Digital Freight Forwarder Market Size, Share, Growth, and Industry Analysis by Type (Book Shipments, Be Informed, Track SKUs, and Others) By Application (Sea Freight, Air Freight, and Rail Freight) Regional Forecast From 2024 To 2031

Updated On: 01 April 2024

DIGITAL FREIGHT FORWARDER MARKET REPORT OVERVIEW 

• 

• Request a Free Sample to learn more about this report

The global digital freight forwarder market size was USD 1643 million in 2022. As per our research, the market is expected to reach USD 9478.2 million in 2031, exhibiting a CAGR of 19.15% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with Digital Freight Forwarder experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Over the past ten years, the advent of online shopping and an increasing number of Internet users have driven the e-commerce industry's explosive expansion. Due to the exponential growth of e-commerce businesses working in the logistics sector, there is an urgent need for them to operate more swiftly and effectively in order to meet modest individual needs. Customers anticipate accurate orders, free returns, and same-day or next-day delivery when making purchases online. Manufacturing (81%), wholesale (81%), and retail (80%) dominate the market for transportation services, according to a 2020 poll. In particular industries, e-marketplaces for logistics and transportation services have exploded with tremendous success

With digital freight forwarders, there will be less manual work. On a single platform, all freight forwarding quotes will be accessible without the bother of lengthy conversations and paper trails. Digital freight forwarder offers many advantages, including immediate quotations, clear pricing, carrier and rate comparisons, tracking, simple documentation, and more. The rise in domestic and international trade, the demand for time-controlled delivery and freight safety, and the introduction of smart technologies like the internet of things (IoT), artificial intelligence (AI), and big data analytical solutions are all contributing factors to the expansion. The revolution in technology and shifting operational requirements in businesses are likely to contribute to the significant expansion of the worldwide digital freight forwarding market over the anticipated period.

COVID-19 Impact: Halt on Manufacturing Operations to Slower Market Growth

The pandemic led to a sharp drop in global logistical operations. A significant supply-demand imbalance in the digital freight forwarder market resulted in significant delays in the global operations of digital freight forwarders. COVID-19, which will be in effect through the second quarter of 2021, had a negative effect on the world digital freight forwarder market. Governments imposed stringent lockdown measures after COVID-19, which led to airline disruptions and prohibitions on e-commerce services, which drastically reduced logistics activities all over the world. The COVID-19 pandemic caused significant supply and demand problems, which caused significant delays in digital freight forwarders around the world.

LATEST TRENDS

"Utilization of Technologies to Boost Market Growth"

The main factors determining effective freight operations in the digital freight forwarder market are timeliness, effectiveness, and accuracy of delivery. This is possible by utilizing technologies that can aid in efficient operations with the least amount of human involvement. Many complicated activities can be handled by big data analytics and other enterprise management suites (ERP), which reduces the amount of human work that is susceptible to errors, inefficiencies, and operational delays. Additionally, there have been a lot of advancements made in the fields of ERP and data analytics, which can be beneficial for difficult businesses like international freight forwarders.

DIGITAL FREIGHT FORWARDER MARKET SEGMENTATION 

• 

• Request a Free Sample to learn more about this report

• By Type Analysis

As per the type, the market is classified as follows: Book Shipments, Be Informed, Track SKUs, and Others. The market segment with the most digital freight forwarder market share is expected to continue to rule by book shipments during the forecast period.

• By Application Analysis

Based on application, the market is segmented as follows: Sea Freight, Air Freight, and Rail Freight). With over half of the market share in 2020 coming from the sea sector, it is projected that this segment will continue to dominate the digital freight forwarder market during the projection period.

DRIVING FACTORS

"Demand for Digital Freight Forwarder Market to Facilitate Market Development"

In the upcoming years, e-retail revenues are expected to increase even more quickly. One of the most common internet activities worldwide is shopping, and as a result, domestic and international e-commerce is flourishing in emerging economies like China, India, and Indonesia. This includes shipments of consumer-packaged products, electronics, and medications in addition to direct-to-consumer shopping. Even product producers are gradually switching from conventional freight forwarding to digital freight forwarding as internet availability increases. Digital freight forwarding offers many advantages, including immediate quotations, clear pricing, carrier and rate comparisons, tracking, simple documentation, and more.

"Evolution of Logistics to Promote Industry Progress"

The logistics sector is evolving into a paperless, digital sector to enable Digital freight forwarder market growth. E-commerce players are looking for ways to cut down on the costs and times associated with order delivery. Transparency in price, convenience, delivery times, and luring uninterrupted returns are the driving forces behind the e-commerce business. To fulfill this need, new business models and solutions must be created by automating material handling, warehouse management, and distribution management systems and digitizing logistics processes. Nearly half (44%) of consumers, according to Conveyco, stated they would be willing to wait two days for products to arrive via swift delivery. In terms of last-mile delivery options and simple return procedures, this has led to more effective and varied fulfillment services.

RESTRAINING FACTORS

"High Initial Capital Expenditure to Hinder Market Growth"

Many small- and medium-sized freight forwarders are unable to implement digitalization in their management system due to their high initial capital expenditure (CAPEX), ownership of expensive complex equipment, and license cost of the software. Additionally, these firms' overall costs go up because educated and expensive human resources are needed to operate the advanced hardware and software. Cost sensitivity will need to be addressed even by large digital freight forwarder market participants that have the potential to digitalize their operational management. The development of the worldwide digital freight forwarding sector may be slowed down by a lack of infrastructure, expensive logistical costs, and strict rules for air freight.

DIGITAL FREIGHT FORWARDER MARKET REGIONAL INSIGHTS 

• 

• Request a Free Sample to learn more about this report

"Development of Economy to Propel Market Progress in North America"

A substantial share digital freight forwarder market is held by North America. The developed economies of the concerned nations will enable them to make significant investments in cutting-edge digital logistics services and solutions. The cost of digital transformation in the logistics industry is anticipated to reach $13.2 billion in the United States by 2020, according to transport and logistics news. Currently, the nation has 28.98% of the digital freight forwarder market. Commercial logistics and transportation are the foundation of the North American economy. Due to regulatory developments like the Compliance, Safety, and Accountability Act, North America's digital freight forwarder market is expanding at a moderate rate.

"Market Players Focus on New Product Launches to Strengthen Market Position"

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and the launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.   

List of Market Players Profiled

• Twill (U.S.)
• Maersk (Denmark)
• Freighthub (New Zealand)
• CMA CGM (France)
• FLEET (U.S.) 
• FreightAmigo Services Limited (China)
• Flexport (U.S.)
• Shypple (Netherlands)
• Zencargo (U.K)
• Kuehne + Nagel (Switzerland)

REPORT COVERAGE

The report covers overall market aspects, including market segmentation based on its type and application. The report depicts a diverse group of participants that includes the market and the potential market leaders. Major factors that are expected to drive major growth in the market. The factors anticipated to expand the market share are also included in the report to offer market insights. The estimated growth of the market in the forecast period is also included in the report. The regional analysis is completed to explain the region's dominance in the global market. The factors hindering the growth of the market are discussed in detail. The SWOT analysis of the market is depicted in the report. It contains all-inclusive market details.