Freight Forwarding Market

Global Freight Forwarding Market Research Report: By Service (Transportation and Warehousing, Packaging and Documentation, Value-added Services), By Mode of Transport (Land Freight Forwarding, Sea Freight Forwarding, Air Freight Forwarding), By Customer Type (B2B, B2C), By End-use Industry (Retail and E-Commerce, Manufacturing, Healthcare, Automotive, Others), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2024-2032.

Automobile & Transportation | December 2023 | Report ID: EMR00324 | Pages: 301

The global freight forwarding market was valued at USD 198.52 billion in 2023 and is estimated to reach approximately USD 297.40 billion by 2032, at a CAGR of 4.5% from 2024 to 2032.

 

The market for freight forwarding is essential to international trade because it acts as a bridge that makes it easier for goods to go across borders and continents. It acts as the conductor, overseeing the complex logistics necessary for the safe and effective transportation of cargo. The architects of this process are freight forwarders, who use their knowledge to manage paperwork, choose the best carriers, optimize routes, and negotiate the intricacies of customs laws. The market has experienced significant expansion in recent times, driven by the expansion of global trade, technology breakthroughs, and changing customer needs. In order to improve consumer experiences and streamline operations, businesses in this industry are constantly innovating and integrating digital solutions, AI-driven analytics, and sustainable practices. The dynamic competitive scene, which has both well-established companies and up-and-coming entrepreneurs fighting for market share, encourages innovation and teamwork. With globalization still on the rise and supply chain dynamics always changing, freight forwarding appears to be set for continued growth.

 

 

 

FREIGHT FORWARDING MARKET: REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2023)

198.52 Bn

Projected Market Value (2032)

297.40 Bn

Base Year

2023

Forecast Years

2024 - 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Service, By Mode of Transport, By Customer Type, By End-Use Industry, & Region

Segments Covered

By Service, By Mode of Transport, By Customer Type, By End-Use Industry, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Freight Forwarding Market Dynamics

One of the main forces driving the need for effective cross-border commodities transportation is still globalization. The industry is still undergoing a technological revolution, with digitalization being a major factor. Process optimization, increased transparency, and risk mitigation are being achieved in supply chains through automation, AI-driven analytics, and blockchain solutions. Further driving the demand for increased flexibility, speed, and sustainability in freight operations are shifting consumer expectations and habits. The industry changes to meet the needs of accelerated shipping and last-mile delivery difficulties as e-commerce grows. Trade patterns, carrier capabilities, and price structures are impacted by market forces such as geopolitical conflicts, economic volatility, and regulatory changes. Environmental concerns also encourage the adoption of greener technologies and sustainable logistical systems by driving a move toward eco-friendly activities. The mix of well-established freight forwarding behemoths, nimble, tech-driven startups, and niche competitors in the market drives competition and fosters innovation. To flourish in a constantly changing environment, firms must possess technological capability, agility, and a clear awareness of current market trends to navigate these dynamics successfully.

 

Global Freight Forwarding Market Drivers

  • Globalization and International Trade Expansion

The promotion of interconnection among economies through globalization results in a rise in cross-border trade activities. Efficient freight forwarding services are in high demand as firms venture into markets outside of their home country. This factor increases the demand for efficient logistics solutions that enable the transportation of commodities across various geographical locations. This effect is amplified by the increase of international trade, which is driven by rising economies and the digital economy. Trade patterns have been completely transformed by the rise of e-commerce in particular, necessitating the development of flexible and responsive logistics networks that can manage the intricacies of international supply chains. Free trade agreements and international cooperation have also increased trade volume, which calls for advanced freight forwarding techniques to manage various regulatory environments and maximize shipping lanes. In addition to increasing demand for freight services, globalization and rising international trade also serve as catalysts for industry innovation, promoting the incorporation of sustainable practices and technology to satisfy the changing demands of a globally interconnected economy.

