Digital Freight Matching Market Size, Share & Trends Analysis Report By Service, By Platform, By Transportation Mode, By Industry, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global digital freight matching market size was valued at USD 28.13 billion in 2022 and expanding at a compound annual growth rate (CAGR) of 31.5% from 2023 to 2030. The growing need for automation and digitization across supply chains drives the growth of the market. Digital freight matching platforms provide solutions to shippers and carriers by connecting them in real-time. It is a relatively new technology offered through an application or a platform that enables shippers to share their load requirements and assist carriers in finding and booking loads efficiently. Digital freight matching is better than traditional methods as it handles challenging manual processes such as posting and booking loads, making confirmation calls, and managing paperwork.

Digital freight matching is gaining popularity in the logistics industry as it has integration capabilities with Enterprise Resource Planning (ERP) and Transportation Management Systems (TMS). The platforms offer improved operational efficiency and quick and efficient capacity fulfillment. The platforms are developed using advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and predictive analytics in developing algorithms to match loads with carriers automatically. In March 2023, Freight Technologies, Inc. announced the launch of Fr8App, a digital freight matching platform. The platform uses ML algorithms to match shippers with carriers. With this launch, the company aimed to make the shipping process more cost-efficient and faster.

Digital freight matching platforms have been adopted rapidly in North America, a region with high internet and smartphone penetration. Moreover, the region has the presence of many prominent players. The market is fragmented, with many established and new companies entering the market. The market players are adopting strategies such as product development and acquisition to gain a competitive edge.

COVID-19 Impact on the Digital Freight Matching Market

The COVID-19 pandemic had a negative impact on global commerce and shipping. Cross-border travel restrictions posed significant challenges for the logistics industry and disrupted supply chain operations. Global road transport and commercial flight activity was significantly lower in March and April 2020 compared to 2019. The COVID-19 pandemic led to the closure of many production plants, reducing manufacturing and production activities. This affected industries such as manufacturing and automotive, impacting the shipment of products related to these industries. However, the healthcare industry shipment volumes grew as COVID-19 vaccines were rolled out, and there was a heightened demand for drugs to treat COVID-19 patients.

The growth of the market slowed in the short term due to reduced shipment activities. However, supply chain volatility accelerated the adoption of digital freight matching platforms among freight brokers. The demand for freight matching platforms grew significantly as companies looked to improve efficiency and reduce operating costs. They helped freight brokerage operations by automating repetitive tasks. The COVID-19 pandemic accelerated e-commerce globally, and to fulfill shipping requirements, digitization became a necessity across supply chains. Hence, the market was impacted positively in the long term due to the COVID-19 pandemic.

Service Insights

In terms of service, the market is classified into freight-matching services and value-added services. The freight matching services segment dominated the overall market, gaining a market share of 81.2% in 2022. It is expected to grow at a CAGR of 31.2% throughout the forecast period. Market players provide freight matching services like freight listing and brokerage, and online transaction services. These services are the platform's core services, and the market players have contracts with shippers and carriers for using brokerage services. The growing innovation in technologies such as AI and ML and their adoption in digital freight matching platforms is driving the growth of this segment. Algorithms powered by these technologies can help in various freight brokerage applications such as capacity management and dynamic pricing.

The value-added services segment is anticipated to grow at the fastest CAGR of 32.7% throughout the forecast period. Value-added services include services such as support and insurance services. Moreover, these services can offer shippers access to TMS and carriers access to software for managing traffic ticket records. These services address the needs of carriers and shippers, improving their engagement on the platform. The need for essential services on a single platform is driving the growth of this segment.

Platform Insights

In terms of platform, the market is classified into web-based and mobile-based. The mobile-based segment dominated the overall market, gaining a market share of more than 61.0% in 2022. It is expected to grow at the fastest CAGR of 32.5% throughout the forecast period. Most market players provide mobile applications on Google Play and Apple Inc.'s App Store. China-based Full Truck Alliance (JiangSu ManYun Software Technology Co., Ltd.) provides freight matching and value-added services through mobile apps such as Yunmanman and Huochebang. Mobile-based platforms are faster than web-based apps and can work offline. Moreover, they are safer as they must be approved on the app store. The growing penetration of smartphones and ease of use drive the segment's growth.

The web-based segment is expected to grow at a considerable CAGR of 29.9% during the forecast period. Web-based digital freight matching platforms are platforms accessed through web browsers. Web-based applications are easier to build compared to mobile apps. Moreover, they can be launched quickly, as they do not require app store approval. The ease of maintenance of web-based platforms is driving the segment’s growth.

Transportation Mode Insights

In terms of transportation mode, the market is classified into Full truckload (FTL), Less-than-truckload (LTL), intermodal, and others. The Full truckload (FTL) segment has dominated the market, gaining a market share of more than 42.0% in 2022 and witnessing the fastest CAGR of 32.6% during the forecast period. Full truckload (FTL) involves booking the entire truck, and the goods are delivered from the starting to the end point without intermediate loading. It is a good option for shipping temperature-sensitive goods not meant to be transported with other goods. Moreover, it is a good option for transporting goods quickly without stopovers. The flexibility and quickness of Full truckload (FTL) transportation is driving the segment’s growth.

