June 19, 2024
Freight Forwarding Market

The Global Freight Forwarding Market Is Driven By Increasing Cross Border Trade

Freight forwarding involves the planning, coordination, and execution of a product’s movement in both domestic and international supply chains. Freight forwarders organize shipments by air, land, or sea and act as supply chain experts and intermediaries, working hand-in-hand with manufacturers, buyers, transporters, customs brokers, warehouses and more. They help companies reduce costs by consolidating shipments, qualifying carriers, and negotiating competitive rates. Additionally, forwarding services offer value-added services like packaging, documentation, inspections and more. The increasing cross border trade between nations has led to growth in demand for reliable and cost-effective freight forwarding and logistical support.

The global Freight Forwarding Market is estimated to be valued at US$ 248.69 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the Global freight forwarding market size is the adoption of digital tools and technologies. Forwarders are investing heavily in digital platforms and data analytics to streamline operations, provide seamless tracking capabilities to customers, and gain real-time market insights. Digital freight platforms allow forwarders to automate routine tasks, connect stakeholders, transmit documents electronically and optimize transport routes using advanced algorithms. They are also embracing Industry 4.0 technologies like IoT, AI, automation and blockchain to enhance visibility, predict demand trends and improve efficiencies. This digitization is supporting data-driven decision making and helping companies accelerate growth.

Porter’s Analysis

Threat of new entrants: The freight forwarding market requires high capital investments and established logistics networks, lowering the threat of new entrants.
Bargaining power of buyers: Large businesses have significant bargaining power over freight forwarders due to their ability to switch between providers or negotiate rates.
Bargaining power of suppliers: Forwarders have some bargaining power over suppliers as they can switch between multiple transportation providers.
Threat of new substitutes: Substitutes like in-house logistics pose a medium threat as some businesses may opt to manage logistics internally.
Competitive rivalry: The market is highly competitive with the presence of global and regional players.

Key Takeaways

The global Freight Forwarding market is expected to witness high growth. The global Freight Forwarding Market is estimated to be valued at US$ 248.69 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.

Regional analysis comprises North America dominates the market and is expected to grow at a CAGR of 8% during the forecast period. Asia Pacific region is expected to be the fastest growing market over the next few years due to growing international trade in countries like China and India.

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. The market is highly competitive and the top players are focusing on acquiring smaller players and expanding their global presence. Technological advancements will help key players strengthen their service portfolio and market share over the forecast period.

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