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Rise In Global Trade Activities To Drive Market Growth: Transformative Forces Shaping the Freight And Logistics Market Landscape in 2025
Freight And Logistics
How Large Will the Freight And Logistics Market Size By 2025?
The steady rise in the size of the freight and logistics market has been noticeable in recent years. An expansion from $17.26 billion in 2024 to $18.09 billion in 2025 is projected, translating to a compound annual growth rate (CAGR) of 4.8%. This growth during the historical period is the result of advancements in transportation technology, the implementation of containerization and intermodal transport, changes in regulation and compliance, the evolution of supply chain management, and the increased usage of just-in-time inventory systems.
How Big Is the Freight And Logistics Market Size Expected to Grow by 2029?
Expectations are high for a significant expansion in the freight and logistics market size in the coming years, with projections showing growth to $23.16 billion by 2029 and a compound annual growth rate (CAGR) of 6.4%. Factors contributing to this predicted upswing in the forecast period include the adoption of AI and machine learning, the increase in autonomous vehicles, the effects of digital transformation and IoT integration, growing globalization and cross-border trade, and the adoption of blockchain for supply chain tracking. Key trends during this forecasted growth period include automation and robotics, data analysis and predictive insights, improvements in last-mile delivery, sustainable methods and green logistics, and increasing demand for quicker delivery options.
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Which Key Market Drivers Powering Freight And Logistics Market Expansion and Growth?
The escalation in worldwide trade activities is anticipated to boost the development of the freight and logistics market in the future. Worldwide trade activities encompass the import and export of goods and services beyond national borders. Freight and logistics services play a key role in transporting goods globally using various methods of transport. The surge in global trade activities has spurred an uptick in the volume of goods being transported to various nations via different modes of transport. As per the World Trade Organization (WTO), a governing body that oversees and supports international trade, a growth of 3.2% is projected for world merchandise trade volume in 2024. Consequently, the burgeoning global trade activities in developing economies are propelling the expansion of the freight and logistics market.
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Which Fast-Growing Trends Are Poised to Disrupt the Freight And Logistics Market?
Leading players in the freight and logistics market are introducing innovative offerings such as AI-enabled transportation systems to strengthen their market position. A Transportation Management System (TMS) is an all-inclusive software solution formulated to enhance the planning, execution, and administration of transportation operations inside a supply chain. In June 2023, ShipCars LLC, a US-based software solution provider, introduced an AI-powered SmartHaul TMS (Transportation Management System). This dynamic platform uses artificial intelligence, machine learning, and data-focused insights to improve operational efficiency, save time, and propel profitability for service providers in the automotive logistics industry. With tools for load discovery, booking, and processing, SmartHaul TMS streamlines operations for business owners, dispatchers, and drivers. Leveraging real-time data and analytics, advanced algorithms, and predictive modeling, carriers can make data-driven decisions, decrease dead-head miles, and simplify the transportation-management procedure. Key features comprise Trip Builder for streamlining route planning, AI Damage Inspection for accelerating vehicle inspections, and a Mobile Load Board for real-time access to available loads, negotiations, and bookings via an easy-to-use app.
What Are the Emerging Segments in the Freight And Logistics Market?
The freight and logistics market covered in this report is segmented -
1) By Type: Airways, Railways, Roadways, Waterways
2) By Function: Freight Forwarding, Warehousing, Value-added Services, Other Functions
3) By End User: Manufacturing And Automotive, Oil And Gas, Mining, And Quarrying, Agriculture, Fishing, And Forestry, Construction, Distributive Trade, Other End Users
Subsegments:
1) By Airways: Air Cargo Services, Express Delivery Services
2) By Railways: Freight Rail Services, Intermodal Rail Services
3) By Roadways: Trucking Services, Last-Mile Delivery Services
4) By Waterways: Shipping And Cargo Services, Inland Waterway Transport
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Who Are the Global Leaders in the Freight And Logistics Market?
Major companies operating in the freight and logistics market include United Parcel Service Inc., DHL International GmbH, Deutsche Post AG, FedEx Logistics Inc., A.P. Moller-Maersk Group, Kuehne + Nagel International AG, DSV Panalpina A/S, C.H. Robinson Worldwide Inc., Bolloré Logistics, Ryder System Inc., Nippon Express Co. Ltd., Expeditors International of Washington Inc., Sinotrans Limited, J.B. Hunt Transport Services Inc., Geodis SA, Werner Enterprises Inc., Kerry Logistics Network Limited, UPS Supply Chain Solutions Inc., GXO Logistics Inc., XPO Logistics Inc., Knight-Swift Transportation Holdings Inc., Kintetsu World Express Inc., Schneider National Inc., Hellmann Worldwide Logistics GmbH & Co. KG, Lineage Logistics Holdings LLC, Americold Realty Trust, Agility Public Warehousing Company K.S.C.P., Ceva Logistics LLC, APL Logistics Ltd., Deutsche Bahn AG
Which are the Top Profitable Regional Markets for the Freight And Logistics Industry?
Asia-Pacific was the largest region in the freight and logistics market in 2024. North America is expected to be the fastest growing region in the forecast period. The regions covered in the freight and logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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