What Has Been the Growth of the International Freight Forwarding Market So Far?
The international freight forwarding market has seen considerable growth due to a variety of factors.
• Over the past few years, the size of the international freight forwarding market has significantly expanded. It is projected to rise from $110.95 billion in 2024 to $117.71 billion in 2025, growing at a compound annual growth rate (CAGR) of 6.1%.
Factors such as the surge in online shopping, economic growth in developing markets, greater intricacy in supply chains, investment in transport infrastructure, and strict trade laws have all contributed to this growth in the historical period.
How Will the International Freight Forwarding Market?
The international freight forwarding market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the global freight forwarding market is anticipated to witness robust expansion in the coming years, increasing to $147.1 billion by 2029 with a compound annual growth rate (CAGR) of 5.7%.
This upswing during the projection period is due to factors such as evolving consumer demands for swift and dependable deliveries, the necessity for resilient and flexible logistics solutions, burgeoning city populations, partnerships between logistics firms and technology companies, governmental policies, and economic incentives across different nations. Key trends anticipated in the forecasting period encompass the integration of AI, IoT, and blockchain into logistics, innovations like digital platforms, the push for automation, the adoption of sustainable practices and alternatives, and the application of sophisticated scanning and screening technologies.
Which Factors Are Boosting Growth In The International Freight Forwarding Market?
The proliferation of the e-commerce sector is projected to drive the expansion of the global freight forwarding market. The e-commerce sector, which involves buying and selling goods and services online, enables companies and consumers to conduct transactions digitally, eliminating the need for face-to-face interaction. Growth drivers of the e-commerce industry include the ease of shopping, increased mobile-commerce, advancements in logistics and delivery services, and widespread internet use. International freight forwarding plays a crucial role in e-commerce by handling worldwide shipping logistics, customs procedures, cost control, tracking, and ensuring regulatory compliance, all necessary for the swift and effective transportation of goods across national boundaries. For example, according to the United States' International Trade Administration's data from November 2023, as of January 2021, consumer e-commerce accounted for 36.3% of the UK's total retail market, with revenues anticipated to hit $285.60 billion by 2025. Furthermore, the UK's eCommerce revenues are forecast to register an average annual growth of 12.6% by 2025. Consequently, the booming e-commerce sector is fueling the global freight forwarding market's growth.
What Key Areas Define The Segmentation Of The Global International Freight Forwarding Market?
The international freight forwardingmarket covered in this report is segmented –
1) By Services: Freight Transportation, Warehousing And Distribution, Customs Brokerage, Freight Consolidation, Value-Added Services
2) By Mode Of Transportation: Ocean, Road, Air, Rail
3) By Customer: Business-To-Business (B2B), Business-To-Consumer (B2C)
4) By End-User: Manufacturing, E-Commerce And Retail, Automotive, Healthcare And Pharmaceuticals, Oil And Gas, Food And Beverage, Consumer Goods, Other End-Users
Subsegments:
1) By Freight Transportation: Ocean Freight, Air Freight, Land Freight (Road and Rail), Multimodal Freight
2) By Warehousing and Distribution: Inventory Management, Order Fulfillment, Cross-Docking, Distribution Center Services
3) By Customs Brokerage: Import Customs Clearance, Export Customs Clearance, Tariff and Duty Management, Regulatory Compliance Services
4) By Freight Consolidation: Less-than-Container Load (LCL), Less-than-Truckload (LTL), Full-Container Load (FCL), Groupage Services
5) By Value-Added Services: Packaging and Labeling, Supply Chain Consulting, Insurance Services, Temperature-Controlled Logistics, Risk Management
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How Are Emerging Trends Reshaping The Dynamics Of The International Freight Forwarding Market?
Global players in the market for international freight forwarding are adopting digital workflows and sophisticated analytics tools, including enterprise resource planning (ERP) systems, to boost their operational productivity and simplify logistical operations. ERP tools are combined software solutions that consolidate data, affording real-time insights into business activities, and enhancing coordination, effectiveness, and decision-making through the simplification of processes. For example, DP World, a UAE-based logistics firm, introduced CARGOES Runner in June 2022, an innovative system engineered to optimize the whole freight forwarding business, augmenting efficiency and profits per shipment. This system includes a user-friendly dashboard that simplifies the quote process by enabling swift access to and management of bids. It carries key benefits such as digital billing, which replaces the need for physical paperwork and enhances transaction efficiency. It promotes a digital-first approach, overcoming challenges posed by outmoded legacy systems, thereby significantly enhancing the client experience and operational productivity.
Who Are the Key Players In The International Freight Forwarding Market?
Major companies operating in the international freight forwarding market are:
• DHL Group
• United Parcel Service of America Inc.
• FedEx Corporation
• Kühne + Nagel International AG
• DSV Panalpina A/S
• Schenker Deutschland AG
• Nippon Express Co. Ltd.
• GEODIS SA
• DACHSER Group SE & Co. KG
• CJ Logistics Corporation
• Hellmann Worldwide Logistics SE & Co. KG
• Kintetsu World Express Inc.
• Yusen Logistics Co. Ltd.
• Sankyu Inc.
• Agility Public Warehousing Company
• Bolloré Logistics Netherlands B.V
• Dimerco Express India Private Limited
• Uber Freight LLC
• CEVA Logistics India Private Limited
• Sinotrans India Private Limited
• Panalpina Welttransport Holding AG
What Is The Most Dominant Region In The International Freight Forwarding Market?
Asia-Pacific was the largest region in the international freight forwarding market in 2024. The regions covered in the international freight forwarding market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
