The Future of Freight and Logistics Market: E-commerce and Digitalization of the Supply Chain Industry

Freight and Logistics Market was valued at USD 16.52 Billion in 2023, and is expected to reach USD 24.03 Billion by 2030, exhibiting a CAGR of 5.5 % during the forecast period (2024-2030)

Freight and logistics are the procedures of transporting goods and commodities by rail, trucks, road cars, and large boats conveying containers and aeroplanes. It offers contract logistics, warehousing, value-added services, and plans and delivers advanced integrated logistics solutions for global supply chains that are complicated. The rise in trade-related agreements and global logistics infrastructure, as well as technical improvements in the logistics sector for rapid delivery and supply chain, are driving the growth of the Freight and Logistics Market.

The rise of e-commerce and the digital global market phenomenon has changed the composition of consumer buying behaviour and expectations, as consumers now expect fast, free shipping, and competitive pricing. This demanding delivery schedule puts established logistics and supply chain models to the test, and businesses are being pushed to change their tactics in order to provide the low-cost and on-demand delivery service that customers now expect. E-commerce is taking a larger proportion of the retail business. This exponential development and demand would likely have an influence on the logistics and transportation industries, as organisations have plan to manage rising volume and delivery expectations.To know about the Research Methodology :- Request Free Sample Report
Freight and Logistics Market Dynamics
Digitalization and Integration of the Supply Chain to Drive the Growth of Freight and Logistics Market

In recent years, the globe has witnessed dramatic transformation in the logistics business in terms of supply chain integration and digitization, which has resulted in improved productivity and efficiency, as well as the creation of sustainable means of delivering items from one location to another. Although logistics has adopted digital technologies at a slower rate than other industries, this slower rate of digital adoption introduces tremendous dangers that, if neglected, may be potentially devastating for even the most established businesses in the Freight and Logistics industry. With the logistics sector suffering from enormous inefficiencies, such as 50% of trucks returning empty after making a delivery, digital transformation may provide huge social and environmental advantages by boosting efficiency and reducing energy consumption and emissions.

More importantly, digital platforms will become increasingly crucial in the logistics industry, allowing tiny businesses to compete with the sector's established titans. The competition to develop a dominating global platform will revolutionise the customer's experience of logistics over the next several years, and will be the fundamental issue in selecting which firms will be the winners and losers in a totally digital Freight and Logistics Market.

Increasing Demand for Cold Chain Logistics in Australia Freight and Logistics Market

The demand for cold chain logistics has increased as demand for Australian agricultural goods from other nations has increased, resulting in increased agricultural exports. Australia is a major player in the manufacture and export of perishable commodities, with the highest proportion of the country's cold chain logistics sector. Japan, the United States, and China are among the largest importers of these items; but, due to the Corona Virus's impact, demand is expected to be volatile for a short length of time. Despite animal advocates' statements and drive to go vegan, overall global consumption of red meat has been progressively growing over the last decade.

Concerns Over Cargo Theft and its Negative Impact on Supply Chain

Cargo theft is a global issue with serious consequences for supply chains and the global economy, impacting not just the shipping and logistics industries, but also consumers, retailers, and insurance. Direct thefts, burglaries, fictitious thefts from the "inside," cyber fraud, highjacking, and piracy are all common in the e-commerce age. Food and drinks continue to be the most stolen product globally, accounting for 28% of all thefts, followed by electronics (13%), and alcohol and tobacco (10%). Meanwhile, the Transported Asset Protection Association (TAPA) has introduced new security measures to avoid the monthly losses of millions of dollars.

Revisions to the Facility Security Requirements (FSR) and Trucking Security Requirements (TSR) go into effect, having been changed in conjunction with TAPA's worldwide members to meet new and emerging risks, such as the dramatic increase in last-mile delivery assaults. Changes include a multi-site certification option from the Independent Audit Body (IAB), which is intended to find and encourage operational efficiency between locations so that best practises may be shared. The TSR Standard will also allow four distinct types of transport vehicles to be certified to meet operational needs: vans, hard-sided trailers, soft-sided trailers, and ocean containers via road.

