Freight Forwarding Market Analysis

Global Freight Forwarding Market Overview

Freight Forwarding Market Size was valued at USD 178,348.2 Million in 2023. The Global Freight Forwarding industry is projected to grow from USD 189,227.4 Million in 2024 to USD 287,495.6 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.45% during the forecast period (2024 - 2032).

Surge in e-commerce growth, and opportunities due to the maximizing efficiency through diverse transportation networks is driving the Freight Forwarding Market.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Freight Forwarding Market Trends

• Surge in e-commerce growth, and opportunities due to the maximizing efficiency through diverse transportation networks augmenting Freight Forwarding Market.

The e-commerce boom has undeniably catalyzed a significant surge in demand for efficient freight forwarding services globally. This surge is propelled by several key factors. Firstly, the increased volume of shipments, driven by the growing trend of consumers turning to online shopping, has placed unprecedented pressure on logistics providers to handle the escalating volume effectively. Additionally, the evolving expectations of consumers for faster delivery times have necessitated agile freight forwarding solutions, prompting businesses to explore various transportation options and optimize routes to meet expedited delivery windows. Moreover, the complexities inherent in cross-border trade, including challenges such as customs clearance and navigating diverse regulations, further underline the indispensability of freight forwarders who possess the expertise to navigate these intricate landscapes seamlessly. Furthermore, the demand for specialized services, ranging from last-mile delivery for time-sensitive products to specific handling requirements for delicate goods, underscores the pivotal role of freight forwarding companies in catering to the diverse and evolving needs of e-commerce businesses. The surge in e-commerce activities translates directly to an increased demand for freight forwarding services, presenting significant growth opportunities for companies operating in the sector. To effectively manage the rising volume and diverse requirements of e-commerce logistics, freight forwarders are increasingly focusing on technology and innovation. This includes leveraging data analytics platforms for real-time tracking, integrating with e-commerce platforms for seamless order fulfillment, and adopting automation tools to enhance efficiency.

In today's interconnected global economy, the efficiency of transportation networks is paramount for businesses aiming to remain competitive and responsive to market demands. Diverse transportation networks, encompassing various modes such as road, rail, sea, and air, play a pivotal role in facilitating the movement of goods across different regions and continents. Within this intricate web of logistics, freight forwarding emerges as a crucial intermediary, orchestrating the seamless transfer of cargo between disparate modes of transport. This essay delves into the significance of diverse transportation networks in maximizing efficiency and explores the opportunities they create for the freight forwarding industry. Diverse transportation networks offer unparalleled flexibility and resilience, enabling businesses to optimize their supply chains and adapt to dynamic market conditions. Each mode of transport possesses distinct advantages and is suited to particular types of cargo, distances, and time constraints. Road transportation, for instance, provides last-mile connectivity and flexibility in reaching remote locations, while rail transport offers cost-effective and environmentally friendly solutions for long-distance haulage. Sea freight remains indispensable for bulk cargo and international trade, leveraging economies of scale and extensive maritime routes. Conversely, air freight stands out for its unparalleled speed and reliability, catering to time-sensitive shipments and urgent deliveries.

Global Freight Forwarding Delivery Mode Insights

Based on Delivery Mode, global Freight Forwarding are segmented into Roadways, Airways, Railways, and Seaways. The Roadways dominated the global market in 2023, while Airways are projected to be the fastest–growing segment during the forecast period. The roadways segment growth is further propelled by the escalating demand for efficient and cost-effective transportation solutions, spurred by the surge in international trade and e-commerce activities. Moreover, technological advancements and the integration of digital solutions have notably enhanced operational efficiency and supply chain visibility in the road freight sector.

Figure 1: Freight Forwarding Market, by Delivery Mode, 2023 & 2032 (USD Million)

Global Freight Forwarding Services Insights

Based on Services, global Freight Forwarding are segmented into Transportation, Warehousing, Packaging, Documentation, and Other Services. The Transportation segment dominated the global market in 2023 and projected to be the fastest–growing segment during the forecast period. This growth is propelled by factors such as increasing globalization, adoption of advanced technologies like IoT and AI, and the burgeoning e-commerce sector. Major players in this segment, including DHL, Kuehne + Nagel, and DB Schenker, leverage their extensive networks and technological prowess to meet the rising demand for efficient transportation solutions.

