PUBLISHER: Markets & Data | PRODUCT CODE: 1599848
PUBLISHER: Markets & Data | PRODUCT CODE: 1599848
Freight Forwarding Market Assessment, By Mode of Transport, By Application, By Customer Type, By Service, By Region, Opportunities and Forecast, 2017-2031F
Global freight forwarding market is projected to witness a CAGR of 4.33% during the forecast period 2024-2031, growing from USD 210.16 billion in 2023 to USD 295.08 billion in 2031. The freight-forwarding market is growing significantly in light of developments in the globalization of trade and e-commerce, along with more complex supply networks. In the same context, freight forwarders, who offer end-to-end logistics services and arrange for transportation, customs clearance, and documentation, form the most critical interface between the producer and consumer. This exposure of e-commerce has made small and medium enterprises (SMEs) require fast and reliable shipping services to target international customers. Besides, improvements in technology, including digital tracking systems and blockchain-based logistics, have increased the efficiency, transparency, and reliability of freight forwarding activities, thus compelling more businesses into these services. Investments in the infrastructure set up by the government, along with such trade agreements, are further nourishing the growth of the industry in emerging markets. Again, sustainability and green logistics are pushing innovation for freight forwarders to grapple with the ever-growing demand for eco-friendly transport solutions. It aligns with the trend of logistics integration, whereby companies hire supply chain management experts to reduce costs and enhance efficiency. This is sustained by the power of this blend of factors that continue to fuel the industry's upward trajectory and anchor it as a cornerstone of global commerce.
In June 2023, Kuehne + Nagel International AG acquired Morgan Cargo Ltd., a leading freight forwarder in South Africa, the United Kingdom, and Kenya, significantly strengthening its logistics network and connectivity in the fresh produce sector with over 40,000 tons of air freight and over 20,000 TEU of ocean freight in 2022. The integration of Morgan Cargo enhances Kuehne+Nagel's offering with state-of-the-art cold chain facilities. This move aligns with Kuehne+Nagel's Roadmap 2026, expanding its presence in high-growth markets like Africa. It promises improved global reach and career opportunities for Morgan Cargo's team, which will benefit the freight forwarding market by increasing efficiency and reliability in perishable goods logistics.
E-commerce to Fuel Freight Forwarding Market Growth
E-commerce has driven the demand for efficient and reliable logistics solutions, significantly spurring the growth of the freight forwarding market. The surge in online shopping has led to increased cross-border trade driving the need for fast delivery services and forcing freight forwarders to effectively manage complex supply chains. In addition, electronic trade platforms are based on forwarders to manage customs authorization, last kilometer storage, and delivery, which are essential to meet consumers' expectations for timely deliveries. Adopting advanced technologies, such as real -time monitoring and automation, further improves the effectiveness of freight, allowing for the transparent movement of goods. As businesses expand globally through e-commerce, freight forwarders play a key role in facilitating international trade by fostering innovation and partnerships in the logistics industry while creating opportunities for market growth.
In April 2023, DHL International GmbH Forwarding and Turkish Airlines, Inc. signed a Memorandum of Understanding to strengthen their cooperation by leveraging Turkish Cargo's SMARTIST facility at Istanbul Airport as a global hub. This partnership aims to enhance operational efficiency, increase air cargo traffic via Istanbul, and boost the city's status as a leading logistics hub. By combining Turkish Cargo's extensive network and Turkiye's strategic geographical advantages, the collaboration will improve service quality, offer reliable air cargo capacity, and support DHL's global logistics operations, ultimately benefiting the freight forwarding market with more effective, productive, and uninterrupted air cargo services.
Advancements in Technology to Drive Freight Forwarding Market Growth
Technological advancements have significantly accelerated the growth of the freight transportation market, making logistics processes more efficient, transparent, and reliable. For instance, digital tracking systems allow companies to monitor shipments in real time, providing greater visibility and control over the supply chain. Auto and controlled AI solutions optimize routes optimization, customs documentation, inventory management, error reduction, saving time, etc. Blockchain technology supports data safety and transparency, strengthening the trust of customers and ensuring companies fulfill regulatory requirements. Additionally, cloud-based platforms enable seamless communication and coordination among shippers, carriers, and customers. These technological innovations attract more businesses to use freight forwarding services, as they simplify complex shipping processes, lower costs, and improve delivery speeds. As a result, technological improvements continue to drive the expansion of the trucking market.
In September 2024, CEVA Logistics SA fully acquired Horoz Bollore Logistics, enhancing its air and ocean capabilities in Turkey. This integration significantly broadens CEVA's service offerings, providing more comprehensive international logistics solutions. By combining the expertise and resources of companies, CEVA aims to deliver more agile, flexible, and customer-centric logistics services. This strategic move strengthens CEVA's presence in Turkey, supporting the freight forwarding market with improved operational efficiency and expanded logistics solutions.
