Digital Shipment Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, US, Japan, Germany, South Korea - Size and Forecast 2024-2028

Digital Shipment Market Size 2024-2028

The digital shipment market size is forecast to increase by USD 94.17 billion at a CAGR of 29.17% between 2023 and 2028.  In today's business landscape, the surge in customer demand for swift and optimized services compels companies to adopt advanced technologies and digitalize their operations. Artificial intelligence (AI), machine learning (ML), and automation are among the innovative technologies revolutionizing industries, enhancing efficiency and delivering enhanced services. The digitalization trend is gaining momentum, with an escalating number of businesses adopting this transformation to stay competitive and cater to evolving customer expectations. This digital shift not only fuels competition but also necessitates investments in digital solutions to remain relevant and competitive in the market. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamics

The market is experiencing rapid growth, driven by the need for better transportation methods and cost-effective shipping solutions in e-commerce. Consumers demand efficient and reliable delivery services, leading to the rise of advance tracking features and instant pricing options. Cross-border e-commerce is further fueling this growth, requiring easy documentation and analytical reports for smooth transactions. Companies like DST Global are investing in shipping to meet these demands. The market is competitive, with comparison of rates and carriers essential for success. Cancellation of orders and immediate quotes are also impacting factors in this dynamic industry. 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

Increasing customer demand for faster and more streamlined services is the key factor driving the market growth. The market is experiencing a pressing need for digital transformation due to customer expectations for faster and more efficient services. This shift has led loyal customers to switch to service providers offering integrated end-to-end logistics, which provides greater value along the supply chain. Customers are now more inclined to compare rates and carriers, seeking a cost-effective method of transportation. This has increased the competitive intensity in the market, prompting service providers to enhance their offerings to attract and retain consumers. Customers seek quicker purchasing processes, leading to faster decisions. To enhance communication, freight service providers are integrating various digital tools such as online chat and prominently displaying contact information on their websites.

Furthermore, the increasing demand for a superior customer buying experience has prompted businesses to provide instant quotes, transparent pricing, and the ability to compare rates and carriers. To improve freight tracking, carriers are offering online platforms for purchasing and managing freight services, including advanced tracking features and analytical reports. This enables better transportation methods, including air transportation, and allows for the cancellation of orders when necessary. Digital shipping service providers are also facilitating easy access to all shipment-related documents within their online platforms, making it simpler for customers to manage their shipments efficiently. As a result, many companies prefer shipping service providers with advanced digital business platforms to offer added benefits to their customers. The rising demand for faster and more streamlined logistics services is expected to drive market growth in the forecast period.

Significant Market Trends

Globalization in the supply chain will fuel the market growth. With the increasing globalization of supply chains and the availability of new market opportunities, the providers of the 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 market during the forecast period. 

Major Market Challenge

Cybercrimes can majorly impede the growth of the market.  One of the biggest challenges faced by the 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.   

Market Segmentation

By Type 

The digital shipping lines segment will contribute a major share of the market, due to the high revenue contribution from digital shipping liners. 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.  

By Deployment 

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

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APAC is estimated to contribute 30% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.

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. 

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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.

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 20 market companies, including:

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.

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

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.

• Type Outlook 
  • Digital shipping lines
  • Digital freight forwarders
• Deployment Outlook 
  • Cloud
  • On-premises
• Region Outlook 
  • 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

Market Analyst Overview

The market is witnessing rapid growth due to advancements in digital technology and the rise of e-commerce websites. With real-time tracking and paperless digitized industry practices, companies like Convoy and Uber Freight are revolutionizing the logistics industry. Despite challenges such as shipping delays and website crashes, the sector continues to expand, driven by increasing retail e-commerce sales and global shipping industry demand. Investments in digital freight forwarding and imminent investment pockets underscore the sector's potential for future estimations. As technological advancements streamline shipment processes, the market is poised for further growth in both developing markets and established transpacific trade lanes.

In the ever-evolving landscape of global commerce, the logistics industry stands at the forefront, navigating through complexities to ensure seamless delivery of goods. Analytical depiction and comparison of rates & carriers have become imperative for businesses to make informed decisions and optimize their supply chain operations. With current trends indicating a significant rise in e-commerce, the demand for efficient shipment tracking and timely delivery has surged. However, setbacks such as delay in delivery and lack of server maintenance pose challenges, necessitating strategic steps to address them. The exponential growth of online shopping has propelled shipment volume, prompting investments in shipping companies to meet the escalating demand. Yet, manual procedures and paperwork remain prevalent, hindering efficiency. Additionally, the shortage of skilled workforce exacerbates operational challenges, underscoring the need for workforce development initiatives.

The COVID-19 pandemic has further exacerbated logistical complexities, with social distancing norms impacting delivery timelines. Essential goods face heightened scrutiny, necessitating meticulous planning to ensure uninterrupted supply chains. Despite restraints, projections indicate a promising future, with the e-commerce industry continuing its upward trajectory. Series C rounds of funding signal investor confidence, fostering innovation and technological advancements. Strategic partnerships, like SF Express, are expanding market reach and capabilities while investments in server maintenance and automation streamline operations. In conclusion, the logistics industry faces multifaceted challenges amidst unprecedented growth. By embracing innovation, investing in infrastructure, and fostering talent, the industry can overcome hurdles and thrive in an increasingly digitalized and interconnected world.

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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 2024 and 2028
• Precise estimation of the size of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough market growth analysis and report 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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