Digital Freight Forwarder Market Size, Share, Growth, and Industry Analysis, By Type (software and services), By Application (large enterprises and small and medium scale industries (SMEs)) and Regional Forecast to 2032

Updated On: 02 September 2024

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DIGITAL FREIGHT FORWARDER MARKET REPORT OVERVIEW

The global Digital Freight Forwarder Market size was USD 1.582 billion in 2023 and the market is projected to touch USD 6.76 billion by 2032, exhibiting a CAGR of 15.5% during the forecast period.

This market comprises the worldwide ocean freight ship operators that provide the use of related technologies in organizing and handling international ocean freight transportation. Current key industry players are Forto (Freight hub), Flex port, Maersk (Twill), Kuehne + Nagel, and Zen cargo; Flex port has the market domination of over 55% as of 2019.The operating areas for our digital freight forwarder services are North America, Europe Asia pacific and the rest. The largest market share was observed in Europe that year and it comprised of more than 45%. It is as a result of the better network in the management of freight and the embracement of technology in the region.

The market has a lot of potential as more and more companies opt for innovations in freight forwarding using online platforms. The objectives of this report are to present the market for digital freight forwarder services on a global level and to conduct a quantitative and qualitative analysis of the market. It allows the reader to build business development plans, evaluate the competitive structure of the market, and make sound economic decisions. The study also presents the global and regional markets sections by company, type, and application accompanied by the major competitors’ profiles.

COVID-19 Impact: Market Growth Self-possessed by Epidemic due to Disturbances of Global Supply Chains and Necessity for Contactless, Actual Logistic Resolutions

The global digital freight forwarder market has also not remained immune to the pandemic caused by the covid-19 virus. Essentially, the first waves of the pandemic and the interruptions in the global supply chains were somewhat problematic for traditional freight forwarders. That, however, exposed the value of digital applications in the continuity of logistics processes during disruptive occurrences such as the COVID-19 crisis. A similar view was observed in the response of many companies who adopted digital freight platforms to address the challenges that resulted from the pandemic; hence, enhancing the digital freight forwarder market.

The transition to digital was based on the demands of constant over-the-air supply chain visibility, touchless business operations, and demand and supply volatility. It is by reviewing this approach that digital freight forwarders proved to be reliable players in times of pandemic and crisis that have generated changes in the logistics strategies of organizations. Thus, the pandemic played a role of a catalyst to the market and ensured further companies’ shift to the digital platforms to continue the market’s growth tendency.

LATEST TRENDS

"Current Developments That Contribute to Market Advancements"

There are several factors that are developing the digital freight forwarder market. The one sub-trend that stands out is connected freight management systems into artificial intelligence and machine learning. These are useful for demand forecasting, logistics routing, and tracking of consignments as and when they are in transit. At the same time, blockchain is being used to optimize supply chain in terms of becoming transparent and secure, possessing non-tweakable documentation and hassle-free procedures at customs. The other trend is the adoption of Internet of Thing (IOT) gadgets that offer a real-time status and location of goods during the transport. The above data is essential in supply chain visibility or risk management in the operation of any organization. In addition, the development of e-commerce business requires fast and cheap solutions to deliver goods, and the traditional players in the freight forwarding market are forced to actively integrate digital technologies to meet the needs of internet shops. An amalgamation of these trends helps to increase the effectiveness, reliability and capacity of digital freight forwarder services and thus drives the market.

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DIGITAL FREIGHT FORWARDER MARKET SEGMENTATION

By Type

Based on type, the global digital freight forwarder market can be categorized into Software and Services.

• Software: Software systems and applications for freight order/delivery, tracking, and management.
• Services: Such ancillary services as customs brokerage, insurance and other specialist services in supply chain management.

By Application

Based on application, the global digital freight forwarder market can be categorized into Large Enterprises and Small and Medium Size Industries.

• Large Enterprises: Substantial logistics requirements for which integrated digital solutions are employed, more capable and effective.
• SMEs: To unlock better logistics services through digital interfaces, with relatively low degrees of financial commitment.

 

DRIVING FACTORS

"Technological Advancement to Drive the Market growth"

The new technology that has come up and is highly significant for is the AI, ML, IoT, and blockchain technologies. AI & ML facilitate predictive analysis that can predict the demands of the organization and optimize the routes, which in turn have lesser operational expenses. RFID offer real time information on the status and location of consignment enabling supply chain risk management. Blockchain technology makes various operations, for instance, customs clearance more effective through providing extra transparency within and protection of the supply chain. In aggregate, these technologies improve the capacity of the digital freight forwarders adding to their importance to the contemporary logistic operations.

