Global Freight Forwarding Market Size By Medium (Air, Ocean, Road, Rail), Service (Transportation, Warehousing, Documentation, Packaging, Insurance, Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030
Market Perspective
Global Freight Forwarding Market size was worth around USD 187.17 billion in 2022 and is anticipated to grow to around USD 260.49 billion by 2030 at a CAGR of around 4.22% between 2023 and 2030.
The Global Freight Forwarding Market refers to the industry that manages the transportation of shipments for individuals and businesses worldwide. Freight forwarders play a crucial role in streamlining logistics and reducing shipping costs for their clients. These specialized businesses oversee the transportation of goods from producers to end-clients or distribution points. They excel in coordinating the entire shipping process, enabling safe and cost-effective cargo transportation networks. Services offered by freight forwarders include commercial invoicing, warehousing, packaging, documentation, export declaration of shippers, and distribution at the final destination. As essential supply chain professionals, freight forwarders facilitate the efficient and seamless movement of goods across international borders, contributing significantly to global trade and commerce.
Key Insights
- Based on medium, the ocean segment held the dominating position with the highest market value in 2022
- Based on service, the documentation segment is expected to generate the largest share over the forecast period
- On the basis of region, Europe is expected to dominate the market through the forecast period
Increased Demand for Integrated Services Propel Market Expansion
The transportation industry is experiencing a surge in demand for integrated services, fueling its expansion. The increasing need for cost-effective shipping solutions and the ability to comprehend consumer requirements promptly, providing efficient logistical responses is one of the key drivers behind the market growth. Freight forwarders play a vital role by offering a comprehensive array of integrated services to their clients, extending beyond standard point-to-point cargo transportation. These additional services cater to diverse needs, contributing to the upward trajectory of the market. Additionally, the rise in bilateral trade agreements is facilitating further market expansion, promoting seamless cross-border movement of goods, and strengthening the position of integrated service providers in the transportation industry.
High Maintenance Cost of Freight Forwarding Hinders the Market Growth
In the global freight forwarding market, there are concerns pertaining to the high maintenance cost associated with these services, which is likely to hinder market growth. Freight forwarding operations involve various complex tasks, such as documentation, customs compliance, warehousing, packaging, and last-mile delivery, all of which require substantial resources and investments. As a result, businesses may face challenges in managing operational expenses efficiently, impacting their profitability. Moreover, the trend of manufacturing reshoring and nearshoring is posing a significant obstacle to market growth. As companies seek to relocate their manufacturing facilities closer to their target markets, the need for extensive international freight forwarding services diminishes. This shift in manufacturing strategies reduces the demand for long-distance shipping and international logistics, thus potentially affecting the freight forwarding market growth trajectory.
Recent Development
March 2023: Global logistics provider DACHSER acquired the Australian and New Zealand-based companies, Johnston Logistics and its partner JCL Logistics. This strategic move strengthened DACHSER's presence in the Oceania region, enhancing its apabilities to provide efficient supply chain solutions to customers in these markets. The acquisition expanded DACHSER's network, enabling access to a broader customer base and reinforcing its position as a key player in the freight forwarding industry in Australia and New Zealand.
Segmentation Analysis
Based on medium, the market is segmented into air, ocean, road, and rail. In 2022, the ocean segment dominated the market due to its cost-effectiveness and ability to handle large volumes of cargo. This mode of transportation proved essential during the pandemic when air and land routes faced disruptions. Moreover, the ocean segment is projected to maintain its lead and exhibit the highest CAGR in the upcoming years. As businesses increasingly prioritize sustainability and efficiency, ocean shipping offers an eco-friendly and reliable solution for global freight forwarding, driving its continued growth.
Based on service, the market is segmented into transportation, warehousing, documentation, packaging, insurance, and others. In 2022, the documentation segment dominated the market as regulatory compliance and customs procedures became more stringent, necessitating meticulous documentation. Additionally, the digitization of documentation processes streamlined operations and enhanced efficiency. The segment is projected to continue its dominance and generate the highest revenue by 2030. As global trade grows, the demand for accurate and comprehensive documentation services will remain crucial, driving sustained growth and revenue generation in this sector.
Europe is the Dominating Region Owing to Significant Technological Advancements
In 2022, Europe held the dominant share in the global freight forwarding market. The region boasts a strong presence of major key players in the logistics industry and has made significant technological advancements in transportation and supply chain management. Moreover, the growing industrialization and the emergence of new economies within Europe have spurred the demand for freight forwarding services. Additionally, the widespread acceptance of e-commerce platforms has contributed to the region's prominence. These favorable factors are expected to continue driving the growth of the freight forwarding market in Europe through the forecast period.
Asia-Pacific is the Fastest Growing Region Owing to the Strong Support from Governments
Asia-Pacific is poised to be the fastest-growing region in the global freight forwarding market. The logistics industry in ASEAN countries is witnessing robust growth, boosting overall regional demand. The presence of major economies like China and Japan further drives this growth trajectory. Additionally, the strong support from governments in the region for the logistics sector plays a vital role in fostering industry expansion. As the world's largest producer and exporter, China experiences rising demand for essential goods such as pharmaceuticals, bolstering its dominance in the global freight forwarding sector. As a result, Asia-Pacific is projected to lead the market over the assessment period.
Competitive Landscape
The global chronic wound care market is fragmented with key players such as H. Robinson Worldwide, CJ Century Logistics, Dimerco, DSV Panalpina A/S, DB Schenker, Expeditors International, Hellmann Worldwide Logistics, Deutsche Post DHL Group, DACHSER, GEODIS, amongst others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.
The global freight forwarding market is segmented as follows:
By Medium
- Air
- Ocean
- Road
- Rail
By Service
- Transportation
- Warehousing
- Documentation
- Packaging
- Insurance
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- South Africa
- North America
- Rest of Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
ARE YOU SEEKING COMPREHENSIVE INSIGHT ON VARIOUS
MARKETS?
CONTACT OUR EXPERTS TODAY
Speak to an Expert
Global Freight Forwarding Market Size By
- October-2023
- 140
- Global
- retail
Related Research
Agrobacterium tumefaciens Competent Cells Market Insights 2022, Global Analysis and Forecast to 2030
July-2021
Aluminium Composite Panels (ACP) Market Insights 2022, Global Analysis and Forecast to 2030
July-2021
Backpack Market By Product Type (Travel, Hiking, Work and Others), Material (Nylon, Polyester & Othe
February-2023