PUBLISHER: IMARC | PRODUCT CODE: 1451851
PUBLISHER: IMARC | PRODUCT CODE: 1451851
The global freight management system market size reached US$ 16.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 38.3 Billion by 2032, exhibiting a growth rate (CAGR) of 9.78% during 2024-2032. The significant rise in the volume of freight being transported, the integration of various advanced technologies, and the increasing complexity in supply chains involving multiple stakeholders are some of the major factors propelling the market.
A freight management system (FMS) is a comprehensive software solution used in the logistics and transportation industry to efficiently plan, execute, and optimize the movement of goods and cargo from one location to another. It encompasses a wide range of functions and features designed to streamline the complex processes involved in managing freight and logistics operations. It is used to optimize the planning, execution, tracking, and reporting of freight and cargo shipments. The system helps in determining the most efficient routes and schedules for transporting goods. It takes into account factors such as distance, traffic, delivery deadlines, and carrier availability.
The global market is driven by the increasing freight volume traversing various regions. This surge can be attributed to the expanding international trade and the rapid process of globalization. Concurrently, the surging popularity of online shopping is fostering an ever-increasing demand for precise and prompt goods delivery, thus propelling the market growth. Additionally, the continuous evolution of technology, exemplified by the Internet of Things (IoT), cloud computing, and artificial intelligence (AI), facilitates real-time tracking and visibility of shipments, further drives market expansion. Besides, the integration of predictive analytics for demand prediction, route optimization, and automation of diverse logistics processes presents lucrative opportunities within the market. Moreover, the escalating complexity of supply chains, encompassing multiple stakeholders, transportation modes, and global networks, necessitates end-to-end visibility and control, thus creating a positive market outlook. Furthermore, factors such as rapid urbanization, increased emphasis on customer satisfaction, and extensive research and development (R&D) activities also contribute to the market's growth trajectory.
Rising volume of freight being transported
As the volume of freight grows, logistics and transportation operations become more intricate. Managing large quantities of goods across various regions and modes of transportation requires sophisticated solutions. FMS systems are equipped to handle this complexity by providing tools for efficient planning, tracking, and optimization of freight movements. Moreover, businesses are under pressure to ensure timely deliveries while minimizing costs. FMS solutions play a crucial role in meeting these demands by offering features like route optimization, real-time tracking, and automated processes, which result in cost savings and improved efficiency. Besides, the growing popularity of online shopping has led to a surge in e-commerce shipments. Consumers now expect rapid and accurate delivery of goods ordered online. FMS systems are instrumental in meeting these expectations by enabling e-commerce businesses to efficiently manage their supply chains, track shipments in real-time, and optimize last-mile delivery.
Integration of various advanced technologies
These technological advancements are transforming the way freight and cargo logistics are managed, offering greater efficiency, accuracy, and visibility throughout the supply chain. For instance, IoT technology involves the use of sensors and connected devices to gather real-time data from assets, vehicles, and cargo. Integration of IoT in FMS enables continuous monitoring of freight conditions, including temperature, humidity, and location. This data helps in ensuring the integrity of sensitive cargo, optimizing routes based on real-time traffic and weather conditions, and enhancing overall supply chain visibility. Moreover, cloud-based FMS solutions provide scalability and accessibility, allowing businesses to access their logistics data from anywhere with an internet connection. This integration enables real-time collaboration among stakeholders, streamlines data storage and management, and supports data analytics for decision-making, thus propelling the market growth.
Increasing complexity in supply chains involving multiple stakeholders
Modern supply chains often involve a multitude of stakeholders, including suppliers, manufacturers, distributors, retailers, carriers, and even third-party logistics providers. Each stakeholder plays a crucial role in the movement of goods. Managing these various entities efficiently and ensuring seamless coordination is a challenging task that FMS can address. Besides, supply chains have expanded globally, with goods traversing international borders. This expansion has led to more extended and intricate supply chain networks. FMS provides the necessary tools to manage the complexities of global logistics, including international regulations, customs compliance, and multi-modal transportation, which is also driving the market.
IMARC Group provides an analysis of the key trends in each segment of the global freight management system market, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on component, transportation mode, and end user.
Solution
Planning
Execution and Operations
Control and Monitoring
Service
Consulting
System Integration and Deployment
Support and Maintenance
Solutions represent the most used component
The report has provided a detailed breakup and analysis of the market based on the component. This includes solution (planning, execution and operations, and control and monitoring) and service (consulting, system integration and deployment, and support and maintenance). According to the report, solution represented the largest segment.
