South Africa Air Freight Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 1.05 Billion |
| Market Size (2029) | USD 1.20 Billion |
| CAGR (2024 - 2029) | 2.69 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Air Freight Market Analysis
The South Africa Air Freight Market size is estimated at USD 1.05 billion in 2024, and is expected to reach USD 1.20 billion by 2029, at a CAGR of greater than 2.69% during the forecast period (2024-2029).
- Driven by the demands of e-commerce and the need for efficient transport of perishables, electronics, and pharmaceuticals, South Africa's air freight market is on an upward trajectory. South Africa stands out as a pivotal hub in the air freight landscape, not only for its significant passenger traffic but also for its role in connecting diverse regions across Africa and beyond.
- In reaction to port congestion impacting sea freight, air cargo volumes have seen a marked rise. In 2024, South Africa's air freight sector is experiencing a significant surge in air freight traffic. King Shaka Airport, in particular, has reported a remarkable 57% increase in air freight volumes in January 2024. This rise underscores a burgeoning market for high-value, time-sensitive cargo services, presenting fresh opportunities for logistics providers.
- Technological advancements such as blockchain, AI, and IoT are boosting the efficiency of air freight operations in South Africa. These technologies enhance cargo tracking, optimize routes, and cut operational costs. Additionally, South Africa is upgrading its cargo infrastructure to bolster handling capacity and streamline logistics processes.
- Furthermore, the airline commenced operations using a fleet outfitted with advanced avionics, boosting fuel efficiency and curtailing operational expenses. In tandem, Suid Cargo has collaborated with regional tech companies to roll out an app, ensuring customers enjoy effortless booking, real-time shipment tracking, and timely delivery notifications.
South Africa Air Freight Market Trends
Service Segments Propel Market Growth
The forwarding service segment is experiencing robust growth as businesses increasingly demand holistic logistics solutions, covering everything from customer clearance documentation to transportation management. In 2024, companies like Trans Air Freight are harnessing their expertise to optimize supply chains across diverse sectors, notably automotive and pharmaceuticals. Trans Air Freight has bolstered its offerings by incorporating advanced tracking systems, delivering real-time updates to clients, thereby enhancing transparency and boosting customer satisfaction.
Airlines play a pivotal role in South Africa's market landscape. South African Airlines, for instance, has made strategic investments in dedicated freighter aircraft, amplifying its cargo capacity and service portfolio. This move underscores the airline's commitment to maximizing air freight revenues while adapting to its customers' evolving demands.
Mail services stand out as another key driver in South Africa's air freight arena. The e-commerce boom has spurred a heightened demand for swift mail delivery. Responding to this trend, DHL Express has intensified its operations, emphasizing quicker delivery options. In 2024, DHL Express noted a marked increase in air freight volumes, especially during peak shopping events like Black Friday and Cyber Monday.
In conclusion, the forwarding service segment, airlines, and mail services are pivotal in driving the growth of South Africa's air freight market. Companies are continuously innovating and expanding their capabilities to meet the evolving demands of their customers, ensuring sustained market growth.
Impact of E-Commerce in Air Freight Market
E-Commerce stands out as a key growth area. Leading E-Commerce providers heavily rely on air freight to ensure next-day deliveries. Yet, E-Commerce remains a nascent industry in Africa, with penetration levels still low. As E-Commerce expands, so too will the demand for air freight across the continent. With Amazon's entry into South Africa, other global E-Commerce players making inroads, and homegrown platforms like Jumia and Takealot gaining traction, the potential for air freight growth in Africa is vast.
As e-commerce flourishes, South Africa's air freight sector is reaping the rewards, bolstered by heightened infrastructure investments. Notably, as reorted by IATA, African airlines recorded a 7.5% year-on-year growth in air cargo demand as of October 2024.
In conclusion, the expansion of E-Commerce in South Africa presents significant opportunities for the air freight market. As infrastructure continues to improve and more players enter the market, the demand for air freight services is expected to grow substantially, driving further development in the sector.
South Africa Air Freight Industry Overview
The air freight market of South Africa exhibits mild fragmentation, with a few dominant players operating globally. As demand for air freight transportation surges, air cargo service providers grapple with emerging challenges. To maintain competitive pricing, airlines are prioritizing fuel-efficient solutions and the integration of advanced technologies. Some of the major players in the market are Sebenza Freight, DHL Express, Suid Cargo, Barloworld Logistics, Air Menzies International, Trans Air Freight, Intra Speed South Africa Pty Ltd., PPAB Cargo Express, Sky Air Freight, ACS Africa Container Shipping, and many more.
