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The Global Freight Brokerage Market size is estimated to grow by USD 15.95 billion between 2022 and 2027 accelerating at a CAGR of 5.45%. The growth of the market depends on several factors, including the presence of FTAs and trade blocs at a global level, increased use of IT-enabled solutions, and growth of intermodal freight transportation.
This report extensively covers market segmentation by service (LTL, FTL, temperature-controlled freight, and others), mode of transportation (road, inland waterways and coastal shipping, and others), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
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The presence of FTAs and trade blocs at a global level is driving market growth, although factors such as the consolidation of the global shipping industry may impede 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.
The presence of FTAs and trade blocs at a global level is driving the freight brokerage 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 freight brokerage services.
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 freight brokerage 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 freight brokerage market during the forecast period.
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 freight brokerage market is expected to witness significant growth during the forecast period.
The consolidation of the global shipping industry may impede the freight brokerage market growth. The global freight brokerage 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.
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 freight brokerage 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 Freight Brokerage 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.
BNSF Logistics - The company offers freight brokerage 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 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 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 16.27 billion in 2017 and continued to grow by 2021. 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.
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APAC is estimated to account for 44% 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.
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 freight brokerage market in APAC.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The regional market witnessed a significant decline in revenue due to the outbreak of COVID-19 during 2020-2021 due to temporary lockdowns. However, vendors resumed their regular operations by adhering to COVID-19 guidelines. Such initiatives helped vendors remain operational and allowed the market to recover slowly during the forecast period. These factors are expected to increase the demand for freight brokerage services, which, in turn, will drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Freight Brokerage Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.45% |
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Market growth 2023-2027 |
USD 15.95 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
5.14 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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 National Inc., Total Quality Logistics LLC, United Parcel Service Inc., Worldwide Express Inc., and XPO Logistics 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, and Market condition analysis for the forecast period. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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