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Freight Forwarding Software Market

ID: MRFR/PCM/29893-HCR
111 Pages
Snehal Singh
October 2025

Freight Forwarding Software Market Research Report: By Deployment Model (Cloud-Based, On-Premises, Hybrid), By Software Type (Freight Management Software, Warehouse Management Software, Transportation Management Software, Supply Chain Management Software), By End User Industry (Retail, Manufacturing, Food and Beverage, Pharmaceuticals, E-commerce), By Functionality (Booking and Documentation, Tracking and Visibility, Inventory Management, Analytics and Reporting), By User Size (Small Enterprises, Medium Enterprises, Large Enterprises) and By Region (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2035.

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Freight Forwarding Software Market Summary

As per MRFR analysis, the Freight Forwarding Software Market Size was estimated at 18.71 USD Billion in 2024. The Freight Forwarding Software industry is projected to grow from 20.07 USD Billion in 2025 to 40.37 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.24 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Freight Forwarding Software Market is experiencing robust growth driven by technological advancements and increasing demand for efficient logistics solutions.

  • Automation and efficiency are becoming paramount as companies seek to streamline operations in the Freight Forwarding Software Market.
  • North America remains the largest market, while the Asia-Pacific region is emerging as the fastest-growing area for freight forwarding solutions.
  • Transportation Management is the largest segment, whereas Inventory Management is witnessing the fastest growth in adoption rates.
  • Rising demand for e-commerce logistics and increased investment in logistics infrastructure are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 18.71 (USD Billion)
2035 Market Size 40.37 (USD Billion)
CAGR (2025 - 2035) 7.24%

Major Players

SAP (DE), Oracle (US), Cargowise (AU), Kuehne + Nagel (CH), DB Schenker (DE), DHL (DE), Expeditors (US), Geodis (FR), Panalpina (CH), XPO Logistics (US)

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Freight Forwarding Software Market Trends

The Freight Forwarding Software Market is currently experiencing a transformative phase, driven by advancements in technology and the increasing complexity of global supply chains The freight forwarding software market. Companies are increasingly adopting software solutions that enhance operational efficiency, improve visibility, and streamline logistics processes. This shift appears to be influenced by the growing demand for real-time tracking and data analytics, within the freight forwarding management software market, which enable businesses to make informed decisions and respond swiftly to market changes. Furthermore, the integration of artificial intelligence and machine learning into freight forwarding software is likely to enhance predictive capabilities, thereby optimizing route planning and resource allocation.

In addition, the Freight Forwarding Software Market seems to be witnessing a trend towards cloud-based solutions, which offer scalability and flexibility for businesses of varying sizes. This transition allows for easier collaboration among stakeholders and reduces the need for extensive on-premises infrastructure. As organizations continue to prioritize sustainability, software that supports eco-friendly practices and reduces carbon footprints may gain traction. Overall, the Freight Forwarding Software Market is poised for growth, with innovations that cater to evolving customer needs and regulatory requirements.

Automation and Efficiency

The Freight Forwarding Software Market is increasingly focused on automation to enhance operational efficiency. By automating routine tasks, companies can reduce human error and streamline processes, leading to faster turnaround times and improved service delivery.

Cloud-Based Solutions

There is a growing trend towards cloud-based platforms within the Freight Forwarding Software Market. These solutions provide flexibility and scalability, allowing businesses to access their systems from anywhere, thus facilitating better collaboration and responsiveness to market changes.

Integration of Advanced Technologies

The integration of advanced technologies, such as artificial intelligence and machine learning, is becoming more prevalent in the Freight Forwarding Software Market. These technologies enable predictive analytics and smarter decision-making, which can significantly enhance logistics management.

Market Segment Insights

By Application: Transportation Management (Largest) vs. Inventory Management (Fastest-Growing)

In the Freight Forwarding Software Market, the application segment showcases diverse functionalities that cater to varying logistical needs. Transportation Management holds the largest market share, significantly contributing to operational efficiencies and cost reductions for businesses. This segment dominates due to its critical role in optimizing shipping routes and managing freight expenses, ensuring timely deliveries and warehouse-to-doorstep services. In contrast, Inventory Management, while holding a smaller share, is rapidly gaining traction as businesses grapple with enhanced visibility needs and real-time tracking capabilities to mitigate stock discrepancies.

