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The freight logistics market is estimated to grow by USD 359.2 million at a CAGR of 6% between 2023 and 2028. The market's growth thrives on expanding logistics outsourcing, bolstered by the manufacturing sector's upsurge and heightened demand for timely delivery of essential goods like food, perishables, and medical supplies. This trend reflects businesses' reliance on specialized logistics providers for efficient supply chain management. Amid global events like the pandemic, robust logistics networks are crucial for ensuring seamless delivery of vital supplies and driving market expansion.
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The market is also witnessing the emergence of new business models, such as the sharing economy and on-demand logistics services, which are disrupting traditional business models and creating new opportunities for players in the market. Overall, the freight logistics market is expected to grow at a significant rate in the coming years, driven by the increasing demand for efficient and cost-effective logistics solutions.
The market is a significant sector that plays a crucial role in the global supply chain. This market encompasses various activities, including the transportation, warehousing, and management of goods from the point of origin to the destination. The market is driven by several factors, including the increasing globalization of trade, the growing demand for efficient and cost-effective logistics solutions, and the rising trend of e-commerce. Freight logistics companies are investing heavily in technology to improve their operations and provide better services to their customers. The use of advanced technologies such as real-time tracking, predictive analytics, and automation is becoming increasingly common in the market. 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 growth of the freight market is being propelled by the increasing outsourcing in logistics. Logistics providers are no longer just service providers but technology innovators, offering advanced solutions for warehouse management, procurement, and other operational applications in the supply chain. Customer preference for customized services has led to the rise of contract-based logistics, including third-party logistics (3PLs) and fourth-party logistics (4PLs). These partnerships enable shippers to outsource logistics needs while managing some functions in-house. Digitization and automation are transforming freight logistics through the use of artificial intelligence (AI), machine learning, and robotics.
Moreover, online retail networks are driving the demand for green logistics solutions, logistics monitoring systems, and real-time transportation of goods. The waterway sector, including inland waterways transportation on rivers, canals, lakes, and coastal waters, is gaining traction as a cost-effective and eco-friendly alternative to roadways. Key players in the logistics market include Manhattan Associates, the roadways segment, and the waterway sector. AI and augmented reality (AR) are revolutionizing logistics operations, enhancing efficiency and accuracy.
The market is experiencing a significant trend, driven in part by the increasing adoption of multimodal transportation. In multimodal transportation, a single contract is used for the transportation of goods via multiple modes, with a single carrier responsible for the entire journey. This approach offers several advantages, including reduced risk and documentation, improved tracking capabilities, and increased convenience for shippers. Key industries driving the demand for logistics services include forestry, FMCG, and the transportation of raw materials.
Moreover, customer preference for quick delivery, particularly in the context of online retail networks, is also a significant factor. The logistics industry is undergoing digitization and automation, with the use of technologies such as artificial intelligence (AI), machine learning, and robotics becoming increasingly common. Waterways transportation, including inland waterways via rivers, canals, and lakes, is also gaining popularity as a sustainable and cost-effective alternative to roadways.
Major players in the logistics market include Manhattan Associates, with a strong focus on the roadways segment and the waterway sector, which is expected to see significant growth in the coming years. The use of third-party and second-party logistics services is also on the rise as companies seek to optimize their supply chains and improve efficiency. such factors will increase the market growth and trends during the forecast period.
The high costs associated with infrastructure are impeding the growth of the market. These investments cover crucial infrastructure components like gantry cranes essential for container handling at various ports, along with the necessary rail and road access. When containers transition between modes of transport at seaports, heavy-duty equipment such as flatbeds, rail, or trucks are vital.
Additionally, establishing rail lines and roads for efficient access to ports further adds to the financial burden. However, the high costs and complexities associated with such infrastructure investments often lead to delays, negatively impacting the demand for freight logistics. Consequently, these financial requirements pose a considerable obstacle, hindering the anticipated growth of the freight logistics market in the forecast period.
The market growth and forecasting 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 market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
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.
Dimerco Express Corp. - The company offers freight forwarding, contract logistics, and supply chain solutions. The key offerings of the company include freight logistics for rail freight, ocean freight, air freight, and road freight.
