What Has Driven the Growth of the Freight And Logistics Market in Recent Years?
The freight and logistics market has seen considerable growth due to a variety of factors.
• Over the past few years, the size of the freight and logistics market has consistently been expanding. The market is predicted to increase from $17.26 billion in 2024 to $18.09 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 4.8%.
This sustained growth during the historical period is linked to improvements in transportation technology, containerization and intermodal transport, modifications in regulations and compliance standards, the progression of supply chain management, and the implementation of just-in-time inventory systems.
What Will Be The Freight And Logistics Market Size In The Future?
The freight and logistics market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, there is a promising expansion projected for the freight and logistics market, which is expected to reach $23.16 billion in 2029, with a compound annual growth rate (CAGR) of 6.4%.
The significant growth anticipated in this forecast period can be credited to factors such as the incorporation of AI and machine learning, the development of autonomous vehicles, digital transformations and IoT incorporations, globalization and international trade, and the use of blockchain in tracing supply chains. Key trends projected during this period include automation and robotics, data analytics, predictive insights, last-mile delivery advancements, sustainable methods and green logistics, and a growing demand for speedier delivery alternatives.
What Key Factors and Trends are Driving the Growth of the Freight And Logistics Market?
The growth of the freight and logistics market is predicted to be driven by escalating global trade activities. Global trade exercises encompass the exporting and importing of goods and services across international frontiers. Freight and logistics services are employed to convey goods globally via diverse transportation modalities. The surge in global trade activities has resulted in a heightened volume of goods being transported to various countries through assorted means of transport. The World Trade Organization (WTO), an international body that oversees and enables international trade, forecasts a rise of 3.2% in the volume of world merchandise trade by 2024. Hence, the expansion of global trade activities in developing economies is fuelling the progression of the freight and logistics market.
What are the Market Segments in the Freight And Logistics Market?
The freight and logistics market covered in this report is segmented –
1) By Type: Airways, Railways, Roadways, Waterways
2) By Function: Freight Forwarding, Warehousing, Value-added Services, Other Functions
3) By End User: Manufacturing And Automotive, Oil And Gas, Mining, And Quarrying, Agriculture, Fishing, And Forestry, Construction, Distributive Trade, Other End Users
Subsegments:
1) By Airways: Air Cargo Services, Express Delivery Services
2) By Railways: Freight Rail Services, Intermodal Rail Services
3) By Roadways: Trucking Services, Last-Mile Delivery Services
4) By Waterways: Shipping And Cargo Services, Inland Waterway Transport
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What Trends are Shaping the Freight And Logistics Market?
Leading businesses in the freight and logistics sector are innovating with new offerings like AI-enhanced transportation systems to keep their competitive advantage. A Transportation Management System (TMS) innovatively combines software to effectively and efficiently plan, manage, and execute transportation activities in the supply chain. For instance, in June 2023, US-based software solution firm, ShipCars LLC, unveiled an AI-powered SmartHaul TMS (Transportation Management System). This trailblazing platform leverages artificial intelligence, machine learning, and insight drawn from data to boost efficiency, conserve time, and enhance profitability for carriers within the auto logistics industry. The SmartHaul TMS uses easy-to-use tools for load discovery, process booking, and simplifies operations for company owners, fleet managers, and drivers. With real-time data, smart algorithms, and predictive modeling, carriers are equipped to make sound decisions, minimize non-revenue miles, and simplify the transport management procedure. Noteworthy features comprise an AI Damage Inspection to quicken vehicle inspections, a Trip Builder for crafting efficient routes, and a Mobile Load Board offering immediate access to available loads, dealmaking, and bookings through an intuitive app.
Who Are the Key Players in the Freight And Logistics Market?
Major companies operating in the freight and logistics market include:
• United Parcel Service Inc.
• DHL International GmbH
• Deutsche Post AG
• FedEx Logistics Inc.
• A.P. Moller-Maersk Group
• Kuehne + Nagel International AG
• DSV Panalpina A/S
• C.H. Robinson Worldwide Inc.
• Bolloré Logistics
• Ryder System Inc.
• Nippon Express Co. Ltd.
• Expeditors International of Washington Inc.
• Sinotrans Limited
• J.B. Hunt Transport Services Inc.
• Geodis SA
• Werner Enterprises Inc.
• Kerry Logistics Network Limited
• UPS Supply Chain Solutions Inc.
• GXO Logistics Inc.
• XPO Logistics Inc.
• Knight-Swift Transportation Holdings Inc.
• Kintetsu World Express Inc.
• Schneider National Inc.
• Hellmann Worldwide Logistics GmbH & Co. KG
• Lineage Logistics Holdings LLC
• Americold Realty Trust
• Agility Public Warehousing Company K.S.C.P.
• Ceva Logistics LLC
• APL Logistics Ltd.
• Deutsche Bahn AG
What are the Regional Insights into the Freight And Logistics Market?
Asia-Pacific was the largest region in the freight and logistics market in 2024. North America is expected to be the fastest growing region in the forecast period. The regions covered in the freight and logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
