Australia Air Freight Market

Australia Air Freight Market Overview:

The Australia air freight market size reached USD 1.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 3.6 Billion by 2032, exhibiting a growth rate (CAGR) of 7.80% during 2024-2032. The growing popularity of e-commerce and express delivery services, increasing efforts to improve airport infrastructure for speeding up delivery times, and rising environmental concerns and shift toward greener logistics are some of the factors impelling the market growth.

Australia Air Freight Market Trends:

Growing Popularity of E-commerce and Express Delivery Services

With online shopping becoming a preferred mode for purchasing goods in Australia, companies are relying on air freight to meet the rising demand for fast deliveries. Individuals are expecting fast delivery, particularly for items that spoil easily, electronics, and expensive products. This trend is causing an increase in fast delivery services, with air cargo playing a crucial part in making sure items are delivered promptly to their destination. E-commerce giants and logistics providers are improving their air freight capabilities to meet the increasing demand. Additionally, many companies are upgrading their fleets, optimizing routes, and enhancing supply chain integration to offer faster and more reliable services. In 2023, Australia Post introduced a converted Airbus A330-200P2F freighter to its fleet to support the growing demand for e-commerce. The aircraft, operated in collaboration with Qantas Freight, increased capacity by 29% and replaced a Boeing 737 freighter, resulting in a 42% reduction in carbon emissions per kilogram of cargo​.

Government Initiatives and Infrastructure Development

Increasing efforts to improve airport infrastructure and logistical abilities by the governing body are bolstering the market growth. Substantial funds are being allocated to major airports like Sydney, Melbourne, Brisbane, and Perth to improve cargo handling capabilities, streamline processes, and upgrade technological infrastructure. These improvements are helping to speed up delivery times, decrease interruptions, and alleviate congestion in shipping services, all of which are essential for meeting the increasing need for effective air freight transportation. The efficiency of air freight operations is being further driven by the construction of new freight terminals, upgraded runway systems, and the implementation of automation in cargo handling. For instance, in 2024, the governing body of Australia revealed $102.4 million funding for Cairns and Mackay airports under the Northern Australia Infrastructure Facility. The funding will help with Cairns' initial notable renovation in three decades and enhance infrastructure at Mackay.

Environmental Concerns and Shift Toward Greener Logistics

Regulators and environmentally conscious individual are encouraging companies to reduce their carbon emissions and adopt greener practices. Several air freight operators are opting for more energy-efficient aircraft in reaction, including those with enhanced fuel efficiency and less noise pollution. Furthermore, businesses are enhancing flight paths to reduce fuel usage and carbon footprint, utilizing cutting-edge technologies, such as artificial intelligence (AI) and big data, to optimize the most effective routes. These efforts are not only addressing environmental concerns but also assisting businesses meet regulatory standards. In 2024, Dovetail Electric Aviation started using Siemens Xcelerator software to create eco-friendly battery and hydrogen-electric propulsion systems for airplanes with zero emissions. This partnership aimed to upgrade existing airplanes in order to decrease operating expenses by as much as 40% and contribute to the decarbonization of air travel.

Australia Air Freight Market News:

• June 2024: Team Global Express revealed a $480 million, seven-year agreement with Texel Air Australasia to enhance internal air freight services in Australia. This involves adding four Boeing 737-800 BCFs to enhance cargo capacity and delivery efficiency on regional routes.
• April 2024: Tasman Cargo Airlines initiated flights with a Boeing 777-200F on a wet-lease basis for DHL Express between Sydney and Hong Kong. The new pathway improves the shipping ability and transportation effectiveness from Australia to Hong Kong.

Australia Air Freight Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on service, destination, and end user.

Service Insights:

• Freight
• Express
• Mail
• Others
   

The report has provided a detailed breakup and analysis of the market based on the service. This includes freight, express, mail and others.

Destination Insights:

• Domestic
• International
   

A detailed breakup and analysis of the market based on the destination have also been provided in the report. This includes domestic and international.

End User Insights:

• Private
• Commercial
   

The report has provided a detailed breakup and analysis of the market based on the end user. This includes private and commercial.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Air Freight Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia air freight market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Australia air freight market?
• What is the breakup of the Australia air freight market on the basis of service?
• What is the breakup of the Australia air freight market on the basis of destination?
• What is the breakup of the Australia air freight market on the basis of end user?
• What are the various stages in the value chain of the Australia air freight market? 
• What are the key driving factors and challenges in the Australia air freight?
• What is the structure of the Australia air freight market and who are the key players?
• What is the degree of competition in the Australia air freight market? 

 Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia air freight market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia air freight market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia air freight industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.