Originally published on Technavio:Freight Logistics Market by Type, End-user, and Geography — Forecast and Analysis 2023–2027

The estimated growth of the freight logistics market is USD 319.65 million, with a Compound Annual Growth Rate (CAGR) of 5.74% between 2022 and 2027. The market’s expansion is contingent on various factors, including the increasing trend of logistics outsourcing, growth in the manufacturing sector, and rising demand for efficient deliveries of food, perishable items, and medical supplies.

Key Driver:

The substantial growth of logistics outsourcing is a prominent factor driving market expansion. Logistics companies are anticipated to invest more in digital and analytic technologies during the forecast period. The line between logistics companies and technology providers is blurring as they offer both logistics services and leverage technology for enhanced solutions in warehouse management, procurement, and other supply chain applications. Contract-based logistics, such as third-party logistics (3PLs) and fourth-party logistics (4PLs), is gaining preference over in-house logistics, offering customized services that add value to supply chain management.

Significant Trend:

The increasing popularity of multimodal transportation is an emerging trend. Unlike intermodal transportation, where multiple contracts are involved, multimodal transportation operates under a single contract. This approach simplifies the responsibility for moving shipments across various modes, providing advantages such as a single contract, reduced risk of goods or personnel loss, and centralized tracking. The convenience offered by multimodal transportation is expected to drive market growth and trends in the forecast period.

Major Challenge:

High infrastructure costs pose a significant challenge to market growth. Intermodal transportation requires substantial infrastructure investments, including gantry cranes for container handling at ports and rail and road access development. Delays and time-consuming processes in obtaining necessary investments can hamper market demand, acting as a barrier to growth during the forecast period.

Key Customer Landscape:

The market growth and forecasting report cover the adoption lifecycle, ranging from innovators to laggards. It focuses on adoption rates across different regions based on penetration. The report also analyzes key purchase criteria and drivers of price sensitivity, assisting companies in evaluating and developing their growth strategies.

Major Freight Logistics Market Companies:

Companies are employing diverse strategies like strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches to fortify their presence in the market. Dimerco Express Corp., a notable player, offers freight forwarding, contract logistics, and supply chain solutions, including rail freight, ocean freight, air freight, and road freight.

Fastest-Growing Segment in the Market:

The road segment is projected to be the fastest-growing segment during the forecast period. Freight transportation, involving the paid movement of goods using wheeled vehicles, is primarily dominated by the road segment. Valued at USD 312.15 million in 2017, the road segment continued to grow until 2021. The road freight transport sector serves various industries, including construction, textiles, machinery, electronics, and automobiles. Growing demand for trucking services, especially with the expansion of e-commerce, contributes to the road segment’s growth during the forecast period.

Key Regions for the Market:

APAC is expected to contribute 43% to the global market’s growth during the forecast period. The presence of a substantial consumer base for food, beverages, and healthcare products, along with rising disposable incomes and an aging population in countries like Japan and China, fuels the demand for logistics services in the region. APAC’s attractiveness for investment and new solutions aligns with the growing market demand, making it a key region for market growth. Additionally, low-cost labor and resources in developing economies like China, India, Japan, South Korea, and Taiwan attract global automotive vendors, further boosting market growth in APAC.

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The market showcases dynamic global dynamics with key players in regions such as the United States, Russia, California, Norway, Sweden, the United Kingdom, Asia, Southeast Asia, Asia-Pacific, GCC, Ukraine, Luxembourg, and the United States Department of Transportation. These regions play pivotal roles in transportation and logistics networks as international trade expands. Southeast Asia and Asia-Pacific act as major hubs connecting manufacturing nations to global markets. The GCC’s strategic location facilitates trade between Asia, Europe, and Africa. The United States Department of Transportation oversees logistics intricacies domestically. Collaboration and innovations in countries like Ukraine and Luxembourg contribute to the sector’s adaptability and resilience in the ever-evolving global freight landscape.

The market research and growth report forecast revenue growth globally, regionally, and at the country level, providing an analysis of the latest trends and growth opportunities from 2017 to 2027.

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