  • Changing Consumer Expectations and E-commerce Boom

Consumer preferences which are defined by a need for speed, transparency, and convenience—have been significantly impacted by the growth of e-commerce. Online retail's rise has changed consumer behavior, which has led to an increase in tiny package shipments and put tremendous pressure on logistics networks to deliver goods reliably, quickly, and frequently with free or expedited shipping. This change has forced freight forwarders to innovate and adapt, rethinking conventional supply chain models to meet the demands of direct-to-consumer shipments and the difficulties associated with last-mile delivery. Additionally, there is a growing need for cross-border shipping due to the expansion of online marketplaces and the globalization of retail, which calls for flexible freight solutions that can handle global logistics with ease.  Meeting the changing expectations established by the e-commerce sector requires adaptable, tech-driven logistics systems that cater to individual consumers and provide real-time tracking and customizable delivery alternatives. In order to satisfy the ever-increasing demands of online consumers, this driver not only modifies operational tactics but also encourages the integration of cutting-edge technologies.

 

Restraints:

  • Cybersecurity and Data Privacy Concerns

Due to its growing reliance on cloud-based software, digital platforms, and network connectivity, the industry is more susceptible to data breaches and cyberattacks. Sensitive data, such as cargo details, customer information, financial transactions, and supply chain operations, are exchanged during freight forwarding. Businesses in this industry risk serious interruptions, monetary losses, and harm to their reputations in the event of a cybersecurity breach. Furthermore, the industry is more complex and vulnerable to cyberattacks because of its linked nature, which involves several parties and cross-border activities. Stricter data privacy regulatory frameworks, like GDPR, and changing data protection laws around the world make compliance more difficult and need for strict data management procedures and strong security measures. Operating budgets are further strained by the cost of putting advanced cybersecurity measures into place and keeping them up to date, especially for smaller freight forwarding companies.

  • Infrastructure Limitations and Congestion

The seamless movement of commodities is hampered by inadequate transportation infrastructure, which includes ports, highways, and rail networks, leading to bottlenecks and delays. Due to obsolete infrastructure or insufficient capacity, ports which are vital nodes in the supply chain—frequently experience congestion, which causes vessel lineups and longer dwell periods for goods. Freight forwarders and their clients suffer operating disruptions, increased costs, and longer lead times as a result of these inefficiencies. Moreover, antiquated or insufficient transportation networks worsen traffic, particularly in cities or important transit corridors, which affects the timely transfer of products between different modes of transportation. Due to longer wait times and less effective routes, these restrictions not only reduce operating efficiency but also raise carbon emissions, which is concerning for the environment.  To overcome these limitations, large sums of money must be spent on infrastructure development, modernization, and strategic planning in order to reduce traffic jams, increase capacity, and improve transportation systems. Governments, businesses, and other logistics players must work together to overcome these obstacles and guarantee a more efficient and seamless movement of commodities in the freight forwarding industry.

 

Opportunities:

  • E-commerce and Last-Mile Delivery Solutions

Last-mile delivery services that are both flexible and efficient are in high demand as more and more customers choose to purchase online. This demand goes beyond simple package delivery; it calls for customized solutions that negotiate the intricacies of city settings, expedite package delivery, and satisfy a range of client demands, such as time-sensitive delivery or different drop-off locations. By reinventing conventional delivery methods and utilizing cutting-edge technology like automated warehouses, drone or autonomous vehicle deliveries, and route optimization algorithms, freight forwarders can take advantage of this special opportunity. The delivery experience is elevated when real-time tracking and customer communication tools are integrated because they improve engagement and transparency. Through partnerships and collaborations with local merchants, logistics providers, and technology companies, freight forwarders can develop last-mile solutions that are environmentally sensitive, economical, and nimble. This paradigm change toward quick, tailored last-mile delivery not only meets customer needs but also encourages innovation and competitive differentiation, putting progressive businesses at the forefront of the rapidly changing e-commerce industry.

