The Global Freight Transport Market size is expected to reach $57.1 billion by 2028, rising at a market growth of 10.8% CAGR during the forecast period

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New York, Jan. 25, 2023 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Global Freight Transport Market Size, Share & Industry Trends Analysis Report By Offering, By Mode of Transport, By Vertical, By Regional Outlook and Forecast, 2022 – 2028” – https://www.reportlinker.com/p06412042/?utm_source=GNW

For instance, Canada and the European Union agreed to a thorough economic trade pact. 98% of the tariffs on European goods traded across Europe and Canada are being eliminated by the Canadian government as a result of this agreement. By lowering commodity prices, which naturally boosts demand for freight transportation, such agreements help the freight transport market expand.

Many freight transportation management solutions, including fleet tracking & maintenance, warehouse management system, security & monitoring system, and 3PL solutions, can be used to address logistics issues because end-users and manufacturers in developing nations, like India, lack the internal control necessary to do so. This aspect stimulates the development of the target market as a whole.

Additional factors driving the demand for specialist freight transport and supply chain execution competencies include the expansion of e-commerce and entrepreneurial endeavors. Because logistics, inventory, and fixed expenses are reduced when shippers hire freight transportation services, they benefit.

Numerous businesses have outsourced their freight transport operations as a result of globalization since they are unable to manage global supply chain activities. Cargo transportation businesses offer better and more creative ways to maximize the efficiency of their services, offering benefits including lower capital costs, door-to-door service, flexibility, and a lower chance of damage during transit.

COVID-19 Impact Analysis

Global supply chain activities have been adversely affected by the COVID-19 pandemic. The crisis put unheard-of pressure on the logistics and transportation systems. Lockdowns were put into place in a number of nations, which caused uncertainty for the shippers while shipping their products. The logistics networks were disturbed by the imbalance between supply and demand, along with the lack of long-haul and last-mile fulfillment service capacity, which limited the growth of the freight transport sector. A decline in consumption has also been seen on the demand side.

Market Growth Factors

Rapid Industrialization And Increasing Acceptance Of Industry 4.0

It is anticipated that rapid industrialization and the growing adoption of Industry 4.0 will enable the manufacture of high-quality goods at low cost. Road freight transportation is the best option for Industry 4.0 since it provides flexible and more affordable short-distance transit. Additionally, the demand for food, beverages, and other consumer goods is anticipated to rise with population growth, supporting market growth. The future of the global supply chain is finally beginning to be shaped by Industry 4.0 as a true driving force. Thus, the market for freight transportation is driven by the growing use of Industry 4.0.

Escalating Need For Prompt Delivery

In particular, the logistics sector has seen an increase in the need for on-time delivery, which has evolved into a crucial differentiator among its rivals. The market has grown due to the introduction of numerous technologies in freight transportation for efficient management of the transportation process. One-third of the cost of logistics is accounted for by transportation management, which has a significant impact on how well the market as a whole performs. For brands, increased client retention is facilitated by on-time delivery. As a result, the market for freight transportation is driven by the rising need for on-time delivery.

Market Restraining Factors

Increased Carbon Emissions

As pandemic restrictions were eased and passenger and cargo traffic picked up after a historic fall in 2020, world Co2 emissions from the transport industry recovered in 2021, rising by 8% to over 7.7 Gt CO2. a number of variables, including the increased carbon emissions brought on by the usage of diesel fuel in road transportation. Transport emissions are rising far more quickly than GDP in many emerging nations. Thus, the growth of the freight transportation market is being hampered by rising carbon emissions.

Offering Outlook

Based on offering, the market is categorized into Solutions and Services. In 2021, the service segment accounted for a large share of the revenue. On the basis of service offerings, the service segment is further categorized into Managed services, business services, and system integration. The demand for freight management services, which help companies deliver freight and complete the supply chain effectively and economically, is primarily responsible for the segment’s rise.