Transportation Management: Dominant vs. Inventory Management: Emerging

Transportation Management has established itself as the dominating force in the Freight Forwarding Software Market, thanks to its comprehensive tools for freight optimization, route planning, and logistic cost control. On the other hand, Inventory Management is emerging as a crucial competitor, especially as businesses increasingly prioritize efficient stock handling and reporting capabilities. This segment enhances operational agility through advanced tracking systems, enabling companies to minimize holding costs and reduce wastage. While Transportation Management focuses on moving goods seamlessly, Inventory Management is becoming increasingly important for ensuring that the right products are available at the right time, thus driving growth in a competitive environment.

By Deployment Type: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

In the Freight Forwarding Software Market, the deployment type has a significant impact on overall market dynamics. Currently, cloud-based solutions have emerged as the largest segment, capturing a substantial portion of the market share due to their flexibility, scalability, and cost-effectiveness. On-premises solutions, while traditionally favored for their control and security, are witnessing a resurgence in interest, especially among larger enterprises that have robust IT infrastructures.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

Cloud-based freight forwarding software has gained dominance in the market, appealing to businesses looking for accessible and scalable solutions. Its ability to facilitate real-time collaboration, reduce operational costs, and enhance data accessibility is driving its popularity. Conversely, on-premises deployment, categorized as an emerging option, caters to organizations that prioritize data security and compliance, particularly in highly regulated industries. These two segment types are fundamentally different in their approach, with cloud-based solutions focusing on innovation and ease of use, while on-premises options focus on control and customization.

By End User: Small and Medium Enterprises (Largest) vs. Large Enterprises (Fastest-Growing)

In the Freight Forwarding Software Market, the distribution of market share among end-user segments reveals that Small and Medium Enterprises (SMEs) dominate with a substantial portion. This predominance reflects their critical reliance on efficient logistics solutions to compete effectively against larger counterparts. Meanwhile, Large Enterprises, while holding a smaller share, are rapidly adopting advanced freight forwarding software, showcasing the shift towards more integrated and automated logistics practices. Growth trends indicate that SMEs are increasingly embracing technology to streamline operations, but Large Enterprises are experiencing the fastest growth as they leverage sophisticated solutions for enhanced supply chain visibility and optimization. The push for sustainability and regulatory compliance is also a key driver for larger entities investing in robust software systems, further boosting their market potential.

Small and Medium Enterprises: Dominant vs. Large Enterprises: Emerging

Small and Medium Enterprises (SMEs) in the Freight Forwarding Software Market are characterized by their agility and adaptability. Their ability to implement tailored solutions positions them as a dominant force, as they seek to optimize their logistics operations affordably. Conversely, Large Enterprises represent an emerging segment, increasingly adopting state-of-the-art freight forwarding software to meet complex global demands. They are investing in technology to ensure comprehensive supply chain management, leading to enhanced operational efficiency. This dichotomy creates a distinct dynamic, with SMEs focusing on flexibility and personalized service while Large Enterprises prioritize scalability and advanced features to support their expansive operations.

By Functionality: Tracking and Visibility (Largest) vs. Reporting and Analytics (Fastest-Growing)

In the Freight Forwarding Software Market, the functionality segment exhibits a diverse distribution among its core values, with Tracking and Visibility leading in market presence. This dominant segment is preferred by companies seeking real-time updates on cargo movements, while Documentation Management ensures streamlined paperwork. Billing and Invoicing and Reporting and Analytics are vital as well, contributing significantly but holding smaller shares compared to the foremost segments. Overall, organizations are gravitating towards integrated solutions that encompass multiple functionalities to enhance their operational efficiency. Market growth trends in the Freight Forwarding Software Market are being driven by advancements in technology and the increasing demand for transparency in supply chains. The rise of e-commerce and the necessity for accurate billing and invoicing processes further bolster the Documentation Management and Reporting functions. As freight forwarders embrace digital transformation, they are more likely to invest in innovative solutions that offer comprehensive tracking and analytics features, positioning Reporting and Analytics as the fastest-growing component in this segment.

