Market Size of Latin America Air Freight Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.04 Billion |
| Market Size (2029) | USD 1.28 Billion |
| CAGR (2024 - 2029) | 4.22 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Air Freight Industry Market Analysis
The Latin America Air Freight Industry is expected to grow from USD 1.04 billion in 2024 to USD 1.28 billion by 2029, at a CAGR of 4.22% during the forecast period (2024-2029).
The air trade in Latin America is growing with increased capacity addition and demand for fresh Latin American perishable goods across the globe. However, the archaic regulations and slow growth in infrastructure are hindering the continent from realizing its full potential.
As per the industry experts, in August 2022, the region had a 9.0% increase in freight volumes for airlines compared to August 2021. Among other areas, Latin America witnessed a significant growth rate. The growth is mainly attributed to the offering of new routes and capacity. The region is also expected to invest more in aircraft for air cargo in the upcoming months. The capacity increased by 24.3%.
The most robust year-on-year performance was achieved by Latin American carriers, with a 2.0% increase in demand for international operations between 2022 and 2023 compared to +1.9%. Capacity also significantly increased by 13.2% (+16.9% for international operations).
The air freight sector is experiencing several difficulties, including planes being grounded, routes being cut, and a drop in demand. Certain global air freight corporations indicate a slackened demand compared to the pandemic.
In contrast to the booming consumer demand that characterized the preceding two years, the air freight sector is currently facing a decline in customer demand, notwithstanding the time of year. Due to several circumstances, air freight companies anticipate a subdued fourth quarter in 2022. These included the broken supply chain, the protracted war, the slowdown of the world economy, and the possibility of a worldwide recession.
Latin America Air Freight Industry Industry Segmentation
The airfreight or air cargo market covers the carriage or transportation of goods by air in overseas and local markets. A complete background analysis of Latin America's air freight industry, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
Latin America's air freight industry is segmented by services (transport, forwarding, and other services), destinations (domestic and international), carrier type (belly cargo and freighter), and country (Brazil, Mexico, Argentina, Colombia, and the Rest of Latin America). The report offers market size and forecasts for all the above segments in value (USD).
| By Services | |
| Transport | |
| Forwarding | |
| Other Services |
| By Destination | |
| Domestic | |
| International |
| By Carrier Type | |
| Belly Cargo | |
| Freighter |
| By Country | |
| Brazil | |
| Mexico | |
| Argentina | |
| Colombia | |
| Rest of Latin America |
Latin America Air Freight Industry Size Summary
The Latin American air freight industry is poised for growth, driven by increased capacity and the rising demand for perishable goods from the region. Despite challenges such as outdated regulations and slow infrastructure development, the sector is experiencing a notable expansion in freight volumes and capacity. The introduction of new routes and investments in aircraft are expected to further bolster the market. However, the industry faces hurdles, including grounded planes, route reductions, and fluctuating demand, which have led to a more subdued market outlook compared to the previous years of high consumer demand. The impact of global economic factors, such as supply chain disruptions and geopolitical tensions, has also contributed to a cautious forecast for the air freight sector.
E-commerce and social commerce are emerging as significant opportunities for logistics providers in Latin America, with the region witnessing a shift towards social commerce platforms. The proliferation of smartphones and the appeal of diverse payment options are driving this trend, particularly in countries like Brazil, Colombia, and Mexico. Brazil's air cargo market benefits from its strategic trade relationship with the United States, although complex local regulations pose challenges for exporters. The industry is moderately fragmented, with major players like FedEx, UPS, and Emirates dominating the market. Recent developments, such as strategic partnerships and the establishment of new logistics hubs, are aimed at enhancing supply chain visibility and efficiency, particularly in Brazil, which remains a key market for air freight services.
Latin America Air Freight Industry Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Current Market Scenario
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1.2 Market Overview
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1.3 Market Dynamics
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1.3.1 Drivers
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1.3.1.1 Extension of new air routes and capacity
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1.3.1.2 Constant Need to Transport Temperature-Sensitive Products
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1.3.2 Restraints
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1.3.2.1 Market Uncertainty
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1.3.3 Opportunities
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1.3.3.1 Implementation of Several Software Solutions
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1.4 Value Chain / Supply Chain Analysis
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1.5 Porter's Five Forces Analysis
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1.5.1 Bargaining Power of Suppliers
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Threat of New Entrants
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Government Regulations and Initiatives
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1.7 Supply Chain/Value Chain Analysis
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1.8 Technology Snapshot and Digital Trends
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1.9 Spotlight on Key Commodities Transported by Air
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1.10 Elaboration on Air Freight Rates
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1.11 Insights into Key Ground Handling Equipment in Airports
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1.12 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods
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1.13 Brief on Cold Chain Logistics in the Air Cargo Sector
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1.14 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Services
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2.1.1 Transport
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2.1.2 Forwarding
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2.1.3 Other Services
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2.2 By Destination
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2.2.1 Domestic
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2.2.2 International
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2.3 By Carrier Type
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2.3.1 Belly Cargo
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2.3.2 Freighter
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2.4 By Country
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2.4.1 Brazil
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2.4.2 Mexico
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2.4.3 Argentina
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2.4.4 Colombia
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2.4.5 Rest of Latin America
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Latin America Air Freight Industry Market Size FAQs
How big is the Latin America Air Freight Industry?
The Latin America Air Freight Industry size is expected to reach USD 1.04 billion in 2024 and grow at a CAGR of 4.22% to reach USD 1.28 billion by 2029.
What is the current Latin America Air Freight Industry size?
In 2024, the Latin America Air Freight Industry size is expected to reach USD 1.04 billion.