The intermodal segment is anticipated to witness a CAGR of 31.3% throughout the forecast period. Intermodal shipping includes goods shipment through a combination of truckload and rail. Intermodal transportation is a good option when shipping needs to be done over longer distances. It is a lower-cost alternative to truckload and a more environmentally sustainable option. Asia Pacific countries are taking initiatives to make intermodal transportation more effective by expanding their rail network. Intermodal transportation's cost-effectiveness and environmental sustainability drive the segment's growth.

Industry Insights

In terms of industry, the market is classified into food & beverages, retail & e-commerce, manufacturing, oil & gas, automotive, healthcare, and others. The food & beverages segment has dominated the overall market, gaining a market share of more than 21.0% in 2022 and witnessing a CAGR of 32.2% during the forecast period. The food & beverage industry consists of time-sensitive goods. The quality of the products can deteriorate over time and require specific conditions across the supply chain. Hence, they require quick and efficient transportation solutions to maintain their quality. A digital freight matching platform can improve the overall speed of freight brokerage operations as the platform connects the shippers with carriers as per load requirements. The need to maintain food quality and ensure regulatory compliance is driving the segment’s growth. 

The retail & e-commerce segment is anticipated to witness the fastest CAGR of 34.8% throughout the forecast period. Growing access to internet and smartphones is driving the growth of the e-commerce sector. Moreover, e-commerce provides customers convenience as they can shop for goods from their homes. The COVID-19 pandemic accelerated e-commerce sales as people stayed at home. According to the U.S. Department of Commerce’s Annual Retail Trade Survey (ARTS) in 2020, e-commerce sales in the U.S. rose by 43% in 2020 compared to 2019. The need to meet customers’ quick delivery expectations drive the segment’s growth.

Regional Insights

North America dominated the overall market in 2022, with a market share of 31.7%. It is expected to grow at a CAGR of 28.8% throughout the forecast period. North America has a developed technological infrastructure with high internet and smartphone penetration. Hence, the shippers and carriers in the region can access digital freight matching platforms. The presence of prominent market players such as U.S.-based Uber Freight (Uber Technologies, Inc.) and Convoy, Inc, and high Research and Development (R&D) activity of technologies such as AI and ML in the region is a favorable environment for the growth of the market in the region.

Asia Pacific is expected to grow at the fastest CAGR of 35.3%. Asia Pacific makes up a significant share of the global population, and the e-commerce industry is growing rapidly. Hence, digital freight matching platforms are likely to be adopted at a significant rate to meet consumer demand in the region. According to the GSM Association’s 2023 report, about 47% of Asia Pacific’s population doesn’t have mobile internet access. However, smartphone adoption and 5G connections are expected to grow significantly by 2030. Improving technological infrastructure and growing e-commerce sales are driving the market’s growth in the region.

Key Companies & Market Share Insights

The market is fragmented with numerous local and international players and is likely to witness high competition in the market. Some prominent players in the market include Uber Freight (Uber Technologies, Inc.), Redwood, C.H. Robinson Worldwide, Inc., XPO, Inc., Convoy, Inc, Full Truck Alliance (JiangSu ManYun Software Technology Co., Ltd.), Freight Technologies, Inc., Freight Tiger, Cargomatic Inc., and Roper Technologies, Inc.,among others. These players are adopting strategies such as acquisition to gain a competitive edge. In November 2021, Uber Freight (Uber Technologies, Inc.) announced the acquisition of Transplace, a tech-enabled solutions and services platform for transportation and logistics networks, for USD 2.25 billion. With this acquisition, Uber Freight (Uber Technologies, Inc.) aimed to meet the needs of carriers and shippers by using Transplace’s platform. Some of the prominent players operating in the global digital freight matching market include:

• Uber Freight (Uber Technologies, Inc.)

• Redwood; C.H. Robinson Worldwide, Inc.

• XPO, Inc.

• Convoy, Inc

• Full Truck Alliance (JiangSu ManYun Software Technology Co., Ltd.)

• Freight Technologies, Inc.

• Freight Tiger

• Cargomatic Inc.

• Roper Technologies, Inc.

Digital Freight Matching Market Report Scope

Global Digital Freight Matching Market Report Segmentation

This report forecasts revenue growths at global, regional, as well as at country levels and offers qualitative and quantitative analysis of the market trends for each of the segment and sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global digital freight matching market report based on service, platform, transportation mode, industry, and region.

• Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Freight Matching Services

  • Value Added Services

• Platform Outlook (Revenue, USD Million, 2017 - 2030)

  • Web-based

  • Mobile-based

    • Android

    • iOS

• Transportation Mode Outlook (Revenue, USD Million, 2017 - 2030)

  • Full Truckload (FTL)

  • Less-than-truckload (LTL)

  • Intermodal

  • Others

• Industry Outlook (Revenue, USD Million, 2017 - 2030)

  • Food & Beverages

  • Retail & E-Commerce

  • Manufacturing

  • Oil & Gas

  • Automotive

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • India

    • China

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • U.A.E.

    • South Africa