Tracking and Visibility (Dominant) vs. Reporting and Analytics (Emerging)

Tracking and Visibility remains the dominant functionality in the Freight Forwarding Software Market, primarily due to its critical role in providing real-time information to logistics managers and customers alike. This feature not only enhances customer satisfaction but also optimizes supply chain operations by minimizing delays and losses. On the other hand, Reporting and Analytics is an emerging function gaining momentum, as businesses increasingly recognize the value of data-driven decision-making. Companies leveraging advanced analytics can derive actionable insights from freight data, leading to improved performance and strategic planning. While Tracking and Visibility caters to immediate operational needs, Reporting and Analytics is pivotal for long-term growth and efficiency.

By Integration: Transportation Management System (Largest) vs. Warehouse Management System (Fastest-Growing)

In the Freight Forwarding Software Market, the integration segment showcases varied market share distribution among key values such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Warehouse Management System (WMS), and Transportation Management System (TMS). The TMS stands out as the largest contributor to the integration segment, offering robust functionalities that cater to efficient freight movement and logistics coordination. Meanwhile, WMS is gaining traction, becoming increasingly vital as companies aim to enhance inventory management and streamline warehouse operations, thus capturing a significant share of the market.

Technology: Transportation Management System (Dominant) vs. Warehouse Management System (Emerging)

The Transportation Management System (TMS) has established itself as the dominant technology within the Freight Forwarding Software Market, primarily due to its extensive features that optimize supply chain logistics. TMS solutions facilitate route planning, freight auditing, and real-time tracking, enabling businesses to minimize transportation costs and improve service delivery. On the other hand, the Warehouse Management System (WMS) is emerging rapidly, as businesses increasingly recognize the need for efficient inventory control and fulfillment processes. WMS technologies enhance operational efficiency by automating warehouse tasks and improving accuracy in order processing, allowing them to adapt quickly to changing market demands and customer expectations.

Get more detailed insights about Freight Forwarding Software Market

Regional Insights

North America : Market Leader in Freight Solutions

North America continues to lead the Freight Forwarding Software Market, holding a significant market share of 9.0 in 2024. The region's growth is driven by increasing e-commerce activities, demand for real-time tracking, and regulatory support for digital transformation in logistics. The adoption of advanced technologies like AI and IoT is also enhancing operational efficiency, making freight forwarding more streamlined and responsive to market needs. The competitive landscape is robust, with key players such as SAP, Oracle, and DHL dominating the market. The U.S. stands out as a major contributor, supported by a strong infrastructure and a high demand for logistics services. Companies are increasingly investing in innovative solutions to meet customer expectations, ensuring that North America remains at the forefront of the freight forwarding software industry.

Europe : Emerging Hub for Innovation

Europe's Freight Forwarding Software Market is poised for growth, with a market size of 5.5 in 2024. The region benefits from a strong regulatory framework that encourages digitalization and sustainability in logistics. Increasing cross-border trade and the need for efficient supply chain management are key drivers of demand. The European Union's initiatives to enhance transport infrastructure further support market expansion, making it a vital area for investment in freight solutions. Leading countries like Germany, France, and the UK are at the forefront of this market, hosting major players such as Kuehne + Nagel and DB Schenker. The competitive landscape is characterized by a mix of established firms and innovative startups, all vying for market share. The focus on sustainability and compliance with EU regulations is shaping the development of new software solutions, ensuring that Europe remains a dynamic player in the freight forwarding sector.

