GCC Air Freight Transport Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2021 |
| Market Size (2023) | USD 15.64 Billion |
| Market Size (2028) | USD 22.41 Billion |
| CAGR (2023 - 2028) | 7.46 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
GCC Air Freight Transport Market Analysis
The GCC Air Freight Transport Market size is expected to grow from USD 15.64 billion in 2023 to USD 22.41 billion by 2028, at a CAGR of 7.46% during the forecast period (2023-2028).
The GCC air freight and logistics market has been growing steadily, mainly driven by the continued rapid growth of e-commerce in the region and the growth of international trade. Manufacturing, technology, general trade, food and beverage, engineering and construction, and oil and gas industries are driving demand in the air freight and logistics industry.
During the COVID-19 period, with the implementation of the global lockdown, the GCC countries also had a negative impact on their air freight and logistics market. Strict containment measures were taken to prevent the spread of COVID-19, which led to a sharp decline in economic and trade activities. Some of these measures include imposing travel restrictions, border closures, and blockades, which have affected the freight capacity and flow of goods in the Gulf Cooperation Council (GCC) region. Automation, robotics, self-driving vehicles, and big data analysis are expected to change or disrupt air freight and logistics service products.
The location of the region in trans-continental trade has promoted its focus on the development of domestic and transit commodity logistics hubs. In order to take advantage of the geographical advantages, the governments of the Gulf countries are investing heavily in the improvement and expansion of their airport infrastructure.
GCC Air Freight Transport Market Trends
This section covers the major market trends shaping the GCC Air Freight Transport Market according to our research experts:
Growing E-commerce in United Arab Emirates
The United Arab Emirates is rapidly growing into the fastest growing e-commerce market in the Middle East and North Africa (MENA) region. As digitalization becomes the future of the United Arab Emirates, e-commerce has also grown. High Internet usage and smartphone penetration are one of the main driving forces for the growth of the e-commerce market in the United Arab Emirates. A significant advancement in digital technology has led to a dramatic increase in active mobile internet users. The logistics industry in the Gulf Cooperation Council (GCC) region is developing rapidly, thanks to the increase in the contribution of non-oil sectors to GDP, the development of infrastructure, the rise of free trade zones and industrial parks, and the increase in trade cooperation. During the rebound phase of the COVID-19 pandemic, with the support of government initiatives, the region may adopt a digital transformation plan, calling on both the government and the private sectors to apply digital technology.
COVID-19 has Negatively Impacted Air Transportation Industry
The Gulf Council is an important hub for the international aviation industry. Before the COVID-19 pandemic hits the aviation industry, Dubai International Airport was one of the busiest airports in the world, especially in terms of passenger traffic, with passenger throughput exceeding 86.3 million in 2019. In the Gulf Cooperation Council region, Doha International Airport follows closely behind, with 30 million passengers. In terms of fuel costs, the Gulf Cooperation Council region is known for its oil reserves. Therefore, compared with other operating regions, GCC-based airlines may benefit from lower fuel prices.
The increase in maritime transport efficiency and the consequent reduction in fares, coupled with the enhancement of global supply chains, customs, and trade mechanisms, are driving the reduction of air cargo. Although air transportation attracts certain customers at the high end of high-value products, certain market segments (such as perishables) are now seeking access to other modes of transportation.
GCC Air Freight Transport Industry Overview
The GCC air freight transport market is competitive and fragmented, with many international and local players actively competing for market share. The technology integration in the logistics sector is high, and the emergence of digital players in the pool is increasing. E-commerce growth has also helped in the emergence of digital players in the region. With the overall logistics infrastructure in the country developing rapidly, the rivalry within the industry is expected to be fueled further. Major players are FedEx, DHL, Qatar Airways Group, Qatar Aviation Services, and Jazeera Airways Co.
GCC Air Freight Transport Market Leaders
FedEx
DHL
Qatar Airways Group
Qatar Aviation Services
Jazeera Airways Co.
