The freight forwarding market has seen considerable growth due to a variety of factors.
• The size of the freight forwarding market has been on a consistent upward trajectory over the past few years. Forecasts indicate that the market value will rise from $207.1 billion in 2024 to $215.08 billion in 2025, representing a compound annual growth rate (CAGR) of 3.9%.
Economic growth and refinements to the supply chain, alongside increasing consumer expectations for value-added services, advances in transport infrastructure, ERP system integration, and alterations to trade agreements and regulations, all contributed to this historic period of growth.
The freight forwarding market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of freight forwarding is anticipated to experience robust expansion in the coming years, reaching an estimated value of $267.87 billion in 2029, with a 5.6% compound annual growth rate (CAGR). Factors contributing to growth over the predicted period include the synthesized use of AI and data analytics, the broadening of international commerce channels, progression in e-commerce and delivery services, focus on environmentally responsible logistics, and the utilization of self-governing vehicles. Key trends expected through the forecast period comprise strategic collaborations and associations, the impact of worldwide economic circumstances, technologic advancements in storage facilities, an increased demand for additional implemented services, and solutions for combined modes of transportation.
The augmentation in global trade volumes significantly propels the growth of the freight forwarding market. Global trade, the barter of services and products amongst nations, provides consumers and countries the opportunity to engage with goods and services that may otherwise be unattainable or more expensive within their national borders. Freight forwarders orchestrate the intermodal shipment of goods for shippers, and a spike in trade volume will amplify freight forwarding operations. The World Trade Organization (WTO), an international body that oversees and promotes global trade, anticipates the world's merchandise trade volume will escalate by 3.2% in 2024. Consequently, the escalation in global trade volumes is anticipated to stimulate the progress of the freight forwarding market in the future.
The freight forwarding market covered in this report is segmented –
1) By Services: Transportation And Warehousing, Packaging And Documentation, Insurance, Value-added Services
2) By Logistics Model: First Party Logistics, Second Party Logistics, Third Party Logistics
3) By Mode of Transport: Air Freight Forwarding, Ocean Freight Forwarding, Road Freight Forwarding, Rail Freight Forwarding
4) By Customer Type: B2C, B2B
5) By Application: Industrial And Manufacturing, Retail, Healthcare, Media And Entertainment, Military, Oil And Gas, Food And Beverages, Other Applications
Subsegments:
1) By Transportation And Warehousing: Land Freight Services, Ocean Freight Services, Air Freight Services
2) By Packaging And Documentation: Custom Packaging Solutions, Documentation And Customs Clearance
3) By Insurance: Cargo Insurance, Liability Insurance
4) By Value-added Services: Inventory Management, Order Fulfillment, Supply Chain Consulting
The utilization of artificial intelligence (AI) is quickly becoming a major trend in the freight forwarding industry due to its numerous benefits, such as reducing costs, saving time, enhancing productivity, and boosting accuracy via automation and real-time data. A prime example of this occurred in February 2022, when Windward, a Predictive Intelligence firm based in Israel, introduced its Ocean Freight Visibility solution. This novel system, which employs automated data gathering and analysis, allows those in freight forwarding to boost their productivity and scalability. Beyond that, it supplies real-time precise ETA predictions, potential disruption risks, delay reasons, and location-centered insights for containerized freight. The users of Windward's Ocean Freight Visibility system can monitor their containers closely, allowing them to take effective measures to minimize potential shipment disruptions affecting container ETAs. The system also delivers real-time alerts about emerging delays, empowering them to communicate with their clients and implement necessary actions swiftly. Accessible through API integration with existing transportation management systems or a web application, the solution also offers daily email warnings and insights.
Major companies operating in the freight forwarding market include:
• Savino Del Bene S.p.A.
• A.P. Moller-Maersk Group
• CMA CGM Group
• Deutsche Bahn AG
• DSV Panalpina A/S
• DHL Global Forwarding
• C.H. Robinson Worldwide Inc.
• Nippon Express Co. Ltd.
• Expeditors International of Washington Inc.
• Expeditors International of Washington Inc.
• Sinotrans Limited
• GEODIS SA
• Kuehne + Nagel International AG
• Kerry Logistics Network Limited
• Kerry Logistics Network Limited
• UPS Supply Chain Solutions Inc.
• CJ Logistics Corporation
• DACHSER SE
• Bolloré Logistics
• Bolloré Logistics
• Hellmann Worldwide Logistics GmbH & Co. KG
• Agility Public Warehousing Company K.S.C.P.
• Yusen Logistics Inc.
• Kintetsu World Express Inc.
• CTS International Logistics Corporation
• LX Holding
• Yusen Logistics Co. Ltd.
• Dimerco Express Group
• Ceva Logistics LLC
• Logisteed Co. Ltd.
• Seko Logistics
North America was the largest region in the freight forwarding market in 2024. The regions covered in the freight forwarding market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.