PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1498804
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1498804
Freight and Logistics Market size was valued at USD 6,155.6 Million in 2023, expanding at a CAGR of 5.30% from 2024 to 2032.
Freight and logistics are the processes of transporting goods and items via trucks, rail, road vehicles, along with huge boats carrying containers and planes. They provide contract logistics, warehousing, and value-added services and plan and deliver advanced integrated logistics solutions for complex global supply chain networks. The growth of the Freight and Logistics Market is being driven by an increase in trade-related agreements and global logistics infrastructure, as well as technical advances in the logistics industry for speedy delivery and supply chain management.
Freight and Logistics Market- Market Dynamics
Rise in Global Trade Activities to Drive Market Growth
Increased worldwide trade activities are likely to drive the freight and logistics market ahead. Global commerce activities encompass the import and export of commodities and services across international borders. Freight and logistics services transfer goods globally using various types of transportation. Increased global commercial activity has increased the volume of commodities transported to different countries using various modes of transportation. For instance, according to the United Nations Conference on Trade and Development, a Swiss-based UN organization, developing-country exports increased by 30% in the fourth quarter of 2021, and global trade reached a record level of USD 28.5 trillion in 2021. Furthermore, China accounts for the largest share of global exports (15%).
Freight and Logistics Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 5.30% over the forecast period (2024-2032)
Based on Shipping Type segmentation, Waterways dominated the Freight and Logistics industry in 2023.
Based on Service segmentation, the Transportation category is predicted to grow at a significant CAGR throughout the forecast period.
On the basis of region, Asia Pacific was the leading revenue generator in 2023
The Global Freight and Logistics Market is segmented on the basis of Shipping Type, Service, End-Use Industry, and Region.
The market is divided into four categories based on Shipping Type: Railways, Airways, Roadways and Waterways. The Waterways category dominated the Freight and Logistics industry in 2023, and it is expected to increase at a substantial CAGR over the projected period. The growing desire for waterways logistics can be ascribed to the advantages given, which include dependable and congested travel. In comparison to trucks and railcars, waterways logistics offers higher loading capacity, lower emissions, efficient payload conveyance, and optimal fuel consumption, all of which are expected to drive segment expansion in the freight and logistics business shortly.
The market is divided into seven categories based on Service: Inventory Management, Warehousing, Packaging, Distribution, Transportation, Customs Clearance, and Others. The Transportation category dominated the Freight and Logistics business in 2023 and is expected to increase at a substantial CAGR during the forecast period. The anticipated significant growth in freight volumes during the projection period is predicted to benefit the global freight forwarding industry. The expanding network of agreements will increase trade and investment opportunities, strengthening the country's ability to capitalize on global freight and logistics market growth. These agreements' investment frameworks contribute to a more enticing investment environment and greater economic integration in the global Freight and Logistics Market.
Freight and Logistics Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. Asia Pacific dominated the Freight and Logistics Market in 2023 and is predicted to retain the greatest market share during the forecast period. The region's major countries are integrating more technology into their logistics processes. In India, 80% of freight is delivered by road, and the trucking industry is using cutting-edge tracking technology to track better and anticipate delivery dates. Thailand is leveraging IBM and Maersk's blockchain initiative to improve shipment tracking. Asian logistics is distinguished by expanding intra-Asian trade and rising imports of not just industrial supplies but also consumer products.
Several reasons can be given for North America being the fastest-growing region in the Freight and Logistics Market. A strong economy, technologically advanced infrastructure, and numerous technological advancements in the logistics industry are the primary drivers of logistics growth in the region. The demand for streamlined freight and logistics services has been exponentially heightened in North America owing to boosted e-commerce, leading to an opening up of such services and last-mile delivery solutions, including warehousing and transportation. Furthermore, its strategic location relative to major global markets, such as Asia and Europe, makes it a central point for international trade and other logistics activities.
Major market players such as The Maersk Group, Kuehne+ Nagel, DB Schenker Logistics (Germany), and C.H. Robinson (US), Deutsche Post DHL (Germany), among others, are investing heavily in R&D to expand their product offerings, which will help the Freight and Logistics market grow even further. Market participants are also chasing a variety of strategic measures to increase their global footprint, including new product releases, contractual agreements, mergers and acquisitions, increased investment, and collaboration with other companies. To expand and survive in an increasingly competitive and rising market climate, competitors in the freight and logistics industry must offer cost-effective products.
In February 2024, C.H. Robinson created a novel technology that significantly improves freight transportation efficiency by eliminating the need to schedule an appointment at the location where a load needs to be picked up and another appointment where the load needs to be delivered. The device also employs artificial intelligence to select the best appointment based on travel time data from C.H. Robinson's millions of shipments across 300,000 shipping lines.
GLOBAL FREIGHT AND LOGISTICS MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Dsv Global Transports and Logistics (Denmark)
Kuehne+ Nagel (Switzerland)
The Maersk Group (Germany)
Deutsche Post DHL (Germany)
DB Schenker Logistics (Germany)
C.H. Robinson (US)
Panalpina (Switzerland)
United Parcel Service (US)
FedEx Corp. (US)
Walmart Group (US)
Others