Freight Forwarding Market Analysis and Forecast to 2033: By Service (Transportation and Warehousing, Packaging and Documentation, Value-added Services), Mode of Transport (Land Freight Forwarding, Sea Freight Forwarding, Air Freight Forwarding), Customer

Freight Forwarding Market Analysis and Forecast to 2033: By Service (Transportation and Warehousing, Packaging and Documentation, Value-added Services), Mode of Transport (Land Freight Forwarding, Sea Freight Forwarding, Air Freight Forwarding), Customer Type (B2B, B2C), End-use Industry (Retail and E-Commerce, Manufacturing, Healthcare, Automotive, Others), and Region

The freight forwarding market was valued at USD 219.5 billion in 2023, and it is anticipated to grow at a CAGR of approximately 3.75% during the forecast period.

Freight forwarding is organizing, coordinating, and shipping goods from one place to another across international borders through a single or multiple carriers. The shipment of the goods occurs through land, air, or sea. The company responsible for organizing the shipment is known as a freight forwarder. Freight forwarders manage the benefits and risks of shipping nationally and internationally by performing the required tasks, including container tracking, freight rate negotiations, freight consolidation, and customs documentation. Moreover, freight forwarding comprises numerous stages, such as export customs clearance, export haulage, import customs clearance, origin handling, destination handling, and import haulage.

Global Freight Forwarding Market Scope and Report Structure

Market Drivers and Trends

A surge in international trade volumes is one of the primary drivers of the growth of the freight forwarding market. An increasing number of trade agreements, especially among emerging economies, is a key factor driving the growth of international trade. Additionally, a booming e-commerce market has helped augment trade activities, resulting in increased freight forwarding market growth.

Further, integrated services offered by freight forwarders are another key factor responsible for the growth of the freight forwarding market. Besides transporting cargo, freight forwarders also provide other integrated services such as packaging, insurance, and documentation. Thus, the availability of a wide range of services has also resulted in propelling the growth of the freight forwarding market.

Market Restraints and Challenges

In the past, the story of manufacturing was globalization. But, in recent years, manufacturers have begun to move production closer to home. This means new or expanded local facilities, which makes the opportunity to upgrade to smart factory infrastructure at these facilities irresistible. People have witnessed many global supply chain disruptions in the past, such as an earthquake & tsunami in Japan, floods in Thailand, a US-China trade war, and the COVID-19 pandemic. The push for reshoring to minimize supply chain disruption started long before COVID-19, but it accelerated significantly during the pandemic as the importance of supply chain resilience came to the forefront. Thus, the rise in reshoring and nearshoring manufacturing is projected to create challenges for the global freight forwarding market.

Global Freight Forwarding Market Segmental Overview

The report analyses the global freight forwarding market based on service, mode of transport, customer type, end-use industry, and region.

Global Freight Forwarding Market by Service

Based on service, it is segmented into transportation and warehousing, packaging and documentation, and value-added services. The transportation and warehousing segment had the largest freight forwarding market share in 2023. Businesses are a part of society, that cannot function on their own. Two aspects of any economy that affect a company’s functionality are its transportation and warehousing. Transportation systems help firms move their products from one point to another. Similarly, warehousing facilities allow them to stock their inventory. Due to the above factors, the transportation and warehousing segment is expected to receive the main market attraction resulting in market growth.

Global Freight Forwarding Market by Mode of Transport

Based on mode of transport, it is segmented into land freight forwarding, sea freight forwarding, and air freight forwarding. The air freight forwarding segment is expected to dominate the market during the forecast period owing to increasing internet penetration, infrastructure expansions, and rising buying power parity. Due to the factors mentioned above, the air freight forwarding segment is expected to dominate the market during the forecast period.

Global Freight Forwarding Market by Customer Type

Based on customer type, it is bifurcated into B2B and B2C. The B2B segment was the largest segment in the freight forwarding market in 2023. B2B marketplaces were rightly positioned to take advantage of the opportunity, offering quality products at reasonable prices and reliable delivery schedules, coupled with the necessary standard credit terms.

Global Freight Forwarding Market by End-use Industry

Based on end-use industry, it is segmented into retail and e-commerce, manufacturing, healthcare, automotive, and others. The retail and e-commerce segment is expected to dominate the market during the forecast period, owing to the e-commerce sector is rapidly evolving as the internet becomes more accessible in different parts of the world. The improvement of consumer experiences in e-commerce stores is evident. An increase in internet accessibility, plenty of products & personalized offers, ease of transaction, and the absence of the constraints of a physical presence and interaction make online shopping desirable to consumers. Due to the factors mentioned above, the retail and e-commerce segment are expected to dominate the market during the forecast period.

Geographical Analysis of Global Freight Forwarding Market

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. The North American market is expected to hold the majority of the market share during the forecast period due to increasing customer preference for purchasing online. Moreover, the presence of many potential vendors in this region further encourages market growth. This, in turn, boosts the demand for freight forwarding in the North American region.

Major Players in the Global Freight Forwarding Market

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