists businesses in navigating these complex regulatory landscapes by providing tools for documentation, reporting, and compliance management. This need for adherence to regulations is likely to drive investment in air freight software solutions, as companies seek to mitigate risks associated with non-compliance. The ongoing evolution of regulations will continue to shape the market, prompting software developers to innovate and enhance their offerings.

Market Growth Projections

The Global Air Freight Software Industry is projected to experience steady growth, with a market value of 6.63 USD Billion in 2024 and an expected increase to 9.09 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate (CAGR) of 2.91% from 2025 to 2035. The increasing reliance on air freight for global trade, coupled with advancements in technology and regulatory compliance, suggests a robust future for the industry. The market's expansion reflects the ongoing evolution of logistics and supply chain management, driven by the need for efficiency and responsiveness in a dynamic global economy.

Sustainability Initiatives

Sustainability initiatives are increasingly becoming a focal point within the Global Air Freight Software Industry. As environmental concerns rise, companies are seeking ways to reduce their carbon footprints and enhance operational sustainability. Air freight software can facilitate more efficient routing, load optimization, and fuel management, contributing to lower emissions. This shift towards greener logistics practices is likely to influence purchasing decisions, as businesses prioritize software solutions that align with their sustainability goals. The growing emphasis on corporate social responsibility will drive demand for air freight software that supports environmentally friendly practices, shaping the industry's future.

Technological Advancements

Technological innovations play a crucial role in shaping the Global Air Freight Software Industry. The integration of advanced technologies such as artificial intelligence, machine learning, and blockchain enhances operational efficiency and transparency in air freight logistics. These technologies enable real-time tracking, predictive analytics, and automated processes, which are essential for managing complex supply chains. As companies increasingly adopt these technologies, the market is likely to experience growth. The anticipated compound annual growth rate (CAGR) of 2.91% from 2025 to 2035 indicates a sustained interest in leveraging technology to improve air freight operations and customer service.

Rising Demand for E-commerce

The surge in e-commerce activities globally is a pivotal driver for the Global Air Freight Software Industry. As online shopping continues to expand, businesses require efficient logistics solutions to meet consumer expectations for rapid delivery. In 2024, the market is valued at 6.63 USD Billion, reflecting the increasing reliance on air freight services to facilitate quick shipping. Companies are investing in air freight software to optimize their supply chains, ensuring timely deliveries and enhancing customer satisfaction. This trend is expected to persist, as the e-commerce sector is projected to grow, further propelling the demand for sophisticated air freight solutions.

Market Segment Insights

By Application: Cargo Management (Largest) vs. Tracking and Visibility (Fastest-Growing)

The Air Freight Software Market is segmented by application, with cargo management holding a significant share due to its essential role in optimizing logistics. Warehouse management and fleet management also contribute to market presence, yet cargo management remains paramount. Tracking and visibility have emerged as a rapidly expanding sector, driven by the increasing demand for real-time data and customer transparency, solidifying its growth position in the market. In recent years, growth trends indicate a shift towards digitization and automation across air freight software applications. Businesses are investing in advanced tracking and visibility tools to enhance operational efficiency and customer satisfaction. The growing complexity of supply chains necessitates effective cargo management solutions, while regulatory changes drive the need for better customs management solutions, positioning these applications as key players in the Air Freight Software Market’s evolution.

Cargo Management (Dominant) vs. Tracking and Visibility (Emerging)

Cargo management serves as the backbone of air freight operations, facilitating the seamless movement of goods across international borders and ensuring compliance with regulations. It includes functions like load planning, freight booking, and documentation management, which are critical for time-sensitive deliveries. On the other hand, tracking and visibility represent a burgeoning area, focusing on providing real-time insights into cargo status. This application builds customer trust through transparent reporting and proactive communication. As businesses prioritize efficiency and responsiveness, both segments play pivotal roles—cargo management as the dominant force and tracking and visibility as the emerging contender that addresses the evolving needs of shippers and customers.

By Deployment Type: Cloud-Based (Largest) vs. Hybrid (Fastest-Growing)

The Air Freight Software Market is currently dominated by the Cloud-Based deployment type, which appeals to businesses seeking scalability, flexibility, and reduced IT overhead. This segment's share reflects increasing trust in cloud technologies, especially as logistics companies look for solutions that can easily adapt to fluctuating demands. In contrast, the On-Premises deployment, while still relevant, is seeing a gradual decline in preference among newer entrants in the market, primarily due to the high costs of maintenance and infrastructure.

