The Global Freight Forwarding Market Size accounted for USD 199.1 Billion in 2022 and is estimated to achieve a market size of USD 298.6 Billion by 2032 growing at a CAGR of 4.2% from 2023 to 2032.
Freight Forwarding Market Highlights
Freight forwarding is done by freight forwarders who are the intermediate representatives and organize the economical, safe, and efficient transportation and storage of goods for several industries, especially from manufacturers to the end-user or the final place of distribution. Freight forwarders have continuing contracts with airline carriers, shippers as well as rail and road operators for the transportation of cargo.
Global Freight Forwarding Market Dynamics
Freight Forwarding Market Report Coverage
|Market||Freight Forwarding Market|
|Freight Forwarding Market Size 2022||USD 199.1 Billion|
|Freight Forwarding Market Forecast 2032||USD 298.6 Billion|
|Freight Forwarding Market CAGR During 2023 - 2032||4.2%|
|Freight Forwarding Market Analysis Period||2020 - 2032|
|Freight Forwarding Market Base Year||2022|
|Freight Forwarding Market Forecast Data||2023 - 2032|
|Segments Covered||By Services, By Modes of Transportation, By Application, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Agility Global Integrated Logistics, BDP International, C.H. Robinson, CEVA Logistics, DAMCO, DSV, Expeditors International, Geodis, Hellmann Worldwide Logistics and Kerry Logistics.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis
Freight Forwarding Market Insights
Disintermediation, especially from cloud-based services is improbable, although the technology is anticipated to become increasingly popular for freight forwarders operating across the globe which is anticipated to drive the global market. Moreover, a cooperative supply chain network, further driven by technology and computer software is projected to bring impetus to the enhancement of the overall freight forwarding industry over the forecast period. Also, acquisitions and mergers in the global freight forwarding industry have disturbed the sea and air freight positions. Furthermore, owing to the lesser demands in the global market, various companies are focusing on enhancing their profitability rather than the growth of their product portfolio. This is further established via investments in technology and software, rationalization as well a focus on high capital agreement opportunities.
Freight Forwarding Market Segmentation
The worldwide market for freight forwarding is split based on services, modes of transport, application, and geography.
Freight Forwarding Services
According to our freight forwarding industry analysis, transportation and warehousing services typically account for the largest share of the freight forwarding market. This includes goods movement by air, sea, road, and rail, as well as warehouse and distribution centre management. Packaging services are also an important part of the freight forwarding market because they help to protect goods during transportation. However, packaging services typically have a smaller market share than transportation and warehousing. Customs clearance, insurance, and supply chain management are all becoming increasingly important in the freight forwarding market. While VAS represents a smaller share of the market compared to transportation and warehousing, it is expected to continue growing in importance as companies seek more comprehensive logistics solutions.
Freight Forwarding Modes of Transport
According to freight forwarding market forecast, maritime transportation, which includes ships and other vessels, is the dominant mode of transport in the global freight forwarding market. This is because ships are the most cost-effective way to transport large volumes of goods over long distances, especially for bulk commodities such as oil, minerals, and grain. Road transportation, which includes trucks and other vehicles, is the freight forwarding market's second-largest mode of transport. Trucks are especially important for short-haul and last-mile deliveries because they provide flexibility and can reach destinations that other modes of transportation cannot.
Air transportation, including cargo planes and other aircraft, is an important mode of transport in the freight forwarding market, especially for time-sensitive and high-value goods. However, due to its higher cost in comparison to other modes of transportation, air freight accounts for a smaller portion of the overall market. Rail transportation, which includes trains and other railway vehicles, is a smaller mode of transportation in the freight forwarding market than the other modes mentioned above. However, rail remains an important option for certain types of goods and long-distance transportation.
Freight Forwarding Applications
The largest application segment in the freight forwarding market is the industrial and manufacturing sector. This is because this industry necessitates the movement of large volumes of goods, such as raw materials, components, and finished products, across multiple locations. In the freight forwarding market, the retail sector is also a significant application segment. This includes transporting goods from manufacturers to distribution centres, as well as transporting goods from distribution centres to retail stores or directly to consumers via e-commerce channels.
In the freight forwarding market, the healthcare sector is an important and growing application segment. This includes pharmaceuticals, medical devices, and other healthcare products requiring specialised handling and temperature control. Because it necessitates the transportation of equipment, machinery, and supplies to remote locations all over the world, the oil and gas industry is a major application segment in the freight forwarding market.
Freight Forwarding Market Regional Outlook
The Middle East & Africa
Freight Forwarding Market Regional Analysis
The Asia-Pacific region is the largest and fastest-growing market for freight forwarding, driven by the rapid growth of economies such as China, India, and Southeast Asia. Some of the world's busiest ports, such as Shanghai, Singapore, and Hong Kong, are located in the region and serve as major transportation hubs for goods moving between Asia, Europe, and North America.
Europe is another significant freight forwarding market, with many established players providing a wide range of services across the continent. The region has a robust transportation infrastructure, which includes a vast network of roads, railways, and waterways.
The United States, the world's largest economy and a major hub for global trade, dominates the North American freight forwarding market. The region has advanced logistics infrastructure, such as numerous large airports, seaports, and rail terminals.
Freight Forwarding Market Players
Some of the top Freight Forwarding companies offered in the professional report include Agility Global Integrated Logistics, BDP International, C.H. Robinson, CEVA Logistics, DAMCO, DSV, Expeditors International, Geodis, Hellmann Worldwide Logistics and Kerry Logistics.
The market size of freight forwarding was USD 199.1 billion in 2022.
The CAGR of freight forwarding is 4.2% during the analysis period of 2023 to 2032.
The key players operating in the global market are including Agility Global Integrated Logistics, BDP International, C.H. Robinson, CEVA Logistics, DAMCO, DSV, Expeditors International, Geodis, Hellmann Worldwide Logistics and Kerry Logistics.
Asia-Pacific held the dominating position in freight forwarding industry during the analysis period of 2023 to 2032.
Asia-Pacific region exhibited fastest growing CAGR for market of freight forwarding during the analysis period of 2023 to 2032.
The current trends and dynamics in the freight forwarding industry include globalization and international trade growth, e-commerce and the demand for fast and efficient logistics services, and technological advancements and adoption of new technologies.
The transportation and warehousing services held the maximum share of the freight forwarding industry.