Market Size
Global Digital Freight Forwarding Market reached US$ 8.54 billion in 2023 and is expected to reach US$ 50.14 billion by 2031, growing with a CAGR of 25.04% during the forecast period 2024-2031.
The digital freight forwarding market is experiencing a substantial boom driven by the considerable adoption of cloud-based structures, permitting improved collaboration and visibility across the delivery chain. Integration of the IoT (Internet of things) technology is another vital trend, facilitating real-time tracking and monitoring of shipments, thereby improving performance and reducing risks.
In February 2024, AllMasters, a digital freight consolidation platform unveiled its newest solution tailored to solve the problems that freight forwarders in the sector face. By providing freight forwarders with a platform where they may book shipments at prices much lower than current market rates and still have numerous times tracking choices, this platform—which has a patented "Dynamic Distribution Model"—aims to revolutionize the logistics sector.
North America dominates the digital freight forwarding market, capturing the largest market share. The region’s advanced technological infrastructure led to, accounting for the highest share in the global digital freight forwarding market. In October 2021, Zim Integrated Shipping Services Ltd. (ZIM) unveiled Ship4wd, a digital freight forwarding platform. The independent digital multi-function goods forwarder aims to provide a direct shipping solution for small and medium-sized businesses (SMBs) in the US and Canada that import and export from China, Vietnam, and Israel.
Market Summary
| Metrics | Details |
| CAGR | 25.04% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Component, Mode of Transport, Deployment Mode, Function, End-User Industry and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Expansion of E-Commerce Industry Globally
The Indian Brand Equity Foundation, or IBEF, projects that by 2024, the country's e-commerce business would be worth US$ 111 billion, and by 2026, it will gross US$ 200 billion. A higher need for effective freight forwarding services to get goods from manufacturers to clients worldwide has resulted from the rising drive-in e-trade and package shipments.
As e-commerce businesses enlarge globally to reach new markets and customers, they require reliable freight-forwarding partners. virtual systems provide access to a network of carriers and logistics providers worldwide, facilitating cross-border trade. E-commerce organizations are looking into cost-effective logistics solutions. Digital freight forwarding systems automate processes, optimize routes, and reduce administrative overhead, leading to cost savings and advanced operational performance.
Demand for Transparency and Efficiency
Customers increasingly demand transparency and real-time visibility into their shipments. Digital freight forwarding structures provide robust tracking skills, permitting customers to display the status and location of their goods all through the transportation system. This transparency complements purchaser satisfaction and builds trust driving demand for virtual systems.
In June 2022, DP World released a new virtual product Enterprise Resource Planning (ERP) to help freight forwarders streamline back-office processes and boost business efficiency. These types of streamlining of operations signify efficiency by reducing processing times, minimizing errors, and optimizing resource allocation. Hence, the demand for transparency and efficiency is driving the digital freight forwarding market as it permits businesses to improve customer support, streamline operations, optimize useful resource usage, optimize resource utilization, reduce costs, and enhance supply chain agility.
Technological Challenges and Higher Initial Investment Costs
Enforcing digital freight forwarding solutions regularly includes integrating numerous technologies and systems, consisting of transportation management systems (TMS), warehouse management systems (WMS), electronic data interchange (EDI) platforms, and tracking and visibility tools. Integrating these diverse structures can be complex, requiring specialized technical knowledge and sources. The interoperability of various technologies and compatibility with existing infrastructure pose large technological demanding situations, slowing down the adoption of virtual solutions.
The initial funding charges associated with enforcing digital freight forwarding solutions can be substantial. This includes costs related to purchasing software licenses, hardware infrastructure, data security measures, and customization or integration with existing structures. For small and medium-sized freight forwarders with constrained capital sources, those upfront fees can also be a barrier to adoption, delaying or inhibiting investment in digitalization projects.
Market Segment Analysis
The global digital freight forwarding market is segmented based on component, mode of transport, deployment mode, function, end-user industry and region.
