The global freight transport market is anticipated to grow at a significant rate over the forecast period owing to the surge in international trade along with a number of trade blocks. Factors such as growing urbanization and communication innovations are expected to amplify the market. Freight transport allows the companies to deliver the goods in quick time, and at a minimal cost.
Technological advancements have led to innovative ways of conceptualizing the process along with the development of new efficiencies. The emergence of information networks with quick contacts and transaction times along with more reliable shipments in the rising sectors is projected to drive market growth.
On-time delivery has become a vital factor for the logistics industry and thus several innovations in the effective management of the transportation process have evolved as a key responsibility for the freight transport industry. Transportation occupies one-third of the logistics cost with freight transportation management hugely influencing the performance of the logistics system.
The effective movement of freight is crucial to the quality of life and any economy. The environmental concerns, safety, and security of freight operations combined with the need for operational efficiency is expected to drive freight transport market growth over the next six years.
Offering a cost-effective freight transportation management system helps local and small players to compete at the global arena. Industrial leaders and government agencies use terms such as route planning, freight optimization, fuel management, vendor management, and order management to express the system applied in the freight transport management market.
The introduction of containerization has allowed easy handling and elimination of repackaging with the change of modes. Proliferation in the adaption of technology along with a rise in the number of transportation vehicles is expected to offer significant opportunities for market growth. The market is expected to observe accelerated growth owing to growing advancements in mobility services, big data, and cloud computing over the next six years.
The complexity of shipping and delivering goods along with inefficiency in controlling cost is expected to act as a challenge for market growth. Further, congestion in trade routes and risks associated with cross border transportation are projected to hamper the market.
The market can be segmented on the basis of modes into roadways, railways, airways, and seaways. Intermodal transportation is an emerging trend in the market that uses more than one mode of transportation. Owing to globalization, companies are trading at the international level requiring safer, more flexible, and high capacity transportation options.
On the basis of solutions, the market can be categorized into freight transportation cost management, freight mobility solution, freight security, and monitoring system, freight operational management solutions, freight 3PL solution and warehouse management system. On the basis of services, the freight transport market can be classified into business services, managed services, system integrators, and others. On the basis of the deployment model, it can be categorized into a cloud/hosted and on-premise model. On the basis of verticals, the market can be segmented into automotive, retail and consumer, aerospace and defense, energy, healthcare, and pharmaceutical and others.
North America is projected to be the dominant region in the market owing to the well-established industrial standards. The increasing population in the Asia Pacific region especially China, Japan, and India has increased the demand for freight transport and boosted the market growth in this region.
Key vendors in the freight transport market include CTSI-global, JDA Software, Accenture, FedEx Corporation., Manhattan Associates, SNCF Geodis, Descartes System Group, DSV, DHL, DB Schenker, Sinotrans, Expeditors, Kintetsu World Express, Yusen Logistics, and Logwin. Capacity shortages along with thriving customer service demand are expected to compel the market players to evaluate inventory levels along with the number and location of the distribution centers and manufacturing facilities.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.