The Freight Transport?Management Market was valued at USD 23.70 billion in 2019?and is expected to reach USD 41.52 billion by 2025, at a CAGR of 9.8% over the forecast period 2020?- 2025.?Intermodal transportation is an emerging trend in the market which uses more than one mode of transportation. Due to globalization, companies are trading at the international level which requires safer, more flexible, and high capacity transportation options.
- Improved operational efficiency in the movement of freight is a critical aspect of any country’s economy. The demand for goods and services is increasing, with the increase in population and globalization. To overcome various environmental concerns and security aspects of their operations, many shipping companies are opting for freight transport management solutions.
- Technological advancements have led to innovative ways of conceptualizing the process along with the development of new efficiencies. In the rising sectors, the emergence of information networks with quick contacts and transaction times along with more reliable shipments is projected to drive the freight transport market growth.
- A challenge for the freight transport market growth is the high complexity and inefficiency of shipping and delivering goods and controlling cost. Furthermore, the risk associated with cross border transportation is projected to restrain the growth of the freight transport market.
Scope of the Report
Freight transport management is the physical process of transporting commodities and merchandise goods and cargo by land, sea, or air. With mobility solution which is making rapid inroads into the logistics industry, the traditional landscape of the manual processes is getting replaced with automation impacting the standardized processes and workflows. Moreover, proper sharing and integration of data will substitute for full-scale control in the market.
Key Market Trends
Rail Freight to Account for a Significant Demand for Freight Management Solutions
- The rail freight transportation has had advantages over other modes in the areas of environmental performance, land use, energy consumption, and safety. Therefore, with the increased preference, the rail logistics environment has got complex and difficult to navigate, and companies need both rail cargo industry experience and information technology systems to manage them.
- This has resulted in the advent of a wide range of rail freight transportation management solutions, specifically designed for small freight trains, intermodal lines, and private factory rails that are challenged by the increasing operational complexity and a growing need to automate and/or streamline processes. The companies, such as DXC Technology and Goal Systems are inclining their product portfolio according to these needs.
- Moreover, the higher demand for rail freight transports will be the primary growth enabler for the market, specifically in the OECD countries. Owing to this, the rail freight transport management solutions are expected to witness a considerable growth over the forecast period.
North America is Expected to Hold a Major Share in Market
- The United States is estimated to make a major contribution in the region. The share is attributed to the rise in the retail sector due to many firms moving toward the online channel. With an advancement of technology in IT and cloud computing sector, the United States is continuously growing in the freight transport business.
- With globalization, owing to the growing digitalization and increasing adoption of Internet of Things (IoT) by various industries, the North American freight transport management solution market picked up momentum, especially in the United States. The road freight transportation market in North America is one of the matured markets in the world.
- Almost 70% of the freight movement (in tonnage) in the United States is done by trucks and is expected to increase by 45% by 2040, requiring additional highways, railroads, ports, and pipelines and improvements to multi-modal connections that move freight efficiently, according to the US Department of Transportation.
- With an advancement of technology in the IT and cloud computing sector, the United States is continuously growing in the freight transport business.
The freight transport management is highly fragmented due to various competitors and local players involved in it. They are also readily moving toward the information communication sector in the cloud computing segment. Intermodal freight transport operators who have increasingly adopted business practices in horizontal and vertical business integration due to the reduction of operational costs and increase profit margins have increased the rivalry in the market.
Key players in the market are JDA Software, Accenture PLC, DSV A/S, Manhattan Associates, Ceva Logistics, etc.
- April 2019 - According to the National Infrastructure Commission, the government of the United Kingdom is planning to ban sales of diesel HGVs by 2040 at the latest as part of a plan to make the road and rail freight industry carbon-free by 2050. Over the next 30 years, heavy freight transport in the United Kingdom will increase by at least 27% and could rise by as much as 45%.
- April 2019 – The Mastery Logistics Systems platform will bring centralized and automated appointment making and management. It will create a new automated tracking system based on very low-cost trackers attached to the freight and reported directly to shippers, and introduce widespread blockchain-based bills to accompany shipments and eliminate paperwork processing and invoice settlement.
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