The global freight management market is projected to grow at a CAGR of 8.05% during the forecast period, reaching a market size of US$19.748 billion in 2027 from US$11.482 billion in 2020.
The freight management system is a system required for overseeing and managing the cost-efficient operation and delivery of goods. It helps by combining logistics experience, human resources, and knowledge to ensure smooth coordination between carriers and shippers. The system is widely used for providing solutions and assisting in regular operations such as shipping, detecting, tracking, reducing data entry, eliminating errors, etc. Freight management systems have many applications like pallet tracking, proof of delivery (POD) scanning, customer Electronic Data Interchange (EDI), vehicle maintenance and repairs, interfacing, consistent auto consignment pricing, consignment entry, and comprehensive operational reporting.
The freight management market is segmented on the basis of solution type, deployment type, application, and geography.
By solution type, the freight management market is segmented into logistical management systems, electronic data interchange solutions, baggage and container scanning systems, freight operational management systems, and others. By deployment type, the market is divided into cloud and on-premise. The market is divided into four applications: seaways, highways, airways, and railways.
The growth of the freight management market is driven by the rising implementation of free trade policies among different countries so as to increase import-export around the globe.
Global trade is rising due to organizations like WTO (World Trade Organization) which are encouraging open-door policies for promoting international trade by providing trade incentives and relaxation in regulations so as to reduce or eliminate trade barriers among various countries and/or regions. According to the WTO statistics, the merchandise trade volume index increased from 100 in 2008 to 126.3 in 2018. Increasing global trade has made it compulsory for enterprises to use freight management solutions for improving delivery capabilities, decreasing time spent on delivery, and saving time, thus augmenting the market growth of freight management. The growing global e-commerce industry is also a major driver for the freight management market as this industry requires the use of freight management solutions for on-time delivery and efficient transportation of goods across the globe.
Logistic Management systems and freight information systems hold significant market share
The market for logistics management systems is rising due to its requirement for managing, tracking, and keeping a count of logistics through the cloud as well as on-premise computing systems for better efficiency and effective delivery of logistics. The logistics management system includes a warehouse management solution and an enterprise resource planning solution. The freight Information system also accounts for a significant market share in the global freight management market as it helps in providing essential information about consignment and helps in taking required actions in case of emergency and deviation from on-time delivery. The freight information system includes an electronic data interchange solution and a freight tracking system. A baggage and cargo screening system is required for screening mail, parcels, and personal bags, for security purposes. They help in revealing what’s inside the baggage or cargo to inspect it for security reasons. The market for freight operational management systems is augmenting as it helps in streamlining logistical supply chain operations and increase logistical efficiency. This system helps in track/trace and optimize shipments with selected carriers and even helps in payment and freight audits. The freight operational management system includes order, revenue, load, and quote management solutions.
The rising number of shipments via airways leads to the growth of the airways segment
Airways is one of the most widely used applications for the transportation of goods across different countries. According to World Bank data, air transport freight increased from 158,487.87 million tons-kilometres in 2008 to 212,866.65 million tons-kilometres in 2018. Moreover, air freight demand is increasing due to the strong growth of the international e-commerce industry and the transportation of time- and temperature-sensitive goods around the world. Moreover, supportive government policies to boost the air freight transport sector are further contributing to the growth of this segment. For instance, the Indian government unveiled its national air-cargo policy in January 2019 to make India among the top five air freight markets by 2025. The policy aims at encouraging code sharing/inter-line agreements between Indian and foreign carriers.
By deployment model, the cloud segment is expected to grow at a significant CAGR
The demand for cloud-based freight management solutions is rising as they provide the speed, efficiency, and reliability that determine the success of the freight business. Rising digitalization and technological advancements are leading to the generation of a huge volume of data, which, in turn, is boosting the growth of new analytics platforms across the freight management market. The logistics industry is experiencing significant growth on account of a rise in the on-demand economy and e-commerce trade globally. As such, companies with large fleets are in need of a reliable solution to manage and control their operations effectively. Cloud-based solutions also result in cost reduction by getting rid of physical IT infrastructure and better resource utilization while increasing profitability.
APAC is one of the major regional markets for freight management solution providers.
Regionally, the freight management market is classified into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. APAC is projected to witness a significant market growth rate during the forecast period owing to the booming e-commerce industry across the region. Increasing internet and smartphone penetration and the expansion of global e-commerce vendors across the region is encouraging the freight industry to sharpen its offerings and launch solutions specifically aimed at meeting the fast-changing needs of the multi-channel retail market.
North America also holds a significant market share on account of the early adoption of freight management solutions by users in the region coupled with the presence of leading solution providers in North American countries. Rising investments in R&D by freight management solutions providers are further contributing to the freight management market growth in this region. For instance, Walmart Canada has recently launched a blockchain-based freight and payment network that uses distributed ledger technology to track deliveries, verify transactions, and automate payments.
|Market Size Value in 2020||US$11.482 billion|
|Market Size Value in 2027||US$19.748 billion|
|Growth Rate||CAGR of 8.05% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Solution Type, Deployment Model, Application, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Kuebix, Linbis, Inc., Magaya Corporation, The Descartes Systems Group Inc., Forward Computers, AEB, DigiLogistics Technology Ltd., HashMicro Pte Ltd., Freight Management Holdings Bhd., CEVA Logistics AG|
|Customization Scope||Free report customization with purchase|
The global freight management market is segmented by solution type, deployment model, application, and geography.
Frequently Asked Questions (FAQs)
Q1. What will be the freight management market size by 2027?
A1. The global freight management market is projected to reach a total market size of US$19.748 billion in 2027.
Q2. What is the size of the global freight management market?
A2. Freight Management Market was valued at US$11.482 billion in 2020.
Q3. What are the growth prospects for the freight management market?
A3. The freight management market is projected to grow at a CAGR of 8.05% during the forecast period.
Q4. Which region holds the largest share of the freight management market?
A4. APAC is projected to witness significant growth in the freight management market rate during the forecast period owing to the booming e-commerce industry across the region.
Q5. What factors are anticipated to drive the freight management market growth?
A5. The freight management market growth is driven owing to the rising implementation of free trade policies among different countries so as to increase the import-export around the globe.
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. FREIGHT MANAGEMENT MARKET ANALYSIS, BY SOLUTION TYPE
5.2. Logistics Management System
5.3. Freight Information System
5.4. Baggage and Cargo Screening System
5.5. Freight Operational Management System
6. FREIGHT MANAGEMENT MARKET ANALYSIS, BY DEPLOYMENT MODEL
7. FREIGHT MANAGEMENT MARKET ANALYSIS, BY APPLICATION
8. FREIGHT MANAGEMENT MARKET ANALYSIS, BY GEOGRAPHY
8.2. North America
8.2.1. United States
8.3. South America
8.4.2. United Kingdom
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.4. South Korea
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. COMPANY PROFILES
10.2. Linbis, Inc.
10.3. Magaya Corporation
10.4. The Descartes Systems Group Inc.
10.5. Forward Computers
10.7. DigiLogistics Technology Ltd.
10.8. HashMicro Pte Ltd.
10.9. Freight Management Holdings Bhd.
10.10. CEVA Logistics AG
The Descartes Systems Group Inc.
DigiLogistics Technology Ltd.
HashMicro Pte Ltd.
Freight Management Holdings Bhd.
CEVA Logistics AG
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