Road Segment to Dominate Freight Forwarding Market Share
Road segment controls the redirect market for its vast global road network that provides its flexibility, economic efficiency, and the last kilometer offer. Road transportation is perfect for average supply, especially in domestic and regional trade, and provides more direct routes than other methods. Many businesses prefer it as it can deliver door-to-door services and is easily adaptable to different sizes and types of goods. Additionally, advances in road infrastructure such as highways and logistics centers have made it more efficient. This advantage is further strengthened by the growing demand for fast delivery due to the expansion of e-commerce.
In May 2023, Nippon Express Holdings Inc. confirmed its acquisition of Austrian logistics provider cargo-partner for around USD 743 million, a move expected to finalize within four to seven months. This acquisition will make the fifth largest combined entity globally in air cargo volumes, enhancing Nippon's network and services in Europe, particularly in Central and Eastern Europe. The deal will strengthen Nippon Express's global presence and competitiveness by leveraging cargo-partner's strong regional networks and expertise, ultimately benefiting the freight forwarding market through increased efficiency, expanded service offerings, and enhanced global logistics capabilities.
North America to Dominate the Freight Forwarding Market Share
North America, mainly the United States, leads the freight forwarding market due to advanced infrastructure, a well-performing economy, and huge industry demand. The region boasts extensive transportation networks in terms of highways, railroads, ports, and airports, making logistics movements efficient and significantly fast. North America is home to many of the world's largest corporations and manufacturing centers, which generates steady demand for reliable freight forwarding services for import and export and domestic shipment. Additionally, the United States and Canadian e-commerce market is rapidly accelerating, leading to efficient logistics and last mile delivery services that mainly endorse road and air freight markets. Advance logistics technologies such as real-time tracking and automation are easily spread throughout North America, offering much-needed increased supply chain transparency and efficiency. The United States-Mexico-Canada Agreement (USMCA) prevails in the cross-border trade benefits available within the region. As regards customs clearing and tariffication, this trade pact has streamlined processes for all parties concerned in the freight forwarding industry. The companies in North America focus on significant investments in sustainable and eco-friendly logistics solutions, which is supported by the nature of infrastructure, market demand, and technological leadership, thereby placing the companies at a considerable forefront in the global freight forwarding market.
In April 2024, Deutsche Post AG expanded its partnership with Baxter Freight, a Nottingham-based freight forwarder, to enhance logistics solutions for the United Kingdom businesses trading with Europe post-Brexit. This partnership was established in 2020 aiming to overcome customs barriers, providing more routes and options for efficient goods movement. Baxter Freight's expertise in customs documentation and routing, combined with DHL's extensive network, supports faster delivery times and improved competitiveness in the European market. This collaboration benefits British businesses, especially smaller brands, by offering value-driven solutions and personalized services, thus strengthening the freight forwarding market.
Future Market Scenario (2024 - 2031F)
The market will face a combination of increasing capacity and fluctuating demand. This will lead to heightened competition among freight forwarders, who will need to differentiate themselves through superior customer service and value-added services.
Table of Contents
1. Project Scope and Definitions
2. Research Methodology
3. Executive Summary
4. Voice of Customer
- 4.1. Product and Market Intelligence
- 4.2. Mode of Brand Awareness
- 4.3. Factors Considered in Purchase Decisions
- 4.3.1. Real-time Tracking
- 4.3.2. Cost-effectiveness
- 4.3.3. Customized Services
- 4.3.4. Technology Integration
5. Global Freight Forwarding Market Outlook, 2017-2031F
6. North America Freight Forwarding Market Outlook, 2017-2031F*
7. Europe Freight Forwarding Market Outlook, 2017-2031F
8. Asia-Pacific Freight Forwarding Market Outlook, 2017-2031F
9. South America Freight Forwarding Market Outlook, 2017-2031F
10. Middle East and Africa Freight Forwarding Market Outlook, 2017-2031F
11. Demand Supply Analysis
12. Value Chain Analysis
13. Porter's Five Forces Analysis
14. PESTLE Analysis
15. Market Dynamics
16. Market Trends and Developments
17. Case Studies
18. Competitive Landscape
19. Strategic Recommendations
20. About Us and Disclaimer
List of Tables
- Table 1. Pricing Analysis of Products from Key Players
- Table 2. Competition Matrix of Top 5 Market Leaders
- Table 3. Mergers & Acquisitions/ Joint Ventures (If Applicable)
- Table 4. About Us - Regions and Countries Where We Have Executed Client Projects
List of Figures
- Figure 1. Global Freight Forwarding Market, By Value, In USD Billion, 2017-2031F
- Figure 2. Global Freight Forwarding Market Share (%), By Mode of Transport, 2017-2031F
- Figure 3. Global Freight Forwarding Market Share (%), By Application, 2017-2031F
- Figure 4. Global Freight Forwarding Market Share (%), By Customer Type, 2017-2031F
- Figure 5. Global Freight Forwarding Market Share (%), By Service, 2017-2031F