Company Issues Over 3PL Player Dependency to Pose a Threat on Freight and Logistics Market Growth

Using a third-party logistics firm requires a significant investment. Businesses require a dependable framework to function. Downtime in logistics can result in significant loss of production and money. As a result, the free market demands that a company that is unsatisfied with its logistics provider may always find another or build its own logistical infrastructure. Changing the nature of a firm's logistical assistance might cost the organisation a lot of money in unanticipated expenditures. When firms contract with 3PL services, they develop a reliance that is difficult to break. This reliance places the client organisation in awkward circumstances if pricing schemes or service dependability from the 3PL provider do not operate as intended. As a result, companies restrain from working with a 3PL player.Freight and Logistics Market Opportunities

Increased Outsourcing of Services to Create Opportunities for Growth of Freight and Logistics Market

90% of Fortune 500 corporations outsource their logistics and supply chain management activities to third-party logistics firms, or 3PLs. The reason for this is simple: controlling the movement of physical items internally throughout a company's supply chain necessitates a significant investment of time and infrastructure (money) to work efficiently. Outsourcing tasks such as distribution, transportation, and logistics management allow a firm to focus on its main objectives, namely developing and pleasing its consumers. One of the primary motivations for outsourcing services to 3PLs is advanced technology. To forecast, plan, manage personnel, minimise inventory, and deliver on schedule, complex supply chain operations require the insight and efficiency achieved from Tier 1 warehouse and transportation technologies.

Freight and Logistics Market: Technological Trends and Automation

Significant changes in the logistics sector are being driven by the introduction of technology-driven improvements in business operations. Next-generation logistics management technologies are transforming global supply chains to become more customer-centric and sustainable. A flood of new technology and ideas is fast affecting the transportation and logistics business. The arrival of Industry 4.0 will drastically alter the skill requirements of the Transportation and Logistics sector. Highly manual professions from less than a generation ago are being changed by new technology and equipment, producing both new possibilities and dissonance in the workforce's essential abilities.

New technical advancements that can transform a market, establish new markets, provide new value to products/processes, and disrupt present market occupants are constantly being produced. Integrated transport facilities (ITF) are being created to consolidate products receivable, logistical storage, and dispatch into a single centralised location. The ITFs are an important centre of R&D effort in the Transportation and Logistics business. Automation of internal goods handling in these facilities is already in use, from emptying cargo containers at ports to dispatching the contents to the proper storage facility and shipping the delivery to its destination.

The Internet of Things (IoT) refers to the growing trend of linking gadgets, sensors, and data-gathering technologies to networks and conveying information without the use of a human intermediary. The Internet of Things may improve asset tracking, storage operations, and freight transportation. Its applications cover every part of the logistics supply chain and have already been integrated into logistics providers' supply networks. Because of the influence of IoT on the retail business, spending on linked logistics solutions is likely to rise. The development of these analytical skills is resulting in breakthroughs in the communications, systems engineering, and security contexts, which increase the dependability and transparency of transportation systems.
Freight and Logistics Market Segment Analysis
Based on Shipping Type, the Freight and Logistics Market is segmented into Airways, Railways, Roadways, and Waterways. Waterways segment dominated the Freight and Logistics industry in 2023 and is estimated to grow at a significant CAGR during the forecast period. The rising preference for waterways logistics may be attributed to the benefits provided, which include dependable and congested transit. In comparison to trucks and railcars, the benefits given by waterways logistics include higher loading capacity, reduced emissions, efficient transportation for payload, and optimal fuel consumption, which are driving segment growth in the freight and logistics industry in the near future.

Based on Service, the Freight and Logistics Market is segmented into Inventory management, Packaging, Warehousing, Transportation, Distribution, Custom clearance, and Others. Transportation segment dominated the Freight and Logistics industry in 2023 and is estimated to grow at a significant CAGR during the forecast period. The expected massive increase in freight volumes during the forecast period is expected to benefit the global freight forwarding business. The growing network of agreements will open up more trade and investment possibilities, boosting the country's potential to capitalise on global Freight and Logistics Market growth. These agreements' investment frameworks serve to create a more appealing investment environment and foster more economic integration in the global Freight and Logistics Market.

