Authored By: Sarah
11 Jul 2024

 Freight Logistics Market Size to grow by USD 319.65 million between 2023-2027

According to a research report “ Freight Logistics Market” by Type (Road, Maritime, Rail, Air) End-user (Manufacturing, Automotive, Consumer goods, Food and beverage, Others) Geography (APAC, North America, Europe, Middle East and Africa, South America)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 319.65 million, at a CAGR of  5.74% during the forecast period. In the freight logistics market, technology investment is a priority for logistics providers as they aim to offer more than just transportation services. These companies are transforming into technology-driven entities, providing advanced solutions for warehouse management, procurement, and operational applications. Contract-based logistics, including third-party logistics (3PLs) and fourth-party logistics (4PLs), are gaining popularity due to their customized offerings that cater to shippers' unique supply chain management needs. Shippers can leverage these partnerships to focus on managing the remaining logistics functions in-house while outsourcing the rest. The integration of technology and contract-based logistics is revolutionizing the industry, making it essential for logistics providers to stay competitive.

Browse market data tables, figures, and in-depth TOC on “Freight Logistics Market” by Type (Road, Maritime, Rail, Air) End-user (Manufacturing, Automotive, Consumer goods, Food and beverage, Others) Geography (APAC, North America, Europe, Middle East and Africa, South America) Global Forecast to 2027. Download Free Sample

 

By Type, the Road segment is projected to dominate the market size in 2024

The manufacturing sector represents the largest segment in the global freight logistics market, accounting for a significant contribution to the Gross Domestic Product (GDP) of countries. With a predominantly undiversified industry structure, the manufacturing sector primarily exports raw materials and basic manufactured goods. The Asia Pacific region, with a robust economic foundation, is poised to spearhead manufacturing growth. Indonesia, in particular, attracts investors due to its productive industries. Manufacturing's solid economic base and potential for expansion make it an attractive investment opportunity within the freight logistics market.

By End-user, Manufacturing  segment is expected to hold the largest market size for the year 2024

The road segment dominates the global freight logistics market, accounting for the largest share due to its efficiency and accessibility. Freight transportation refers to the paid movement of goods, cargo, and other commodities from one location to another via wheeled vehicles. In Indonesia, the freight transportation landscape encompasses three primary modes: air freight, sea freight, and road freight. The road freight sector is primarily driven by industries such as construction, textiles and apparel, machinery and equipment, electrical items, non-containerized commodities, electronics, and automobiles. The demand for trucking services is projected to surge, largely due to the expansion of road freight and international freight transportation, serving as a significant catalyst for domestic trucking growth.

APAC is forecasted to hold the largest market size by region in 2024

The APAC freight logistics market is poised for expansion due to the significant consumer base for food and beverage, as well as healthcare product suppliers. With rising disposable incomes and an aging population in countries like Japan and China, healthcare expenditure is experiencing robust growth rates. This trend is driving up the demand for temperature-controlled healthcare products, such as biopharmaceuticals, vaccines, and clinical trial materials. Furthermore, the increasing preference for organic food products in countries like China, Australia, and New Zealand, fueled by the availability of certified organic dairy products and heightened health consciousness, is boosting the demand for cold chain logistics from both the healthcare and food industries. This is essential for preserving the shelf life and maintaining the quality of these sensitive products.

The Freight Logistics Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Agility Public Warehousing Co. K.S.C.P
  • C H Robinson Worldwide Inc.
  • CJ Logistics Corp.
  • CMA CGM SA
  • Deutsche Bahn AG
  • Deutsche Post AG
  • Dimerco Express Corp.
  • DSV AS
  • Expeditors International of Washington Inc.
  • FedEx Corp.
  • Hellmann Worldwide Logistics SE and Co KG
  • Kerry Logistics Network Ltd.
  • Kuehne Nagel Management AG
  • Lineage Logistics Holdings LLC
  • Manitoulin Group of Companies
  • Nippon Express Holdings Inc.
  • Transporteca Aps
  • Uber Technologies Inc
  • United Parcel Service Inc.
  • Bollore SE
.

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Research Analysis Overview

The Freight Logistics Market is undergoing a significant transformation with the integration of digitization and automation. This technological evolution is revolutionizing the transportation of goods, making it more efficient and effective. The use of artificial intelligence (AI) and augmented reality (AR) in logistics services is streamlining operations, reducing errors, and enhancing the customer experience. The logistics industry caters to various sectors including Forestry, Fishing, Agriculture, Quarrying, Mining, Oil and Gas, Warehousing, Freight Forwarding, and Freight Transport. With the rise of online retail networks, customer preference for quick and reliable delivery is on the rise. Green logistics solutions are gaining popularity as businesses seek to reduce their carbon footprint. This trend is particularly relevant in industries such as Raw materials, Textiles, Food, Animal rearing, and Crop production. The implementation of AI and automation in these sectors can help optimize supply chain management, reduce waste, and improve sustainability. Mining and Quarrying, Oil and Gas, and other heavy industries are also embracing digitization and automation to improve operational efficiency and safety. The integration of technology in these sectors is enabling real-time monitoring of equipment, predictive maintenance, and remote operations. Overall, the Freight Logistics Market is poised for significant growth as businesses continue to adopt technology to optimize their supply chain operations.

Market Research Overview

The logistics market is experiencing significant growth and transformation, driven by the increasing demand for efficient and sustainable transportation of goods. Two key segments in this market are second-party logistics (2PL) and third-party logistics (3PL). 2PL refers to logistics services provided by manufacturers or retailers for their own operations, while 3PL involves outsourcing logistics functions to specialized companies. The waterway sector is gaining prominence in the logistics market, with inland waterways transportation becoming increasingly popular due to its eco-friendly nature. This includes transportation via coastal waters, lakes, canals, and rivers. Companies like Manhattan Associates are leveraging robotics, machine learning, and artificial intelligence (AI) to optimize waterways transportation and enhance logistics monitoring systems. The roadways segment continues to dominate the logistics market, but digitization and automation are revolutionizing the industry. Technologies like augmented reality (AR), sensors, tracking technologies, and autonomous vehicles are being adopted to improve efficiency and reduce costs. Green logistics solutions are also gaining traction, with a focus on alternative fuels and data analytics. Industries such as Raw Materials (FMCG, Forestry, Fishing, Agriculture, Quarrying, Mining, Oil and Gas, Manufacturing and Automotive) are major contributors to the logistics market. Logistics services for these industries require robust ecosystems, including warehouse management systems, freight forwarding, and freight transport. Exactitude Consultancy provides expert advice on logistics functions, including warehousing and storage, freight transport, and freight forwarding. Customer preference for online retail networks is driving the logistics market, with a focus on fast and reliable delivery. This requires advanced logistics services and innovative technologies to meet the growing demand. The logistics market is expected to continue growing, with a focus on sustainability, automation, and digitization.

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Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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