Freight Forwarding Market size is poised to reach USD 308 Billion by the end of 2036, growing at a CAGR of 4.1% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of freight forwarding was USD 191 Billion. In the year 2024, the industry size of freight forwarding is assessed at USD 198.1 Billion.
The freight forwarding market is expanding due to globalization and extensive growth in international trade. According to a report by the World Bank Organization in 2020, the world's exports of goods and services as a percentage of GDP were 28.88%, while imports were 27.94%. As a result, the rise in the value of commodities exported globally reflects technological developments, globalization, and shifts in international trade.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
4.1% |
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Base Year Market Size (2023) |
USD 191 Billion |
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Forecast Year Market Size (2036) |
USD 308 Billion |
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Regional Scope |
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Customer Type (B2B, B2C)
The B2B segment is estimated to capture freight forwarding market share of around 56% by the end of 2036. B2B clients use their participation in complex supply chain networks to maintain their market supremacy. When items are traded between businesses, they frequently travel through a convoluted process that involves several steps, such as obtaining raw materials, production, and distribution.
Furthermore, technology-driven solutions to improve supply chain visibility and control are actively sought after by B2B customers. This involves implementing real-time tracking, transportation management systems (TMS), and sophisticated analytics tools to optimize routes, cut expenses, and boost overall productivity.
Mode of Transportation (Air, Ocean, Road, Rail)
By 2036, ocean segment in the freight forwarding market is poised to reach USD 70 Billion. The segment growth can be credited to the growing transportation of bulky and voluminous goods. According to a report by the World Bank Group, over 80% of commodities are transported by sea, making maritime transport the backbone of global trade. Developing nations rely heavily on shipping, which makes up around 55% of seaborne exports and 61% of imports.
Industries handling enormous items tend to favor ocean freight due to its ability to efficiently handle huge weights and larger quantities. The movement of heavy machinery, raw materials, and other big cargo via ocean freight is cost-effective and logistically convenient, which benefits industries like mining, building, and manufacturing and contributes to its dominance in the global supply chain.
Services (Transportation & Warehousing, Value-added Services, Packaging)
Till 2036, transportation & warehousing segment in the freight forwarding market is expected to witness growth rate of around 4.7%. E-commerce has been a major driving force in the transportation and logistics sector. Efficient freight forwarding solutions for the management of inventories, order fulfillment, and timely customer delivery are needed by retailers on the Internet.
Furthermore, last-mile delivery is an essential component of e-commerce freight transport, and companies are increasingly investing in innovative solutions to optimize this end part of the shipment process.
Our in-depth analysis of the global freight forwarding market includes the following segments:
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Mode of Transportation |
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Customer Type |
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Services |
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Application |
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North American Market Statistics
North America region in freight forwarding market is anticipated to hold revenue share of more than 32% by 2036. The industrial and manufacturing industries of North America are the backbone of the region's economy. These businesses require the seamless transportation of components, finished items, and raw materials over large distances.
Because of the wide variety of goods and industries that are encompassed by manufacturing and industrial activities, there is a constant demand for dependable logistics, which makes freight forwarding a crucial component of the region's economic growth and competitiveness.
There has been an increasing government initiative and infrastructure spending to assist land-based (road and rail) transportation in the United States. For instance, the most recent iteration of several federal discretionary grant programs for transportation is the 2022 RAISE program. While the initiative will focus on requiring grantees to show how they plan to integrate transportation and land-use planning, it will also advance many other aims concurrently.
APAC Market Analysis
The Asia Pacific region will also encounter huge growth for the freight forwarding market during the forecast period and will hold the second position owing to the growing population. The rapid urbanization process has led to significant investments in freight forwarding hubs, smart warehouses, and contemporary transportation networks, all of which have improved the competitiveness and efficiency of the freight forwarding sector. Asia Pacific nations have been actively engaged in cross-border trade, which has been made possible by several trade agreements and economic alliances.
The market in China is to be supported by increasing production, imports, and exports of semiconductor chips. For instance, only about USD 3.7 billion worth of semiconductor equipment is exported from China, whereas the country imports over USD 34.6 billion worth of machinery. To increase semiconductor manufacturing, China is giving priority to sophisticated manufacturing clusters.
Real-time tracking of shipments, route optimization, and better management of the truck fleet is enabled by the growing adoption of technologies such as global positioning system (GPS) trackers, telematics & fleet management systems in Korea. The freight forwarding market is expanding because of the growing emphasis on improving and expanding road networks, such as expressways and highways, to streamline cargo transportation and boost the effectiveness of trucking operations.
In response to the surge in crude oil prices worldwide, the Japanese government implemented various subsidies which is augmenting the market growth in the region. For instance, in January 2022, the Japanese government initiated a fuel oil, gasoline, kerosene, and gasoil subsidy scheme to lessen the impact of elevated oil costs on the economy while it recovered from the epidemic. Gasoil and kerosene prices were lowered by Yen 20.20/l and Yen 20.10/l, respectively, as a result of the subsidies.
The top businesses in the freight forwarding industry are listed below. Together, these businesses control the largest share of the freight forwarding market and set the direction of industry trends. To map the supply network, these freight forwarding companies' financials, strategy plans, and goods are examined.
Author Credits: Saima Khursheed
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