Digital Shipment Market Growth by Deployment, Type, and Geography - Forecast and Analysis 2023-2027

The Global Digital Shipment Market size is estimated to grow at a CAGR of 21.76% between 2022 and 2027 and the size of the market is forecast to increase by USD 50,698.49 million. The growth of the market depends on several factors, such as increasing customer demand for faster and more streamlined services, the advent of new technologies, and an increasing number of companies embracing digitalization.

This digital shipment market report extensively covers market segmentation by type (digital shipping lines and digital freight forwarders), deployment (cloud and on-premises), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Digital Shipment Market During the Forecast Period?

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Technavio’s Exclusive Digital Shipment Market Customer Landscape

The 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 growth strategies.

Global Digital Shipment Market Customer Landscape

Key Drivers, Trends and Challenges

Our researchers analyzed the data with 2022 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 Digital Shipment Market Driver

Increasing customer demand for faster and more streamlined services is the key factor driving the global digital shipment market growth. The market is witnessing an urgent need for digital transformation as customers demand faster and more streamlined services. This has led loyal customers to choose other service providers who offer integrated end-to-end logistics to deliver high value along the supply chain. They are looking for a faster way to make purchases, which further facilitates faster purchasing decisions. Therefore, the freight service provider integrates various digital tools such as online chat and displaying contact information on the website to improve the flow of communication. Additionally, growing demand for a better customer buying experience has led businesses to offer instant quotes, transparent pricing, and the ability to compare rates and carriers.

In addition, the carrier enables better freight tracking by providing an online platform for purchasing and managing freight services. Along with this, digital shipping service providers can share all the documents required for each shipment within their online platform, making it easier for them to quickly access and organize everything in one place when they need it Therefore, many companies prefer shipping service providers with new and efficient digital business platforms to offer more benefits to their customers. Therefore, rising demand for faster and more streamlined logistics services is expected to boost the growth of the digital shipment market during the forecast period. 

Significant Digital Shipment Market Trends

Globalization in the supply chain will fuel the global digital shipment market growth. With the increasing globalization of supply chains and the availability of new market opportunities, the providers of the global digital shipment market are facing intense competition, especially in emerging regions around the world. In addition, most consumer goods companies buy and sell goods and services across borders to expand their business. Shipping local goods internationally also helps to improve the economy, as importing and exporting goods leads to increased tax revenues, and it also contributes to the growth of the target market. Increased international trade has led to an increase in trade corridors.

A trade corridor is an integrated transport network between geographical regions that fosters economic development and facilitates trade. These corridors include integrated infrastructure, such as highways and railroads, that connect cities and countries. Many countries and regions are investing in developing new trade corridors to facilitate the movement of goods and commodities. The economic corridors are used by shippers and carriers to transport products such as electronics, clothing, and vegetables across borders, creating demand for digital shipping services to transport these products efficiently. Therefore, supply chain globalization is expected to have a positive impact on the growth of the digital shipment market during the forecast period. 

Major Digital Shipment Market Challenge

Cybercrimes can majorly impede the growth of the market.  One of the biggest challenges faced by the global digital shipment market is the issue of cybersecurity. As connectivity and digitization increase, so does the risk of hacking and ransomware attacks. Shipping companies, concerned about vulnerabilities across their value chains, have resorted to cybercrime. As technology has become an integral part of shipping operations, data security and security are as important as ensuring operational efficiency. Cybercrime is a growing concern in the shipping industry as the demand to minimize risks associated with ships and port systems increases. Currently, there are many innovative and novel technologies for tracking cargo, digitizing and automating paper filing, providing end-to-end supply chain visibility, integrating marine insurance policies and smart contracts, and recording information about vessels.

It is, therefore, imperative to ensure the protection and cybersecurity of a company's private or sensitive data while establishing interoperability for seamless data exchange between operators. Some of the most common cybercrimes are the manipulation of cargo, shipping, and port systems by introducing viruses, ransomware, and malware. Cybercrime can adversely affect a company's financial performance and brand image. Therefore, the risk of cybercrime associated with digital shipping is expected to hamper the market growth during the forecast period.  

Digital Shipment Market Segmentation by Type, Deployment, and Geography 

Type Analysis

The digital shipping lines segment will contribute a major share of the market, due to the high revenue contribution from digital shipping liners. The digital shipping lines segment showed a gradual increase in the market share with USD 5,910.02 million in 2017 and continued to grow by 2021. Major digital shipping companies operating in the market include Maersk Line, Mediterranean Shipping Co., Hapag Lloyd, and CMA CGM. These shipping lines are basically owned or leased companies that operate vessels that move cargo or containers from a loading port to a discharging port. Shipping lines may own or operate carriers that provide unscheduled service to move cargo from one point to another through a carrier or beneficial owner (BCO). 

