Freight Forwarding Market- By Service Type , By Delivery Mode , By Application and By Geography - Opportunity Analysis & Industry Forecast, 2024-2030.

Freight Forwarding Market Overview:

The Freight Forwarding Market size is estimated to reach $14.5 Billion by 2030, growing at a CAGR of 6.1% during the forecast period 2024-2030. The freight forwarding market is driven by globalization, the rise of e-commerce and the increasing demand for faster, more efficient delivery solutions. The growth of international trade fueled by both emerging markets and established economies, logistics digitization and the shift towards supply chain diversification are also contributing to the market’s expansion. The freight forwarding market will continue to evolve with a focus on smart logistics, last-mile delivery solutions and data-driven decision-making. Companies will likely invest heavily in automation, robotics, and blockchain technology to improve transparency, reduce fraud and enhance operational efficiency. Meanwhile, as the demand for on-demand and just-in-time delivery grows, real-time shipment tracking, contactless delivery systems, and the use of drones or autonomous vehicles may become more commonplace.

The growing reliance on digital solutions to streamline operations, such as AI-driven tracking systems, automated warehouses and smart logistics platforms, is enabling freight forwarders to enhance efficiency, transparency, and real-time decision-making in managing the movement of goods. For example, in November 2024, Geekplus Technology Co. unveiled its Vision Only Robot Solution, featuring Intel Visual Navigation Modules which will accelerate the digital transformation of the logistics industry. This digitalization helps reduce costs, optimize routes, and manage inventory and shipments in real-time. Also, in November 2024, Mitsui O.S.K. Lines, Ltd. made an investment in a joint project focused on developing and funding several logistics infrastructure initiatives, particularly multi-tenant advanced automated warehouses across Southeast Asia. Additionally, sustainability is revolutionizing the market as freight forwarders are increasingly adopting eco-friendly practices to meet stricter environmental regulations and consumer demand for greener solutions. The shift towards electric vehicles, carbon-neutral shipping and the optimization of fuel efficiency are gaining prominence in response to both regulatory pressures and a broader industry move toward decarbonization.

Market Snapshot: 

Freight Forwarding Market- Report Coverage:

The “Freight Forwarding Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Freight Forwarding Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

During COVID-19, the market faced challenges such as port congestion, container shortages, and labor disruptions, which led to delays, increased shipping costs, and reduced air freight capacity. The sudden volatility in demand, with some sectors experiencing growth (e.g., e-commerce, healthcare) while others (e.g., automotive, fashion) saw declines, added complexity to supply chain management. However, the pandemic also accelerated digital transformation in the logistics sector with the adoption of cloud-based platforms, AI-powered tools and contactless delivery solutions.

The Russia-Ukraine conflict led to the blockage of key trade routes in Eastern Europe, particularly affecting rail, road and sea transport. This has resulted in longer shipping times, increased costs and a reorientation of trade flows. Black Sea ports have been closed, disrupting the global supply of agricultural goods and causing shortages, particularly in the Middle East and Africa. Additionally, the war has driven up fuel prices, further escalating transportation costs. 

Key Takeaways:

• North America is Leading the Market:

North America accounted for largest market share of in 2023, driven by its advanced infrastructure and strong focus on R&D. The region features an extensive and efficient transportation network, including well-connected ports, highways, and rail systems, which facilitate the smooth movement of goods. In October 2024, the US Logistics Manager’s Index reached 58.9, the highest level since September 2022, according to a November 2023 report by Trading Economics. This growth reflects robust performance in the logistics sector, with key metrics showing notable improvements: warehousing utilization increased to 62.9 up from 60.9, transportation utilization rose to 59.7 from 57.6, and transportation prices surged to 64.1 from 58.4. North American companies continue to lead innovation in logistics by prioritizing R&D, particularly in advanced technologies such as automation, artificial intelligence, and data analytics. A July 2024 report from Logistics Manager highlighted a remarkable $3 billion rise in R&D spending within the US transportation and warehousing sector.

