FREIGHT FORWARDING MARKET - GROWTH, TRENDS AND FORECASTS (2023-2028)
Industry Definition
As middlemen between the business that ships the goods and their eventual destination, freight forwarders are an essential link in the supply chain. It involves the planning and transportation of commodities from one location to another by one or more carriers using the air, sea, rail, or road modes of transportation.
The report provides a thorough background analysis of the Freight Forwarding Market, which covers market overview, market size estimation for key segments and emerging trends in the market segments, market dynamics, competition and key component flow statistics.
Key Figures
Number of companies in Transportation and Warehousing: xx
Market Size of the Freight Forwarding Market: ~USD xx
Need a Report
We bring the right people together to challenge established thinking and drive transform in 2020
Brief on the Freight Forwarding Market
The Freight Forwarding Market is estimated to grow with a compounded annual growth rate of about xx% during the forecasted period of 2023-2028.
- The COVID-19 epidemic caused widespread lockdowns, halted economic activity, impacted the economy, and significantly altered the operations, supply chains, laws, and labor requirements in the freight forwarding industry. In 2020, both air and ocean freight volumes decreased dramatically. In the first few months of 2020, the total number of ocean freight containers handled at Chinese ports decreased by 10.1%. March 2020 saw a dramatic decline in air freight volumes of 19% as a result of a sharp decline in commercial flights and a decline in manufacturing volumes.
- The volume of international trade is increasing, and this is a key market driver for freight forwarding. Additionally, the industry is expanding as a result of the increase in international trade agreements. The entire value of international trade in goods was recorded by the World Trade Organization (WTO).
- Global exports of intermediate goods (IGs) increased during the past two years since 2021, with a significant increase in the trade of medical products and metal products across all regions, according to data from the World Trade Organization (WTO). The total volume of global merchandise trade increased by 8.0% in 2021. Global trade exposes consumers and nations to products and services that are either unavailable or more expensive domestically. According to the International Air Transport Association (IATA) in January 2021, the manufacturing and e-commerce sectors support the business, particularly the air freight forwarding market.
- Due to increased international trade, worldwide e-commerce growth, and the number of free trade agreements between countries, the market for freight forwarding is expanding rapidly. However, strict emission rules limit market expansion. Additionally, during the projection period, cost savings and decreased lead times due to the adoption of multimodal systems are likely to create growth prospects.
APAC Expected to Witness High Growth
- Due to the expansion of logistics in APAC nations and the presence of significant economies like China and India, the Asia-Pacific region is experiencing the fastest growth in the global freight and logistics sector. Also contributing to the industry’s growth is the region’s strong government backing for the logistics sector. In two years, from 2021 to 2022, the Global Ocean Freight Rate Index multiplied five times, reaching 500.
- China became the region with the largest production cluster, expanding its commercial partners to the savvy African continent. One Belt, One Road, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and China’s European land bridge are a few of the major global efforts promoting the expansion of the freight forwarding sector.
- The major economies in the region are experiencing a speedy technological integration in the logistics sector. About 80% of freight in India is transported by road, and the trucking sector is implementing cutting-edge tracking technology to track and forecast precise arrival times. Thailand is integrating the blockchain project from IBM and Maersk to improve the efficiency of its cargo tracking procedures.
- The world economy is anticipated to weaken in 2023 before strengthening the following year. By historical standards, growth will continue to be modest as the conflict in Ukraine being fought by Russia and the battle against inflation weigh on the economy. The picture is better than October 2022 despite these challenges, and with growth bottoming out and inflation falling, it may signal a turning point.
Competitive Landscape
With a mix of international, regional, and local companies, the Freight Forwarding market is fragmented. Local players that operate small to medium-sized vehicles and limited storage nonetheless provide market service. The top 20 players, who account for more than 50% of the market, nevertheless control the market. For businesses, having a robust global network is crucial. The companies in the freight forwarding industry are actively incorporating technology, becoming digitized, and expanding the scope and efficiency of their operations in order to capture the upcoming opportunities in the market.
The ASEAN logistics business is attracting more and more interest from international investors for mergers and acquisitions. Because of the rising trade and business in the ASEAN region, international logistics companies have been growing there.
Global companies like DB Schenker, Yusen Logistics, DHL Global Forwarding, The Maersk Group and Kuehne + Nagel International AG are some of the key players in the world among others.
Why buy this report on the Freight Forwarding Market?
UPKR Intelligence market research reports enable you to:
- Understand the market
- Pinpoint the key industry trends
- Identify threats and opportunities
- Quickly build competitive intelligence
This report on Freight Forwarding Market:
- Provides the data on global economic status, trade relations, modal engagement and market size information to assist with planning and strategic decisions.
- It helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
- Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
The Freight Forwarding Market research report includes:
- Analysis of the important factors influencing this industry’s history, including data
- Five-year market projection and trends identified
- For the primary products and markets, thorough research and segmentation
- Analysis of key players in the market, their shares and the competitive environment
UPKR Intelligence is a market research company fully concentrated on the logistics domain. We cover the entire market including the dynamic trends, various segments and the market competition via the analysis of the companies operating in the market to arrive at conclusions to aid the needs of our clients.
Table Of Content
- Market Overview
- Global Economic Overview
- Overview on Freight Forwarding Market
- Market Dynamics
- Market Drivers
- Restraints
- Value Chain Analysis
- Porter’s Five Forces Analysis
- Government Regulations and Initiatives
- Technological Developments in the Market
- Spotlight on Freight Rate
- Insights into Trade Relations
- Impact of Global Economic Headwinds on the Market (includes COVID-19, global recession, etc.)
- Market Segmentation
- By Mode of Transportation
- Road Freight
- Rail Freight
- Sea Freight
- Air Freight
- By End-Users
- Manufacturing
- Oil and Gas
- Distributive Trade
- Construction
- Healthcare
- Other End-Users
- By Geography
- APAC
- Europe
- North America
- Latin America
- Middle East
- By Mode of Transportation
- Competitive Landscape
- Market Concentration Overview
- Company Profiles (list not exhaustive)
- Outlook and Opportunities in the Market
- Appendix
- GDP Distribution and Growth by Economic Activities
- Inflation Statistics
- Contribution of the Transport and Storage Sector to GDP
- External Trade Statistics – Export and Import, by Product
- Key Import and Export Destinations