Digital Freight Brokerage Market Size and Trends
The digital freight brokerage market size is forecast to increase by USD 13.54 billion, at a CAGR of 49.2% between 2023 and 2028. The market is experiencing significant growth due to several key trends and factors. Firstly, the increased use of IT-enabled solutions is streamlining the freight brokerage process, enabling real-time tracking, automated pricing, and improved communication between shippers and carriers. Secondly, the growing global e-commerce industry is driving the demand for faster and more efficient shipping solutions, creating an increase in the need for digital freight brokerage services. Lastly, the consolidation of the global shipping industry is leading to increased competition and the need for digital platforms to differentiate and provide value-added services to customers. Overall, these trends are fueling the growth of the digital freight brokerage market and transforming the traditional freight brokerage industry.
The digital transformation of the transportation and logistics industry has revolutionized cargo transportation through the adoption of digital technologies. Digital freight brokerage, a significant segment of third-party logistics, has emerged as a key driver of this transformation. Digitalization and technology transformation have enabled mobile-based freight brokers to offer real-time tracking, data analytics, and artificial intelligence-driven solutions for service improvement. Container shipping and air freight have been major beneficiaries of this trend, with digital technologies streamlining air freight management and optimizing business inventories. The commodity disruption caused by e-commerce and online marketplaces has intensified the need for logistics operations centralization. Venture capital investment in digital freight brokerage has been strong, driven by the potential for service improvement and cost savings. Digital technologies, including smartphones and data analytics, have enabled carriers and shippers to optimize scheduling management and reduce environmental impact. Real-time tracking and cargo transportation have become essential components of the digital freight brokerage value proposition. In conclusion, digital freight brokerage is a dynamic and evolving market that is transforming the way cargo is transported and managed. The adoption of digital technologies, including artificial intelligence and data analytics, is driving innovation and efficiency in the transportation and logistics industry. The market is expected to continue growing as businesses seek to optimize their supply chains and adapt to the changing demands of e-commerce and global trade.
Market Segmentation
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
- Mode Of Transportation Outlook
- Roadway
- Seaway
- Airway
- Railway
- Application Outlook
- Retail and e-commerce
- Food and beverages
- Healthcare
- Automotive
- Others
- Region Outlook
- North America
- The U.S.
- Canada
- Europe
- U.K.
- Germany
- France
- Rest of Europe
- APAC
- China
- India
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- North America
By Mode Of Transportation Insights
The roadway segment is estimated to witness significant growth during the forecast period. The digital freight brokerage market is undergoing a significant transformation in the transportation and logistics sector, driven by the adoption of digital technologies. Container shipping and air freight are key areas where digitalization is making a notable impact, with digital platforms facilitating more efficient and effective management of business inventories. Digital freight brokerage platforms enable service improvement by optimally matching shippers with available carriers, streamlining routes, and maximizing load capacity. This digital transformation is fueled by venture capital investments, automation, and the integration of customer services through mobile applications and artificial intelligence (AI) and machine learning.
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The roadway segment accounted for USD 718.80 million in 2018 and showed a gradual increase during the forecast period. Centralizing logistics through transportation management systems and blockchain technology enhances asset tracking and transaction recording, ensuring transparency and security. Traditional freight brokerage is being disrupted by specialized marketplaces, crowd shipping platforms, digital freight exchanges, tender platforms, and virtual forwarders. The use of smartphones and third-party logistics is further expanding the reach of digital freight brokerage, enabling real-time tracking and management of logistics operations. The growth of e-commerce, food firms, and government organizations is creating an increase in demand for faster and more reliable shipping, making digital freight brokerage an increasingly attractive option for businesses.
Regional Analysis
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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Digital freight brokerage is revolutionizing cargo transportation through online marketplaces that connect shippers and carriers in real-time. Artificial intelligence and data analytics enable efficient load matching and real-time pricing, while inventory management and scheduling management streamline supply chain operations. Carriers benefit from reduced deadhead miles and increased utilization, leading to cost savings. Real-time tracking ensures transparency in the transportation process, reducing the need for manual communication. The environmental impact of freight transportation is minimized through optimized routing and mode selection, including roadway, seaway, airway, and railway. Digital goods brokerage further expands the market's reach, offering a comprehensive solution for various industries. Open pricing models ensure fair and competitive rates, fostering a dynamic and competitive marketplace.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Market Driver
Increased use of IT-enabled solutions is notably driving market growth. The digital transformation of the transportation and logistics industry is driving the global digital freight brokerage market, with vendors adopting advanced digital technologies such as automation, artificial intelligence (AI), and machine learning to improve services and gain a competitive edge. Container shipping and air freight management are major sectors benefiting from this technology-driven shift, with digital freight exchanges, tender platforms, and virtual forwarders centralizing logistics operations and optimizing asset utilization through truck equipment pools and transportation management systems. Venture capital investments are fueling innovation, with mobile applications, blockchain technology, and asset tracking solutions revolutionizing air freight management and customer services.
