In fiscal year 2023, the cross-border e-commerce market in Japan with the United States and China was valued at around 420.8 billion Japanese yen. The two trade partners were the main markets for cross-border business-to-consumer (B2C) transactions from Japan. In contrast, the domestic B2C e-commerce market was valued at over 24 trillion yen. Where do Japanese order? Major Chinese and American e-commerce platforms such as Alibaba and Amazon are heading the cross-border market. Although the online trade with overseas market showed continuous growth in the past years, domestic trade takes precedence. Untransparent order processes and return policies, as well as the risk of counterfeits, are troubles making shoppers hesitate to order from overseas. Around five thousand cases of troubles with cross-border retail are reported annually to the Cross-border Consumer Center Japan, which offers consultations and help to consumers encountering trouble in this e-commerce segment. What do Japanese order? Despite the high internet penetration rate and a large variety of purchase options in Japan, consumers are reluctant to shift all transactions to the online market. While leisure products and services, such as books, and electronics, were popular consumer goods purchased online, food and daily necessities remained the strongholds of store-based and multichannel retail strategies.

According to a report by PPRO, China was the leading market from which Japanese consumers shopped online. The United States followed closely behind with a 30 percent share of the cross-border e-commerce market.

According to Cognitive Market Research, the global cross-border e-commerce market size is USD 791542.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 30.50% from 2024 to 2031.

North America held the major market of more than 40%of the global revenue with a market size of USD 316616.88million in 2024 and will grow at a compound annual growth rate (CAGR) of 28.7%from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 237462.66million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 182054.71million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.5%from 2024 to 2031.
Latin America's market will have more than 5% of the global revenue with a market size of USD 39577.11million in 2024 and will grow at a compound annual growth rate (CAGR) of 29.9%from 2024 to 2031.
Middle East and Africa are the major markets of around 2% of the global revenue with a market size of USD 15830.84 million in 2024 and will grow at a compound annual growth rate (CAGR) of 30.2%from 2024 to 2031.
The Credit/Debit Cards held the highest Cross border E commerce market revenue share in 2024.

Key Drivers of Cross border E commerce Market

Increasing Internet Penetration and Smartphone Adoption to Increase the Demand Globally

One of the key drivers in the cross-border e-commerce market is the increasing internet penetration and smartphone adoption worldwide. As more people gain access to the internet and smartphones, the potential customer base for online shopping expands, leading to a surge in cross-border e-commerce activities. The convenience of shopping online from international retailers, coupled with the availability of a wide range of products and competitive prices, has fueled the growth of cross-border e-commerce. Moreover, the ease of payment through digital wallets and online payment platforms has further facilitated cross-border transactions. This trend is expected to continue as internet infrastructure improves and smartphone technology becomes more affordable, driving the growth of cross-border e-commerce.

Growing Preference for Global Brands and Product Variety to Propel Market Growth

Another key driver in the cross-border e-commerce market is the growing preference among consumers for global brands and a wider variety of products. Cross-border e-commerce allows consumers to access products that may not be available in their local markets, giving them access to a broader selection of goods from around the world. This has led to an increase in demand for international brands and niche products that cater to specific interests and preferences. Additionally, cross-border e-commerce offers consumers the opportunity to compare prices and quality across different markets, empowering them to make informed purchasing decisions. As a result, retailers are increasingly focusing on expanding their product offerings and improving the shopping experience for cross-border shoppers, driving the growth of cross-border e-commerce.

Restraint Factors Of Cross border E commerce Market

Complex Regulatory Environment to Limit the Sales

One of the key restraints in the cross-border e-commerce market is the complex regulatory environment governing international trade and e-commerce. Different countries have varying regulations and policies regarding taxes, customs duties, import/export restrictions, and consumer protection laws, which can create barriers for cross-border e-commerce businesses. Adhering to these regulations can be challenging for e-commerce companies, especially smaller businesses that may not have the resources to navigate the complexities of international trade laws. This can result in delays, additional costs, and legal issues, limiting the growth of cross-border e-commerce.

Impact of Covid-19 on the Cross border E-commerce market

The Covid-19 pandemic has had a significant impact on the cross-border e-commerce market. With lockdowns and restrictions on movement imposed worldwide, consumers increasingly turned to online shopping for their needs. This surge in online shopping resulted in a spike in cross-border e-commerce as consumers sought products not available in their local markets or looked for better deals abroad. However, the pandemic also brought challenges such as disruptions in supply chains, logistics...