FMS solutions are comprehensive software platforms that offer a wide range of functionalities essential for managing all aspects of freight and logistics operations. They encompass order management, routing and scheduling, carrier selection, shipment tracking, documentation, cost management, reporting, and more. This comprehensive nature makes them indispensable for businesses looking to efficiently manage their logistics. Besides, these solutions provide a centralized control center for overseeing and optimizing freight operations. This centralized approach streamlines processes, reduces duplication of efforts, and enhances coordination among different departments and stakeholders within an organization.
Rail Freight
Road Freight
Ocean Freight
Air Freight
Road freight accounts for the majority of market share
A detailed breakup and analysis of the market based on the transportation mode has also been provided in the report. This includes rail freight, road freight, ocean freight, and air freight. According to the report, road freight represented the largest segment.
Roads are one of the most widespread transportation infrastructures globally. They reach into urban and rural areas, making road freight a versatile and accessible option for transporting goods. This extensive network of roads provides a significant advantage for road freight over other transportation modes. Moreover, road freight is often a cost-effective choice for both short and medium-distance shipments. The cost per mile for transporting goods by road can be competitive when compared to other modes such as air or rail, especially for relatively small volumes of cargo. Besides, unlike some other modes of transportation, road freight can access even remote or less developed areas, making it indispensable for reaching destinations that might not have well-established rail or air transportation infrastructure.
Third-party Logistics
Forwarders
Brokers
Shippers
Carriers
Third-party logistics hold the largest market share
A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes third-party logistics, forwarders, brokers, shippers, and carriers. According to the report, third-party logistics represented the largest segment.
3PL companies specialize in managing logistics and transportation services. They have extensive experience and knowledge in handling various aspects of freight management, from order processing to last-mile delivery. This expertise makes them well-equipped to leverage FMS solutions effectively. Moreover, various providers operate on a global scale, serving a wide range of industries and clients. They often have a vast network of carriers, warehouses, and distribution centers, which allows them to efficiently manage complex logistics operations. FMS solutions are instrumental in coordinating and optimizing these resources.
North America
United States
Canada
Asia Pacific
China
Japan
India
South Korea
Australia
Indonesia
Others
Europe
Germany
France
United Kingdom
Italy
Spain
Russia
Others
Latin America
Brazil
Mexico
Others
Middle East and Africa
North America exhibits a clear dominance in the market
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.
North America, particularly the United States and Canada, is home to a robust and diverse economy with extensive domestic and international trade activities. The high level of economic activity generates a significant demand for efficient freight management solutions to move goods within the region and across borders. Besides, the region boasts well-developed transportation infrastructure, including an extensive network of highways, railways, ports, and airports. This infrastructure facilitates the movement of goods and is conducive to the adoption of advanced freight management systems. Moreover, the region is at the forefront of technological innovation, including developments in logistics and transportation. This innovation includes the adoption of IoT, cloud computing, and AI technologies that enhance the efficiency and visibility of freight management processes.
The competitive landscape of the market is characterized by the presence of multiple players that include established brands, emerging startups, and specialty manufacturers. Presently, leading companies are investing heavily in research and development to continuously improve their freight management systems. They are focusing on enhancing features like real-time tracking, analytics, and automation to provide more value to their customers. Besides, key players are forming strategic partnerships and alliances with other technology providers, logistics companies, and transportation carriers. Moreover, various players are strengthening their presence in international markets to strengthen their position. This involves establishing offices, data centers, and support networks in key regions to serve global customers more effectively.
Blue Yonder Group Inc. (Panasonic Holdings Corporation)
C.H. Robinson Worldwide Inc.
Ceva Logistics (CMA CGM Group)
DB Schenker (Deutsche Bahn AG)
e2open LLC (E2open Parent Holdings Inc.)
Kuehne + Nagel International AG
McLeod Software
MercuryGate International Inc.
Oracle Corporation
SAP SE
The Descartes Systems Group Inc.
United Parcel Service of America Inc.
Werner Enterprises Inc.
In February 2022, RHI Magnesita has chosen Oracle Fusion Cloud Transportation Management, a component of Oracle Fusion Cloud Supply Chain and Manufacturing (SCM), to support its growth and technological modernization. After the agreement, all RHI Magnesita's shipping facilities will utilize a single, integrated transport management system for its logistical operations.
The Descartes Systems Group completed its acquisition of Aljex, a cloud-based logistics provider to provide Aljex's back-office transportation management solutions to freight brokers and transportation providers.
Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.