Global Freight Forwarding Market (2021 to 2026) – Growth, Trends, COVID-19 Impact and Forecasts
Dublin, Dec. 02, 2021 (GLOBE NEWSWIRE) — The “Freight Forwarding Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
The freight forwarding market is expected to register a CAGR of more than 4% during the forecast period. The growth in international trade volumes is a major driver for the freight forwarding market. Moreover, the rise in trade agreements between countries is also contributing to the growth of the market. Asia-Pacific is the fastest growing and the largest market for freight forwarding, with the Chinese freight forwarding market holding the maximum share.
Being non-asset based, the sector is facing high competition from other players in supply chain and technology-based companies, which are disrupting the freight forwarding market. The market is one of the sectors that were hit the hardest by the COVID-19 outbreak in 2020. With the lockdown in many countries and a major focus on the production of essential products, the volumes of air and ocean freight fell significantly in 2020. However, the market is now recovering, backed by the manufacturing and e-commerce industries, especially the air freight forwarding market, with significant thrust during the period, as reported by the International Air Transport Association (IATA) in January 2021.
Key Market Trends
Sea Freight Forwarding to Experience High Growth Rate Through the Forecast Period
The sea freight forwarding market is booming, owing to the growing internet penetration, increasing purchasing power parity, developments in infrastructure (ports, containers, and ships with new technologies), and services designed particularly for the e-commerce industry.
Sea freight forwarding is preferred by several end-user industries, and several strategic partnerships are also likely to promote the growth of sea freight forwarding during the forecast period. The growing global cross-border e-commerce market is also driving the less-than-container load (LCL) volume and is positively impacting the sea freight forwarding market growth.
Factors, such as the growing trade volume in European trade routes, the increasing container port throughput, and the rising number of FTAs, will significantly drive sea freight forwarding market growth in this region during the forecast period.
Germany and the United Kingdom are the key markets for sea freight forwarding in Europe. Market growth in this region will be faster than the growth of the market in other regions.
Asia-Pacific is Anticipated to Witness High Growth Through the Forecast Period
The logistics industry is going through an uncertain period due to COVID-19. The Asia-Pacific market is one of the few regions that are still growing despite the pandemic.
For the freight and logistics market, Asia-Pacific is the fastest-growing region globally. This is due to the increasing logistics in ASEAN countries and the presence of major economies, like China and India. Additionally, the high government support for the logistics sector in the region is also a factor boosting the industry growth.
China is the largest manufacturer in the region and the world, with an increasing demand for pharmaceutical products and essentials. China reopened its factories way before other countries. As a result, it is still leading the freight forwarding market globally.
Also, leading countries in the region are observing faster technological integration in the logistics process. In India, 80% of freight moves by road, and the trucking industry is adopting industry-leading tracking technology to trace and predict the exact delivery times. Thailand is incorporating IBM and Maersk’s blockchain project to streamline its shipment monitoring processes.
Source: Research and Markets