Mode Of Transportation Outlook

Based on the mode of transportation, the market is categorized into railways, roads, seaways, and aviation. During the forecast period, it is anticipated that the Seaways & airways segment will develop at a promising rate. The adoption of sustainable aviation fuels in response to climate change, speedier delivery, and rapid airport building in developing nations are all factors contributing to the growth of this market.

Verticals Outlook

Based on verticals, the market is categorized into Retail & E-commerce, Automotive, Aerospace & Defense, Pharmaceuticals, Energy, and Others. The pharmaceutical segment is anticipated to expand at significant growth during the anticipated period. The most important link in a logistical network is pharmaceutical transport since the commodities being delivered are meant for human consumption. To guarantee that the drugs are delivered to the end user in the proper manner, total control over the entire distribution chain is necessary.

Regional Outlook

Based on geography, the market is categorized into North America, Europe, Asia Pacific, and LAMEA. North America dominated the global market in 2021 and is predicted to maintain its dominance during the forecast period. Due to the presence of numerous significant logistics businesses, e-commerce behemoths, and suppliers of freight solutions in the United States and Canada. The continuing development and uptake of emerging technologies like artificial intelligence, machine learning, and near-field communication also contribute to the expansion of the market.

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; United Parcel Service, Inc. is the forerunner in the Freight Transport Market. Companies such as Oracle Corporation, FedEx Corporation, and SAP SE are some of the key innovators in Freight Transport Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include C.H. Robinson Worldwide, Inc., Deutsche Post DHL Group (The Deutsche Post AG), FedEx Corporation, Kuehne + Nagel International AG (Kuehne Holding AG), United Parcel Service, Inc., SAP SE, Oracle Corporation, Schneider National, Inc., DSV A/S, and Nippon Express Co., Ltd.

Recent Strategies Deployed in Freight Transport Market

Partnerships, Collaborations and Agreements:

Oct-2022: Kuehne+Nagel entered into a partnership with Pepco, a fast-growing retailer engaged in providing apparel for the entire family and household products at very low prices. Under this partnership, Kuehne+Nagel would offer automation and warehousing specialization for the Bulgarian, Romanian and Greek markets. Moreover, this partnership not only addresses Pepco’s requirement for speed and agility but also serves for a better sustainable future.

Jun-2022: Oracle partnered with Kyndryl, an IT infrastructure services provider. The partnership is aimed to help customers boost their journey to the cloud by providing managed cloud solutions to enterprises across the world.

Apr-2022: United Parcel Service (UPS) signed an agreement with Jumia, the Pan-African e-commerce platform. Through this Agreement, Jumia would extend to extend United Parcel Service’s logistics abilities and infrastructure for enhancing its delivery service offering in Africa.

Feb-2022: C.H. Robinson partnered with Waymo via, an autonomous driving solution for moving goods. Through this partnership, Companies would integrate C.H. Robinson’s Navisphere technology, one of the most connected platforms with the Waymo Driver, an autonomous driving technology. Moreover, this partnership would structure upcoming developments and broaden autonomous driving technology as an extra transportation solution.

Jan-2022: FedEx Corporation came into collaboration with Microsoft Corporation, a technology corporation engaged in the production of computer software, consumer electronics, and personal computers. Through this partnership, companies would transform logistics, commerce, and supply chains. Additionally, FedEx would integrate FedEx network intelligence with abilities from Microsoft Dynamics 365 to unveil “logistics as a service”, a cross-platform for merchants, brands, and retailers.

Dec-2021: FedEx Express, a subsidiary of FedEx Corp., came into partnership with Delhivery, the fully-integrated logistics services player in India. Under this agreement, both companies would offer advanced solutions and services aimed to enhance efficiency, speed, and access for Delhivery and FedEx customers to open up India’s ability in International trade.

Oct-2021: Kuehne+Nagel announced its expanded partnered with Blume Global, a provider of supply chain execution and visibility technology solutions. Under this partnership, Blume would offer Kuehne+Nagel a cognitive intermodal TMS, among other solutions, for its complete North American business.

