Freight and Logistics Global Market Report 2024

The freight and logistics market size has grown strongly in recent years. It will grow from $16.71 billion in 2023 to $17.58 billion in 2024 at a compound annual growth rate (CAGR) of 5.2%. The expansion observed in the historical period can be attributed to technological advancements in transportation, containerization, and intermodal transport, regulatory changes and compliance, the evolution of supply chain management, and the adoption of just-in-time inventory systems.

The freight and logistics market size is expected to see strong growth in the next few years. It will grow to $21.82 billion in 2028 at a compound annual growth rate (CAGR) of 5.5%. The anticipated growth in the forecast period can be attributed to the integration of AI and machine learning, the expansion of autonomous vehicles, digital transformation, and IoT integration, globalization and cross-border trade, as well as the utilization of blockchain for supply chain traceability. Major trends expected during the forecast period include automation and robotics, data analytics and predictive insights, innovations in last-mile delivery, the adoption of sustainable practices and green logistics, and a demand for faster delivery options.

The anticipated growth of the freight and logistics market in the future is expected to be propelled by the increasing global trade activities. Global trade activities involve the import and export of goods and services across international boundaries, and freight and logistics services play a crucial role in transporting goods internationally through various modes of transport. The rise in global trade activities has resulted in an increased volume of goods being transported to different countries using diverse means of transportation. For example, data from the United Nations Conference on Trade and Development, a Switzerland-based United Nations organization, indicated that in the fourth quarter of 2021, exports of developing countries increased by 30%, reaching a record level of USD 28.5 trillion in global trade for the year 2021. China contributed the highest share, accounting for 15% of all world exports. Therefore, the growing global trade activities in emerging economies stand as a significant driver for the growth of the freight and logistics market.

The expected growth of the freight and logistics market in the future is anticipated to be propelled by the surge in infrastructure development. Infrastructure development involves the planning, design, construction, and maintenance of essential physical and organizational structures and facilities that support the functioning of a society, community, or industry. This development enhances the efficiency of the freight and logistics market by providing well-maintained transportation networks, including roads, ports, and railways, leading to reduced transportation costs and transit times. Improved infrastructure contributes to smoother supply chain operations, increased connectivity between regions, and supports the growth of international trade, ultimately bolstering the overall competitiveness of the freight and logistics industry. For instance, according to Global X ETF in March 2023, the United States took a significant step towards improving its infrastructure with the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) passed in November 2021. Over the next ten years, the IIJA aims to invest $550 billion to enhance roads, bridges, airports, and railroads, extend access to clean drinking water and broadband internet, and achieve environmental justice. Therefore, the surge in infrastructure development is a key driver for the growth of the freight and logistics market.

Major companies in the freight and logistics market are actively developing new products, including AI-powered transportation systems, to gain a competitive advantage. A Transportation Management System (TMS) is a comprehensive software solution designed to streamline and optimize the planning, execution, and management of transportation operations within a supply chain. For example, in June 2023, ShipCars LLC, a US-based software solutions company, introduced the AI-powered SmartHaul TMS (Transportation Management System). This innovative platform leverages artificial intelligence, machine learning, and data-driven insights to enhance efficiency, save time, and boost profitability for carriers in the automotive logistics sector. The SmartHaul TMS features intuitive tools for load discovery, booking, and processing, optimizing operations for company owners, dispatchers, and drivers. Real-time data and analytics, sophisticated algorithms, and predictive modeling enable carriers to make informed decisions, reduce dead-head miles, and streamline the transportation-management process.

Leading enterprises in the freight and logistics sector are innovating by introducing novel products such as freight booking and management systems to establish a competitive advantage in the market. Freight booking and management systems encompass comprehensive software solutions crafted to facilitate the efficient and seamless handling of the booking, organization, and supervision of goods transportation within the freight and logistics industry. As an illustration, in May 2023, Tiger Logistics (India) Limited, an international logistics company based in India, unveiled FreightJar, a digital platform for freight booking and management. The platform is committed to streamlining freight booking processes, potentially saving businesses 3-5 working days per booking and minimizing the reliance on extensive email communication. By bringing all involved parties onto a unified platform, FreightJar enhances transparency in logistics costs and contributes to sustainability by reducing the carbon footprint. The user-friendly platform delivers real-time freight rates, instant booking, automated documentation, and shipment tracking, fostering accessibility, visibility, and transparency in supply chains. Additionally, FreightJar provides Cargo Value Financing solutions for exporters, empowering them with cash flow management and collateral-free financing options.

In June 2021, the logistics provider Worldwide Express LLC, based in the United States, merged with GlobalTranz Enterprises in a deal of undisclosed value. This union enables the combined entities to provide comprehensive parcel delivery services, covering both less-than-truckload and full truckload, while efficiently managing transportation through the utilization of business intelligence, data assets, and cutting-edge technology. The merger is instrumental in enhancing market presence and expanding Worldwide Express's customer base. GlobalTranz Enterprises, also based in the United States, is a full-service logistics provider.

Major companies operating in the freight and logistics market report are United Parcel Service Inc., DHL International GmbH, Deutsche Post AG, FedEx Logistics Inc., A.P. Moller-Maersk Group, Kuehne + Nagel International AG, DSV Panalpina A/S, C.H. Robinson Worldwide Inc., Bolloré Logistics, Ryder System Inc., Nippon Express Co. Ltd., Expeditors International of Washington Inc., Sinotrans Limited, J.B. Hunt Transport Services Inc., Geodis SA, Werner Enterprises Inc., Kerry Logistics Network Limited, UPS Supply Chain Solutions Inc., GXO Logistics Inc., XPO Logistics Inc., Knight-Swift Transportation Holdings Inc., Kintetsu World Express Inc., Schneider National Inc., Hellmann Worldwide Logistics GmbH & Co. KG, Lineage Logistics Holdings LLC, Americold Realty Trust, Agility Public Warehousing Company K.S.C.P., Ceva Logistics LLC, APL Logistics Ltd., Deutsche Bahn AG

Asia-Pacific was the largest region in the freight and logistics market in 2023. North America is expected to be the fastest growing region in the forecast period. The regions covered in the freight and logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the freight and logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of freight and logistics are categorized as airways, railways, roadways, and waterways. Airways involve the transportation and management of goods via air carriers, with functions including freight forwarding, warehousing, value-added services, and more. This mode of transportation finds applications in diverse industries such as manufacturing and automotive, oil and gas, mining and quarrying, agriculture, fishing, and forestry, construction, distributive trade, and other end-users.

The freight and logistics market research report is one of a series of new reports that provides freight and logistics market statistics, including freight and logistics industry global market size, regional shares, competitors with a freight and logistics market share, detailed freight and logistics market segments, market trends and opportunities, and any further data you may need to thrive in the Freight and logistics industry. This freight and logistics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The freight and logistics market includes revenues earned by entities by overseeing and managing the delivery of goods. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.