Cloud-Based (Dominant) vs. Hybrid (Emerging)

Cloud-Based solutions offer a dominant market position due to their ability to provide real-time data access, ease of integration, and lower upfront costs compared to traditional On-Premises systems. They cater to a broad range of companies, from small to large enterprises, facilitating a smooth transition to digital operations. Conversely, Hybrid deployment is emerging as a favorite among organizations looking to leverage both on-premises and cloud capabilities, enabling them to manage sensitive data while still enjoying the flexibility of the cloud. This segment is gaining traction, driven by firms that have gradual migrations or specific compliance needs.

By End User: Freight Forwarders (Largest) vs. E-commerce Companies (Fastest-Growing)

In the Air Freight Software Market, Freight Forwarders lead in market share, leveraging their extensive networks and existing logistics infrastructure to optimize processes and enhance visibility in shipping operations. Their software solutions provide valuable services such as tracking, route optimization, and real-time updates, which are critical for maintaining competitive advantages in a crowded marketplace. On the other hand, E-commerce Companies are emerging as the fastest-growing segment, driven by the increasing demand for timely and efficient delivery services. The rise of online shopping has compelled these companies to adopt advanced air freight software solutions to streamline their operations, manage inventory, and provide exceptional customer experiences, positioning them as key players in the air freight logistics landscape.

Freight Forwarders (Dominant) vs. Airlines (Emerging)

Freight Forwarders are well-established in the air freight software market, offering comprehensive solutions that facilitate coordination between shippers and carriers. They typically dominate market interactions with their robust capabilities in handling complex logistics needs, managing documentation, and ensuring compliance with international regulations. Their software systems often include features for inventory management, customs clearance, and freight tracking, providing them a competitive edge. Conversely, Airlines are emerging as significant stakeholders in the software segment, recognizing the need for enhanced technology to improve operational efficiency and customer service. With the growing emphasis on digital transformation, airlines are increasingly investing in software solutions that facilitate cargo management, booking systems, and performance analytics, thereby enhancing their responsiveness to market demands.

Get more detailed insights about Air Freight Software Market

Regional Insights

North America : Market Leader in Air Freight

North America continues to lead the Air Freight Software Market, holding a significant market share of 8.06 in 2024. The region's growth is driven by increasing e-commerce activities, demand for real-time tracking, and regulatory support for logistics optimization. The presence of advanced technological infrastructure and a robust supply chain network further catalyzes market expansion. Additionally, government initiatives aimed at enhancing air cargo efficiency contribute to the region's strong performance. The competitive landscape in North America is characterized by major players such as SAP, Oracle, and Freightos, which are continuously innovating to meet the evolving needs of the logistics sector. The U.S. stands out as the leading country, with a high adoption rate of air freight software solutions. Companies are focusing on integrating AI and machine learning to enhance operational efficiency and customer satisfaction, solidifying North America's position as a market leader.

Europe : Emerging Market with Growth Potential

Europe's Air Freight Software Market is poised for growth, with a market size of 4.84 in 2024. The region benefits from a strong regulatory framework that promotes air cargo efficiency and sustainability. Increasing cross-border trade and the rise of e-commerce are significant demand drivers. Furthermore, European Union regulations aimed at reducing carbon emissions in logistics are pushing companies to adopt advanced software solutions, enhancing operational efficiency and compliance. Leading countries in this region include Germany, the UK, and France, where key players like SAP and Transporeon are making significant strides. The competitive landscape is marked by a mix of established firms and innovative startups, all vying for market share. The presence of major logistics hubs and a focus on digital transformation are key factors that will shape the future of the air freight software market in Europe.

Asia-Pacific : Rapidly Growing Air Freight Sector

The Asia-Pacific region is witnessing rapid growth in the Air Freight Software Market, with a market size of 2.88 in 2024. This growth is fueled by increasing trade activities, particularly in countries like China and India, where demand for efficient logistics solutions is surging. Regulatory support for air cargo operations and investments in infrastructure are also key drivers. The region's focus on enhancing supply chain resilience is further propelling the adoption of advanced software solutions in air freight. China leads the market in the Asia-Pacific, with significant contributions from Australia and Japan. Major players like Cargowise and CargoSmart are actively expanding their presence, focusing on innovative solutions that cater to the unique needs of the region. The competitive landscape is dynamic, with both local and international firms striving to capture market share, making it a vibrant arena for air freight software development.