Asia-Pacific : Rapidly Growing Market Potential

The Asia-Pacific region is witnessing significant growth in the Freight Forwarding Software Market, with a market size of 3.5 in 2024. This growth is fueled by rising trade volumes, increasing demand for logistics services, and government initiatives aimed at improving infrastructure. Countries in this region are rapidly adopting technology to enhance supply chain efficiency, driven by the need for real-time data and improved customer service. China and India are leading the charge, with a growing number of logistics companies investing in advanced software solutions. The competitive landscape is becoming increasingly crowded, with both local and international players striving to capture market share. The presence of key players like Cargowise and XPO Logistics highlights the region's potential, as companies innovate to meet the evolving demands of the freight forwarding industry.

Middle East and Africa : Emerging Market with Challenges

The Middle East and Africa region is gradually emerging in the Freight Forwarding Software Market, with a market size of 0.71 in 2024. The growth is driven by increasing trade activities and investments in logistics infrastructure. However, challenges such as regulatory hurdles and varying levels of technological adoption across countries can impede progress. Governments are recognizing the need for modernization in logistics, which is expected to catalyze market growth in the coming years. Countries like the UAE and South Africa are leading the way, with a growing number of logistics firms seeking to enhance their operational capabilities through software solutions. The competitive landscape is still developing, with both regional and global players looking to establish a foothold. As the market matures, the focus will likely shift towards integrating advanced technologies to improve efficiency and service delivery.

Key Players and Competitive Insights

The Freight Forwarding Software Market is currently characterized by a dynamic competitive landscape, driven by the increasing demand for efficient logistics solutions and the ongoing digital transformation across the supply chain. Major players such as SAP (DE), Oracle (US), and Cargowise (AU) are strategically positioning themselves through innovation and partnerships, which collectively shape the competitive environment. SAP (DE) focuses on integrating advanced analytics and AI capabilities into its software solutions, enhancing operational efficiency for clients. Meanwhile, Oracle (US) emphasizes cloud-based solutions, allowing for greater scalability and flexibility in freight management. Cargowise (AU) is leveraging its global network to provide comprehensive visibility and control over logistics operations, which is increasingly vital in today's fast-paced market.The business tactics employed by these companies include optimizing supply chains and localizing services to meet regional demands. The market structure appears moderately fragmented, with a mix of established players and emerging startups. This fragmentation allows for diverse offerings, yet the collective influence of key players like DHL (DE) and Kuehne + Nagel (CH) remains significant, as they continue to set benchmarks in service quality and technological integration.
In November DHL (DE) announced a strategic partnership with a leading AI firm to enhance its freight forwarding software capabilities. This collaboration aims to integrate machine learning algorithms that predict shipment delays and optimize routing, thereby improving customer satisfaction and operational efficiency. Such a move underscores DHL's commitment to leveraging technology to maintain its competitive edge in the market.
In October Kuehne + Nagel (CH) launched a new digital platform designed to streamline the booking process for freight services. This platform not only simplifies user experience but also incorporates real-time tracking features, which are increasingly demanded by customers. The introduction of this platform reflects Kuehne + Nagel's focus on digital transformation and its intent to enhance customer engagement through innovative solutions.
In September Expeditors (US) expanded its service offerings by acquiring a regional logistics provider in Southeast Asia. This acquisition is expected to bolster Expeditors' presence in a rapidly growing market, allowing for improved service delivery and enhanced operational capabilities. Such strategic moves indicate a trend towards consolidation in the industry, as companies seek to expand their geographical reach and service portfolios.
As of December the competitive trends in the Freight Forwarding Software Market are increasingly defined by digitalization, sustainability initiatives, and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies recognize the need to collaborate to enhance their technological capabilities and service offerings. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology integration, and supply chain reliability, as firms strive to meet the evolving demands of their customers.

Key Companies in the Freight Forwarding Software Market include

Industry Developments

Recent developments have showcased a significant evolution driven by advancements in technology and changing logistics demands. Companies are increasingly adopting cloud-based solutions to enhance visibility and streamline operations, given the rising complexity of supply chains. Automation and artificial intelligence are making inroads, improving efficiency and reducing human error in logistics management. The surge in e-commerce has heightened the need for integrated freight forwarding solutions, prompting software providers to innovate continuously. The market is witnessing strategic partnerships and collaborations aimed at enhancing service offerings and expanding geographical reach.