Further, traditional freight brokerage is being disrupted by these specialized marketplaces and crowd shipping platforms, with mobile-based freight brokers and digitalization of logistics operations becoming the norm. E-commerce, food firms, and government organizations are leading the adoption of these advanced solutions to streamline their supply chain operations and enhance their competitive position in the market. Thus, such factors are driving the growth of the market during the forecast period.
Significant Market Trends
The growing global e-commerce industry is the key trend in the market. The digital transformation of the transportation and logistics industry is being driven by the increasing adoption of digital technologies, such as automation, artificial intelligence (AI), and machine learning, in container shipping, air freight, and business inventories. This trend is expected to significantly impact the digital freight brokerage market, as companies seek to improve their air freight management and centralize their logistics operations. Digital freight brokerage platforms, including tender platforms, virtual forwarders, and digital freight exchanges, are gaining popularity due to their ability to streamline the freight booking process and optimize transportation costs. Venture capital investments have been pouring into this sector, fueling innovation and the development of specialized marketplaces and crowd shipping platforms. The use of mobile applications, blockchain technology, and asset tracking for transaction recording is becoming increasingly common in digital freight brokerage. While digitalization offers numerous benefits, such as increased efficiency and service improvement, it is essential to maintain a human connection in the industry to ensure smooth logistics operations.
Further, the growing demand for e-commerce, particularly from food firms and government organizations, is a significant factor driving the growth of the digital freight brokerage market. With the increasing volume of goods being transported through LCL and LTL transportation, digital freight brokers are becoming an essential partner for e-commerce companies. The trend towards logistics operations centralization, mobile-based freight brokers, and technology transformation is expected to continue, making digital freight brokerage a key growth area in the transportation and logistics industry. Thus, such trends will shape the growth of the market during the forecast period.
Major Market Challenge
Consolidation of global shipping industry is the major challenge that affects the growth of the market. The digital transformation of the transportation and logistics industry is driving the growth of the digital freight brokerage market. Digital technologies, including container shipping, air freight management, and automation, are revolutionizing business inventories and improving customer services through mobile applications, artificial intelligence (AI), and machine learning. Centralizing logistics through transportation management systems and blockchain technology enables asset tracking, transaction recording, and enhances human connection in the industry. Consolidation in the shipping industry, with large players.
Further, venture capital investment in digitalization and technology transformation, driven by e-commerce, food firms, and government organizations, is fueling the growth of mobile-based freight brokers. The commodity disruption and logistics operations centralization are expected to further boost the market during the forecast period. Hence, the above factors will impede the growth of the market during the forecast period
Exclusive Customer Landscape
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
- C H Robinson Worldwide Inc.: The company offers digital freight brokerage services for air freight, cross border and ocean shipping.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- ArcBest Corp.
- Berkshire Hathaway Inc.
- Cargocentric
- Cargomatic Inc.
- CMA CGM SA Group
- Convoy Inc.
- Deutsche Post AG
- Echo Global Logistics Inc.
- Hub Group Inc.
- Kintetsu Group Holdings Co. Ltd.
- Kuehne Nagel Management AG
- Loadsmart Inc.
- Nippon Express Holdings Inc.
- Redwood Logistics
- Renren Inc.
- Roper Technologies Inc.
- Transfix Inc.
- Truckstop Group LLC
- United Parcel Service Inc.
- uShip Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The digital transformation of transportation and logistics industries has significantly impacted traditional freight brokerage markets. Digital technologies such as automation, artificial intelligence (AI), and machine learning have revolutionized air freight management, container shipping, and truck equipment pools. Centralizing logistics operations through digital freight exchanges, tender platforms, and virtual forwarders has improved service quality and efficiency. Mobile applications have enabled mobile-based freight brokers to manage business inventories and customer services on the go. Blockchain technology offers asset tracking, transaction recording, and increased security. The commodity disruption caused by e-commerce and food firms has led to the emergence of specialized marketplaces and crowd shipping platforms. Venture capital investment in digital freight brokerage has accelerated technology transformation and digitalization. Air freight, container shipping, and trucking have seen significant changes with the adoption of digital technologies. Logistics operations centralization and human connection have become essential for effective freight brokerage. Trade lanes have become more efficient with the integration of AI and machine learning in transportation management systems. Smartphones have made it easier for businesses to manage their logistics operations. Government organizations are also embracing digital technologies to streamline their logistics processes. Overall, digital freight brokerage is set to revolutionize the transportation and logistics industries.
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Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 49.2% |
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Market Growth 2024-2028 |
USD 13.54 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
34.4 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 35% |
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Key countries |
US, China, Germany, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ArcBest Corp., Berkshire Hathaway Inc., C H Robinson Worldwide Inc., Cargocentric, Cargomatic Inc., CMA CGM SA Group, Convoy Inc., Deutsche Post AG, Echo Global Logistics Inc., Hub Group Inc., Kintetsu Group Holdings Co. Ltd., Kuehne Nagel Management AG, Loadsmart Inc., Nippon Express Holdings Inc., Redwood Logistics, Renren Inc., Roper Technologies Inc., Transfix Inc., Truckstop Group LLC, United Parcel Service Inc., and uShip Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Market Forecast Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
- Precise estimation of the size of the market and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming market growth and trends and changes in consumer behavior
- Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
- Thorough analysis of the market's competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies
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