Middle East and Africa : Emerging Market with Untapped Potential

The Middle East and Africa region represents an emerging market in the Air Freight Software sector, with a market size of 0.32 in 2024. The growth is driven by increasing trade routes and investments in logistics infrastructure. Regulatory frameworks are evolving to support air cargo operations, enhancing the region's attractiveness for global logistics players. The demand for efficient air freight solutions is on the rise, particularly in response to growing e-commerce and trade activities. Countries like the UAE and South Africa are leading the charge, with a focus on modernizing their logistics capabilities. The competitive landscape is characterized by a mix of local and international players, all aiming to capitalize on the region's growth potential. As air freight software adoption increases, the region is set to become a significant player in the global market.

Key Players and Competitive Insights

The Air Freight Software Market is currently characterized by a dynamic competitive landscape, driven by the increasing demand for efficient logistics solutions and the ongoing digital transformation within the industry. Key players such as SAP (DE), Oracle (US), and Cargowise (AU) are strategically positioning themselves through innovation and partnerships, which collectively shape the competitive environment. SAP (DE) focuses on integrating advanced analytics and AI capabilities into its software solutions, enhancing operational efficiency for clients. Meanwhile, Oracle (US) emphasizes cloud-based solutions, allowing for greater scalability and flexibility in air freight operations. Cargowise (AU) is leveraging its global network to expand its service offerings, particularly in emerging markets, thereby enhancing its competitive edge.

The business tactics employed by these companies include optimizing supply chains and localizing services to meet regional demands. The market structure appears moderately fragmented, with several players vying for market share. However, the collective influence of major companies like SAP (DE) and Oracle (US) suggests a trend towards consolidation, as these firms seek to enhance their market presence through strategic acquisitions and partnerships.

In November 2025, SAP (DE) announced a partnership with a leading logistics provider to develop a new AI-driven platform aimed at streamlining air freight operations. This strategic move is likely to enhance SAP's competitive positioning by offering clients cutting-edge technology that improves efficiency and reduces costs. Similarly, in October 2025, Oracle (US) launched an upgraded version of its cloud-based logistics software, which integrates real-time data analytics to optimize freight routing. This innovation is expected to attract new clients seeking advanced technological solutions in their logistics operations.

In September 2025, Cargowise (AU) expanded its operations into Southeast Asia, establishing new partnerships with local carriers. This expansion is significant as it allows Cargowise to tap into a rapidly growing market, potentially increasing its revenue streams and market share in the region. Furthermore, in August 2025, Freightos (US) introduced a new pricing model that leverages machine learning to provide more accurate freight quotes. This initiative may enhance customer satisfaction and loyalty, positioning Freightos as a leader in pricing transparency within the air freight sector.

As of December 2025, the competitive trends in the Air Freight Software Market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies recognize the need to collaborate to enhance service offerings and operational capabilities. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. This shift suggests that companies that prioritize technological advancements and sustainable practices will be better positioned to thrive in the future.

