Freight Brokerage Market Size to grow by USD 15.95 billion between 2023-2027
According to a research report “ Freight Brokerage Market” by Geography (APAC, Europe, North America, Middle East and Africa, South America)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 15.95 billion, at a CAGR of over 5.45% during the forecast period. In the context of the global economy, the increasing openness of trade regimes in Europe, Asia, and North America presents significant opportunities for businesses to engage in international trade. Notably, various Free Trade Agreements (FTAs) and trade blocs, such as the EU-Japan Economic Partnership Agreement, are driving exports and imports between countries. According to the European Commission, EU companies export approximately €57 billion (USD64 billion) worth of goods to Japan annually. However, these companies encounter trade barriers when exporting to Japan, thereby limiting the potential for increased trade volumes between the regions. The freight brokerage market is poised to benefit from this growing demand for efficient logistics solutions to facilitate international trade.
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By Geography, the APAC segment is projected to dominate the market size in 2024
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By segments_title.2, ai_segment2_high segment is expected to hold the largest market size for the year 2024
In the realm of less-than-truckload (LTL) shipping, freight is transported in smaller quantities, consolidated on a single truck for delivery to multiple consignees. Compared to full truckload (FTL) carriers, LTL providers offer cost-effective logistics solutions, enabling the movement of goods via various modes, including roadways, railways, airways, and waterways. Notably, trucks provide unparalleled flexibility, ensuring swift transit times and last-mile delivery capabilities. Palletized LTL freight optimizes carrier space utilization, making it an attractive choice for businesses. The global LTL freight brokerage market expansion is fueled by the burgeoning e-commerce sector's growth, necessitating efficient and cost-effective shipping solutions.
APAC is forecasted to hold the largest market size by region in 2024
The freight brokerage market in the Asia-Pacific (APAC) region is experiencing significant growth due to increased connectivity between China and India with neighboring countries, including Nepal, Myanmar, Thailand, Vietnam, Pakistan, Afghanistan, Malaysia, South Korea, and Japan. This regional expansion presents lucrative opportunities for freight brokers to expand their local businesses. Notably, Chinese government initiatives, such as One Belt and One Road (OBOR) or Belt and Road Initiative (BRI) and China Pakistan Economic Corridor (CPEC), are driving market growth. These projects aim to develop railways, highways, and ports, as well as establish warehouses and free trade zones along the trade route to facilitate seamless trade between Europe, Central Asia, South Asia, Southeast Asia, and Africa.
The Freight Brokerage 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:
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Research Analysis Overview
The freight brokerage market is experiencing significant disruption in the logistics and shipping sectors, as technology continues to reshape the industry. Carriers and shippers are increasingly turning to tech-driven logistics services, such as AI techniques and machine learning algorithms, to optimize their operations and improve efficiency. Middlemen, including freight brokers, are also adapting to these changes, leveraging IoT-enabled connected devices and wireless connectivity to provide real-time freight solutions. In the e-commerce era, where consumers demand fast and reliable shipping, the importance of freight brokers in connecting customers with carriers and shippers cannot be overstated. AI and online shopping have transformed the logistics industry, with consumers increasingly relying on smartphones to make purchases and receive deliveries. Freight brokers are using AI to analyze shipping data, optimize routes, and match shippers with carriers based on mode of transport and customer type. Reverse logistics, which involves the return and disposal of products, is also becoming a significant focus area for tech-driven logistics solutions. Overall, the freight brokerage market is set to benefit from the ongoing digitization of the logistics and shipping industries, as technical solutions continue to revolutionize the way goods are transported and delivered.
Market Research Overview
The freight brokerage market is undergoing a significant transformation due to the integration of telematics, real-time pricing, load matching, and digital freight booking. Traditional brokerage methods are being replaced by tech-driven logistics services, allowing for minute-by-minute tracking, lead time reduction, and cost cutting. Domestic freight forwarders and logistics service providers are leveraging AI techniques and technical solutions to optimize freight costs, improve order fulfillment, and enhance the customer experience in the e-commerce sector. In the full truckload segment, real-time pricing and load matching are crucial for FTL freight transportation. The e-commerce sector's growth has led to an increased demand for direct-to-consumer (DTC) logistics, international trade activities, and reverse logistics. Middlemen, such as freight brokers, are being replaced by digital platforms that offer transparent business practices, wireless connectivity via smartphones, and data analytics for automation and ML technologies. The logistics and shipping sectors are embracing these changes to reduce logistics costs, improve timing, and provide efficient solutions for origin-to-destination freight transportation. Carriers and shippers are benefiting from the use of AI and digital platforms to optimize their operations and better serve their customers. The future of freight brokerage lies in tech-driven solutions that offer real-time pricing, efficient load matching, and seamless communication between all parties involved.
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