  • Technology Integration and Digital Transformation

Operational effectiveness, supply chain visibility, and consumer experiences may all be revolutionized by embracing cutting edge technologies like AI, IoT, blockchain, and data analytics. Thanks to these advancements, freight forwarders may plan routes more efficiently, handle inventories more effectively, and simplify complicated procedures. Demand patterns can be predicted using AI-driven predictive analytics, enabling proactive resource allocation and modifications. Furthermore, real-time cargo tracking is made possible by IoT devices, increasing security and transparency across the transportation chain. Blockchain technology streamlines paperwork and lowers the possibility of fraud by enabling safe and unchangeable record-keeping. Furthermore, cloud-based solutions and digital platforms facilitate information-sharing and cooperation among stakeholders, promoting smooth communication and data-driven decision-making. Adopting this digital revolution improves operational agility and creates opportunities for value-added services like individualized client solutions and supply chain optimization consulting.

 

Segment Overview

By Service

Based on service, the global freight forwarding market is divided into transportation and warehousing, packaging and documentation, value-added services. The transportation and warehousing category dominates the market with the largest revenue share in 2023. This segment involves the physical movement of goods via various modes such as air, sea, road, and rail. Freight forwarders coordinate and optimize transportation routes, select carriers, manage cargo handling, and oversee the efficient movement of goods from origin to destination. Warehousing services encompass storage, inventory management, and distribution. Freight forwarders often maintain or partner with warehouses strategically located along supply chain routes to facilitate efficient storage, order fulfillment, and distribution as part of their logistics solutions. Freight forwarders may provide or manage packaging solutions, ensuring that goods are appropriately packaged for safe transportation, considering factors like fragility, size, and mode of transport. Managing the extensive paperwork involved in international trade is critical. This includes handling customs documentation, bills of lading, insurance forms, and compliance with regulations. Freight forwarders assist in preparing, managing, and processing these documents to ensure smooth and compliant transportation of goods.

 

By Mode of Transport

Based on the mode of transport, the global freight forwarding market is categorized into land freight forwarding, sea freight forwarding, air freight forwarding. The land freight forwarding category leads the global freight forwarding market with the largest revenue share in 2023. Land-based transportation via trucks or trailers for domestic or short-haul international shipments. Road freight forwarding is ideal for goods requiring flexible and direct delivery to specific locations within a country or region. Utilizing trains for transporting goods overland, offering cost-effective and efficient transportation for bulk cargo or long-distance shipments within and between countries. Involves shipping goods via container ships or bulk carriers across oceans and seas. Sea freight forwarding is ideal for transporting large volumes of goods over long distances, offering cost-effectiveness for international trade, especially for bulky or non-perishable items. Transportation of goods by aircraft, providing fast and efficient delivery for time-sensitive or high-value shipments. Air freight forwarding is crucial for perishable goods, urgent deliveries, or goods requiring global distribution within shorter timeframes.

 

By Customer Type

Based on customer type, the global freight forwarding market is segmented into B2B, B2C. The B2B segment dominates the freight forwarding market. B2B freight forwarding primarily serves businesses engaged in commercial trade, encompassing manufacturers, wholesalers, retailers, and other enterprises involved in supply chains. Services catered to B2B clients often involve large-scale shipments, bulk cargo, or containerized goods moved between businesses, factories, distribution centers, or across international borders. B2C freight forwarding serves retail businesses involved in direct sales to individual consumers. This includes e-commerce platforms, online retailers, and businesses offering home delivery services. Services for B2C clients often entail smaller shipments, individual parcels, and delivery to residential addresses, fulfilling orders placed by end consumers.

 

By End-Use Industry

Based on end-use industry, the global freight forwarding market is divided into retail and e-commerce, manufacturing, healthcare, automotive, others. The retail and e-commerce category dominates the market with the largest revenue share in 2023. This segment focuses on fulfilling the logistics needs of online retailers, ensuring efficient last-mile delivery, order fulfillment, and managing returns for individual consumers. Involves logistics services for traditional brick-and-mortar retail businesses, managing inventory, distribution, and transportation of goods to stores or warehouses. Catering to the needs of manufacturing industries, including raw material sourcing, inventory management, and distribution of finished goods to wholesalers or retailers. Providing time-sensitive logistics solutions to ensure components or materials arrive precisely when needed in the manufacturing process. Handling the transportation and storage of pharmaceutical products, medical equipment, and healthcare supplies, often requiring specialized temperature-controlled environments and strict regulatory compliance. Managing the transportation of vehicle parts, components, and finished vehicles, optimizing supply chains for automotive manufacturing and distribution.

