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Top Market Shifts Transforming the Freight Transport Market Landscape: Key Insights
"Stay ahead with our updated market reports featuring the latest on tariffs, trade flows, and supply chain transformations.What Is the Expected CAGR for the Freight Transport Market Through 2025?
The scale of the freight transport market has experienced swift expansion in the last few years. Anticipated to develop from $34.82 billion in 2024 to $38.96 billion in 2025, it shows a compound annual growth rate (CAGR) of 11.9%. The growth experienced in the past years can be tied to factors like the spread of globalization and international trade expansion, economic progression and industrialization, and the implementation of infrastructure development projects. Additionally, a surge in manufacturing activities and changes in environmental rules have also contributed.
What's the Projected Size of the Global Freight Transport Market by 2029?
The size of the freight transport market is projected to experience a significant increase over the coming years. The market is estimated to surge to $61.62 billion by the year 2029 at a compound annual growth rate (CAGR) of 12.1%. Factors contributing to this growth over the predicted period include a shift towards environmentally friendly transport, emphasis on last-mile delivery alternatives, legislative aid for green transport options, heightened investment in transport infrastructure, and breakthroughs in driverless vehicles. Key trends in the forecast period will involve the incorporation of the Internet of Things (IoT) in logistics, implementation of blockchain technology in supply chain processes, the use of digital technologies, data-guided decision making, real-time tracking and improved visibility, along with collaborations and partnerships.
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Top Growth Drivers in the Freight Transport Industry: What's Accelerating the Market?
The expansion of the e-commerce sector is predicted to positively impact the freight transport market. Freight transport refers to the general transfer of goods via inland transportation across a specific network. The burgeoning e-commerce industry has heightened the demand for logistics and freight transport services. For example, the United States Census Bureau, a government agency, reported that in August 2023, U.S. retail e-commerce sales for the second quarter of 2024 climbed to $291.6 billion, which indicates a 1.3% increase from the prior quarter and a 6.7% upsurge from the corresponding period in 2023. Furthermore, the total retail sales for the same period were approximated at $1,826.9 billion, showcasing a 0.5% increment from the first quarter and a 2.1% growth year-on-year, with e-commerce contributing to 16.0% of total sales. Thus, the fast-growing e-commerce sector is propelling growth in the freight transport market.
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What Trends Will Shape the Freight Transport Market Through 2029 and Beyond?
The trend of technological innovation is becoming increasingly prevalent in the freight transport market. The primary companies operating within this market are concentrating their efforts on creating innovative solutions to bolster their market standing. In May 2022, for example, the US-based software firm ShipBob Inc. unveiled a comprehensive, managed freight transport solution backed by Flexport. This program integrates ShipBob's cross-docking, inventory distribution, and fulfillment operations to organize freight consignments for e-commerce traders. It aims to enable quicker shipping durations and minimized costs for inventory shipments from China to the US. FreightBob is crafted to aid e-commerce companies in managing their freight, circumventing port congestion and supply chain interruptions, decreasing in-transit duration, and deploying inventory more effectively.
What Are the Main Segments in the Freight Transport Market?
The freight transport market covered in this report is segmented -
1) By Offering: Solution, Services
2) By Mode Of Transport: Railways, Roadways, Seaways, Airways
3) By Vertical: Retail And E-commerce, Automotive, Aerospace, Pharmaceuticals, Energy, Other Verticals
Subsegments:
1) By Solution: Freight Management Software, Transportation Management Systems (TMS), Supply Chain Optimization Tools
2) By Services: Freight Forwarding Services, Warehousing And Distribution Services, Last-Mile Delivery Services, Customs Brokerage Services
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Which Top Companies are Driving Growth in the Freight Transport Market?
Major companies operating in the freight transport market include CEVA Logistics, CJ Logistics Corporation, Nippon Express Holdings, Kerry Logistics Network Limited, Kuehne + Nagel International AG, DSV Panalpina A/S, Deutsche Post DHL, FedEx Corporation., United Parcel Service of America Inc, Schneider National Inc., C.H. Robinson Worldwide Inc, GATI-KWE, DB Schenker Logistics, XPO Logistics, Expeditors International of Washington Inc., Agility Logistics, Geodis, Hellmann Worldwide Logistics, Bolloré Logistics, Yusen Logistics Co. Ltd., Sinotrans Limited, Toll Group, ArcBest Corporation, J.B. Hunt Transport Services Inc., Old Dominion Freight Line Inc., Saia LTL Freight, Werner Enterprises Inc., Knight-Swift Transportation Holdings Inc., Landstar System Inc., Swift Transportation Company
Which Regions Will Dominate the Freight Transport Market Through 2029?
North America was the largest region in the freight transport market in 2024. Asia-Pacific is expected to be the fastest-growing region in the freight transport market during the forecast period. The regions covered in the freight transport market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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