• Value Added Services to Register the Fastest Growth

Value-added services (VAS) in the freight forwarding market are expected to experience the fastest growth in 2024 driven by the rising demand for customized customer-centric logistics solutions. These services go beyond traditional transportation and warehousing to offer additional advantages such as improving operational efficiency, reducing costs, and enhancing the overall customer experience. VAS includes services like packaging, customs clearance, labeling, inventory management, track and trace systems, reverse logistics and integration with e-commerce platforms. For example, in November 2024, DP World, a leader in smart supply chain solutions, further boosted its operational safety and efficiency by introducing a new fleet of prime movers equipped with advanced Electronic Stability Control (ESC) and a Tail Guarding System to prevent reverse collisions. As retailers and manufacturers increasingly demand comprehensive logistics solutions that ensure fast, reliable deliveries while preserving product integrity and customer satisfaction these value-added services help businesses stand out in a competitive market and improve operational flexibility. A case in point is Radiant Logistics, Inc., which, in February 2024, expanded its Service By Air (SBA) network with a new location in San Antonio, Texas. The new facility leverages Radiant’s technology platform, purchasing power, and global network to offer an extensive range of domestic, international and U.S.-Mexico cross-border freight forwarding and logistics services.

• Industrial Sector is Leading the Market

The industrial sector is driving the freight forwarding and logistics market, with industries such as manufacturing, construction, energy and chemicals heavily depending on logistics providers to ensure the timely and efficient delivery of raw materials, machinery, equipment and finished goods. As industries become increasingly interconnected, manufacturers and suppliers are seeking moreadvanced logistics solutions that offer flexibility, efficiency, and cost-effectiveness. Freight forwarding services in the industrial sector typically involve handling large volumes of goods, managing complex supply chains, and ensuring that products reach their destination promptly and in optimal condition. For example, in March 2024, Allcargo Logistics launched Less Than Container Load (LCL) consolidation services in partnership with Container Corporation of India Ltd (CONCOR) at the Inland Container Depot (ICD) in Ankleshwar, South Gujarat, providing comprehensive logistics solutions to MSMEs and SMBs in the Gujarat Industrial Development Corporation (GIDC) areas. Additionally, logistics providers are embracing digital transformation and adopting cutting-edge technologies such as automation and artificial intelligence to improve the accuracy, reliability, and speed of their services. In August 2024, Kaushalya Logistics Limited (NSE: KLL) announced a new freight forwarding agreement with HFCL Limited, enhancing its services by providing GPS-enabled closed-body container trucks to meet HFCL’s transportation requirements.

•  Increased Focus on Last-Mile Delivery Boosts the Market

The growing emphasis on last-mile delivery is significantly driving market growth, as businesses work to meet the increasing consumer demand for faster, more efficient delivery services. The surge in e-commerce, combined with rising customer expectations for quick and reliable deliveries is compelling companies to invest in innovative logistics solutions that optimize the last-mile process. This includes the use of advanced technologies such as route optimization, drones, autonomous vehicles, and smart lockers to improve delivery speed, reduce costs, and enhance operational efficiency. For instance, in May 2024, Ecom Express Limited partnered with Skye Air, a drone technology specialist, to transform last-mile delivery solutions by combining Ecom Express' expansive network with Skye Air’s cutting-edge drone delivery capabilities. Additionally, logistics providers are extending their networks beyond traditional delivery zones to ensure that customers in remote or underserved areas receive timely deliveries. In November 2024, SpeedX, a parcel carrier, acquired Accelerated Global Solutions (AGS), a cross-border e-commerce logistics provider, strengthening their last-mile delivery offerings and expanding their service across the U.S., Canada, and Puerto Rico. This merger is expected to generate combined revenues exceeding $500 million while offering greater operational flexibility and faster deliveries.

• Capacity Constraints and Overcrowded Ports Hampers the Growth

Capacity constraints and overcrowded ports present a major challenge for the logistics and freight forwarding market, causing delays, bottlenecks, and rising shipping costs that disrupt the efficient movement of goods. Overcrowded ports result in longer vessel turnaround times, while limited port capacity adds friction to already strained global supply chains. The shortage of shipping capacity exacerbated by factors such as vessel shortages, labor disruptions and increased demand, drives up freight rates. According to an October 2024 report from UNCTAD, freight rates surged in 2024 due to rerouted vessels, port congestion, and higher operational costs. By mid-2024, the Shanghai Containerized Freight Index (SCFI) had more than doubled from late 2023, with spot freight rates rising across major trade routes. These delays and congestion not only increase operational costs but also create uncertainty and inefficiencies for businesses that rely on timely deliveries. As global trade continues to grow and infrastructure struggles to keep up, these challenges are expected to persist, making it harder for companies to meet customer expectations while maintaining cost-effective operations.

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Freight Forwarding Market. The top 10 companies in this industry are listed below:

1. DHL Group
2. Kuehne + Nagel
3. FedEx Corp.
4. DB Schenker
5. Sinotrans
6. Kerry Logistics
7. C.H. Robinson
8. The Maersk Group
9. DSV Global Transports and Logistics
10. Hellmann Worldwide Logistics

Scope of the Report: 

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