Global Freight Forwarding Application Insights

Based on Application, the global Freight Forwarding are segmented into Retail, Food & Beverages, Healthcare, Industrial and Manufacturing, Military, Oil & Gas, and Other Application. The Retail segment dominated the global market in 2023, while Healthcare are projected to be the fastest–growing segment during the forecast period. The Retail segment domination is primarily fueled by the proliferation of global retail chains and the surging demand for efficient logistics solutions driven by the rapid growth of e-commerce. The adoption of omni-channel retailing further accentuates the need for seamless supply chain management and emphasizes inventory optimization to meet the evolving expectations of customers. Furthermore, the expansion of healthcare is due to the surge in demand for pharmaceuticals and medical supplies, particularly in emerging markets, drives the need for efficient logistics support. Cold chain logistics, aimed at preserving temperature-sensitive healthcare products, further underscores the sector's growth trajectory, alongside regulatory compliance requirements necessitating specialized transportation and documentation services.

Global Freight Forwarding Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The North America Freight Forwarding market accounted for largest market share in 2023. This growth can be attributed to several key factors. Firstly, the region benefits from strong economic growth and robust consumer demand, which have led to increased trade activities. Furthermore, technological advancements in logistics and supply chain management have enhanced efficiency, while the expansion of e-commerce has resulted in higher demand for freight forwarding services. Additionally, ongoing infrastructure investments have improved transportation networks and connectivity, further bolstering the growth of the market. In North America, the freight forwarding industry is dominated by several key players. Expeditors International, renowned for its expertise in global logistics solutions, holds a prominent position alongside C.H. Robinson, known for its innovative transportation and supply chain services. FedEx Trade Networks and United Parcel Service (UPS) also play significant roles, leveraging their extensive networks and advanced technology to facilitate efficient freight movement. DHL Global Forwarding and Kuehne + Nagel are recognized for their comprehensive range of services, while XPO Logistics and DB Schenker offer tailored solutions across various industries. Crowley Logistics and Penske Logistics further contribute to the competitive landscape, providing specialized services in maritime and supply chain management, respectively.

Figure 2: Freight Forwarding Market, by region, 2023 & 2032 (USD Million)

Moreover, Asia Pacific is the second-largest region in the Freight Forwarding Market and expected to exhibit significant CAGR growth during the study period. Expansion of manufacturing activities and global supply chains in the region, coupled with increasing consumption and urbanization, have driven demand for consumer goods and subsequently, logistics services across the region. Moreover, government initiatives promoting trade liberalization and infrastructure development have further fueled the growth of the market. In the Asia-Pacific region, DHL Global Forwarding one of the leading companies across the region in the market with its extensive network and advanced logistics capabilities. Kuehne + Nagel and Nippon Express also hold significant market share, leveraging their expertise in air and ocean freight forwarding. C.H. Robinson and Expeditors International are recognized for their innovative solutions and customer-centric approach. DB Schenker and Yusen Logistics further contribute to the competitive landscape, offering integrated logistics services across various industries. Sinotrans, Kerry Logistics, and Toll Group complete the top players in the Asia-Pacific region, providing reliable and efficient freight forwarding solutions.

Additionally, the Europe Freight Forwarding Market has grown significantly in recent years. This growth is fueled by various factors, including the region's geographic proximity to major markets, which facilitates trade flows within Europe. Moreover, the growth of manufacturing and automotive industries has driven demand for logistics services. Additionally, there's an increasing emphasis on sustainability and environmental regulations, influencing logistics practices. Investment in digitalization and automation has further enhanced supply chain efficiency, contributing to the overall growth of the market. In Europe, DSV Panalpina emerges as a leading player, offering integrated logistics solutions across air, sea, and road transport. Kuehne + Nagel, with its global presence and extensive expertise, holds a prominent position alongside DHL Global Forwarding and DB Schenker, known for their comprehensive freight services. Expeditors International and CEVA Logistics are recognized for their innovative solutions and customer-centric approach. Geodis and Hellmann Worldwide Logistics also feature prominently, providing tailored logistics solutions to meet diverse client needs. UPS Supply Chain Solutions and XPO Logistics round out the top players in Europe, offering efficient and reliable freight forwarding services.

Further, the major countries studied in the market report are the U.S., Canada, Mexico, Germany, France, Italy, UK, Spain, Japan, UAE, South Africa, Saudi Arabia, Argentina, and Brazil.