Jun-2021: United Parcel Service partners with ParcelHub, a retail business company with expertise in offering courier service and fulfillment centers. Under this partnership, United Parcel Service would extend its retail footprint in Malaysia and capitalize on the region’s growing logistics and e-commerce demand.

Jul-2020: United Parcel Service partnered with Estafeta, an express and logistic service company for online retailers. This partnership would allow small and midsize businesses (SMEs) in Mexico to reach over 220 countries and territories across the world, also customers in the United States within a business day.

Acquisitions and Mergers:

Nov-2022: UPS acquired Bomi Group, a provider of healthcare logistics. Under this acquisition, UPS Healthcare, a healthcare unit of UPS would add temperature-controlled facilities in 14 countries across Latin America and Europe.

Sep-2022: DHL Supply Chain acquired Monta, a Dutch fulfillment provider. Under the acquisition, DHL would improve its response to the requirements of Small and Medium Enterprises and smaller online stores.

Jun-2022: Schneider acquired deBoer Transportation, a regional and dedicated carrier. This acquisition aligns with Schneider’s strategy and combines deBoer Transportation into existing businesses of Schneider with equipment and drivers offered to assist growth opportunities in power-only and dedicated operations.

Mar-2022: Deutsche Post DHL Group completed the acquisition of J.F. Hillebrand Group AG, a company with expertise in the logistics of beer, spirits, and wine. Through this acquisition, Deutsche Post DHL Group would add multiple services to its ocean freight offering, which would reinforce longstanding client relationships and income from the beginning.

Jan-2022: Schneider completed the acquisition of Midwest Logistics Systems, a truckload carrier based in Ohio, United States. Through this acquisition, Schneider would increase annual revenue in its operations with more than 5000 trucks.

May-2021: C.H. Robinson took over Combinex Holding B.V., a company specializing in transport services for dry goods and fresh & frozen goods. Under this acquisition, C.H. Robinson would reinforce its presence in Europe specifically in Western Europe. Moreover, Combinex would deliver more haul abilities with a dedicated fleet, broadening its footprint in the short-medium haul market.

May-2021: Kuehne+Nagel took over Apex International, a global player in anilox and embossing technologies. This acquisition aimed to broaden Kuehne+Nagel’s presence in the Asian market, particularly on the transpacific and intra-Asia trade routes.

Mar-2020: C.H. Robinson completed the acquisition of Prime Distribution Services, a North American provider of retail consolidation and value-added warehouse services. This acquisition would broaden C.H. Robinson’s retail consolidation business and delivers additional abilities, specialization, and scale to the company’s offering.

Scope of the Study

Market Segments covered in the Report:

By Offering

• Services

• Solution

o Freight Security & Monitoring System

o Fleet Tracking & Maintenance Solution

o Warehouse Management System

o Freight Information Management System

o Freight Transportation Cost Management

o Freight Mobility & Operational Management Solutions

o Freight 3PL Solution

By Mode of Transport

• Roadways

• Railways

• Seaways & Airways

By Vertical

• Retail & E-commerce

• Automotive

• Aerospace & Defense

• Pharmaceuticals

• Energy

• Others

By Geography

• North America

o US

o Canada

o Mexico

o Rest of North America

• Europe

o Germany

o UK

o France

o Russia

o Spain

o Italy

o Rest of Europe

• Asia Pacific

o China

o Japan

o India

o South Korea

o Singapore

o Malaysia

o Rest of Asia Pacific

• LAMEA

o Brazil

o Argentina

o UAE

o Saudi Arabia

o South Africa

o Nigeria

o Rest of LAMEA

Companies Profiled

• C.H. Robinson Worldwide, Inc.

• Deutsche Post DHL Group (The Deutsche Post AG)

• FedEx Corporation

• Kuehne + Nagel International AG (Kuehne Holding AG)

• United Parcel Service, Inc.

• SAP SE

• Oracle Corporation

• Schneider National, Inc.

• DSV A/S

• Nippon Express Co., Ltd.

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