FREIGHT FORWARDING MARKET SIZE PROJECTED TO REACH US$207B BY 2026
The global freight forwarding market size is projected to reach US$207 billion by 2026, from US$170 billion in 2019 with a CAGR of 2.8% during 2020-2026, according to a report by market research firm, Valuates Reports.
"The main factors driving the growth of freight forwarding market size are the increasing demand for low-cost shipping, the ability to recognize consumer needs, and the rapid response with logistics solutions," Valuates Reports said.
It noted that the growing demand for integrated services is also expected to fuel market growth.
Some of the trends influencing the freight forwarding market size include:
- Increasing trade agreements between nations are fuelling the growth of freight forwarding market size;
- The booming e-commerce industry is an important catalyst for the growth of freight forwarding market size. Due to the global restocking process, the freight forwarding market experienced massive growth in 2017 and early 2018;
- The growing demand for transport of perishable and the life sciences/healthcare sector is also expected to drive the growth freight forwarding market size during the forecast period;
- With growing numbers of small and medium-sized enterprises ( SMEs), freight forwarding companies are looking to expand their business from SMEs. The online freight quotation and booking platforms offer incentives for SMEs to extend to foreign markets, as these platforms have several connections compared to their conventional counterparts (brick-and-mortar);
- With the growth of global retail trade, global maritime trade has been gradually growing, driving the sea freight forwarding market and the containerized cargo trade is expected to expand faster, with multimodal transport becoming increasingly common.
North America to hold biggest market share
Based on the region,
Valuates Reports said, North America is expected to hold the largest freight forwarding market share during the forecast period. This dominance of North America is due to the growing consumer preference to buy online.
The Asia Pacific is projected to experience the highest growth rate among other regions. This growth is attributed to the rapid growth of the region's manufacturing sector.