Digital Freight Forwarding Market: Current Analysis and Forecast (2022-2028)

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Digital freight forwarders utilize their own developed platform to connect shippers and carriers at a moment’s notice, facilitating the relationship between a carrier and a shipper momentarily. Digital freight forwarding is a practice of coordinating and controlling the transportation of products using digital technologies. Enterprises are adopting digital logistics solutions for their day-to-day logistics and supply chain operations to better serve their customers. Thus, the increasing customer expectation, along with the measures to control the logistics cost, plays a vital role in shaping the future of the market. Moreover, the digital freight forwarding market is growing rapidly as a result of the increasing requirement for cost-effective logistics and supply chain solutions across various industry verticals. Therefore, the digital freight forwarding market is expected to register a CAGR of around 25% over the period of 2022-2028.

Furthermore, the increasing cross-border e-commerce activities and growth of e-commerce startups are expected to drive the digital freight forwarding industry. For instance, according to the Census Bureau of the U.S. Department of Commerce, the U.S. retail e-commerce sales for the first quarter of 2022, adjusted for seasonal variation, but not for price changes, was $250.0 billion, an increase of around 2.4 percent from the fourth quarter of 2021. In addition, factors such as a major shift toward digital transformation, cloud deployment & technological advancement among small & medium businesses, and continuously ongoing modernization in workforce management strategy in emerging economies notably contribute toward the market growth.

Some of the major players operating in the market include Deutsche Post DHL Group, Kuehne + Nagel International AG, Agility Logistics Pvt. Ltd., Uber Technologies Inc., Twill (Maersk), Turvo Inc., Forto Logistics GmbH & Co KG, Flexport Inc., Descartes Kontainers (Cracking Logistics Limited), and Transporteca.

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Insights Presented in the Report

“Amongst component, Solution category to witness significant growth during the forecast period”

Based on component, the market is segmented into solutions and services. During the forecast period, solution category to witness significant growth during the forecast period on account of technology transition and changing operational needs in the organizations. The growth can be attributed to the increase in both domestic and global trade; need for time-controlled deliveries and freight safety; and adoption of smart technologies like internet of things (IoT), artificial intelligence, (AI) and big data analytical solutions. The main factors determining effective freight operations in the digital freight forwarding industry are timeliness, effectiveness, and accuracy of a delivery. This is possible by utilizing technologies that can aid in efficient operations with the least amount of human involvement.

“Amongst propulsion type, Road freight to witness significant incremental growth during the forecast period”

Based on the mode of transport, the market is divided into rail freight, road freight, ocean freight, and air freight. Road freight to witness significant value growth during the forecast period in the digital freight forwarding market. This is mainly due to the continuous technological advancements and business management solutions coupled with growing integration of IoT in supply chain and logistics sector, is likely to have a positive impact on the logistics market. Moreover, growing e-commerce industry is further expected to support market growth during the forecast period. As per the data provided by India Brand Equity Foundation, India has the fastest growing e-commerce sector, which is expected to grow to USD 200 billion by 2026.

“North America to hold a significant share in the market”

In 2020, North America held a prominent share in the market. North America region is driven by the presence of large IT companies and rapid technological advancements, such as digitalization in the US. Well-established economies of these countries enable the region to invest heavily in leading digital logistics solutions and services.  Digitization is continuing to be one of the key drivers supporting the growth of the American economy. Companies like Convoy, Uber Freight, and uShip are coming up with new platforms to fill in the gaps in the logistics industry. In addition, major players in the market are focusing strategic measures such as partnerships and collaborations, new solution integration, among others to gain competitive advantage. Thus, driving the region’s market. For instance, in June 2021, Convoy and Flexport announced a long-term strategic relationship to deliver end-to-end shipment automation over land, sea, and air.

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Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

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Research Methodology

Research Methodology for the Digital Freight Forwarding Market Analysis (2022-2028)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global digital freight forwarding market were the three major steps undertaken to create and analyze the adoption of digital freight forwarding in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global digital freight forwarding market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

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Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the digital freight forwarding market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the digital freight forwarding market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as component and mode of transport. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the digital freight forwarding market. Further, we conducted factor analysis using dependent and independent variables such as various ty component and mode of transport of digital freight forwarding. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the digital freight forwarding market sector across the globe.

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Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global digital freight forwarding market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the digital freight forwarding market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global digital freight forwarding market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Primary research input was consolidated with secondary findings, turning information into actionable insights.

Split of Primary Participants in Different Regions

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Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global digital freight forwarding market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of component and mode of transport in the global digital freight forwarding market.

The main objective of the Global Digital freight forwarding Market Study

The current & future market trends of the global digital freight forwarding market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the digital freight forwarding market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of component and mode of transport analysis of the regulatory framework for the digital freight forwarding
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the digital freight forwarding market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World.
• Company profiles of the digital freight forwarding market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry

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