Freight Management System Market size is anticipated to reach USD 10,391.7 Million by the end of 2031, growing at a CAGR of 10.69% during the forecast period, i.e., 2022-2031. In the year 2021, the industry size of freight management system was USD 3,814.5 Million. 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.
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.
Growth Drivers
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.
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.
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.
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.
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.
Challenges
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Base Year |
2021 |
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Forecast Year |
2022-2031 |
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CAGR |
10.69% |
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Base Year Market Size (2021) |
USD 3,814.5 Million |
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Forecast Year Market Size (2031) |
USD 10,391.7 Million |
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Regional Scope |
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Transportation Mode (Rail Freight, Road Freight)
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.
End-user (Third-Party Logistics, Forwarders)
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 market includes the following segments:
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By Component |
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By Transportation Mode |
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By End-User |
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North American Market Forecast
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.
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.
Author Credits: Yashika Karodiwal, Radhika Gupta
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