Freight Brokerage Market Analysis APAC,Europe,North America,Middle East and Africa,South America - US,China,Japan,Germany,France - Size and Forecast 2023-2027

Freight Brokerage Market Forecast 2023-2027

The Global Freight Brokerage Market size is estimated to grow by USD 15.95 billion at a CAGR of 5.45% between 2022 and 2027.

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 poised 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.

What will be the Freight Brokerage Market Size During the Forecast Period?

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The market is experiencing a transformative shift driven by advancements in technology and changing consumer demands. With the rise of online retail and e-commerce, there's an increasing need for efficient freight solutions to meet the demands of shippers and consumers. ML technologies and automation are revolutionizing the logistics industry, enabling transparent and cost-effective freight solutions. Tech-driven logistics services, powered by AI techniques and machine learning algorithms, are optimizing freight operations from origin to destination. From digital freight booking to minute-by-minute tracking, the market is embracing innovative solutions for order fulfillment and shipment schedule optimization. With the integration of digital freight brokerage and telematics, the industry is poised for further growth and efficiency in the multi-modal transportation system.

Market Segmentation

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. The Logistics Sector is undergoing significant transformation with the proliferation of IoT-enabled connected devices and data analytics. Tech-driven logistics services are leveraging AI techniques and machine learning algorithms to optimize freight costs and shipment schedules. Traditional brokerage methods are being replaced by digital freight booking platforms, offering real-time pricing and minute-by-minute tracking. Freight costs are being minimized through the integration of digital freight brokerage and telematics solutions, benefiting domestic freight forwarders and logistics service providers alike. The market is witnessing a surge in demand for multi-modal transportation systems, driving cost cutting initiatives and order fulfillment efficiency.

By Service

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. 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. 

Market Dynamics and Customer Landscape

The e-commerce sector continues to fuel the demand for shipping transportation, prompting growth in the freight brokerage industry. While traditional methods persist, the rise of transparent business practices and logistics solutions is reshaping the landscape. Freight brokers and carriers play pivotal roles in optimizing timing and load matching, especially in the full truckload segment (FTL freight transportation). As consumers increasingly turn to online retail, the need for efficient freight solutions becomes paramount. With a focus on transparency and efficiency, the logistics sector adapts to meet the evolving demands of the e-commerce ecosystem. 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.

Major Market Driver

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. 

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.

Significant Market Trends

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.

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. 

Significant Market Challenge

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.

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.

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 Market Customer Landscape

Who are the Major Freight Brokerage Market Companies?

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:

• 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.
• XPO Logistics Inc.

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.

Regional Analysis

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.

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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.

Market Analyst Overview

The market is a dynamic sector driven by various factors, such as end-use industry demands, customer types, and evolving services. Digital freight broker companies are revolutionizing the industry, leveraging smartphones, wireless connectivity, and digital platforms to enhance accuracy, efficiency, and transparency in logistics operations. In the global digital freight brokerage market, the emphasis is on reducing time consumption and costs while improving service quality. With the rise of e-commerce industry and international trade activities, there's a growing need for consolidated air freight services and direct-to-consumer (DTC) logistics solutions.  However, challenges persist, including poor infrastructure, which leads to higher logistics costs. To address these challenges, the digital freight forwarding industry is focusing on cost-cutting measures and lead time reduction, particularly in intermodal, truckload, less than truckload, waterways, and roadways transportation.

The online shopping boom has revolutionized the shipping sector, necessitating innovative logistics solutions to meet the needs of consumers and e-commerce platforms. Trucking companies and freight brokers play a crucial role in facilitating reverse logistics and optimizing carrier services. With the rise of AI techniques and machine learning algorithms, tech-driven logistics services are enhancing efficiency and accuracy in freight solutions. Digital freight broker companies leverage IoT-enabled connected devices and smartphones with wireless connectivity to streamline operations in the logistics sector. The integration of technical solutions enables middlemen and carriers to adapt to the evolving demands of the shipping industry and cater to diverse customer types.

Segment Overview

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. 

• Service Outlook
  • LTL
  • FTL
  • Temperature-controlled freight
  • Others

• Mode Of Transportation Outlook
  • Road
  • Inland waterways and coastal shipping
  • Others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Scope
Report Coverage	Details
Page number	175
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.45%
Market growth 2023-2027	USD 15.95 billion
Market structure	Fragmented
YoY growth 2022-2023 (%)	5.14
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 44%
Key countries	US, China, Japan, Germany, and France
Competitive landscape	Leading Vendors, Market Positioning of Vendors, 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 National Inc., Total Quality Logistics LLC, United Parcel Service Inc., Worldwide Express Inc., and XPO Logistics Inc.
Market dynamics	Parent market analysis, Market Forecasting ,market growth analysis  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 market research 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 the Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the size of the market and it's to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, Europe, North America, the 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 market vendors

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