The freight brokering industry, in which freight brokers match shippers to the carriers, has been around for quite a while now. However, emergence of digital freight broker companies in the recent past have revolutionized the industry.
Currently, the competition in the relatively new digital freight brokerage market is moderate. However, in the years ahead, the competition will likely intensify on account of the foray of numerous solution providers.
Serving to boost the global digital freight brokerage market is the rising uptake of sophisticated smartphones, improved wireless connectivity, and advantages accorded by digital platforms such as better efficiency and reduced costs. This helps to save time and the brokerage money too. In the traditional freight brokerage market, carriers and the loads are forced to remain idle till the deal is finalized by brokers through phone or mail.
A noticeable trend in the global digital freight brokerage market is the technological progress. However, a drawback is the upfront capital required for building the software. Once the company is up and running, there are some logistic hurdles to overcome as well.
Being in a nascent state, the growth prospects in the global digital freight brokerage market is high. A research study by Transparency Market Research projects the market to expand at a mind-boggling 61.7% CAGR during the period between 2017 and 2025. Expanding at this pace, it will likely attain a value of US$10,964.3 mn by 2025 from US$144.5 mn.
Full Utilization of Cargo Space in Trucking Industry Will Propel Road Transport Segment
Depending upon the mode of transportation, the global market for digital freight brokerage can be segmented into roadway, seaway, airway, and railway. Among them, the segment of road transportation is slated to expand considerably in the forecast period and also rake in maximum revenue. This is because of the rising use of digital applications to avoid hefty brokerage fees and desire to utilize unutilized cargo space in trucking industry.
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When it comes to industry verticals, the main sections of the global market for digital freight brokerage are automotive, food and beverages, manufacturing, retail and e-commerce, healthcare, and others such as aerospace and defense. Of these, the retail and ecommerce sector is expected to contribute the most to the market. Proliferation of organized retail in the upcoming years, particularly in the fast expanding large economies of India and China, will drive the market in Asia Pacific.
North America Dominates Global Market due to Presence of Key Players
From a geographical standpoint, North America accounts of maximum revenue share in the global digital freight brokerage market at present. The expansion in the region is being primarily driven by the U.S., which is home to a copious number of players. The high demand in the region is also serving to boost demand. The revenue in the region is slated to become US$4.70 bn by 2025-end. Vis-à-vis growth rate, however, Asia Pacific is forecasted to outshine all other regions by registering a 64.4% CAGR from 2017 to 2025, mainly on the back of uptake of digital freight brokerage in India, China, and Japan.
Europe is another key market which is predicted to rise at 62.6% CAGR to become worth US$3.478 bn by 2025.
Key players in the global market for digital freight brokerage are Echo Global Logistics Inc., Coyote Logistics, Transfix, LLC, Convoy, Cargomatic Inc., Trucker Path Inc., J.B. Hunt Transport, Inc., Cargocentric Inc., Uber Freight and TGMatrix Limited.