Key Companies in the Air Freight Software Market market include

Industry Developments

  • Q2 2024: CHAMP Cargosystems launches next-generation Cargospot Mobile app for air cargo operations CHAMP Cargosystems announced the launch of its upgraded Cargospot Mobile application, designed to streamline air cargo handling and provide real-time operational visibility for freight forwarders and ground handlers.
  • Q2 2024: Magaya announces partnership with PayCargo to enhance payment automation for air freight software users Magaya Corporation entered into a strategic partnership with PayCargo, integrating digital payment solutions into its air freight management platform to accelerate and automate payment processes for logistics providers.
  • Q2 2024: IBS Software secures contract with Korean Air for iCargo platform deployment IBS Software signed a multi-year agreement with Korean Air to implement its iCargo air freight management platform, aiming to modernize and digitize the airline’s cargo operations globally.
  • Q3 2024: Riege Software launches new digital customs compliance module for Scope air freight platform Riege Software introduced a new module for its Scope platform, enabling automated customs compliance and documentation for international air freight shipments.
  • Q3 2024: Freightos expands air cargo booking platform with real-time capacity from major airlines Freightos announced the addition of real-time air cargo capacity and rates from several leading airlines to its digital booking platform, enhancing transparency and efficiency for freight forwarders.
  • Q3 2024: Descartes acquires Air Freight Solutions, expanding its global logistics software portfolio Descartes Systems Group completed the acquisition of Air Freight Solutions, a provider of cloud-based air cargo management software, to strengthen its offerings in the air freight sector.
  • Q4 2024: CHAMP Cargosystems partners with Lufthansa Cargo for digital cargo management integration CHAMP Cargosystems entered a partnership with Lufthansa Cargo to integrate digital cargo management solutions, aiming to improve operational efficiency and data exchange between the airline and its partners.
  • Q4 2024: Magaya launches AI-powered shipment tracking for air freight customers Magaya Corporation introduced an AI-driven shipment tracking feature for its air freight software, providing predictive ETAs and automated status updates for logistics providers and their customers.
  • Q1 2025: IBS Software appoints new Chief Technology Officer to drive air cargo digitalization IBS Software announced the appointment of a new CTO, tasked with accelerating the development of digital solutions for the air freight software market.
  • Q1 2025: Freightos secures $30 million in Series D funding to expand air cargo digital platform Freightos raised $30 million in a Series D funding round, with the capital earmarked for expanding its digital air cargo booking and management platform globally.
  • Q2 2025: Riege Software opens new regional office in Singapore to support Asia-Pacific air freight customers Riege Software inaugurated a new office in Singapore, aiming to provide enhanced support and localized solutions for air freight software users in the Asia-Pacific region.
  • Q2 2025: Descartes launches cloud-native air cargo booking module for forwarders Descartes Systems Group released a new cloud-native module for air cargo booking, enabling freight forwarders to access real-time rates and capacity from multiple airlines through a single platform.

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 Market Providers
  • Developers
  • Governments Associations and Industrial Bodies

Future Outlook

Air Freight Software Market Future Outlook

The Air Freight Software Market is projected to grow at a 9.62% CAGR from 2024 to 2035, driven by technological advancements, increasing e-commerce demand, and enhanced logistics efficiency.

New opportunities lie in:

  • Integration of AI-driven predictive analytics for route optimization.
  • Development of blockchain solutions for enhanced shipment transparency.
  • Expansion of cloud-based platforms for real-time tracking and management.

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Air Freight Software Market End User Outlook

  • Freight Forwarders
  • Logistics Companies
  • Airlines
  • E-commerce Companies

Air Freight Software Market Application Outlook

  • Cargo Management
  • Warehouse Management
  • Fleet Management
  • Tracking and Visibility
  • Customs Management

Air Freight Software Market Deployment Type Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

Report Scope

MARKET SIZE 202416.1(USD Billion)
MARKET SIZE 202517.6(USD Billion)
MARKET SIZE 203544.1(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)9.62% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledSAP (DE), Oracle (US), Cargowise (AU), Descartes Systems Group (CA), Kuebix (US), Freightos (US), Transporeon (DE), CargoSmart (HK), BluJay Solutions (US)
Segments CoveredApplication, Deployment Type, End User
Key Market OpportunitiesIntegration of artificial intelligence and automation enhances efficiency in the Air Freight Software Market.
Key Market DynamicsRising demand for automation and real-time tracking drives innovation in the Air Freight Software Market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Sejal Akre
Senior Research Analyst

She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. Hands on expertise in management consulting, and extensive knowledge in domain including ICT, Automotive & Transportation and Aerospace & Defense. She is skilled in Go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.

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FAQs

What is the estimated CAGR of the Air Freight Software Market during the forecast period?

The Air Freight Software Industry to reach a CAGR of 2.91% during the forecast period.

Name the major key players of the Air Freight Software Market?

The major key players of the Air Freight Software Market are Freightdata 2000 (UK), Freightos (Hong Kong), FreightPOP (US), Freightview (US), Hard Core Technology Corp. (US), Infor (India), Magaya (US), Riege Software International, GmbH (Germany), Shiprocket (India) and The Descartes Systems Group Inc. (US).

What are the segments of the Air Freight Software Industry?

The Air Freight Software Market segments are the type and end-user segment.

In Which Region Air freight software Market Invested Highest Share ?

North America dominated the air freight software market forecast in 2021

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