Global Freight Forwarding Market reached US$ 175.1 billion in 2023 and is expected to reach US$ 245.2 billion by 2031, growing with a CAGR of 4.3% during the forecast period 2024-2031.
The global freight forwarding market is poised for significant growth, fueled by the increasing demand for air freight services. With evolving consumer preferences, businesses are shifting towards omnichannel logistics, prompting airlines to extend their operations beyond traditional airport-to-airport routes. This transformation is encouraging strategic collaborations between airlines and shippers, facilitating seamless end-to-end logistics solutions. As a result, partnerships within the air freight sector are expected to rise, enhancing supply chain efficiency.
According to the International Air Transport Association (IATA), the air freight industry experienced a 20.7% growth in July 2023 compared to the previous month, marking a steady expansion since February 2023. However, despite this upward trend, cargo ton-kilometers (CTKs) declined by 0.8% year-over-year, placing them 0.3% below July 2022 levels and 3.7% below pre-pandemic figures from 2019. This year-over-year increase in global CTKs is partly influenced by a lower base effect from 2022.
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Market Dynamics
Rising E-Commerce and Its Impact on Freight Forwarding
The rapid expansion of e-commerce is transforming global supply chain dynamics, driving a surge in demand for freight forwarding services. Online marketplaces enable businesses to reach customers worldwide, increasing the need for efficient and reliable logistics solutions to manage inventory, process orders, and ensure timely deliveries. Freight forwarders play a crucial role in providing end-to-end shipping solutions tailored to the evolving needs of e-commerce companies.
According to the Indian Brand Equity Foundation (IBEF), Indias e-commerce market is projected to reach $111 billion by 2024 and is expected to hit $200 billion by 2026. The growing adoption of online shopping and rising parcel shipments are fueling the demand for seamless freight forwarding services, ensuring smooth transportation from manufacturers to consumers across the globe.
Surging Demand for Air Freight in Global Trade
The air cargo industry is a key driver of global trade, enabling businesses to transport goods efficiently across international markets. As economies expand, consumer expectations shift, and technological advancements accelerate, air freight continues to experience substantial growth. Cross-border trade remains a significant contributor to market expansion, and this trend is expected to intensify in the coming years as international trade volumes increase.
A prime example of this growth is Chinas Shenzhen Baoan International Airport, which witnessed a 100% increase in cross-border e-commerce shipments from January to July 2023. With the addition of new cargo aircraft, further growth is anticipated for the remainder of the year. The airport handled 93,000 tons of international e-commerce cargo in just seven months, reflecting the rising demand for fast and efficient air freight services to support global e-commerce operations.
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Market Segmentation
By Service – Transportation and Warehousing, Packaging and Documentation, Value-added Services
By Mode of Transport – Land Freight Forwarding, Sea Freight Forwarding, Air Freight Forwarding
By Customer – B2B, B2C
By End-User – Retail and E-Commerce, Industrial & Manufacturing, Healthcare, Automotive, Others
Regional Insights
Expanding Trade and E-Commerce Driving Freight Forwarding Growth in North America
North America continues to lead the global freight forwarding market, accounting for approximately 30% of the industry share. The region’s strong economic framework, encompassing the United States, Canada, and Mexico, positions it as a key hub for logistics and transportation. With advanced technological infrastructure and innovative digital solutions, North America is at the forefront of implementing AI-driven and automated freight forwarding systems, enhancing efficiency across supply chains.
The region also boasts a thriving e-commerce sector, further propelling the demand for seamless logistics solutions. According to a Digital Commerce 360 analysis of U.S. Department of Commerce data, e-commerce accounted for 22% of total U.S. retail sales in 2023, up from 21.2% in 2022. As online retail continues to expand, digital freight forwarding solutions are becoming increasingly essential for optimizing inventory management, streamlining deliveries, and ensuring faster cross-border trade.
With rising e-trade activities and technological advancements, North America remains a key driver in the global freight forwarding industry, setting new benchmarks for efficiency and innovation in logistics.
Competitive Landscape & Key Players
Kuehne+Nagel,
Deutsche Post AG (DHL Group)
DB SCHENKER
Expeditors International of Washington, Inc.
CEVA Logistics
DSV
FedEx
Uber Technologies, Inc.
United Parcel Service of America, Inc.
NIPPON EXPRESS HOLDINGS.
Industry Updates:
In June 2023, Kuehne+Nagel, a globally logistics company, has agreed to buy Morgan Cargo, a leading South African, UK and Kenyan freight forwarder. The acquisition increases the company’s perishables logistics service offering while enhancing connection for customers to and from South Africa, UK and Kenya, which includes cutting-edge cold chain capabilities.
In April 2023, DHL Global Forwarding signed an MoU with Turkish Cargo to expand its operations to SMARTIST, Turkish Cargo’s cargo facility at Istanbul Airport. The deal strengthens both the company’s operational efficiencies and further boosts Istanbul’s position as a logistics hub for the world.
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Why Purchase This Report?
✔ Detailed market segmentation & key trends
✔ Competitive intelligence & emerging players
✔ Comprehensive regional & regulatory analysis
✔ 203-page report with 62 tables & 53 figures
