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The Freight Brokerage Market size is estimated to grow by USD 17.6 billion at a CAGR of 5.69% between 2023 and 2028. The market's growth depends on multiple factors, notably the prevalence of Free Trade Agreements (FTAs) and trade blocs worldwide, the heightened adoption of IT-enabled solutions, and the expansion of intermodal freight transportation. These elements collectively drive efficiency and streamline operations across the logistics landscape. With FTAs fostering trade relationships and IT solutions optimizing processes, the industry is expected for sustainable growth. Additionally, the integration of intermodal transportation enhances connectivity and accessibility, further propelling the market forward in meeting evolving demands and ensuring seamless global trade facilitation.
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The market share growth by the LTL segment will be significant during the forecast period. LTL shipping refers to the transportation of small shipments of goods using one truck to multiple customers. LTL carriers are cost-effective solutions to ship goods. Products shipped through LTL carriers can be moved through all modes of transportation, such as roadways, railways, airways, and waterways.
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The LTL segment showed a gradual increase in the market share of USD 16.9 billion in 2018. The LTL segment is driven by the growth of the global e-commerce market, wherein freight is transported in small parcels and consolidated to reduce costs. The global e-commerce market is primarily driven by the growing penetration of e-commerce in countries such as the US, China, India, Brazil, South Africa, and Russia. As e-commerce shipments are small in size, the demand for LTL is expected to grow during the forecast period. In addition, advantages such as low shipping costs, reduced carbon emissions, and improved security are driving various end-user industries to avail of LTL services.
In the realm of online retail and logistics solutions, the demand for transparent business practices is rising among consumers. Technical solutions and AI techniques are reshaping the shipping sector and logistics sector, optimizing freight solutions and mode of transport choices. From carrier selection to minute-by-minute tracking, the digital freight forwarding industry offers enhanced efficiency and cost-saving opportunities. Consolidated air freight services cater to the evolving needs of the e-commerce sector, while full truckload segment and multi-modal transportation systems address diverse logistical requirements. Freight costs are optimized through cost-cutting measures and load matching, benefiting both domestic freight forwarders and traditional brokerage firms. Order fulfillment and timing are critical in the freight brokerage industry, where traditional methods are being replaced by tech-driven solutions. As the industry evolves, embracing minute-by-minute tracking and digital freight booking, it meets the dynamic demands of consumers and shipping transportation alike.
The presence of FTAs and trade blocs at a global level is driving the market growth. The trade regimes in Europe, Asia, and North America provide an opportunity for companies to trade at a global level. The presence of numerous global FTAs and trade blocs will propel exports and imports to different countries, which, in turn, will drive the demand for the services.
Moreover, there are various trade agreements or trade blocs at a global level. Some of the prominent trade agreements include EU - Japan Economic Partnership Agreement, Trans-Pacific Partnership (TPP), EU-MERCOSUR Association Agreement, the Comprehensive Economic and Trade Agreement (CETA), EU-ASEAN Free Trade Agreement, and India-EAEU Free Trade Agreement. Such FTAs and trade blocs will boost the increase in the volume of goods handled globally, which will fuel the growth of the global market during the forecast period.
Growth in global demand for transportation and logistics services is a key trend influencing market growth. Logistics is a vital component of the supply chain. It is needed to meet customers' demands through planning, implementation, and control of effective storage and movement of goods and services from one point to another. The growing demand for transportation and logistics services from various end-user industries, such as pharmaceuticals, e-commerce, FMCG, automotive, and manufacturing, will drive the global market during the forecast period.
Moreover, a rise in manufacturing activities has increased the complexity and risks involved in supply chain management. Thus, various end-user industries avail the services of freight brokers for efficient transportation of goods. Freight brokers ensure the effective delivery of goods and help end-user industries reduce operational costs by designing and managing an optimum supply chain network. Thus, the global market is expected to witness significant growth during the forecast period.
The consolidation of the global shipping industry may impede the market growth. The global market is fragmented, with the presence of several players. The market is dominated by large players such as Expeditors, KUEHNE+NAGEL, XPO Logistics, and C.H. Robinson Worldwide. Consolidation by large shipping carriers and sea-freight forwarders takes place in the entire supply chain. Hence, it is difficult for freight brokers to maintain their business operations in the uncertain maritime and transportation business.
However, various consolidations taking place in the shipping industry. For instance, in May 2021, DSV Panalpina AS completed the acquisition of South African-based Globeflight Worldwide Express. In April 2021, DSV Panalpina AS completed the acquisition of Agility Global Integrated Logistics (GIL). Due to consolidations and alliances in the global shipping industry, a few carriers will be able to control most of the market share during the forecast period. This will lead to an oligopolistic market and, in turn, result in fewer options for freight brokers to choose from. This will lead to an increase in freight rates. Such factors are expected to restrict the growth of the global business during the forecast period.
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 Market Customer Landscape
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.
BNSF Logistics - The company offers freight brokerage services such as over the road, heavy haul, and intermodal.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
APAC is estimated to account for 47% of 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.
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Factors such as the high regional connectivity of China and India with their neighboring countries are driving the growth of the regional market. The market is also being driven by the increasing demand for transportation and logistics services from end-user industries. Moreover, APAC has some of the leading electronic goods manufacturing countries, such as China, Japan, Taiwan, and South Korea, which will increase the demand for logistics of spare parts used in electronic goods. The growth of the e-commerce industry is increasing the volume of goods handled in LTL form. During the forecast period, the rise in the demand for transportation services from end-user industries will drive the market in APAC.
The market research report provides comprehensive data, with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The Smartphones and computers market, also known as the Digital Technology Consumer Electronics industry, has seen significant growth in recent years. This sector comprises of manufacturers, platforms, and logistics providers. The logistics sector, specifically freight brokerage, plays a crucial role in the supply chain of consumer electronics. Freight brokerage firms help connect shippers, who require transportation of their goods, with carriers. In the context of the consumer electronics industry, freight brokerage is essential for timely and cost-effective delivery of products from manufacturers to consumers. Digital freight forwarding and tech-driven logistics services offer cost-cutting and lead time reduction, utilizing IoT-enabled connected devices and machine learning algorithms. Logistics providers use various technologies, such as digital platforms and transportation management systems, to optimize their operations and provide efficient services.
Furthermore, the market is competitive, with several players offers a range of services, including freight matching, transportation management, and supply chain visibility solutions. The use of technology and innovation is a key differentiator in the market, as it enables providers to offer more efficient and cost-effective services to their clients. The rise of direct-to-consumer laboratory testing is significantly impacting the logistics market, as efficient supply chain management is essential for the timely delivery of testing kits and samples to ensure accurate and prompt health results for consumers. In conclusion, the market plays a vital role in the consumer electronics industry by ensuring timely and cost-effective transportation of goods. With the increasing competition and use of technology, freight brokerage providers must continuously innovate to stay ahead and meet the evolving needs of their clients.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.69% |
Market growth 2024-2028 |
USD 17.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.25 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BNSF Logistics, C H Robinson Worldwide Inc., DSV AS, Echo Global Logistics Inc., Expeditors International of Washington Inc., GlobalTranz Enterprises LLC, Hub Group Inc., ITS Logistics LLC, J B Hunt Transport Services Inc., Kuehne Nagel Management AG, Landstar System Inc., MODE Transportation LLC, Nippon Yusen Kabushiki Kaisha, Nolan Transportation Group LLC, Penske Truck Leasing Co. L.P., Schneider Electric SE, Total Quality Logistics LLC, United Parcel Service Inc., Worldwide Express Inc., and XPO Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Mode of Transportation
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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