Freight Management System Market

Freight Management System Market Analysis by Component (Solutions, and Planning [Supplier & Vendor Management, Freight Order Management, and Others], Execution & Operation [Electronic Data Interchange, and Others]), and Control & Monitoring [Freight Tracking & Monitoring Solution]); by Transportation Mode (Rail Freight, Road Freight, and Others); and by End-User (Third-Party Logistics, Forwarders, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2021-2031

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Report ID: 4679 | Published On: Feb 06, 2023

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Inflation and Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.

In The News

  •  Oracle Public Safety Services, a brand-new technological platform for law enforcement and first responders, was introduced by Oracle. The platform offers a cohesive hardware and software suite that is intended to break down data silos, get rid of manual drudgery, and provide first responders access to situational awareness and real-time information when every second matters. The suite comprises body worn devices and real-time video communication tools in addition to a dispatch command center, police enforcement records, and jail management software.

  • The Transportation Management System (TMS) of Manhattan Associates is being used by PLUS, a top supermarket stores in the Netherlands, to enhance route planning and streamline its delivery network. The management of all inbound deliveries from suppliers to distribution centers (DCs) and outbound deliveries from its four nationwide DCs would allow PLUS to realize the transportation and logistics needs of its grocery stores across the country. Manhattan's cloud-based TMS solution has been implemented in distribution centers throughout the Netherlands.

Global Freight Management System Market Definition

The process of monitoring and controlling the delivery of products is known as freight management. Freight management is a component of the logistics process, which encompasses the entire supply chain activity, from storage to supplier relationships and inventory control.

For businesses, the ability to transport freight in the appropriate quantity, on schedule, undamaged, and for the lowest feasible price, has always been crucial. This ability is more crucial than ever in the competitive market of today owing to things including leaner shipper inventories, just-in-time manufacturing, increased labor and warehousing costs, smaller delivery windows, and consumer fulfilment expectations fueled by e-commerce.

Further, cargo is transported by road, rail, sea, and air by freight managers. To offer the best logistical and delivery options, combinations of these modes—often referred to as intermodal transportation—are also used. Moreover, IoT-based sensing systems are extensively used in fright management system in order to keep track of products and components moving through supply chain. Companies could access real-time or nearly real-time location data and status updates, such as the temperature of loads, through these systems.

Global Freight Management System Market: Key Insights 

Base Year 


Forecast Year 




Base Year Market Size (2021) 

USD 3,814.5 Million

Forecast Year Market Size (2031) 

USD 10,391.7 Million

Regional Scope 

  • North America (U.S., and Canada) 
  • Latin America (Mexico, Argentina, Rest of Latin America) 
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) 
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) 
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa) 

Global Freight Management System Market Size, Forecast, and Trend Highlights Over 2021 – 2031

The global freight management system market is estimated to garner a revenue of USD 10,391.7 Million by the end of 2031 by growing at a CAGR of 10.69% over the forecast period, i.e., 2022 - 2031. Further, the market generated a revenue of USD 3,814.5 Million in the year 2021. The growth of the market can be attributed by growing global trade landscape. Global trade reached a new high of over USD 28.5 trillion in 2021, up almost 13% from the pre-pandemic level of 2019 and nearly 25% from that of 2020. Global trade expanded significantly in both halves of 2021, with the first half recording the greatest rise. Following a third quarter in which trade growth was comparatively moderate, it resumed in the fourth quarter, when commerce in products climbed by about USD 200 billion, setting a new record of USD 5.8 trillion. Additionally, since logistics and transportation solutions have developed more quickly owing to the growing global trade, there is a greater need for freight management systems.