Cloud-based Platforms’ Scalability, Cost-Effectiveness, Accessibility & Integration Capabilities
Cloud-based platforms can be accessed from anywhere with a web connection, imparting flexibility and allowing collaboration amongst diverse stakeholders in the freight forwarding technique, which includes shippers, carriers, and customs agents. Cloud-based freight forwarding solutions usually offer real-time visibility and monitoring abilities, allowing agencies to monitor shipments in the course of the delivery chain and offer timely updates to clients.
Cloud-primarily based solutions offer scalability, permitting freight forwarding groups to easily adjust their resources based on demand fluctuations without the need for substantial infrastructure funding. In June 2023, shipment circulation unveiled a cloud-based totally logistics platform; digitizing greater than 1000 freight forwarding businesses. The platform's architecture aims to optimize frequently disjointed procedures seen within the logistics enterprise. The software program uses indicators, notifications, and in-order messages to automate logistical communications.
Market Geographical Share
North America’s Strong E-Commerce Industry
With its expanding economic system encompassing the United States, Canada, and Mexico, North America holds a dominant position in the digital goods forwarding business. The U.S. and other countries in North America are renowned for having excellent innovation hubs and technology infrastructure. This enables the improvement and adoption of digital freight forwarding systems.
North America boasts a developed e-commerce industry. Digital Commerce 360 analysis of U.S. Department of Commerce data indicates that in 2023, e-commerce in the U.S. accounted for 22.0% of overall retail sales. In evaluation, that represents 21.2% penetration in 2022. Digital platforms offer streamlined logistics answers that cater to the demands of e-trade businesses which further drives demand for efficient freight forwarding services.
COVID-19 Impact Analysis On Market
Virtual solutions have been rapidly adopted in several businesses, including goods forwarding, due to the COVID-19 pandemic. Conventional supply chains faced disruptions because of lockdowns and regulations, prompting groups to pivot towards virtual platforms. These systems provided remote control of logistics operations, ensuring continuity in supply chain operations.
The shift towards digital freight forwarding enabled businesses to conquer logistical demanding situations posed by the pandemic, along with workforce limitations and transportation constraints. By embracing digital systems, companies gained better visibility and control over their delivery chains, facilitating higher decision-making and risk mitigation. This acceleration in digitalization is poised to have long-lasting results on the freight forwarding enterprise, driving efficiency and resilience in supply chain management practices.
Russia-Ukraine War Impact Analysis
The market for digital goods forwarding has been severely interrupted by the conflict between Russia and Ukraine. This is for global supply chains that depend on Ukraine's transit routes between Europe and Asia. Logistics operations were unclear and risky as a result of these disruptions, which have also caused delays, route diversions, and expensive transportation. The war underscores the significance of resilient supply chain techniques and agile digital systems to navigate geopolitical disruptions effectively.
Organizations relying on digital freight forwarding offerings faced challenges in navigating those disruptions, highlighting the significance of agility and flexibility in supply chain management. The war underscores the need for strong digital structures that could offer real-time visibility, opportunity routing alternatives, and chance assessment gear to mitigate the impact of geopolitical events on logistics operations.
Key Developments
- In October 2021, Samsung SDS launched Cello Square, a Digital Freight Forwarding Service. Cello Square is an IT-based import/export logistics service that enables small and medium-sized Korean businesses to enter foreign markets by taking direct control of the whole logistics process, from contract and quotation to shipping, tracking, and account settlement.
- In February 2024, to promote cross-border trade in Africa, Ghanaian digital goods forwarder Jetstream Africa introduced Jetvision.ai, an AI-enabled platform. The new platform is accessible to regional freight forwarders.
- In September 2023, The Ministry of Economy unveiled Zencargo, a UK-based pioneer in digital freight forwarding, as the latest company to join the Ministry of Economy's NextGenFDI scheme.
Market Companies
The major global players in the market include Flexport, Inc., Forto Logistics SE & Co. KG, Agility, Saloodo! GmbH, iContainers, Freightwalla, Boxnbiz, Zencargo, Kappal, DiLX.
Why Purchase the Report?
- To visualize the global digital freight forwarding market segmentation based on component, mode of transport, deployment mode, function, end-user industry and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of digital freight forwarding market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global digital freight forwarding market report would provide approximately 78 tables, 71 figures and 250 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
