Digital Freight Forwarder Market Size, Share, Industry Analysis, Trends, Growth, 2032

Digital Freight Forwarder Industry Prospective:

The global digital freight forwarder market size was worth around USD 5.58 billion in 2023 and is predicted to grow to around USD 38.98 billion by 2032 with a compound annual growth rate (CAGR) of roughly 24.11% between 2024 and 2032.       

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Digital Freight Forwarder Market: Overview

A business that manages and plans the transportation of products via digital platforms and technology from one place to another is known as a digital freight forwarder. Conventional freight forwarding requires a great deal of manual labor, documentation, and middlemen. By utilizing technology such as digital communication channels, automation, internet platforms, and data analytics, digital freight forwarders expedite these procedures.

Key Insights

• As per the analysis shared by our research analyst, the global Digital Freight Forwarder market is estimated to grow annually at a CAGR of around 24.11% over the forecast period (2024-2032).
• In terms of revenue, the global Digital Freight Forwarder market size was valued at around USD 5.58 billion in 2023 and is projected to reach USD 38.98 billion, by 2032.
• The growing e-commerce sector is expected to propel the market growth during the forecast period.
• Based on the mode of transport, the land segment is expected to capture a significant market share during the forecast period.
• Based on the function, the Transportation Management segment is expected to grow at a rapid rate over the forecast period.
• Based on the vertical, the E-Commerce segment is expected to capture the largest revenue share over the forecast period.
• Based on the deployment, the On-Premises segment is expected to capture the largest market share over the forecast period.
• Based on region, North America is expected to lead the market during the forecast period.

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Digital Freight Forwarder Market: Growth Drivers

The benefits of going digital drive market growth

The several benefits of going digital such as increased efficiency, cost savings, enhanced visibility and proactive decision making and others are expected to boost the digital freight forwarder market over the forecast period. One of the many benefits of adopting digital procedures is increased efficiency. By utilizing digital solutions to replace paper-based procedures and automate manual chores, firms can achieve increased productivity and operational efficiency. Additionally, traditional freight forwarding incurs significant costs due to the involvement of multiple intermediaries. By doing away with unneeded middlemen, digital freight forwarding lowers the costs related to paperwork, correspondence, and management.

Digital Freight Forwarder Market: Restraints

Data security concern hinders market growth

As freight forwarding moves toward a more digitalized process, sensitive cargo data—including financial transactions, product specifications, and customer information—is being collected and shared. It is imperative to safeguard the security and privacy of this data, but some companies may find it challenging to adopt because of concerns about cyberattacks or data breaches. According to secondary analysis, 92% of malware is sent to shipping and logistics organizations via email. Cybercriminals rank the freight industry as their fifth most popular target. In 2020, cyberattacks on operational technology infrastructure affected 31% of enterprises.

Digital Freight Forwarder Market: Opportunities

Growing number of startups offer a lucrative opportunity for market growth

The growing number of startups is expected to offer a lucrative opportunity to market growth during the forecast period. For instance, in March 2024, leading freight forwarding innovation Cargofive announced the successful conclusion of an expanded financing round that raised €2.5 million. Prominent venture capitalists Indico Capital and EIT Urban Mobility, an initiative of the European Institute of Innovation and Technology (EIT), an organization of the European Union, participated for the first time in this round. This comes after a prior round that was headed by angel investors, PRR Nexus, and Shilling & Lince Capital. This additional financing will support ongoing product innovation and improvement at Cargofive.

As part of its strategic expansion throughout Europe and the Americas, the company intends to spend on marketing and sales. It will also expedite their Product Roadmap and add new inland and ocean service connectors, expanding their logistical footprint. Cargofive is moving forward with fresh vigor on its path to sustainability and profitability.

Digital Freight Forwarder Market: Challenges

Regulatory and compliance pose a major challenge to market expansion

A complicated web of rules and compliance requirements, such as trade restrictions, security procedures, and customs regulations, apply to the shipping business. Ensuring compliance with these standards can provide a challenge for digital freight forwarders, especially in cross-border transactions involving many nations.

Digital Freight Forwarder Market: Segmentation

The global Digital Freight Forwarder industry is segmented based on Mode of Transport, Function, Vertical, Deployment and region.

Based on the mode of transport, the global Digital Freight Forwarder market is bifurcated into Land, Sea and Air. The land segment is expected to capture a significant market share during the forecast period. The segment expansion is attributed to its cost-effective nature, real-time tracking and visibility, integrated with multi-modal solutions and others.

Based on the function, the global Digital Freight Forwarder industry is segmented into Transportation Management and Warehouse Management. The Transportation Management segment is expected to grow at a rapid rate over the forecast period. Digital freight forwarders and their clients can keep an eye on the whereabouts and condition of shipments at all times during the transportation process through transportation management systems, which offer real-time visibility and tracking capabilities. Through early warning of possible delays or disruptions, TMS facilitates proactive exception management by enabling stakeholders to promptly take corrective action to avoid service interruptions.

Based on the vertical, the global Digital Freight Forwarder market is segmented into Manufacturing, Retail and E-Commerce, Healthcare, Automotive and Others. The E-Commerce segment is expected to capture the largest revenue share over the forecast period. The growth of the market is attributed to the increasing e-commerce sector across the globe. For instance, as per the recently published data by Forbes, the e-commerce market in India is projected to increase at an annual pace of 11.45% to reach INR 7,591.94 billion by 2029 from INR 4,416.68 billion in 2024. With over 800 million users, UPI transactions reached INR 125.94 trillion in 2022.

Based on the deployment, the global Digital Freight Forwarder industry is segmented into On-Premises and Cloud. The On-Premises segment is expected to capture the largest market share over the forecast period. The security offered by on-premises mode is a major factor for the segment's growth.

Digital Freight Forwarder Market: Report Scope

Regional Analysis

North America is expected to lead the market during the forecast period

North America is expected to lead the market growth during the forecast period. The regional market growth is attributed to the growth in the e-commerce sector. North America is a leading player in the digital products forwarding industry, with its growing economic system spanning the US, Canada, and Mexico. North American nations, including the United States, are well known for possessing outstanding technological infrastructure and innovation hubs. This makes it possible for digital freight forwarding solutions to advance and be used. The e-commerce sector is well-developed in North America.

E-commerce in the United States accounted for 22.0% of total retail sales in 2023, according to a Digital Commerce 360 analysis of statistics from the Department of Commerce. That amounts to a 21.2% penetration rate in 2022 based on appraisal. E-trade companies' needs are met by digital platforms' simplified logistics solutions, which increase demand for effective freight forwarding services. On the other hand, the Asia Pacific is expected to grow at the highest CAGR during the forecast period. The regional expansion is primarily attributed to the infrastructural development and increasing digitalization, especially in countries like India, China, Japan and others.

Digital Freight Forwarder Market: Competitive Analysis

The global Digital Freight Forwarder market is dominated by players like:

• Kuehne+Nagel International AG
• Deutsche Post DHL Group
• Forto GmbH
• Turvo Inc.
• Flexport Inc.
• Icontainers
• Transporteca
• Descartes Containers
• Uber Freight LLC
• Twill

The Global Digital Freight Forwarder market is segmented as follows:

By Mode of Transport

• Land
• Sea
• Air

By Function

• Transportation Management
• Warehouse Management

By Vertical

• Manufacturing
• Retail and E-Commerce
• Healthcare
• Automotive
• Others

By Deployment

• On-Premises
• Cloud

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa