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The freight logistics market size is forecast to increase by USD 359.2 billion at a CAGR of 6% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing outsourcing of logistics operations and the rising preference for multimodal transportation. The water transport sector, including canals, lakes, and coastal waters, is gaining popularity due to its cost-effectiveness and environmental sustainability. This shift is also benefiting the transportation of goods like medical supplies, where reliable and cost-efficient logistics are crucial. However, high infrastructure costs remain a challenge for market expansion. As demand for multimodal solutions grows, integrating various transport modes, including water transport, becomes increasingly important for improving supply chain efficiency and meeting the needs of industries such as healthcare and pharmaceuticals. To stay competitive, logistics companies must adapt to these trends and overcome infrastructure costs through innovative solutions and partnerships. Water transport offers a promising alternative, with the potential to reduce reliance on roadways and contribute to a more sustainable logistics network.
The market is witnessing significant advancements driven by the increasing demand for efficient and cost-effective transportation of goods. This market caters to various industries such as mining, quarrying, agriculture, food, textiles, raw materials, and others. Customer preference for faster delivery times and improved supply chain transparency is leading to the adoption of advanced logistics services. The integration of technology, particularly in the areas of digitization and automation, is transforming the freight logistics landscape. Augmented reality (AR) and artificial intelligence (AI) are two emerging technologies that are revolutionizing the freight logistics sector. AR is being used to enhance the warehouse picking process, enabling faster and more accurate order fulfillment. On the other hand, AI is being employed for predictive maintenance of transportation equipment, optimizing freight routes, and improving inventory management. The rise of online retail networks is also fueling the growth of the market. E-commerce giants require efficient and reliable logistics solutions to meet their customers' demands for quick and convenient delivery.
Further, green logistics solutions are gaining popularity as well, with companies focusing on reducing their carbon footprint and adopting sustainable practices. Freight forwarding and warehousing continue to be key components of the market. Freight forwarders help businesses manage their international and domestic shipments, while warehousing solutions provide storage and distribution services. The integration of technology in these areas is enabling real-time tracking and monitoring of inventory and shipments, leading to improved efficiency and accuracy. In conclusion, the market in North America is undergoing significant changes, driven by customer preferences, technological advancements, and the growing importance of sustainability. The adoption of AR and AI, the rise of e-commerce, and the focus on green logistics solutions are some of the key trends shaping the market. Companies in this sector must stay abreast of these developments to remain competitive and meet the evolving needs of their customers.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The road segment is estimated to witness significant growth during the forecast period. In the market, the road segment holds the largest share and is expected to maintain its dominance throughout the forecast period. Freight transportation refers to the paid process of moving goods, cargo, and other commodities from one place to another using wheeled vehicles. The freight transportation industry in Indonesia consists of three primary modes: air freight, sea freight, and road freight. Road freight transport is primarily driven by industries such as construction, textiles and apparel, machinery and equipment, electrical items, non-containerized commodities, electronics, and automobiles. The increasing demand for trucking services can be attributed to the expansion of road freight and international freight transportation, which serves as a significant catalyst for the domestic trucking sector.
Warehousing and storage is another crucial aspect of the market. Effective warehouse management is essential for ensuring the efficient and timely movement of goods. Advanced technologies such as artificial intelligence and data analytics are increasingly being adopted to optimize warehouse operations and improve overall supply chain efficiency. Additionally, the use of alternative fuels is gaining traction in the logistics industry as a means of reducing carbon emissions and promoting sustainability. Warehouse management systems are being integrated with these technologies to streamline operations and enhance accuracy and precision. Exactitude Consultancy and other industry experts provide valuable insights and guidance to businesses looking to optimize their freight logistics operations and stay competitive in the market.
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The road segment accounted for USD 327.10 billion in 2018 and showed a gradual increase during the forecast period.
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.
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The market in Asia Pacific is experiencing significant growth due to the increasing demand for logistics services from the healthcare and food industries. With a large consumer base in this region for both food and beverage and healthcare product suppliers, the need for efficient and reliable logistics solutions is on the rise. The aging population in countries like Japan and China, leading to increased healthcare expenditures, is driving the demand for temperature-controlled logistics services for healthcare products such as biopharmaceuticals, vaccines, and clinical trial materials. Additionally, the growing preference for organic food products in countries like China, Australia, and New Zealand due to health consciousness and availability of certified organic dairy products is fueling the demand for cold chain logistics from the food industry.
In response, logistics companies are investing in advanced technologies like green logistics solutions, logistics monitoring systems, and artificial intelligence (AI) and augmented reality (AR) to improve supply chain efficiency and enhance customer satisfaction. These technologies enable real-time monitoring and tracking of shipments, reducing the risk of spoilage and ensuring timely delivery. By prioritizing the needs of their customers and adopting innovative logistics solutions, freight logistics companies are well-positioned to capitalize on the growing demand for logistics services in the Asia Pacific market.
Our researchers analyzed the data with 2023 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.
Increasing outsourcing in logistics is the key driver of the market. Logistics companies in the US are projected to enhance their investment in digital and analytical technologies over the coming years. The lines between logistics providers and technology companies are becoming increasingly blurred, as the former not only offer logistics services to clients but also leverage technology to optimize warehouse management, procurement, and other operational functions within the supply chain. Contract-based logistics solutions, including third-party logistics (3PLs) and fourth-party logistics (4PLs), are gaining popularity due to their customized offerings that cater to the specific requirements of shippers. By outsourcing logistics needs, shippers can focus on managing the remaining functions in-house, thereby streamlining their supply chain management processes.
The integration of advanced technologies such as artificial intelligence (AI), machine learning, and robotics is revolutionizing the logistics industry, particularly in waterways transportation, including inland waterways and rivers. This technological transformation is enabling logistics companies to offer more efficient and cost-effective solutions to their clients.
The growing popularity of multimodal transportation is the upcoming trend in the market. In the realm of freight logistics, intermodal and multimodal transportation are two distinct approaches to moving goods using multiple modes of transportation. While they share similarities, there is a key difference between the two. In multimodal transportation, a single contract covers all modes of transportation, with a single carrier responsible for managing the entire shipment. This setup offers several advantages: a single point of contact for tracking, reduced documentation, and risk mitigation. The convenience and efficiency of multimodal transportation are driving growth in The market. This trend is expected to continue during the forecast period.
High infrastructure costs is a key challenge affecting the market growth. In the logistics market, water transport through canals, lakes, and coastal waters plays a significant role in moving goods. The waterway sector necessitates substantial investments in infrastructure for efficient intermodal transportation. At seaports, heavy-duty cranes, such as gantry cranes, are installed for container lifting and mode change. These modes include flatbeds, railcars, or trucks. Additionally, rail and road access are essential for seamless transportation. For instance, a seaport requires a rail line for efficient railway transportation and easy road access for trucks. Manhattan Associates and other logistics companies leverage these infrastructure investments to streamline their operations and enhance supply chain efficiency.
The market 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis 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.com- 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 research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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.
The market is experiencing significant growth due to the increasing demand for efficient and cost-effective transportation and warehousing solutions. Industries such as mining and quarrying, oil and gas, agriculture, and manufacturing and automotive are major contributors to this market. Freight forwarding and freight transport play a crucial role in the logistics function, ensuring the timely and accurate movement of raw materials and finished goods. Warehousing and storage solutions are also essential components of the logistics market. Warehouse management systems, robotics, and sensors are being increasingly adopted to optimize warehouse operations and improve efficiency. The use of artificial intelligence (AI) and data analytics is revolutionizing the logistics industry, enabling real-time monitoring and predictive maintenance. The adoption of alternative fuels and digitization and automation are key trends in the market. Waterways transportation, including inland waterways, rivers, canals, lakes, and coastal waters, is gaining popularity due to its environmental benefits and cost-effectiveness.
Further, the market is also witnessing the emergence of logistics monitoring systems, augmented reality (AR), and transportation of goods using autonomous vehicles and robotics. Customer preference for green logistics solutions and the growth of online retail networks are other significant factors driving the growth of the market. Third-party and second-party logistics providers are leveraging technology to offer customized solutions to meet the unique requirements of various industries. The market is expected to continue its growth trajectory in the coming years, driven by the increasing demand for efficient and sustainable logistics solutions.
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Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6% |
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Market growth 2024-2028 |
USD 359.2 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.57 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 43% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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 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
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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