"E-Commerce Growth to Drive the Market"

Another factor that cannot go unnoticed is the rising trend of e-commerce business globally which is another major factor driving the digital freight forwarder market. The dynamic of purchasing goods and services has shifted to online platforms, and thus the need for intelligent logistics solutions has gained prominence. Sales are made online, and as such, there is the need to deliver the products to the customers as fast as possible, which is a trait that digital freight forwarder platforms support. Using the digital medium, it is easy for the e-commerce industries to control their logistics efficiently to deliver the products on time and make customers happy. It can therefore be argued that the development of e-commerce is a factor towards the use of digital freight forwarding, hence the growth of market size.

RESTRAINING FACTOR

"Regulatory Challenges Rise the Costs and Delay Market Growth"

The global digital freight forwarder market has many restraints; one of them includes the strict and complicated regulatory scenario. Global transportation requires observance to a myriad of rules and regulations including customs which are manifested in different angles across the globe. Entailing these regulations inflicts great knowledge and experience and failure in observing the rules leads to defaults, fines and other repercussions. Yes, the use of digital platforms in freight forwarding has improved the efficiency of most of the operational processes but compliance with regulations is still an issue. Freight forwarding is also highly complex, and companies which are digital need to invest on experts and on top technology to handle all of these as that presents some entry barriers in the market.

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DIGITAL FREIGHT FORWARDER MARKET REGIONAL INSIGHTS

The market is mainly divided into North America, Europe, Asia-Pacific, Middle East and Africa, Latin America

"Europe to Dominate the Market Due to Digital Literacy and Robust Freight Supervision"

The market is segmented geographically with major regions such as North America, Europe, and Asia Pacific and they all pertain to the digital freight forwarder market share. The European market was the highest in 2019, contributing to 45% or more because of the well-developed logistics and a greater inclination towards the use of technology. Another important market is North America, popular among large companies and characterized by a focus on technological development. It also pointed out that the Asia-Pacific region will experience significant growth because of the steady increase in online trading and improvements in logistics services. To sum up, these regional perspectives bring out the various opportunities and risks that stakeholders experience in deciding the presence and corporate technique of digital freight forwarder firms globally.

KEY INDUSTRY PLAYERS

"Leading Companies Driving Innovation and Growth"

Currently, the leading digital freight forwarder market players are Forto (Freight hub), Flex port, Maersk (Twill), Kuehne + Nagel, and Zen cargo. Flex port has the largest market share in 2019 which proves the company’s domination in the niche and its competitive edges. Others are containers, Freight Amigo Services Limited, CMA CGM, Shipley and Expeditors (FLEET). These companies use sophisticated techniques and solid supply chain systems to ensure optimal freight forwarding services are delivered. These business activities as viable strategies of mergers, acquisitions, and partnerships cement their market dominance and foster more innovative solutions in the digital freight forwarder market place.

List of Market Players Profiled

 

• Forto (Freight hub) (Germany)

• Flex port (U.S)

• Maersk (Twill) (Denmark)

• Zen cargo (U.K)

• I Containers (Spain)

• Freight Amigo Services Limited (Hong Kong)

• CMA CGM (France)

• Shipley (Netherlands)

• Expeditors (FLEET) (U.S)

• Shipp (U.S)

• Freightos (Israel)

INDUSTRIAL DEVELOPEMENT

July 2023: The market of digital freight forwarders looks to feature major industrial changes due to the growing use of digital technologies in logistics. Many organizations are currently adopting these technologies to boost their services and productivity through the use of AI, ML, IoT, and blockchain. The use of these technologies is changing the landscape of freight forwarding since the industry comes equipped with tracking, analysis, and security of documentation. Therefore, the players in digital freight forwarding sector are getting more flexible and adaptable to market fluctuation by offering customers’ solutions that are fast and completely clear.

REPORT COVERAGE

This research work encompasses the global market analysis for digital freight forwarders aimed at market size predictions and estimations of the 2019–2030 period. Besides, it divides the market according to type, application, and region, which offers a comprehensive understanding of the market shares and growth tendencies of the market’s key participants. The report also encompasses the study of technological advancements and new products and the effect of the COVID-19 on the wallet share. Moreover, it provides the reader with the market ranking of the main competitors and brief descriptions of their profile.

The goal of the report is to provide some information about revenues, sales volume, and average prices of the general market and its subdivisions to the existing players in the form of digital freight forwarder companies, or new entrants, and companies related to the industry chain. It provides important information about markets’ characteristics, threats, and opportunities that are beneficial for different businesses and their management when choosing the proper strategies for further development.