Global Digital Freight Brokerage Market: Snapshot
The freight brokering industry, in which freight brokers match shippers to the carriers, has been around for quite a while now. However, emergence of digital freight broker companies in the recent past have revolutionized the industry.
Currently, the competition in the relatively new digital freight brokerage market is moderate. However, in the years ahead, the competition will likely intensify on account of the foray of numerous solution providers.
Serving to boost the global digital freight brokerage market is the rising uptake of sophisticated smartphones, improved wireless connectivity, and advantages accorded by digital platforms such as better efficiency and reduced costs. This helps to save time and the brokerage money too. In the traditional freight brokerage market, carriers and the loads are forced to remain idle till the deal is finalized by brokers through phone or mail.
A noticeable trend in the global digital freight brokerage market is the technological progress. However, a drawback is the upfront capital required for building the software. Once the company is up and running, there are some logistic hurdles to overcome as well.
Being in a nascent state, the growth prospects in the global digital freight brokerage market is high. A research study by Transparency Market Research projects the market to expand at a mind-boggling 61.7% CAGR during the period between 2017 and 2025. Expanding at this pace, it will likely attain a value of US$10,964.3 mn by 2025 from US$144.5 mn.
Full Utilization of Cargo Space in Trucking Industry Will Propel Road Transport Segment
Depending upon the mode of transportation, the global market for digital freight brokerage can be segmented into roadway, seaway, airway, and railway. Among them, the segment of road transportation is slated to expand considerably in the forecast period and also rake in maximum revenue. This is because of the rising use of digital applications to avoid hefty brokerage fees and desire to utilize unutilized cargo space in trucking industry.
When it comes to industry verticals, the main sections of the global market for digital freight brokerage are automotive, food and beverages, manufacturing, retail and e-commerce, healthcare, and others such as aerospace and defense. Of these, the retail and ecommerce sector is expected to contribute the most to the market. Proliferation of organized retail in the upcoming years, particularly in the fast expanding large economies of India and China, will drive the market in Asia Pacific.
North America Dominates Global Market due to Presence of Key Players
From a geographical standpoint, North America accounts of maximum revenue share in the global digital freight brokerage market at present. The expansion in the region is being primarily driven by the U.S., which is home to a copious number of players. The high demand in the region is also serving to boost demand. The revenue in the region is slated to become US$4.70 bn by 2025-end. Vis-à-vis growth rate, however, Asia Pacific is forecasted to outshine all other regions by registering a 64.4% CAGR from 2017 to 2025, mainly on the back of uptake of digital freight brokerage in India, China, and Japan.
Europe is another key market which is predicted to rise at 62.6% CAGR to become worth US$3.478 bn by 2025.
Key players in the global market for digital freight brokerage are Echo Global Logistics Inc., Coyote Logistics, Transfix, LLC, Convoy, Cargomatic Inc., Trucker Path Inc., J.B. Hunt Transport, Inc., Cargocentric Inc., Uber Freight and TGMatrix Limited.
Global Digital Freight Brokerage Market: Overview
The “Digital Freight Brokerage Market (Transportation Mode – Roadway, Seaway, Airway, Railway; Industry Verticals – Food & Beverages, Automotive, Retail & E-Commerce, Healthcare, Manufacturing, Other (Aerospace & Defense)) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017 - 2025”, report provides analysis of the digital freight brokerage market for the period 2015–2025, wherein the years from 2017 to 2025 is the forecast period and 2016 is considered as the base year. Data for 2015 has been included as historical information. The report covers all the major trends and technologies playing a major role in the digital freight brokerage market growth over the forecast period. It highlights the drivers, restraints and opportunities expected to influence the market growth during this period.
The study provides a holistic perspective on the market’s growth in terms of revenue (in US$ Mn) across different geographical regions, namely North America, Europe, Asia Pacific, Middle East & Africa and South America. Report highlights the key trends affecting the market on a global scale. Furthermore, region wise prominent countries/regions covered in the report includes - the U.S, Canada, Germany, France, the U.K., India, China, Japan, GCC, South Africa and Brazil.
The market overview section of the report showcases the market dynamics and trends which includes drivers, restraints, opportunities that influence the current nature and future status of this market. It also provides an overview about the key market indicators given across the five geographical regions. Under the key strategies adopted by carriers section, strategies adopted by traditional 3PLs and carriers to cope up with technology platforms are described. Under the porter’s five forces analysis section, a brief analysis of the level of competition within the digital freight brokerage industry is given and business strategy is provided in order to determine the competitive attractiveness and intensity of the digital freight brokerage market. The report also includes key industry developments covering significant advances made by leading market players over the period of time.
Global Digital Freight Brokerage Market: Competitive Landscape
The report provides competitive landscape of the digital freight brokerage market, thereby listing out all the major players according to their geographic presence, market attractiveness and recent key developments. The competitive landscape section of the report gives an overview about the market share of several key players for the year 2016. The digital freight brokerage market data estimates are the result of our in-depth secondary research, primary interviews and in-house expert panel reviews.
These market estimates have been analyzed by taking into account the impact of different political, social, economic, technological, and legal factors along with the current market dynamics affecting the market growth. Factors including market position, offerings and R&D focus are attributed to company’s capabilities. This section also identifies and includes various recent developments carried out by the leading players. Moreover, key takeaways section provided at the end of competitive landscape section would help the operating companies to make the best move in the market.
On the basis of transportation mode, the market has been divided into roadway, seaway, airway and railway. Owing to growth in adoption of applications by trucking industry, roadway segment is expected to show significant CAGR over the forecast period and projected to attribute to the highest revenue for the market in 2025. In terms of industry vertical, the market has been segmented into food & beverages, automotive, retail & e-commerce, healthcare, manufacturing and others. The others segment of industry vertical primarily consist of aerospace & defense industry.
The Digital Freight Brokerage market has been segmented as below:
The Digital Freight Brokerage Market, By Transportation mode
The Digital Freight Brokerage Market, By Industry Vertical
- Food & beverages
- Retail & E-commerce
- Other(aerospace & defense)
The Digital Freight Brokerage Analysis, By Country/Region
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America