Digital Freight Forwarding Market Overview
The global digital freight forwarding market is expected to witness considerable growth during the forecast period (2020–2030), on account of technology transition and changing operational needs in the organizations. The growth can be attributed to the increase in both domestic and global trade; need for time-controlled deliveries and freight safety; and adoption of smart technologies like internet of things (IoT), artificial intelligence, (AI) and big data analytical solutions.
The digital freight forwarding market in terms of end user is categorized into third-party logistics (3PLs), forwarders, brokers, shippers, and carriers. Among these, the 3PLs category is forecasted to hold largest market size, since 3PLs hold important position in supply chain by integrating operations of warehousing and transportation services, to meet the customer requirements and market conditions.
The digital freight forwarding market on the basis of mode is divided into rail freight, road freight, ocean freight, and air freight. Among all these, the ocean freight category is expected to hold largest share in the market as majority of global trade takes place through seas and ocean. However, the air freight category is expected be grow fastest, which can be attributed to the increase in demand for brisk delivery speed as consequence of growing global e-commerce.
Geographically, North America held the largest share in the global digital freight forwarding market in 2019. This is mainly attributed to the U.S. being conventionally global leader of international trade. Moreover, many of the industry participants are also from North America. However, the Asia-Pacific (APAC) region is also following the North American market, and is expected to grow fastest during forecast period, owing to the increasing manufacturing bases and special economic zones (SEZ) in the region. China, India, Australia are the major markets that will propel the growth of the market in the APAC region.
Digital Freight Forwarding Market Dynamics
Opportunities
Time frame, effectiveness, accuracy of a delivery are the major parameters of efficient freight operations in the digital freight forwarding market. This can be achieved with minimal human intervention and leveraging technologies that can be an asset in proficient operations. Big data analytics and other enterprise management suites (ERP) can be used to handle many complex operations, reducing human work, making it prone to miscalculations, inefficiencies and delay in operations. Moreover, there have been a good number of innovations in the field of data analytics and ERP, which can also be helpful for challenging industries like freight forwarding that operate across borders.
Restraints
Due its high initial capital expenditure (CAPEX), owning to high cost of sophisticated equipment and license cost of software, several small- and medium-sized freight forwarders are unable to have digitization in their management system. Moreover, to operate these sophisticated equipment and software, trained and expensive human resource is required, which increases the overall cost for these organizations. Even for large market participants, which have capacity to digitalize their operational management will have to work upon the cost sensitivity.
Digital Freight Forwarding Market Competitive Landscape
The digital freight forwarding market is fragmented in nature due to the presence of many international and domestic players in the sector. DHL International GmbH holds the largest industry share in digital freight forwarding. Descartes is another market participant that has significant presence in freight management systems. The growing penetration of technology and increasing reliance on technology for contacting carriers; negotiating rates; scheduling; and further tracking, tracing, securing, and controlling fleet operations has led to the market growth. Global rise in the e-commerce will further propel the need to handle complex tasks through technology.
Other major industry participants covered in the digital freight forwarding market report with significant share are C.H. Robinson Worldwide, Inc., FedEx Corp., J.B. Hunt Transport Services Inc., Kuehne + Nagel International AG, Penske Truck Leasing Co. LP, United Parcel Service Inc., XPO Logistics Inc., TNT Logistics, Wilson Logistics Group, Nippon Express, Eagle Global Logistics, Maersk Logistics, DHL Danzas Air and Ocean, Schneider National, UTi Worldwide, NYK Logistics, Menlo Worldwide, APL Logistics, SembCorp Logistics (USA), BAX Global, Caterpillar Logistics, and Panalpina.
The report also includes a country-wise analysis of the digital freight forwarding market. The major countries covered in the report are the U.S., Canada, the U.K., France, Germany, Italy, Spain, China, India, Japan, South Korea, Australia, Brazil, Mexico, South Africa, and the U.A.E.
Digital Freight Forwarding Market Size Breakdown by Segment
The Digital Freight Forwarding Market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Components
Based on Mode
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Rail Freight
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Road Freight
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Ocean Freight
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Air Freight
Based on End User
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Third-Party Logistics (3PLs)
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Forwarders
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Brokers
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Shippers
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Carriers
Geographical Analysis
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North America
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Europe
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U.K.
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Germany
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France
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Italy
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Spain
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Asia-Pacific (APAC)
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China
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Japan
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India
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South Korea
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Australia
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Latin America, Middle East and Africa (LAMEA)
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Brazil
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Mexico
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South Africa
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U.A.E