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Air Freight Market Size 2024-2028

The air freight market size is forecast to increase by USD 68.02 billion at a CAGR of 6.82% between 2023 and 2028. The market is experiencing significant growth due to several key trends and drivers. The expanding e-commerce sector is a major contributor, as the demand for fast and reliable delivery of goods, particularly time-sensitive and high-value items, continues to rise. Import and export activities also remain a significant factor, with international trade continuing to be a key driver for air freight. Perishable goods and other temperature-controlled shipments require air freight for their quick transportation, ensuring freshness and quality. Cargo networks are increasingly digitalizing, offering real-time tracking and improved supply chain visibility. Blockchain technology and artificial intelligence are also being adopted to enhance security, transparency, and efficiency in air freight operations. Despite these advancements, the high cost of air freight services remains a challenge for some businesses, requiring continued innovation and optimization to remain competitive.

Market Analysis

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The market is experiencing significant growth, driven by the e-commerce sector's increasing demand for import and export activities. Time-sensitive shipments of perishable goods and high-value products are the primary drivers of this growth. Cargo networks have responded by offering real-time tracking, digitalization, and advanced technologies such as blockchain, artificial intelligence, and IoT to ensure secure and efficient international trades. Expedited air cargo and express shipments have become essential for businesses dealing with time-sensitive cargo, particularly in industries like healthcare, where vaccinations and other perishable items require high-speed shipments. Customizable interfaces, cool chain technology, robots, and automated systems are revolutionizing the air transport services industry.

Big data, deep learning, and real-time analytics are also transforming the way cargo is managed and monitored. In the e commerce sector, the demand for time-sensitive shipments of high value products is driving innovations in real-time tracking and same day service, particularly in the healthcare industries where high speed shipments are crucial for maintaining trade balance and meeting urgent delivery needs. Aircraft are being upgraded with advanced technologies to accommodate the growing demand for air freight services. Overall, the market is poised for continued growth, with a focus on innovation and efficiency.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Commercial
  Private


Type

  International
  Domestic


Geography

  APAC

    China
    Japan


  North America

    US


  Europe

    Germany
    France


  Middle East and Africa



  South America

By End-user Insights

The commercial segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the increasing demand for cross-border shopping of various goods, particularly high-value items such as medical equipment, consumer electronics, automotive products, and perishable food items. Digital technologies have revolutionized the air cargo sector, enabling advanced tracking systems, automation, and operational efficiency in freight services, both domestically and internationally. The availability of same-day delivery options further enhances the appeal of air freight for businesses and consumers. Despite the economic production scales in countries like Japan and China leading to decreasing consumer electronics prices, the frequency of purchases remains high due to their affordability.

Perishable goods, such as food and medical devices, require quick and controlled transportation to maintain their physical and chemical composition until sale and consumption, making airfreight forwarding a preferred mode of transportation.

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The commercial segment was valued at USD 113.54 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region is experiencing significant growth due to the tide in cross-border shopping and same day delivery demands. The retail and elec

The global customs audit market, valued at $9.83 billion in 2025, is projected to experience robust growth, exhibiting a compound annual growth rate (CAGR) of 6.44% from 2025 to 2033. This expansion is driven by several key factors. Increased global trade necessitates meticulous customs compliance, leading to a higher demand for audit services to ensure adherence to regulations and avoid costly penalties. The rising complexity of international trade laws and regulations across different jurisdictions further fuels this demand. E-commerce's exponential growth adds another layer of complexity, requiring businesses to navigate intricate customs procedures related to cross-border shipments. Furthermore, heightened regulatory scrutiny from customs authorities globally is pushing companies to proactively invest in customs audit services to mitigate risks and ensure compliance. This proactive approach is driven by potential financial implications, reputational damage, and even legal ramifications associated with non-compliance. Significant regional variations are expected within the market. North America, particularly the United States, and Europe (Germany and the UK) are anticipated to hold substantial market shares due to established economies and high volumes of international trade. However, the Asia-Pacific region (China and Japan), fueled by rapid economic growth and increasing cross-border e-commerce activity, is poised for significant expansion in the coming years. The market is segmented into customs audit services and customs advisory services, with both experiencing parallel growth, driven by the overarching need for comprehensive customs compliance solutions. Leading companies in the market, such as Deloitte, KPMG, and EY, leverage their global networks and expertise to provide comprehensive solutions. Competitive strategies focus on technological advancements, specialized expertise, and building strong client relationships. Industry risks include fluctuating global trade volumes, changes in international regulations, and economic downturns which can impact client spending.