Freight Brokerage Market Size, Share, Growth Analysis, By Customer Type (B2B, B2C), By Services, By Mode of Transport, By End Use Industry, By Region - Industry Forecast 2024-2031

Global Freight Brokerage Market size was valued at USD 48.1 billion in 2022 and is poised to grow from USD 51.13 billion in 2023 to USD 88.61 billion by 2031, growing at a CAGR of 6.3% in the forecast period (2024-2031).

The freight brokerage market is experiencing a significant transformation due to the rise of digital brokers that streamline the shipping process. Brokers serve as vital intermediaries, connecting clients with shippers and trucking firms. As companies like Transfix, Uber Freight, and Loadsmart integrate advanced AI and machine learning, they facilitate automatic load matching based on multiple parameters, enhancing efficiency over traditional methods that often lead to delays. The growing e-commerce sector and the rise of consolidated air freight services are expected to drive market growth. The emergence of digital freight forwarding will also provide new opportunities for reducing costs and lead times. Overall, the US Freight Brokerage Market is projected to sustain a strong CAGR in the forthcoming years.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Freight Brokerage market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Freight Brokerage Market Segmental Analysis

Global Freight Brokerage Market is segmented by Customer Type, Services, Mode of Transport, End Use Industry and region. Based on Customer Type, the market is segmented into Business to Business (B2B), Business to Customer (B2C). Based on Services, the market is segmented into Intermodal, Full Truckload, Less Than Truckload. Based on Mode of Transport, the market is segmented into Waterways, Roadways, Others. Based on End Use Industry, the market is segmented into Retail, E-Commerce, Manufacturing, Healthcare, Automotive, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.

Driver of the Global Freight Brokerage Market

The Global Freight Brokerage market is experiencing significant growth driven by the rising adoption of freight brokerage services. Logistics providers are faced with the challenge of delivering goods punctually while managing costs, leading to an increased demand for efficient transportation solutions. This environment allows companies to leverage multi-modal transportation systems, enhancing supply chain performance. Freight brokers typically possess comprehensive networks and specialized knowledge in various transportation methods, enabling them to offer clients optimal shipping options as their needs evolve. By utilizing multimodal strategies, brokers can effectively reduce freight expenses, exemplified by APL Logistics' ShipMax service, which optimizes load utilization and delivery efficiency. Consequently, leading industry players are presented with considerable growth opportunities due to the cost savings and improved lead times associated with these advanced transportation systems.

Restraints in the Global Freight Brokerage Market

The Global Freight Brokerage market faces several restraints predominantly due to the rise of Direct-to-Consumer (DTC) e-commerce, which enhances shipping efficiency and overall service delivery. By utilizing domestic freight forwarders, communication becomes more streamlined, and real-time tracking improves visibility for shippers, allowing them to monitor shipments closely. This access to live data throughout the transportation process helps mitigate potential errors. However, DTC logistics eliminate the need for intermediaries such as freight brokers, allowing businesses to engage directly with clients. As a result, DTC logistics are expected to hinder the growth of the global freight brokerage market during the forecast period.

Market Trends of the Global Freight Brokerage Market

The Global Freight Brokerage market is witnessing a dynamic shift driven by the integration of advanced technology, which is redefining operational efficiencies and customer experiences. Tech-enabled platforms like Transfix, Convoy, Uber Freight, and Loadsmart are leveraging algorithms for seamless matching of carriers and loads based on various parameters, vastly improving upon traditional brokerage methods that often suffer delays. The rise of digital freight brokerage facilitates real-time pricing and enhanced visibility, enabling third-party logistics (3PL) providers to tackle complex logistics challenges through telematics and advanced analytics. This innovation empowers carriers to optimize resource utilization and enables shippers to achieve cost-effective shipment scheduling, marking a significant market trend towards increased efficiency and transparency in freight logistics.