According to Straits Research the global freight forwarding market size was valued at $210.07 billion in 2022 and is projected to reach $314.88 billion by 2031. This translates to a growth of 4.6% during the , growing at a CAGR of 4.6% during the forecast period (2023-2031) .During the forecast period, the volume of international trade transported by air and ocean freight is anticipated to increase.
Reductions in air and sea freight rates as a result of falling oil prices, the growth of the e-commerce industry, and the increasing prevalence of cloud-based operations that simplify supply chain management are some of the key growth drivers for the freight forwarding market.
The freight forwarding industry, whicn include consolidation, storage, handling, packaging, distribution, advisory services, and auxiliary services.relies heavily on the volume of cargo transported. Therefore, air and ocean freight forwarding companies must increase cargo volume to meet consumer demand. For example, Kuehne + Nagel International AG increased its air cargo volume by 11.02% in December 2019, from 1.5 million metric tons in 2018 to 1.7 million metric tons in 2019.
The report notes that the development of the freight forwarding market is significantly influenced by the expansion of international trade volumes and points out that aAccording to the World Trade Organization, the global volume of merchandise trade will increase by 8.0% in 2021. Consequently, it is anticipated that the expansion of international trade will propel the future growth of the freight forwarding market.
Increasing Adoption of Artificial Intelligence gives Opportunity for Exponential Growth
In the freight forwarding sector, the inclusion of artificial intelligence (A.I.) has emerged as a popular trend. Through automated processes and real-time data, artificial intelligence plays a crucial role in lowering costs, saving time, increasing productivity, and enhancing precision.
In July 2019 Kuehne+Nagel launched the AI-enabled freight forwarding platform eTrucknow.com for land-based shipments within the Asia-Pacific region. eTrucknow allows shippers to streamline the quotation and comparison process. After the customer submits shipment details, an AI-enabled engine automates and optimizes the comparison of quotes by validating multiple data points and displaying the most affordable quote to the customer. In addition, through its marketplace platform, eTrucknow provides certified carriers with access to a network of shipping companies in need of road freight services, enabling them to convert empty space or empty trips into potential revenue.
North America is the most significant shareholder in the global freight forwarding market and is expected to grow at a healthy CAGR during the forecast period. The U.S. transportation and logistics industry are highly developed, with numerous domestic and international companies present. Due to the use of air, rail, truck, and water transportation services, the region's wholesale and retail industry is the largest consumer of freight forwarding services. The expanding e-commerce sector in the region will propel the exponential growth of the freight forwarding market over the forecast period.
Due to the massive interconnected, globalized economy consisting of tens of thousands of bilateral trade relationships, it is anticipated that Europe's economy will expand at a rapid rate. The European Freight Forwarders Association (EFFA) provides freight forwarders with a forum and a global network of quality agents so that each member can compete more effectively in a global economy that is expanding. Unlike multinational freight companies, EFFA agents are able to provide customized and diverse services to a diverse market. The growth of European commerce has led to an increase in demand for freight forwarding services.
The European network for logistics satisfies this demand through the network of its member companies by offering optimal pricing and delivery terms to all European nations. Freight forwarders offer retailers who require storage and distribution services access to their network of warehouses and other storage facilities, where goods can be stored until they are distributed to their final destinations. The warehouses of the industry partners of the European Network for Logistics Services are sufficiently dispersed to store vast quantities of diverse goods. The warehouses are located in all key destinations in nearly every European nation, enabling them to offer space and stock maintenance services to all European merchants in order to guarantee regular deliveries to final destinations.