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Further, as global trade expands, the demand for detail about every aspects of shipment, shipping lines, and forwarders is growing among customers. Hence, increase supply chain visibility is also expected to boost the growth of the market over the forecast period. There has been constant innovation, and development for new tools and procedures to streamline and smooth the supply chain. Also, the technology provided by new supply chain visibility companies fosters quick response to change by allowing businesses to use real-time data. As a recent instance, Hapag-Lloyd choose the IoT company Globe Tracker to power its new real-time container monitoring system, Hapag-Lloyd Live.  Data on traffic patterns, weather, and road and port conditions are analyzed by researchers to optimize routes, restructure demand, and change supply. The usage of cloud services by warehouses to track inventory, vehicles, and equipment is made possible by the connected IoT devices on packages. Furthermore, real-time monitoring, increased fuel efficiency, and preventative maintenance procedures make IoT-enabled container management easier.

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Global Fright Management System Market: Growth Drivers and Challenges

Growth Drivers

  • Growing Merges and Acquisitions among the Key Players

Trimble acquired Kuebix, the largest connected shipping community in North America, in January 2020 with the goal of developing a state-of-the-art freight management system (FMS) that would enable shippers and carriers to collaborate more closely on a single platform. The industry trend that would have a positive effect on FMS solutions is mergers and acquisitions (M&A) and the combination of leading FMS product suppliers with new age/startup solutions. The pursuit of expansion heavily relies on M&A. These mergers have positive effects on the development of new technologies and capacities, regional expansion, and acquisition of new clientele.

  •  Surge in Construction of Roads

A total of about 5,830 km of national highways were built in FY22 (up through December) by the Ministry of Road Transport and Highways. As opposed to about 1,680 km in June 2020, the Ministry of Road Transport and Highways built approximately 2,280 km of national highways in June 2021.

  • Growth in Shipment

According to the survey, there were about 3 billion units shipped globally in 2021, an increase of close to 12 % or approximately 450 million units. Nine million business and private consumers in Germany received about 19 million units.

  • Growing Government Initiatives

The government of India has introduced the 14 policies listed in the guidebook, which represent high-leverage areas for cities to increase their economic competitiveness and lessen traffic and pollution. Work with the relevant public and commercial parties to quickly implement several of these low-cost, low-effort initiatives. remarked Sh. Pawan Agarwal, Special Secretary, Ministry of Commerce & Industry, Logistics Division.

  • Rise in Urban Population

Approximately 4.4 billion people, or 56% of the world's population, reside in cities. By 2050, approximately 7 out of 10 people would live in cities, with the urban population predicted to more than double from its current level. Owing to the growing urban population demand for goods also increase, hence urban freight distribution is expected to boost, further leading a surge in market growth.


  • Rising Concern for Traffic Congestion
  • Poor Freight Data Visibility
  • Challenges with Fleet Managers - Fleet managers' ability to schedule and track trips, maintain drivers and vehicles, and plan and arrange freight routes is limited. Vehicles in maintenance, vehicles in breakdown, cars parked, cars in traffic, vehicles in detention, or vehicles being held up are signs that they are not moving and are not being productive. The case shows that fleet managers are not carrying out the transportation tasks or transporting the loads as required. Hence this factor is estimated to hinder the growth of the market.

Global Freight Management System Market Segmentation 

The global freight management system market is segmented and analyzed for demand and supply by transportation mode into rail freight, road freight, ocean freight, and air freight. Out of which, the road freight segment is anticipated to garner the largest revenue of USD 4,995.2 Million by the end of 2031, growing at a highest CAGR of 11.6% over the forecast period. Further, in 2021, the segment generated a revenue of USD 1,689.8 Million. The growth of the segment can be attributed to the increasing adoption of cloud live tracking for freight management. Additionally, road freight also has a lower reliance on logistical nodes such as ports, airports, or train stations. Hence, it is more cost-effective (with low transport volumes and inexpensive transport machinery), uses intermodal transport (travel on ships and be transported by rail on special wagons preventing time-consuming reloading from one mode of transportation to another), and provides door-to-door delivery. Further, there has been growing construction of roads all around the globe which is further expected to boost the segment growth. By 2022, the government of India were expected to have built 65,000 km of national highways for approximately USD 740 billion.