 

Global Freight Forwarding Market Overview by Region

The global freight forwarding market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific emerged as the leading region, capturing the largest market share in 2023. Its manufacturing strength and expanding commerce have contributed to its rapid economic expansion, which has elevated it to the forefront of global logistics. Not only have nations like China, India, Japan, and South Korea become as important consumer markets, but they have also emerged as manufacturing hubs. The region's importance is increased by its dual role, which promotes strong inbound and outgoing freight activities. Furthermore, the region's advantageous geographic location supports numerous transcontinental trade routes by acting as a gateway for trade between the East and the West. Additionally, the Asia-Pacific region's digital transformation has sped up the adoption of cutting-edge logistics technologies, improving the visibility and efficiency of the supply chain. This region has seen a meteoric rise in e-commerce, which has increased need for dependable and flexible logistics solutions, especially when it comes to last-mile deliveries. The region's significance has been further spurred by government policies that support infrastructure development, trade liberalization, and free trade agreements. Investments in updating transportation infrastructure, like as ports and railroads, have greatly increased capacity and connectivity, which has helped the area dominate the world's freight forwarding market.

 

 

 

Global Freight Forwarding Market Competitive Landscape

In the global freight forwarding market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global freight forwarding market include Kuehne+Nagel; Deutsche Post AG; DB Schenker; Expeditors International of Washington, Inc.; CEVA Freight forwarding; DSV; FedEx; Uber Technologies, Inc.; United Parcel Service of America, Inc.; NIPPON EXPRESS HOLDINGS, and various other key players.

 

Global Freight Forwarding Market Recent Developments

In June 2023, Kuehne+Nagel has reached an agreement to acquire Morgan Cargo, a freight forwarding company with experience in managing and transporting perishable commodities, and locations in Kenya, the UK, and South Africa. Customers going to and from South Africa, the UK, and Kenya will have stronger links thanks to this purchase, which also expands Kuehne+Nagel's offering in perishable freight forwarding and gives them access to cutting-edge cold chain facilities.

 

Freight Forwarding Market Report Segmentation

ATTRIBUTE

DETAILS

By Service

  • Transportation and Warehousing
  • Packaging and Documentation
  • Value-added Services

By Mode of Transport

  • Land Freight Forwarding
  • Sea Freight Forwarding
  • Air Freight Forwarding

 

By Customer Type

  • B2B
  • B2C

By End-Use Industry

  • Retail and E-Commerce
  • Manufacturing
  • Healthcare
  • Automotive
  • Others

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Freight Forwarding Market Size and Forecast:

To identify and estimate the market size for the global freight forwarding market segmented by service, by mode of transport, by customer type, by end-use industry, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of freight forwarding between 2019 and 2032.

  • Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global freight forwarding market

  • Market Influencing Factors:

To find out the factors which are affecting the sales of freight forwarding among consumers

  • Impact of COVID-19:

To identify and understand the various factors involved in the global freight forwarding market affected by the pandemic

  • Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

  • Business Executives and Decision-Makers
  • Logistics and Supply Chain Professionals
  • Industry Analysts and Researchers
  • Entrepreneurs and Startups
  • Governments, Associations, and Industrial Bodies
  • Investors and Trade Experts

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The global freight forwarding market forecast period is 2024 - 2032.
According to freight forwarding market research, the market is expected to grow at a CAGR of ~4.5% over the coming years.
Asia-Pacific is expected to register the highest CAGR during 2024 - 2032.
Asia-Pacific held the largest share in 2023.
The major players operating in the global freight forwarding market include Kuehne+Nagel; Deutsche Post AG; DB Schenker; Expeditors International of Washington, Inc.; CEVA Freight forwarding; DSV; FedEx; Uber Technologies, Inc.; United Parcel Service of America, Inc.; NIPPON EXPRESS HOLDINGS ,and various others.