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Digital shipping companies typically use containers equipped with tracking devices, which utilize AI and IoT technologies to transmit logistics-related information in real-time. Once the cargo reaches its final destination,  shipping lines often hand it over to freight forwarders. Some of the advantages of digital shipping companies are the ability to book directly online with ocean freight suppliers at competitive prices and the ability to choose the cargo vessel of the desired choice. Additionally, Digital Shipping Companies may not provide additional transportation services after the shipment has reached its final destination. These factors are anticipated to drive the growth of the digital shipping lines segment of the digital shipment market during the forecast period.  

Deployment Analysis

Based on deployment, the cloud-based logistics segment is expected to hold the largest market share. The cloud-based logistics segment is growing rapidly, and its market share is expected to increase during the forecast period. Cloud-based solutions come with recurring payment systems and recurring costs for maintenance and updates rather than huge one-time investments. Other hosted solution options may include a large initial cost followed by an annual support payment.

Logistics is expected to be an early adopter of cloud-based data tools. Cloud-based solutions require no additional hardware or software and are inexpensive. Cloud-based solutions offer significant revenue contributions to market providers. Cost and flexibility in delivering these solutions are the major factors driving the market. Such factors are expected to drive the growth of the cloud segment of the digital shipment market during the forecast period. 

Regional Analysis

APAC is estimated to contribute 30% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  

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APAC can be attributed to the presence of a large consumer base with internet access and the rapid growth of the e-commerce industry in the region. In addition, many major suppliers, such as COSCO, Evergreen Group, Hyundai, Ocean Network Express,  and Yang Ming Marine Transport Corp. are headquartered in the region. This gives suppliers comprehensive access to sales channels for the movement of goods. The presence of highly populated countries with high internet penetration such as India and China is expected to boost the regional market significantly. The rising internet penetration will support online businesses and have a positive impact on the digital shipment market during the forecast period. 

Covid Recovery Analysis:

Different countries were adversely affected by the COVID-19 outbreak in the first half of 2020.  They imposed partial or full lockdowns depending on the severity of the disease outbreak in their country. During the lockdown, people preferred to purchase goods from e-commerce sites, which acted as a catalyst for the digital shipment market.

Many e-commerce companies adopted digital shipping and digital payments to avoid physical contact. Along with this, RBI instructed people in India to use digital payment infrastructure and digital broadcasting.  Such conditions and policies led to changes in people's behavior as they may prefer digital delivery over couriers. Therefore, the digital shipment market is expected to witness significant growth during the forecast period. 

Who are the Major Digital Shipment Market Vendors?

Vendors 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.

AP Moller Maersk AS: The company offers different types of digital shipment solutions such as the Maersk App, Maersk Flow, and Maersk Logistics Hub.

Boxnbiz Technologies Pvt. Ltd: The company offers digital shipment solutions. The company also offers ocean freight, air freight, and customs clearance services.

We also have detailed analyses of the market’s competitive landscape and offer information on 18 market vendors, including:

• CMA CGM Group
• COSCO Shipping International Co. Ltd.
• Descartes Systems Group Inc.
• Deutsche Post AG
• Evergreen Marine Corp. Taiwan Ltd.
• FedEx Corp.
• Flexport Inc.
• Forto GmbH
• Hapag Lloyd AG
• HMM Europe Ltd.
• Kuehne Nagel Management AG
• MSC Mediterranean Shipping Co. SA
• Ocean Network Express Pte. Ltd.
• Pacific International Lines Pte. Ltd.
• TRAXENS
• Yang Ming Marine Transport Corp.
• Zencargo
• ZIM Integrated Shipping Services Ltd.

The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business, which can help a client make the best decision.

Segment Overview

The digital shipment market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook (USD Million, 2017 - 2027)
  • Digital shipping lines
  • Digital freight forwarders

• Deployment Outlook (USD Million, 2017 - 2027)
  • Cloud
  • On-premises

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • China
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Digital Shipment Market Scope
Report Coverage	Details
Page number	163
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 21.76%
Market growth 2023-2027	USD 50,698.49 million
Market structure	Fragmented
YoY growth 2022-2023(%)	19.97
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 30%
Key countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	AP Moller Maersk AS, Boxnbiz Technologies Pvt. Ltd., CMA CGM Group, COSCO Shipping International Co. Ltd., Descartes Systems Group Inc., Deutsche Post AG, Evergreen Marine Corp. Taiwan Ltd., FedEx Corp., Flexport Inc., Forto GmbH, Hapag Lloyd AG, HMM Europe Ltd., Kuehne Nagel Management AG, MSC Mediterranean Shipping Co. SA, Ocean Network Express Pte. Ltd., Pacific International Lines Pte. Ltd., TRAXENS, Yang Ming Marine Transport Corp., Zencargo, and ZIM Integrated Shipping Services Ltd.
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 forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Digital Shipment Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the Digital Shipment Market between 2023 and 2027
• Precise estimation of the size of the digital shipment market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of digital shipment market vendors

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