With participation from major freight forwarding brands like C.H. Robinson Worldwide, DSV, Hellmann Worldwide Logistics, Deutsche Post, DHL Group and Kuehne+Nagel, Valuates Reports has recently published the forecast for freight forwarding market until 2028. According to the report, the global freight forwarding market size was ~ USD 186 billion in 2021, and is expected to grow at a CAGR of 3.3% in the forecast years till 2028.
The booming e-commerce industry and recent technological innovations have been named as the key drivers of the market trends during the forecast period. The rise in the number of activities handled by key vendors will also boost the growth of the freight forwarding market in the upcoming period, along with the rise in trade agreements and subsequent cross border trade.
Freight Forwarding Market Share Analysis:
Based on type, the packaging segment will see a high surge owing to the increased demand for safe delivery of goods whereas, fastest surge will be in VAS services due to rising acceptance among shippers.
Based on application, sea freight forwarding is expected to dominate due to growing cross-border trade and development of port infrastructure.
Based on region, North America is expected to top the market charts as a result of the booming e-commerce industry. However, the Asia-Pacific region will grow the fastest due to rising logistics operations and the presence of emerging economies like China or India.
Trends Influencing the Growth of Freight Forwarding Market:
- E-commerce boom: As customer demands and expectations around e-commerce and delivery witnesses a major post-pandemic shift, e-commerce players are adopting automated freight forwarding solutions (self-tracking methods and notifications for last-mile transporters and final consumers) in order to optimize shipping and yet control the cost of logistics. In addition to it using TMS software, IoT sensors and electronic data logging systems help freight forwarders keep track of the best route, decrease idling time and provide the multitiered pricing for goods based on their total size and volume. These factors will ultimately act as the supporting forces for growth of freight forwarding market.
- Technological developments: Just like other facets of Indian economy, the technological developments have been a driver for growth and innovation in the manufacturing industry as well. With the help of AI, robotic process automation, data analysis & processing, chat bots, predictive analysis & forecasting, and others, the freight forwarding market is currently on a bullish trend.
- Integrated activities: As the global trade gets highly complex and dynamic, freight forwarders have an increasingly important role to play. They provide a variety of services like warehousing, transportation, packaging, documentation, insurance, etc., thereby, supporting the growth of the community as a whole.
- Rising trade volumes: Due to globalization, cross-border delivery of goods, and increasing trade agreements, connectivity has emerged as an utmost priority in a complex chain of people, firms, and organization interactions. The inefficient trade-related infrastructure can seriously impede a country’s growth and its performance on the global stage. Due to this, third-party freight forwarding companies are expected to gain huge significance in the coming years.