The global freight management system market size was valued at USD 17.49 billion in 2022, and projected to reach USD 50.20 billion by 2029, with a CAGR of 12.43% from 2023 to 2029.
The process of supervising and managing the delivery of goods is known as freight management. Any company that deals with cargo movement, large or small, must decide how they will deliver freight on time and at the lowest possible cost. Even if they use third parties to ship their goods, such companies are referred to as shippers in the transportation process. Freight management is part of the logistics process, which includes everything from warehousing to supplier relationships and inventory control.
Supply chain and logistics professionals use freight management systems to ensure secure and on-time delivery of goods to their customers. These systems enable transportation companies to build a safe and efficient supply chain. Customers can use freight management system software to find the best carrier rates, book orders, track shipments, and negotiate with the carrier. As global communication and transportation technologies advance, there is an increasing demand for more shipping as international trade grows. Shipping companies must ensure the security of their customers' goods while also ensuring timely delivery of shipments.
The expansion of free trade policies between countries that are increasing imports and exports across the globe is a major driver for Freight Management Systems. Companies are increasingly focusing on technologies that assist, track, secure, and control their in-transit cargo. These management systems provide process visibility from start to finish throughout the supply chain. By providing the data required by any stakeholder at any point in time, visibility helps to improve inventory management and minimize supply chain errors. The burgeoning use of this software by businesses to improve their delivery capabilities is also making a significant contribution to the demand for freight management systems.
| ATTRIBUTE | DETAILS |
| Study period | 2023-2029 |
| Base year | 2021 |
| Estimated year | 2022 |
| Forecasted year | 2022-2029 |
| Historical period | 2018-2020 |
| Unit | Value (USD Billion) |
| Segmentation | By Solutions, By Transportation Mode, By End User, By Region. |
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| By transportation Mode
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Big data analytics is arguably the far more promising opportunity in freight management transportation generation. The factors that determine the success of the freight business are speed, efficiency, and dependability. With technological advancements and increased digitization, organizations today generate enormous amounts of data but struggle to maximize its value. Big data analytics can unlock the true value of data by increasing freight operational efficiencies and customer satisfaction while lowering costs. The rapid growth of big data applications has prompted the creation of newer technologies to maximize cost efficiency. As a result, these factors are expected to drive the development of new analytics platforms and data storage centers in the freight management system market.
Many SMEs cannot afford the high cost of technological setups and sophisticated equipment. Because of their cost-conscious attitude and lack of knowledge about the benefits of a freight management system, small and medium-sized freight companies tend to avoid investments related to the installation of such technologies, software, and services. As a result, cost sensitivity is a negative force in the freight management system market.
The freight management system market is expected to reach USD 50.20 billion by the end of 2029.
Upcoming trends of freight management system market is order management system.
The global freight management system market size was valued at USD 17.49 billion in 2020, and projected to reach USD 50.20 billion by 2029, with a CAGR of 12.43% from 2021 to 2029.
The global market is fragmented in nature with the presence of various key players such as High Jump Software, Manhattan Associates, DSV, Accenture, JDA Software, Northline, Retalix, Oracle, SAP, UPS, Retrans, Magaya Corporation, Kuebix.
The North America dominated the global industry in 2021 and accounted for the maximum share of more than 35% of the overall revenue.
In 2022, the roadways segment was responsible for more than 42% of total revenue. Road freight is one of the most widely used modes of transportation worldwide. It is thought to be cost-effective and versatile because it can facilitate loading and unloading at any location. Several governments, particularly in emerging economies, are simultaneously pursuing initiatives to improve transportation infrastructure, which is expected to drive demand for logistics via roadways and, as a result, the growth of the roadways segment. The waterways segment is expected to grow at the fastest rate during the forecast period.
The third-party logistics segment accounts for a large segment of the freight management systems market's end users. The process of outsourcing e-commerce logistics processes to a third-party business, such as warehousing, inventory management, and fulfilment, is known as 3PL or third-party logistics. 3PL firms are increasingly utilizing freight management systems to aid in cost reduction, scalability, and risk management, as well as to integrate key systems into processes. Growth in global trade volumes and overall globalization are expected to provide opportunities for logistics service providers.
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The global market is fragmented in nature with the presence of various key players such High Jump Software, Manhattan Associates, DSV, Accenture, JDA Software, Northline, Retalix, Oracle, SAP, UPS, Retrans, Magaya Corporation, Kuebix along with medium and small-scale regional players operating in different parts of the world. Major companies in the market compete in terms of application development capability, product launches, and development of new technologies for product formulation.
February 13, 2023 - Magaya Corporation, the leading provider of end-to-end logistics and supply chain software, announced that Crowley, a global logistics leader, has successfully implemented Magaya Supply Chain and Dimensioned by Magaya to optimise warehouse and freight forwarding efficiency for customers across its international supply chain system.
In March 2022, Accenture acquired Trancom ITS, a Japanese logistics technology services provider, for its digital engineering and operational technology capabilities. Accenture's Industry X service will be able to offer hyper-automation solutions at scale, which Japanese manufacturing and logistics companies are increasingly demanding in order to become more efficient and sustainable in their core operations. The transaction's terms were not disclosed.
Geographically, the Agriculture Textile market is segmented into North America, South America, Europe, APAC and MEA.
35% of the market for wireless network security was dominated by north America in 2021. In terms of market share, North America leads the freight management system market. Continuous investment and a focus on freight automation are two of the factors driving the market's growth. Another factor that has contributed to a significant share in the North America freight management system market is the presence of a number of software providers in the market.
Europe is currently ranked second in the market. Europe has been divided into four sections for the purposes of this study: the United Kingdom, Germany, France, and the rest of Europe. The UK is expected to gain the largest market share, followed by Germany and France, according to MRFR analysis. Because of the rapidly increasing global trade and the need to control time-in-transit, the freight management system market in this region is expected to grow.
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