February 21, 2024
Freight Forwarding Market
Ict

Freight Forwarding Market is Estimated to Witness High Growth Owing to Increased Trade Volumes

The freight forwarding market involves the coordination of transportation, tracking, documentation and customs clearance of shipments and cargo. Freight forwarders facilitate transportation through multiple modes such as sea, air, rail and road. They consolidate shipments from multiple clients to obtain volume discounts and ensure safe and timely deliveries. The growing globalization and trade activity has boosted demand for comprehensive logistics and supply chain solutions. International trade volumes have shown strong growth rates over the past few years. Emerging markets in Asia and Africa are trading more globally which is driving the need for professional freight forwarding services.

The Global freight forwarding market is estimated to be valued at US$ 286.5 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the freight forwarding market are Abbott Laboratories, Amgen Inc., GlaxoSmithKline, Johnson and Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Inc., Roche, and Sanofi €“ Aventis. These companies are investing in digitization to enhance visibility, automation and optimization of supply chain networks. Technology is enabling real-time tracking, proactive delivery alerts and paperless documentation.

The market provides significant opportunities for companies offering customized multi-modal solutions, specialized logistics for niche sectors and value-added services. Adoption of AI, IoT, Blockchain is expected to transform freight forwarding by enhancing experience and removing inefficiencies.

The global expansion of companies into new markets will continue to fuel demand. Regional players are expanding internationally through strategic partnerships and acquisitions to leverage global supply chains of multinational clients and gain access to trade lanes. Development of transport infrastructure in emerging countries improves connectivity and aids the mobilization of cargo across borders.

Market drivers
International trade volumes have risen steadily over the past decade and are projected to grow further. This is the key driver boosting the need for efficient Freight Forwarding Market services on a global scale. Industry players catering to evolving trade needs through digitization and innovation will be well positioned to leverage opportunities in this expanding market.

PEST Analysis
Political: The freight forwarding market is impacted by political changes such as tariff policies, trade regulations, security regulations etc. Changes in these factors affects the movement of freight across borders.

Economic: The economic growth and trade volumes are the key drivers for the freight forwarding industry. Economic recession can negatively impact the demand for freight forwarding services.

Social: Social media influence how business networks with customers and provides information. It also impacts customer expectations in terms delivery speed and transparency.

Technological: Advancements in technology like automation, IoT, blockchain etc. are allowing greater visibility and efficient cargo tracking. This is helping improve operational efficiency and lower costs. Technologies like 3D printing can impact production and transportation patterns over the long run.

South East Asia region
The South East Asia region accounts for a significant share of the global freight forwarding market in terms of value. With countries like Indonesia, Thailand, Vietnam etc experiencing strong economic growth, the trade volumes and demand for logistics is surging in this region. Strategic geographic location also makes South East Asia an important transit point.

China has emerged as the fastest growing regional market for freight forwarding. With the country’s manufacturing powerhouse status and the largest trade volumes globally, the complex logistics and transportation requirements are driving rapid growth of freight forwarding industry in China. Continuous investments in logistics infrastructure is further propelling the industry.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it