The global freight management system market is also segmented and analyzed for demand and supply by end-user into third-party logistics, forwarders, brokers, shippers, and carriers. Amongst these segments, the forwarders segment is anticipated to hold the largest market revenue of USD 3,534.1 Million by the end of 2031, up from a revenue of USD 1,217.3 Million in the year 2021. Everything from setting up storage, shipping goods, monitoring inland transportation, preparing shipping and export documents, filling out insurance, haggling, scheduling cargoes, storage of goods, and other services to receiving documents confirming and verifying delivery and freight collection at the location by their agent or associate falls under the purview of the forwarder. Hence, they are more in demand by shippers since they offer several supply chain services. Additionally, they offer various international shipping. Hence growing shipment of goods outside the country is also estimated to boost the segment growth. However, the third-part logistics segment is anticipated to grow at a highest CAGR of 11.7% over the forecast period.

Our in-depth analysis of the global freight management system market includes the following segments:

                 By Component

  • Solutions
  • Planning
    • Supplier & Vendor Management
    • Freight Order Management
    • Revenue Management
    • Dispatch Management
    • Claims Management
  • Execution and Operations
    • Electronic Data Interchange
    • Load Optimization
    • Brokerage Operational Management
    • Freight Visibility
    • Freight Audit & Payment
    • Transportation Management System
  • Control and Monitoring
    • Freight Tracking & Monitoring Solution
    • Cargo Routing and Scheduling
    • Cargo Security
  • Services
    • Consulting
    • System Integration and Deployment
    • Support & Maintenance

               By Transportation Mode

  • Rail Freight
  • Road Freight
  • Ocean Freight
  • Air Freight

               By End-User

  • Third-Party Logistics
  • Forwarders
  • Brokers
  • Shippers
  • Carriers

Global Freight Management System Market Regional Synopsis 

The North America freight management system market, amongst the market in all the other regions, is projected to hold the largest market share of USD 3929.8 Million by the end of 2031, up from a revenue of USD 1465.2 Million in the year 2021. The growth of the market in this region can be attributed to growing transportation industry, and rise in various initiatives taken by government for infrastructure industry. According to the Bureau of Transportation Statistics' (BTS) Transportation Satellite Accounts, the provision of transportation services increased the U.S. gross domestic product (GDP) to USD 21.3 trillion in 2020, contributing USD 1.2 trillion (5.4%) to that total (TSAs). However, the market in Asia Pacific region is estimated to grow at a highest CAGR of 11.4% over the forecast period.

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Top Featured Companies Dominating the Global Freight Management System Market

    Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global freight management system market that are included in our report are MCLEOD SOFTWARE, Freightview, Freight Management Systems Inc., Linbis, Inc., Logisuite Corporation, DreamOrbit Softech Private Limited, THE DESCARTES SYSTEMS GROUP INC, Oracle, Werner Enterprises, MercuryGate, Blue Yonder Group, Inc., Manhattan Associates, E2open, LLC, TMC (C.H. Robinson Worldwide, Inc.), SAP SE, and others.  

Key Questions Answered in the Report

1) What are the major factors driving the growth of the global freight management system market?

Ans: The major factors driving the growth of the market are growing merges and acquisitions among the key players, surge in construction of roads, and growth in shipment, and others.

2) What would be the CAGR of global freight management system market over the forecast period?

Ans: The market is anticipated to attain a CAGR of 10.69% over the forecast period, i.e., 2022-2031

3) What are the challenges affecting the global freight management system market growth?

Ans: Traffic congestion, poor freight data visibility, and fleet management challenge are some of the major factors estimated to hinder the growth of the market.

4) Which region will provide more business opportunities for growth of global freight management system market in future?

Ans: The market in North America is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.

5) Who are the major players dominating the global freight management system market?

Ans: The major players in the market are MCLEOD SOFTWARE, Freightview, Freight Management Systems Inc., and more.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the freight management system market?

Ans: The market is segmented by component, transportation mode, end-user, and by region.

8) Which segment captures the largest market size in transportation mode in the freight management system market?

Ans: The road freight segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.

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