South Africa Air Freight Market Leaders
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Sebenza
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Suid Cargo
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Air Menzies International
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Barloworld Logistics
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DHL Express
*Disclaimer: Major Players sorted in no particular order
South Africa Air Freight Market News
- September 2024: The Ekurhuleni Municipality, located near OR Tambo International Airport, has made strides in advancing its aero polis master plan. Envisioned as a 30-year endeavor, this long-term initiative aims to establish a state-of-the-art logistics hub. The goal is to boost air cargo volumes and strengthen trade connectivity, aligning seamlessly with regional trade initiatives like the African Continental Free Trade Area (AfCFTA).
- July 2024: Airports Company South Africa (ACSA) is moving forward with the construction of a mid-airfield cargo terminal at OR Tambo International Airport. This initiative seeks to bolster cargo capacity, particularly to meet the surging demand for air freight from businesses in Gauteng, South Africa's economic hub.
South Africa Air Freight Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Growth in E Commerce
4.2.1.2 Startegic Locations
4.2.2 Restraints
4.2.2.1 High Operating Costs
4.2.2.2 Environmental Concerns
4.2.3 Opportunities
4.2.3.1 Sustainable Aviation Fuel
4.2.3.2 Expanding Regional Air Cargo
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers/Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Government Regulations and Initiatives
4.5 Supply Chain/Value Chain Analysis
4.6 Technology Snapshot and Digital Trends
4.7 Spotlight on Key Commodities Transported by Air
4.8 Elaboration on Air Freight Rates
4.9 Spotlight on Heavy Cargo/Project Logistics in the Air Cargo Industry
4.10 Insights into Key Ground Handling Equipment in Airports
4.11 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods
4.12 Brief on Cold Chain Logistics in the Air Cargo Sector
4.13 Impact of Geopolitics and Pandemic on the Market
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Forwarding
5.1.2 Airlines
5.1.3 Mail
5.1.4 Other Services
5.2 By Destination
5.2.1 Domestic
5.2.2 International
5.3 By Carrier Type
5.3.1 Belly Cargo
5.3.2 Freighter
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 ACS Africa Container Shipping
6.2.2 Trans Air Freight
6.2.3 Intra Speed South Africa Pty Ltd.
6.2.4 Barloworld Logistics
6.2.5 PPAB Cargo Express
6.2.6 DHL Express
6.2.7 Morgan Cargo
6.2.8 FedEx Express
6.2.9 UPS
6.2.10 Sebenza Freight
6.2.11 Sky Air Freight
6.2.12 Ethiopian Airlines Cargo
6.2.13 Freight First*
- *List Not Exhaustive
6.3 Other Companies
7. FUTURE OUTLOOK OF THE MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, by Activity)
8.2 Economic Statistics - Transport and Storage Sector Contribution to Economy
8.3 External Trade Statistics - Exports and Imports by Product and by Country of Destination/Origin
South Africa Air Freight Industry Segmentation
Air Freight refers to the transportation of goods or consignments via air. This report offers an in-depth analysis of the South African Air Freight Market, highlighting prevailing trends, potential restraints, technological advancements, segment-specific insights, and a thorough overview of the industry's competitive landscape.
The South Africa Air Freight Market is segmented by service (forwarding, airlines, mail, and other services), by destination (domestic and international), and by carrier type (belly cargo and freighter). The report offers market size and forecasts for the South African Air Freight Market in value (USD) for all the above segments.
| By Service | |
| Forwarding | |
| Airlines | |
| Other Services |
| By Destination | |
| Domestic | |
| International |
| By Carrier Type | |
| Belly Cargo | |
| Freighter |
South Africa Air Freight Market Research FAQs
How big is the South Africa Air Freight Market?
The South Africa Air Freight Market size is expected to reach USD 1.05 billion in 2024 and grow at a CAGR of greater than 2.69% to reach USD 1.20 billion by 2029.
What is the current South Africa Air Freight Market size?
In 2024, the South Africa Air Freight Market size is expected to reach USD 1.05 billion.
Who are the key players in South Africa Air Freight Market?
Sebenza, Suid Cargo, Air Menzies International, Barloworld Logistics and DHL Express are the major companies operating in the South Africa Air Freight Market.
What years does this South Africa Air Freight Market cover, and what was the market size in 2023?
In 2023, the South Africa Air Freight Market size was estimated at USD 1.02 billion. The report covers the South Africa Air Freight Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Air Freight Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Air Freight Industry Report
Statistics for the 2024 South Africa Air Freight market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Air Freight analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South Africa Air Freight Market Report Snapshots
