Originally Published on: technavio |Freight Logistics Market by Type, End-user, and Geography - Forecast and Analysis 2023-2027
The freight logistics industry is poised for growth, with an estimated Compound Annual Growth Rate (CAGR) of 5.74% expected between 2022 and 2027. This growth is forecast to result in a market size increase of approximately USD 319.65 million. Several key factors are driving this growth, including the rising trend of logistics outsourcing, expansion in the manufacturing sector, and an increased demand for the delivery of food, perishable goods, and medical supplies.
This comprehensive report delves into the market's segmentation based on type, including road, maritime, rail, and air transportation, as well as end-users from manufacturing, automotive, consumer goods, food and beverage, among others. The geographical scope covers regions such as APAC, North America, Europe, Middle East and Africa, and South America. Additionally, the report provides a detailed analysis of the market's drivers, trends, and challenges, and includes historical market data from 2017 to 2021.
Market Size and Parent Market Analysis
The global freight logistics market is categorized within the broader global air freight and logistics market, a segment of the global transportation market. The parent market includes companies providing services in air freight transportation, courier and logistics services, and package and mail delivery, as well as customs agents. This parent market's growth is significantly influenced by external factors.
Key Market Drivers
Increasing outsourcing in logistics is a major driver of market growth. Logistics companies are anticipated to increase investments in digital and analytic technologies, blurring the lines between logistics companies and technology providers. Contract-based logistics, such as third-party logistics (3PLs) and fourth-party logistics (4PLs), are becoming more popular as they offer customized services to meet the supply chain management needs of shippers.
Market Trends
A noteworthy trend is the growing popularity of multimodal transportation. Multimodal transportation offers shippers the convenience of a single transport carrier handling shipments across various modes. This trend simplifies the logistics process, reducing risk and making it easier to track goods. It is expected to drive the market's growth.
Key Market Challenge
High infrastructure costs present a significant challenge for the freight logistics market. Investment in infrastructure, including cranes, rail lines, and road access, is necessary for efficient intermodal transportation. These investments can be time-consuming and costly, potentially impeding market growth.
Customer Landscape
The report includes an analysis of the adoption lifecycle, from innovators to laggards, along with adoption rates in various regions and key purchase criteria. This data is useful for companies developing growth strategies.
Market Vendors
Prominent market vendors are implementing various strategies to enhance their market presence, such as forming strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches. One example of a market vendor is Dimerco Express Corp, which offers a range of freight logistics services, including rail freight, ocean freight, air freight, and road freight.
The competitive landscape section of the report includes information about 15 market vendors, including well-known companies such as FedEx Corp., CMA CGM SA, and Uber Technologies Inc.
Fastest-Growing Segment
The road segment of the market is poised for significant growth during the forecast period. The convenience and growth of the e-commerce industry have made the road segment a key driver for domestic transportation. This is likely to propel the growth of the road freight segment.
Key Regions
APAC is expected to contribute significantly to the global market's growth during the forecast period, accounting for 43% of the market share. Factors driving market growth in this region include a large consumer base, increased healthcare and food and beverage expenditure, and the presence of low-cost labor and resources, which attract global automotive vendors.
In conclusion, the freight logistics market is on a growth trajectory, driven by various factors such as logistics outsourcing and the rising popularity of multimodal transportation. Despite challenges like high infrastructure costs, the industry is expected to expand, especially in regions with growing consumer demand and favorable labor conditions.
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