Digital Freight Brokerage Market Trends and Growth 2031

The digital freight brokerage market size is expected to grow at a CAGR of 30.2% from 2023 to 2031. The digital freight brokerage in the transportation and logistics sector is gradually undergoing a digital transformation as more businesses use digital technologies to improve various areas of the value chain. The significant increase in the volume of container shipping and air freight due to consistent restocking of inventories has resulted in global logistics growth, which is expected to have a direct impact on the global digital freight brokerage market.

Digital Freight Brokerage Market Analysis

Digital improvements strengthen the freight process by making it more effective and productive, allowing shippers to select carriers on demand and eliminating unexpected brokerage expenses. Furthermore, expanding wireless connection and network technologies, such as 3G and 4G, especially in developing nations, are likely to boost market expansion. Some of the drivers driving market expansion include increased smartphone penetration and investments in digital freight brokerage.

Digital Freight Brokerage Market Overview

• Using a digital freight broker platform provides shippers and carriers with a safe and secure environment to discover the correct freight partners. There is a reduced requirement for manual entries and much less reliance on outdated modes of communication.
• Furthermore, many digital freight matching services may be incorporated into current transport management systems (TMS), providing a more comprehensive logistics solution for any firm.

REGIONAL FRAMEWORK

Digital Freight Brokerage Market Driver and Opportunities

Increasing Use of IT-Enabled Solutions to Drive the Digital Freight Brokerage Market

• The existence of numerous domestic and foreign companies in the global digital freight brokerage market presents a challenge for vendors working in it. As a result, companies are using innovative IT solutions and technologies to stay competitive in the market. Freight brokerage operation management systems are designed for specialized services, such as tariff and rating management, job order administration, scheduling and slot management, equipment control, and export/import documentation.
• KUEHNE+ NAGEL and other market vendors are working on intelligent mobile applications to automate field service procedures and improve shipment tracking in the supply chain. During the projection period, digital freight brokers will adopt more innovative technologies to streamline their commercial operations. This is projected to improve their operational efficiency, hence supporting the growth of the worldwide digital freight brokerage market during the forecast period.

Growth in E-Commerce Industry to Create Lucrative Market Opportunities

• The worldwide e-commerce business is predicted to increase at an exponential rate during the forecast period. This means that a huge volume of items transacted through e-commerce will need to be carried via LCL and LTL, and e-commerce enterprises will need digital freight brokers to efficiently manage the large volume of cargo and freight.
• Growing Internet penetration and a rise in purchasing power parity (PPP) are the primary drivers of global e-commerce growth. This, in turn, is expected to create lucrative growth opportunities for the digital freight brokerage market during the forecast period.

MARKET PLAYERS

Digital Freight Brokerage Market Report Segmentation Analysis

The key segments that contributed to the derivation of the digital freight brokerage market analysis are platform, deployment, transportation mode, and end-use.

• Based on transportation mode, the market is divided into roadways, seaways, airways, and railways.
• Airfreight volumes are expected to expand steadily in the future years as air freight operators continue to focus on enhancing their service and resolving the complexity of air freight management. The increased adoption of smartphones and mobile applications by shippers and carriers to match their services and needs drives market growth during the forecast period.
• By end-use, the market is divided into digital/virtual forwarders, logistics companies, and the 3PL segment.
• By Platform, the market is segmented into specialized & generic marketplaces, crowd shipping platforms, digital freight exchanges, and tender platforms.
• By development, the market is segmented into desktop and mobile applications.

Digital Freight Brokerage Market Share Analysis By Geography

• The scope of the digital freight brokerage market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America held a prominent market share in 2023.
• North America's market for digital freight brokerage is expanding. Growth is fuelled by factors such as increased usage of technology in the logistics business, a desire for enhanced supply chain efficiency, and the expansion of e-commerce. The presence of numerous established players, such as Convoy and Uber, also supplements the market growth in this region.

Digital Freight Brokerage Market Report Scope

Digital Freight Brokerage Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the digital freight brokerage market. Some of the recent key market developments are listed below:

• 2024, logistics company Flexport launched the convoy platform to boost the logistics ecosystem for shippers, carriers, and brokers after the acquisition of Convoy, Inc.'s technology and intellectual property in November 2023.  [Source: Flexport, Company Website]

Digital Freight Brokerage Market Report Coverage & Deliverables

The digital freight brokerage market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Digital Freight Brokerage Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
• Detailed company profiles.

Digital Freight Brokerage Report Scope