Regulatory changes, particularly regarding sustainability and emissions reduction, are also reshaping software functionalities, pushing firms to incorporate green logistics practices. As the market approaches an estimated valuation of $30.5 billion by 2032, stakeholders are focused on leveraging data analytics for better decision-making and customer satisfaction, reflecting an industry pivot towards more adaptive and responsive freight forwarding solutions.

Future Outlook

Freight Forwarding Software Market Future Outlook

The Freight Forwarding Software Market is projected to grow at a 7.24% CAGR from 2025 to 2035, driven by digital transformation, increased trade volumes, and demand for real-time tracking.

New opportunities lie in:

  • Integration of AI-driven predictive analytics for shipment optimization. Development of blockchain solutions for enhanced supply chain transparency. Expansion of mobile applications for real-time freight management.

By 2035, the market is expected to be robust, reflecting substantial advancements and increased adoption.

Market Segmentation

Freight Forwarding Software Market End User Outlook

  • Small and Medium Enterprises
  • Large Enterprises
  • Third-Party Logistics Providers
  • Freight Forwarders

Freight Forwarding Software Market Application Outlook

  • Supply Chain Management
  • Inventory Management
  • Order Management
  • Transportation Management
  • Customs Management

Freight Forwarding Software Market Integration Outlook

  • Enterprise Resource Planning
  • Customer Relationship Management
  • Warehouse Management System
  • Transportation Management System

Freight Forwarding Software Market Functionality Outlook

  • Tracking and Visibility
  • Documentation Management
  • Billing and Invoicing
  • Reporting and Analytics

Freight Forwarding Software Market Deployment Type Outlook

  • Cloud-Based
  • On-Premises
  • Hybrid

Report Scope

MARKET SIZE 2024 18.71(USD Billion)
MARKET SIZE 2025 20.07(USD Billion)
MARKET SIZE 2035 40.37(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 7.24% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled SAP (DE), Oracle (US), Cargowise (AU), Kuehne + Nagel (CH), DB Schenker (DE), DHL (DE), Expeditors (US), Geodis (FR), Panalpina (CH), XPO Logistics (US)
Segments Covered Application, Deployment Type, End User, Functionality, Integration
Key Market Opportunities Integration of artificial intelligence and automation enhances efficiency in the Freight Forwarding Software Market.
Key Market Dynamics Rising demand for automation in logistics drives innovation in freight forwarding software solutions.
Countries Covered North America, Europe, APAC, South America, MEA
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FAQs

What is the compound annual growth rate (CAGR) for the Freight Forwarding Software Market from 2025 to 2034 ?

Freight Forwarding Software Market is projected to register a CAGR of 7.24% from 2025-2035

Which region is projected to have the largest market share in the Freight Forwarding Software Market in 2034?

North America is projected to have the largest market share, valued at 37.65 USD billion in 2034.

What is the projected market value for Cloud-based Freight Forwarding Software by 2035?

Cloud-based freight forwarding software is expected to be valued at 10.5 USD billion in 2035.

Who are the key players competing in the Freight Forwarding Software Market?

Major players in the market include Kuehne + Nagel, UPS Supply Chain Solutions, DB Schenker, and DHL Supply Chain.

What is the anticipated market value of On-premises Freight Forwarding Software by 2035?

On-premises freight forwarding software demand is expected to reach 11.8 USD billion by 2035.

What was Asia Pacific’s valuation in the Freight Forwarding Software Market in 2024?

Freight Forwarding Software Market was valued at USD 18.71 Billion in 2024

What is the expected market size of the Freight Forwarding Software Market in South America in 2035?

The market in South America is expected to be valued at 2.4 USD billion in 2035.

What was the value of the Middle East and Africa Freight Forwarding Software Market in 2024?

Freight Forwarding Software Market size was valued at USD 18.71 Billion in 2024

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