The global freight forwarding market facilitates the procurement of cargo transportation and distribution services around the globe. Freight forwarders organize shipments of goods through various modes such as air, ocean, rail and road transportation. They help businesses in planning, executing and tracking shipments while offering value-added services, such as customs clearance, warehousing and cargo insurance. In recent years, demand for freight forwarding services has increased significantly owing to growing international trade and high dependence of manufacturing industries on global supply chains.
The Freight Forwarding Market is estimated to be valued at US$ 184.94 billion in 2025 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the freight forwarding market are Agility Logistics, Bolloré Logistics, CEVA Logistics (a subsidiary of CMA CGM), C.H. Robinson Worldwide Inc., DB Schenker, DHL (part of Deutsche Post AG), DSV, Expeditors International of Washington, Inc., FedEx Corporation, GEODIS, Hellmann Worldwide Logistics, Kerry Logistics Network Limited and Panalpina (part of DSV Panalpina A/S). These players are focusing on developing innovative digital tools and automated solutions to streamline supply chain operations and enhance customer experience.
The growing demand for door-to-door delivery services from manufacturing and retail industries is driving the Freight Forwarding Market Growth. Consumers increasingly prefer single point of contact for procurement of raw materials and delivery of finished goods. This is prompting freight forwarding companies to expand their network coverage and integrate multiple modes of transport.
Geographical expansion into emerging markets offers significant growth opportunities for international freight forwarders. China, India and Southeast Asian countries are witnessing rapid economic development and increase in manufacturing and export activities. Freight forwarders are making strategic investments and acquisitions to establish strong presence across Asia Pacific, Middle East, Africa and Latin America.
Market Key Trends
Digitization and automation is a major trend in the global freight forwarding market. Growing digitization of trade documents and automated tracking of shipments through IoT sensors is enhancing the visibility and efficiency of supply chain operations. Freight forwarders are leveraging advanced technologies like blockchain, artificial intelligence, machine learning and big data analytics to optimize route planning, dynamically adjust capacity and provide predictive analytics. This is helping improve customer experience through real-time tracking and faster resolution of issues. The transition towards digitalization and automation is expected to accelerate amongst freight forwarders over the coming years.
Porter’s Analysis
Threat of new entrants: The freight forwarding industry requires significant capital investments and operating expertise which create barriers for new entrants. Bargaining power of buyers: Large buyers like manufacturers have significant bargaining power as they can switch between different freight forwarders. Bargaining power of suppliers: Freight forwarders rely on transportation providers like shipping lines, airlines, and trucking companies who have moderate bargaining power. Threat of new substitutes: Technological advancements are enabling alternate transportation options like drones and autonomous vehicles which pose a threat. Competitive rivalry: The industry has many global players competing on service quality, technology, connectivity and pricing resulting in high competition.
Geographical regions with highest market value include North America, Western Europe, and Asia Pacific as these regions have established manufacturing and trade hubs facilitating significant freight movement. Asia Pacific region saw the fastest market growth during the forecast period owing to the expanding manufacturing industries and exports from countries like China and India. Other fast growing regional markets include Middle East & Africa and Latin America driven by increasing trade volumes.
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