Digital Freight Brokerage Market Opportunities 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 There is a reduced requirement for manual entries and much less reliance on outdated modes of communication.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.
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MARKET PLAYERS
Have a question?
Naveen
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Request discounts available for Start-Ups & Universities
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.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Request discounts available for Start-Ups & Universities
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The global Digital Freight Brokerage market was estimated to grow at a CAGR of 30.2% during 2023 - 2031.
Advancements in logistics & transportation services and new product innovations are the major factors that propel the global digital freight brokerage market.
Technological advancement and a rise in investments in the digital freight brokerage market are anticipated to play a significant role in the global digital freight brokerage market in the coming years.
The major players holding majority shares are Cargomatic Inc., Echo Global Logistics, DB Schenker Logistics, C.H. Robinson, and DAT Solutions LLC.
Asia Pacific is anticipated to grow with a high growth rate during the forecast period.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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