Global Freight Forwarding Key Market Players & Competitive Insight

The swift growth and growing of acceptance of e-commerce across the globe owing to the increased purchasing capabilities of the population accelerate the market growth. The increase in the incidences of inter-country trade and the rising need for low-cost trade solutions from several users assist in expanding the market. Online retail and digital marketplaces have experienced significant growth as consumers increasingly prefer to shop online, transforming how products are sourced and sold. This shift towards digital commerce often involves international trade, which presents intricate supply chain logistics challenges that are met by freight forwarders. Online retailers and e-commerce platforms rely heavily on freight forwarders to efficiently move goods from manufacturers, often located in different countries, to consumers spread across the globe. This reliance on specialized logistics companies has become a hallmark of the e-commerce supply chain.

In addition, the freight forwarding market is experiencing a notable surge due to the rise in intermodal freight transportation. Intermodal transportation seamlessly integrates different modes such as rail, road, sea, and air, offering cost-efficiency, flexibility, and reduced environmental impact. This shift is driven by heightened globalization, increasing trade volumes, and the need for efficient supply chain solutions. Freight forwarders play a pivotal role in orchestrating this complex network, providing end-to-end logistics solutions that optimize routes, minimize delays, and enhance overall efficiency. As a result, the freight forwarding market is witnessing robust growth, propelled by the expanding demand for streamlined and sustainable freight transport solutions. Moreover, globalization and the expansive growth in international trade are major factors propelling market growth. As businesses extend their reach across borders, the need for efficient, reliable & cost-effective movement of goods becomes paramount. Freight forwarders navigate intricate customs regulations, optimize supply chain routes & ensure timely deliveries, playing a pivotal role in facilitating the seamless flow of goods across the global marketplace. The rise of emerging markets presents a compelling opportunity for the freight forwarding industry. As these economies experience rapid growth and industrialization, the demand for efficient logistics services surges. Freight forwarders with a strong presence in these regions can tap the expanding trade flows, thereby connecting these markets with the global supply chains. By offering reliable transportation, customs expertise, and localized solutions, freight forwarding companies can position themselves to serve as a vital conduit for trade & commerce in these burgeoning markets.

Key Companies in the Freight Forwarding Market include.

• DHL Supply Chain


• Kuehne + Nagel International AG


• DB SCHENKER


• SINOTRANS Limited


• DSV A/S


• Expeditors International of Washington, Inc


• Nippon Express Co., Ltd


• United Parcel Service of America, Inc


• Bolloré Logistics


• CEVA Logistics


• CMA CGM Group


• H. Robinson Worldwide, Inc.


• Dachser Group SE & Co. KG


• Dimerco


• CJ Logistics Corp

Global Freight Forwarding Industry Developments

• In February 2024, C.H. Robinson developed new technology that creates a major efficiency in freight shipping: removing the work of scheduling an appointment at the place a load needs to be picked up and scheduling another appointment where the load needs to be delivered.


• In February 2024, DHL Global Forwarding partnered with Schneider Electric to design and launch an industry-first multi-modal shipping model, using sustainable aviation fuels (SAFs) to help improve the agility and reduce the environmental impact of its supply chain.


• In December 2023, Nippon Express Co., Ltd. which administers Nippon Express's East Asia Region, and Nippon Express Korea Co., Ltd., both group companies of NIPPON EXPRESS HOLDINGS, INC. (President: Mitsuru Saito), have launched a new international ocean freight service, "Busan Hub x Japanese Regional Ports," connecting the Port of Busan in South Korea and regional ports in Japan.

Freight Forwarding Market Segmentation:

Freight Forwarding Market by Delivery Mode Outlook (USD Million, 2019-2032)

• Roadways


• Airways


• Railways


• Seaways

Freight Forwarding Market by Services Outlook (USD Million, 2019-2032)

• Transportation


• Warehousing


• Packaging


• Documentation


• Other Services

Freight Forwarding Market by Application Outlook (USD Million, 2019-2032)

• Retail


• Food And Beverages


• Healthcare


• Industrial And Manufacturing


• Military


• Oil And Gas


• Other Applications

Global Freight Forwarding Regional Outlook

• North America


• US


• Canada


• Mexico


• Europe


• Germany


• France


• UK


• Spain


• Italy


• Russia


• Rest of Europe


• Asia-Pacific


• China


• Japan


• India


• South Korea


• Australia and New Zealand (Anz)


• Malaysia


• Philippines


• Singapore


• Thailand


• Indonesia


• Vietnam


• Rest of Asia-Pacific


• Middle East and Africa


• Saudi Arabia


• UAE


• South Africa


• Rest of Middle East and Africa


• South America


• Argentina


• Brazil


• Rest of South America