Based on End-Use Industry, the Freight and Logistics Market is segmented into Trade and Transportation, Healthcare, Manufacturing & Construction, Retail, Media and Entertainment, Banking and Financial Services, IT & telecommunication, and Others. Trade and Transportation segment dominated the Freight and Logistics industry in 2023 and is estimated to hold the largest Freight and Logistics market share during the forecast period. Manufacturing and Construction segment is expected to grow at a significant growth rate during the forecast period.
Freight and Logistics Market Regional Insights
Asia Pacific dominated the Freight and Logistics Market in 2023 and is expected to hold the largest market share during the forecast period. The region's leading countries are experiencing increased technology integration in the logistics process. In India, 80% of freight is transported by road, and the trucking sector is implementing cutting-edge tracking technology to better track and estimate delivery dates. Thailand is using IBM and Maersk's blockchain initiative to improve shipping tracking. Asian logistics is characterised by rising intra-Asian commerce and rising imports of not just industrial inputs but also consumer goods.

China's Belt and Road Initiative has resulted in massive investment in regional transportation infrastructure as it strives to integrate with Asian and European markets while also asserting political clout on the regional level. The majority of the cargo is bound for the United States and Europe via the main East-West trade routes. However, the last several years have seen an increase in the significance of intra-Asian commerce. Although China, Japan, and South Korea have large, modern container ports, other Asia Pacific countries are investing billions of dollars on modifications to keep up with the demand for containerized products.
Freight and Logistics Market Scope: Inquiry Before Buying



Freight and Logistics Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 16.52 Bn.


Forecast Period 2024 to 2030 CAGR:
5.5%
Market Size in 2030:
US $ 24.03 Bn.


 Segments Covered:
by Shipping Type
Airways
Railways
Roadways
Waterways


by Service
Inventory management
Packaging
Warehousing
Transportation
Distribution
Custom clearance
Others


by End-Use Industry
Trade and Transportation
Healthcare
Manufacturing & Construction
Retail
Media and Entertainment
Banking and Financial Services
IT & telecommunication
Others



Freight and Logistics Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Freight and Logistics Market, Key Players are
1. C.H. Robinson (U.S.)
2. United Parcel Service (U.S.)
3. FedEx Corp. (U.S.)
4. Walmart Group (U.S.)
5. UPS (U.S.)
6. XPO Logistics (U.S.)
7. J.B. Hunt Transport Services (U.S.)
8. Ryder Supply Chain Solutions (U.S.)
9. Expeditors (U.S.)
10. Penske Logistics (U.S.)
11. Lineage Logistics (U.S.)
12. Geodis (U.S.)
13. Worldwide, Inc. (U.S.)
14. Nippon Express (Japan)
15. Dsv Global Transports and Logistics (Denmark)
16. Kuehne+ Nagel (Germany)
17. The Maersk Group (Denmark)
18. Deutsche Post DHL (Germany)
19. DB Schenker Logistics (Germany)
20. Panalpina (Switzerland)
21. Ceva Logistics (France)
22. A.P. Moller–Maersk (Denmark)

Frequently Asked Questions:

1] What are different Shipping Type in Freight and Logistics Market?
Ans. Airways, Roadways, Railways and Waterways are the main shipping types of Freight and Logistics Market.

2] What region dominated the Freight and Logistics Market in 2023?
Ans. Asia Pacific region dominated the Freight and Logistics Market in 2023.

3] Which are the major countries estimated to fuel the growth of the Freight and Logistics Market?
Ans. The Freight and Logistics Market is estimated to grow the fastest in USA, Denmark, Germany and Switzerland.

4] What is the estimated market size of the Freight and Logistics Market?
Ans. The estimated market size of the Freight and Logistics Market is USD 24.03 Bn. by 2030.

5] What are the major players in the Freight and Logistics Market?
Ans. C.H. Robinson (U.S.), United Parcel Service (U.S.), Dsv Global Transports and Logistics (Denmark), Kuehne+ Nagel (Germany), The Maersk Group (Denmark), FedEx Corp. (U.S.), Walmart Group (U.S.) are the major players in the Freight and Logistics Market.