The Global Domestic Freight Forwarding Services Market is estimated to be USD 42.5 Bn in 2023 and is expected to reach USD 51.24 Bn by 2028 growing at a CAGR of 3.81%.Rapidly Involving Artificial intelligence in logistics and supply chain management
Domestic freight forwarding services refer to transporting goods and cargo within a single country. This service involves coordinating the movement of goods from the supplier or manufacturer to the intended recipient and typically includes activities such as picking up the goods, coordinating transportation, and delivering the goods to the destination.
Import demand will likely weaken as major nations' growth slows for various reasons. High energy prices resulting from the Russia-Ukraine war will lower family expenditure and increase European manufacturing costs. The tightening of monetary policy in the United States will affect interest-sensitive spending in industries such as homes, automobiles, and fixed investment. These factors contribute to the rise in free trade agreements between nations.
There are various constraints and limitations associated with cross-border freight transport that can have an impact on domestic freight forwarding services. Each country has its own customs rules, including import/export tariffs, documentation requirements, and prohibitions on items.
The increasing use of a multimodal system does create considerable prospects for domestic goods forwarding services. A multimodal system enables goods forwarding services to optimize routes, minimize transit times, and improve overall efficiency by using the strengths of several modes of transportation. Companies choose the most cost-effective and timely choices for moving goods domestically by combining several means of transportation.
- The rise in nearshoring manufacturing activity around the world, which is projected to complete in the absence of trade approval, is expected to stymie market expansion. Furthermore, the surge in reshoring and nearshoring manufacturing is expected to put a strain on the goods forwarding business.
Market Segmentations
- The Global Domestic Freight Forwarding Services Market is segmented based on Service, Mode of Transport, Customer Type, End-User, and Geography.
- By Service, the market is classified into Transportation & Warehousing, Packaging & Documentation, and Value-Added Services.
- Transportation & Warehousing hold the largest share of the market. The services include the physical movement and storage of products. Freight forwarders play an important role in logistics coordination and management, including organizing transportation options (such as air, ocean, road, or rail) and ensuring safe and timely delivery of goods to their destinations. Warehousing services include product storage and management in warehouses or distribution centers.
- By Mode of Transport, the market is classified into Air Freight Forwarding, Ocean Freight Forwarding, Road Freight Forwarding, and Rail Freight Forwarding.
- Due to the enormous carrying capacity at the lowest cost, the ocean freight forwarding sector is the largest contributor to the market and is predicted to develop at a good CAGR throughout the forecast period. An ocean goods forwarder specializes in cargo ship transportation. It helps ocean forwarders to understand precisely how to complete every shipment and to create the required contacts to obtain the best ocean rates, which they can then pass on to their clients.
- By Customer Type, the market is classified into B2B and B2C.
- The B2B (business-to-business) segment has typically held a larger share of the domestic freight forwarding services market. This is because B2B transactions involving commercial shipments between businesses typically include higher order values, larger volumes, and more sophisticated logistics requirements. B2B customers frequently maintain continuous relationships with goods forwarders because they demand regular and dependable transportation services to manage their supply chains efficiently.
- By End-User, the market is classified into Industrial & Manufacturing, Retail, Healthcare, Oil & Gas, Food & Beverages, and Other Applications.
- The industrial and manufacturing category is the market's largest contributor and is predicted to increase at a respectable CAGR over the forecast period. Freight forwarding is increasing because of the growing manufacturing industry globally and the necessity to protect the quality of created goods. Customers do not desire things that are broken, spoilt, or damaged. As a result, goods forwarding is used to suit customers' needs.
- By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
- The Asia Pacific area is experiencing tremendous expansion in the worldwide goods forwarding sector. The presence of fast-growing economies such as India and China is primarily responsible for the region's growth. Because the region's fast-growing economies provide growth prospects, prominent firms focus on mergers and acquisitions to extend their companies' footprint. For example, in March 2021, Germany-based global third-party logistics (3PL) services provider Kuehne+Nagel (K+N) paid USD 1.5 billion for China-based goods forwarder Apex International Corporation.
Recent Development
- Raft announced the integration of PayCargo, which will broaden the capabilities of Raft's new AI payment functionality tool. Users of Raft will have access to PayCargo's suite of payment options, saving significant time and money while avoiding significant operational risks. - November 2022
- A.P. Moller - Maersk (Maersk) acquired LF Logistics with premium capabilities in Asia-Pacific omnichannel fulfillment services, e-commerce, and inland transport. As a result, LF Logistics will be renamed Maersk. - August 2022
Company Profiles
The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are UBER Freight LLC, FedEx, C.H. Robinson, Kuehne + Nagel International, etc.Countries Studied
- America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
- Europe (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
- Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
- Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)
Competitive Quadrant
The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.Ansoff Analysis
- The report presents a detailed Ansoff matrix analysis for the Global Domestic Freight Forwarding Services Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
- The publisher analyses the Global Domestic Freight Forwarding Services Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
- Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.
Why buy this report?
- The report offers a comprehensive evaluation of the Global Domestic Freight Forwarding Services Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
- The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
- The report includes an in-depth market analysis using Porter's 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
- The report also includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
- The report also contains the competitive analysis using Positioning Quadrants, the Proprietary competitive positioning tool.
Report Highlights
- A complete analysis of the market, including parent industry
- Important market dynamics and trends
- Market segmentation
- Historical, current, and projected size of the market based on value and volume
- Market shares and strategies of key players
- Recommendations to companies for strengthening their foothold in the market
Table of Contents
Companies Mentioned
- Bollore Logistics
- C.H. Robinson
- CEVA Logistics
- Dachser
- DB Schenker
- DHL Global Forwarding
- Dimerco Express Corp.
- DSV Panalpina A/S
- Expeditors International
- FedEx Corp.
- Hellmann Worldwide Logistics Pvt.Ltd.
- International Merchant Company S.A. De C.V. (Imerco)
- Kuehne + Nagel International Ag
- MGF (Manitoulin Global Forwarding)
- Sinotrans India Pvt. Ltd.
- The Maersk Group
- Transporteca
- UBER Freight LLC
- United Parcel Service
- WMSC Logistics Services, LLC
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 195 |
Published | February 2024 |
Forecast Period | 2023 - 2028 |
Estimated Market Value ( USD | $ 42.5 Billion |
Forecasted Market Value ( USD | $ 51.24 Billion |
Compound Annual Growth Rate | 3.8% |
Regions Covered | Global |
No. of Companies Mentioned | 20 |