Global Freight Management Market - Forecasts from 2024 to 2029

Global Freight Management Market - Forecasts from 2024 to 2029

The global freight management market is expected to reach a market size of US$22.110 billion in 2029 from US$15.823 billion in 2024, thereby growing at a CAGR of 6.92%.

The freight management system is required to oversee and manage the cost-efficient operation and delivery of goods via air, land, and waterways. The system is widely used to provide solutions and assist in regular operations such as shipping, detection, tracking, data reduction, and error elimination.

The system plays an integral part in logistics & supply chain owing to its high applicability in proof of delivery (POD) scanning, pallet tracking, vehicle maintenance and repairs, customer electronic data interchange (EDI), and comprehensive operational reporting.

Global Freight Management Market Drivers:

The rising implementation of free trade policies among different countries is driving the market expansion

Global trade is rising due to organizations like WTO (World Trade Organization) which are encouraging open-door policies for promoting international trade by providing trade incentives and relaxation in regulations to reduce or eliminate trade barriers among various countries and/or regions. According to the WTO’s “Global Trade and Statistics”, the world merchandise trade volume is projected to show growth of 3.3% in 2024.

Growing merchant trading and establishments of cross-country agreements have further propelled the demand for freight management solutions to optimize delivery timing and capabilities, augmenting the overall market expansion. The improved e-commerce sector in major economies is also anticipated to drive market growth, as on-time delivery and efficient transportation of goods require constant monitoring, which can be met by freight management.

Global Freight Management Market Segmentation Analysis
Logistic Management systems are anticipated to hold a significant market share

Based on solution type, the global freight management market is analyzed into logistics management systems, freight information systems, baggage and cargo screening systems, and freight operation management systems. The demand for logistics management systems is rising due to the requirement for managing, tracking, and keeping track of logistics through the cloud and on-premise computing systems to bolster effective logistics delivery.

The freight Information system is set to show the fastest growth owing to its applicability in critical operations such as in the case of tracking consignment and deviation from on-time delivery. The freight information system includes an electronic data interchange solution and a freight tracking system.

A baggage and cargo screening system is required for screening mail, parcels, and personal bags for security purposes. It helps reveal what’s inside the baggage or cargo so that it can be inspected for security reasons.

The market for freight operational management systems is expanding as they help streamline logistical supply chain operations and increase logistical efficiency. These systems help track/trace and optimize shipments with selected carriers and even help with payment and freight audits.
Cloud will show significant growth

By deployment model, the global freight management market is segmented into on-premises and cloud, where the latter is set to show the quickest expansion. Cloud-based freight management solutions offer high transparency, speed, efficiency, and reliability, which enables users to determine the success rate of freight delivery. Booming technological adoption in logistics and freight business to remove the complexities of the operation has led to the generation of huge data volume, which necessitated the demand for new analytics platforms for analyzing numbers in freight management.

Booming economic growth in major nations, followed by growing e-commerce trade globally, has expanded the overall logistics sector. Companies with large fleets need a reliable solution to manage and control their operations effectively. Cloud-based solutions can fulfill such requirements, stimulating resource optimization and thereby achieving cost-effectiveness.
Airways is projected to account for a significant market share.

Airways are one of the most widely used applications for the transportation of goods across different countries, and the demand for air freight is increasing due to the strong growth of the international e-commerce industry and the transportation of time- and temperature-sensitive goods worldwide. Government schemes to bolster air logistics, followed by the establishment of new cargo terminals, have laid a blueprint for future market expansion.
APAC is expected to show significant market growth.

Regionally, the global freight management market is classified into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific, where the latter is set to grow at a remarkable rate fueled by the booming international trade by major economies namely India, China, and South Korea. Increasing internet and smartphone penetration and the expansion of global e-commerce vendors across the region are encouraging the freight industry to sharpen its offerings and launch specific solutions to address users' dynamic needs.

North America is anticipated to account for a considerable market share, backed by favorable investments to bolster technological adoption in the logistics and freight business and the well-established presence of leading market players. Rising investments in R&D by freight management solutions providers are further contributing to this region's freight management market growth.

Global Freight Management Market Key Developments
December 2023: Fujitsu launched its cloud-based logistics data standardization and visualization services for logistics companies, vendors, and shippers. The services will provide tools enabling businesses to improve their operations amidst the complexities of the supply chain.
March 2023: ArcBest launched Vaux™, the company’s latest freight movement technology that transforms how freight is unloaded, loaded, and transferred. The new technology will enable logistics companies to overcome supply chain challenges and freight handling inefficiencies.
September 2022: Cambridge Capital, a renowned supply chain investment group, disclosed a controlling stake in Flow Cold Storage and Boa Logistics. The investment was undertaken to capitalize on the company's significant market opportunity and to extend its specialized freight consolidation platform.
March 2022: Transpharma International formed a partnership with Polish logistics firm Arra Group, allowing the companies to provide their life science customers with access to more than 500 GDP-compliant vehicles across Europe, bolstering their pharmaceutical supply chain overall.
February 2022: DAT Freight & Analytics announced an extended collaboration with Parade via a minority investment, allowing for more integration between North America and Parade’s largest freight marketplace. This has built on an existing arrangement to allow mutual broker clients to use Parade's artificial intelligence to choose and price loads on DAT's load board.

The Global Freight Management market is segmented and analyzed as follows:

By Solution Type
Logistics Management System
Freight Information System
Baggage and Cargo Screening System
Freight Operational Management System
Others
By Deployment Model
On-Premise
Cloud
By Application
Roadways
Railways
Seaways
Airways
By Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
United Kingdom
Italy
France
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
India
South Korea
Indonesia
Thailand
Taiwan
Others