*Disclaimer: Major Players sorted in no particular order
GCC Air Freight Transport Market News
In April 2021, Etihad Cargo, the cargo and logistics arm of the Etihad Aviation Group, strengthened its ability to transport COVID-19 vaccines around the world, after receiving General Civil Aviation Authority (GCAA) approval to expand dry ice carrying capabilities across its Boeing Dreamliner and Boeing 777 fleet.
In May 2021, Oman Air, the national carrier of the Sultanate of Oman, activated an emergency cargo lift initiative to help ferry critical medical aid to India. The ‘COVID-19 cargo lifts’ is expected to be rolled out on routes to India for the next 15 days, in cooperation with Oman’s Foreign Ministry and the Indian community in Oman and may guarantee 10 metric tons of free cargo space on several Indian routes to assist humanitarian organizations and agencies in the transport of essential medical equipment and supplies.
GCC Air Freight Transport 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
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Government Regulations and Initiatives
4.4 Supply Chain/Value Chain Analysis
4.5 Spotlight on Key Commodities Transported by Air
4.6 Elaboration on Air Freight Rates
4.7 Insights into Key Ground Handling Equipment in Airports
4.8 Insights on Air Freight Carriers by Type (Belly Cargo and Freighter)
4.9 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods
4.10 Brief on Cold Chain Logistics in Air Cargo Sector
4.11 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers/Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Services
6.1.1 Forwarding
6.1.2 Airlines
6.1.3 Mail
6.1.4 Other Services
6.2 By Destination
6.2.1 Domestic
6.2.2 International
6.3 By Country
6.3.1 Saudi Arabia
6.3.2 United Arab Emirates
6.3.3 Qatar
6.3.4 Rest of GCC
7. COMPETITIVE LANDSCAPE
7.1 Overview
7.2 Company Profiles
7.2.1 FedEx
7.2.2 DHL
7.2.3 Qatar Airways Group
7.2.4 Qatar Aviation Services
7.2.5 Jazeera Airways Co.
7.2.6 Saudi Airlines Cargo Company Limited
7.2.7 Etihad Aviation Group
7.2.8 Maximus Air
7.2.9 Air Charter Service
7.2.10 JAS Middle East LLC*
- *List Not Exhaustive
7.3 Other Companies
8. KEY VENDORS, AND SUPPLIERS (AIRCRAFT MANUFACTURERS, TECHNOLOGY PROVIDERS, CARGO HANDLING EQUIPMENT MANUFACTURERS , ETC.,) IN AIR CARGO INDUSTRY
9. FUTURE OF THE MARKET
10. APPENDIX
GCC Air Freight Transport Industry Segmentation
Airfreight is a transportation mode of delivering fast-speed shipments via aircraft primarily for longer distances. The report offers a complete background analysis of the GCC air freight industry, including an assessment and contribution of the sector in the economy, market overview, market size estimation for key segments, key countries and emerging trends in the market segments, market dynamics, and key air freight parameters. The report also covers the impact of COVID-19 on the market.
The market is segmented by services (forwarding, airlines, mail, and other services), destination (domestic and international), and Country (Saudi Arabia, United Arab Emirates, Qatar, and Rest of GCC). For each segment, the market sizing anf forecasts have been done on the basis of value (USD billion).
| By Services | |
| Forwarding | |
| Airlines | |
| Other Services |
| By Destination | |
| Domestic | |
| International |
| By Country | |
| Saudi Arabia | |
| United Arab Emirates | |
| Qatar | |
| Rest of GCC |
GCC Air Freight Transport Market Research FAQs
How big is the GCC Air Freight Transport Market?
The GCC Air Freight Transport Market size is expected to reach USD 15.64 billion in 2023 and grow at a CAGR of 7.46% to reach USD 22.41 billion by 2028.
What is the current GCC Air Freight Transport Market size?
In 2023, the GCC Air Freight Transport Market size is expected to reach USD 15.64 billion.
Who are the key players in GCC Air Freight Transport Market?
FedEx, DHL, Qatar Airways Group, Qatar Aviation Services and Jazeera Airways Co. are the major companies operating in the GCC Air Freight Transport Market.
GCC Air Freight Transport Industry Report
Statistics for the 2023 GCC Air Freight Transport market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Air Freight Transport analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