The market analysis and report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, 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 encompasses the transport and management of goods from one location to another. This market includes various modes of transport such as air, ocean, rail, and road. Gas, as a fuel source, plays a significant role in freight logistics, particularly in the transportation sector. Mining and quarrying industries are major consumers of freight logistics services, as they require the transport of raw materials and finished products. An integral part of freight logistics is the use of advanced technologies like Freight Tech, Transports, and Manifesting for efficient and effective supply chain management. The market is forecasted to grow due to increasing globalization, e-commerce, and the need for just-in-time delivery.
The market share growth by the road segment will be significant during the forecast period. The paid process of carrying goods, cargo, and other things from one location to another using wheeled vehicles is known as freight transportation. The road is the largest segment of the global market and will continue to remain the same during the forecast period.
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The road segment was valued at USD 327.10 million in 2018 and continued to grow until 2022. The market encompasses the transportation, forwarding, and warehousing of various sectors, including Oil and Gas, Mining and Quarrying, Crop Production, Animal Rearing, Food, Textiles, and Raw Materials. Freight Forwarding and Transport services ensure the efficient movement of goods, while Warehousing and Storage provide space for inventory management. The Logistic Function is crucial in industries like Manufacturing and Automotive, ensuring Exactitude Consultancy through Artificial Intelligence, Data Analytics, and alternative fuels. Warehouse Management Systems utilize Robotics, Autonomous Vehicles, Tracking Technologies, Sensors, and Ecosystems to optimize operations. Key sectors include Oil and Gas, Mining, Quarrying, Agriculture, and Fishing.
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APAC is estimated to contribute 43% 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 factors responsible for the market growth in APAC are 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 and China, the expenditure on healthcare, and food and beverages in this region is witnessing strong growth rates.
Moreover, this is further encouraging vendors to invest in APAC and launch new solutions that will help them cater to the growing demand from the market. Such factors will drive the growth of the market in the region during the forecast period. Furthermore, the availability of low-cost labor and resources in developing economies has attracted many global automotive vendors to establish their manufacturing plants in the region. Countries such as China, India, Japan, South Korea, and Taiwan have a high population base, and these fast-emerging countries are expected to drive the growth of the market in APAC during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments.
The market displays dynamic with key players such as the United States, Russia, California, Norway, Sweden, the United Kingdom, Asia, Southeast Asia, Asia-Pacific, GCC, Ukraine, Luxembourg, and the United States Department of Transportation. As international trade burgeons, these regions play vital roles in transportation and logistics networks. Southeast Asia and Asia-Pacific act as major hubs, connecting manufacturing nations to global markets. The GCC's strategic location facilitates trade between Asia, Europe, and Africa. The United States Department of Transportation oversees logistics intricacies domestically. Collaboration and innovations in countries like Ukraine and Luxembourg contribute to the sector's adaptability and resilience in the ever-evolving global freight landscape. Transformational shifts driven by advancements like the Internet of Things (IoT) and real-time supply chain insight.
Moreover, wholesale and Retail Trade, along with Courier, Express, and Parcel services, are embracing IoT technologies for enhanced operational efficiency. Agriculture, forestry, and fishing industries heavily rely on this market for the transportation of their perishable goods. Customers seek services that ensure systematic and efficient handling of their logistics needs. The logistics industry offers solutions such as transportation, warehousing, and inventory management. The use of technology, like digitization and automation, enhances the industry's performance and customer experience. The market's growth is driven by factors like increasing global trade, the need for faster delivery, and the rising demand for cost-effective logistics solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6% |
Market growth 2024-2028 |
USD 359.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.57 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Bollore SE, C H Robinson Worldwide Inc., CJ Logistics Corp., CMA CGM SA Group, Deutsche Bahn AG, Deutsche Post AG, dimerco.com, DSV AS, Expeditors International of Washington Inc., FedEx Corp., Hellmann Worldwide Logistics SE and Co KG, Kerry Logistics Network Ltd., Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, Manitoulin Group of Companies, Nippon Express Holdings Inc., Transporteca Aps, Uber Technologies Inc., and United Parcel Service Inc. |
Market dynamics |
Parent market analysis, Market forecasting 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 |
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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 Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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