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The e-freight and logistics market is estimated to grow at a CAGR of 16.33% between 2022 and 2027. The size of the market is forecast to increase by USD 24,524 million. The growth of the market depends on several factors, including saving time and money for businesses, the introduction of various freight management systems by vendors, and good data quality and extensive automation.
This report extensively covers market segmentation by end-user (manufacturing, automotive, consumer goods, food and beverage, and others), deployment (on-premises and cloud-based), 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.
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Saving time and money for businesses are notably driving the market growth, although factors such as high infrastructure costs may impede the market growth. 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 E-Freight And Logistics Market Driver
The need to save time and money for businesses is notably driving the market. E-freight offers significant time savings as an advantage to the logistics industry, which is also a driving factor in the markets. It can help speed up the process of delivering goods. In addition, E-freight helps reduce the cost of shipping goods and eliminates the need for paperwork and labor-intensive manual procedures.
Visibility and tracking of shipments can be improved with e-freight, which can be very useful for businesses that depend on the timely delivery of goods. The company benefits from electronic charging by saving time and money, improving communication and visibility, increasing supply chain efficiency, promoting sustainability, improving customer service, helping the company comply with regulations, and securing the future of the company. Hence, such factors will drive market growth during the forecast period.
Significant E-Freight And Logistics Market Trend
Service providers utilizing the potential of IT is an emerging trend in the market. Adopting effective information technology has been an important trend in the global market. As a result of the continuous price reduction and the growth of IT potential among the stakeholders in the transport and logistics sector, the industry was encouraged to use more advanced technology.
The willingness to incorporate real-time technology that provides updates on the location and status of trucks and cargo into the system to customers and businesses across modes of transportation major companies like FedEx and UPS (United Parcel Service) increased the use of information technology. Such factors will boost market growth during the forecast period.
Major E-Freight And Logistics Market Challenge
High infrastructure costs are major challenges impeding market growth. Freight transport by intermodal transport requires large investments in infrastructure. Investments include the installation of optimal electronic equipment, gantry cranes, and other heavy cranes needed to lift containers at various ports while changing the mode of transportation. For example, every time a cargo container arrives at the port, it must be transferred to either a pallet, wagon, or truck.
In addition, investments are needed to acquire rail and road connections. For example, a port should have a railway so that the railway can transport goods to and from the port. Road networks are also essential for trucks to reach ports easily. These investments are often delayed and time-consuming, which weakens the demand for freight logistics. Thus, the growth market is expected to be hampered by such factors during the forecast period
Key E-Freight And Logistics 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 E-Freight and Logistics Market Customer Landscape
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.
Hellmann Worldwide Logistics SE & Co KG - The company operates under one segment. The company under this segment offers services such as airfreight, sea freight, road, rail, contract logistics, CEP services, and others. The key offerings of the company include E Freight and Logistics for B2B and B2C portals.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the manufacturing segment will be significant during the forecast period. The manufacturing industry is essentially undiversified, and only a small number of product categories are exported. Its primary exports are raw materials and straightforward manufactured goods, as opposed to high-value and complex products that industrialized economies export, such as electronics, machinery, and chemicals.
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The manufacturing segment was valued at USD 2,580.86 million in 2017 and continued to grow until 2021. Manufacturing is the largest segment of the global E-freight and logistics market and will continue to remain the largest segment during the forecast period. The manufacturing sector is a crucial contributor to the GDP of any economy. In order for an economy to achieve better economic growth and move into the upper-middle-income bracket, the country must diversify and modernize its manufacturing sector. The growth of the manufacturing industry gives rise to the need for improved supply chain solutions to deal with the acquisition of important raw materials, the delivery and distribution of finished products to wholesalers and retailers, and the exchange of goods with other market participants. Thus, the growth in the manufacturing industry will drive the demand for improved supply chains and logistics, which, in turn, will propel the growth of the segment in the market in focus during the forecast period.
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APAC is estimated to contribute 41% 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.
The market in APAC is expected to grow due to the presence of a large consumer base for both food and beverage and healthcare product suppliers. With the rise in disposable incomes and the growing aging population in countries such as Japan, the expenditure on healthcare in this region is witnessing a strong growth rate. This will result in an increase in demand for temperature-controlled healthcare products, such as biopharmaceuticals, vaccines, and clinical trial materials.
Moreover, increased demand for organic food products due to the availability of certified organic dairy products and rising health consciousness among consumers in countries such as China are fueling the demand for cold chain logistics from the healthcare and food industries, as it helps maintain the shelf life as well as the quality of these products. This is further encouraging vendors to invest in APAC and launch new solutions that will help them cater to the growing demand in the market.
Furthermore, the availability of low-cost labor and natural resources in developing economies such as India has attracted many global automotive vendors to establish their automotive production and assembly plants in the region. These factors will lead to the growth of the market in this region during the forecast period.
The market in the region was negatively impacted by the outbreak of the COVID-19 pandemic in the region in 2020. However, with the gradual economic recovery across major countries from the COVID-19 crisis due to the resumption of activities and the adoption of e-commerce models by various end-user industries, including the automotive industry, the regional market is expected to rebound and grow at a significant pace during the forecast period.
Technavio categorizes the global E-freight and logistics market as a part of the global air freight and logistics market within the global transportation market. The parent global air freight and logistics market cover revenue generated by companies providing air freight transportation; courier; and logistics services, including package and mail delivery and customs agents. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The 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. The market has been segmented by End-user (Manufacturing, Automotive, Consumer goods, Food and beverage, and Others), Deployment (On-premises and Cloud-based), and Geography (APAC, North America, Europe, Middle East and Africa, and South America).
E-Freight And Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.33% |
Market growth 2023-2027 |
USD 24,524 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.56 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Allcargo Logistics Ltd., Busybees Logistics Solutions Pvt. Ltd., C H Robinson Worldwide Inc., CEVA Logistics AG, Delhivery Ltd., Deutsche Post AG, DSV AS, DTDC Express Ltd., Expeditors International of Washington Inc., FedEx Corp., GEODIS SA, Hellmann Worldwide Logistics SE & Co KG, Kuehne Nagel Management AG, Mahindra Logistics Ltd., Nippon Express Holdings Inc., Penske Truck Leasing Co. LP, United Parcel Service Inc., XPO Logistics Inc., and Ryder System Inc |
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, and Market condition analysis for the 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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