Freight Forwarding Software Market - (Large Enterprise, SME), By Deployment Model (On-Premises, Cloud), By Application, By End-User and Industry Vertical (Manufacturing, Retail and E-commerce, Oil & Gas, Healthcare, Automotive, Food & Beverage), Forecast 2024 – 2032

Freight Forwarding Software Market Size

Freight Forwarding Software Market size was valued at USD 1.5 billion in 2023 and expected to grow at over 10% CAGR between 2024 to 2032 owing to the growth of E-commerce industry across the globe.
 

The rise of e-commerce has significantly increased the volume of shipments, particularly small parcels, creating a need for efficient logistics solutions to manage the delivery process. According to the Census Bureau of the Department of Commerce, the estimate of the U.S. retail e-commerce sales for the Q2 of 2024 reached USD 291.6 billion, showing a growth of 1.3% from the Q1 of 2024 and 6.7% higher than Q2 2023. This growth in e-commerce has led to higher demand for same-day or next-day delivery options, pushing logistics providers to optimize their operations, driving the adoption of freight forwarding software.
 

The growing global trade and rising complexities in international shipping regulations are forcing businesses to adopt freight forwarding software. Companies need to navigate various customs requirements to ensure timely delivery of goods across borders. Freight forwarding software provides the necessary tools to manage these challenges effectively, ensuring smooth and compliant operations. This software helps businesses handle the small details of international shipping, such as documentation, customs clearance, and real-time tracking. By using freight forwarding software, companies can streamline their logistics processes, reduce errors, and improve overall efficiency. This is expected to drive the growth of the market during the forecast period.
 

Implementing advanced freight forwarding software involves high initial costs, which can be a significant burden for SME. These expenses include purchasing software licenses, customizing the software, integrating it with existing systems, and training employees. Smaller businesses often find it difficult to see a clear return on investment (ROI) from such a major digital upgrade, especially if their logistics needs are simpler compared to larger companies. The cost involved in adopting freight forwarding software could make it difficult for small and medium-sized businesses (SME) to invest in it, potentially slowing down market growth. Additionally, SME struggle with limited technical skills and resistance to new processes, which could make implementing the software even more challenging.
 

Freight Forwarding Software Market Trends

The growing integration of AI and ML into freight forwarding software to enhance predictive analytics, optimize routes, automate processes, and improve decision-making is a major trend witnessed in the market. Furthermore, IoT allows for real-time tracking of shipments, which improves visibility and reduces the risk of lost or delayed goods. This is becoming a key requirement in modern logistics. The market is also witnessing the growth of various start-ups in the market which are using AI to streamline operations. For instance, in July 2024, Freightmate Ai, a new logistics startup raised USD 650,000 in pre-seed funding from Wischoff Ventures. The company will use the funds to transform the freight forwarding industry with AI to automate operations and allow large freight forwards to build and maintain their own freight management systems,
 

Companies are also using machine learning techniques to transform the way goods are moved across the globe. For instance, in May 2024, Grydd, a provider of AI-powered supply chain and logistics software upgraded its innovative ecosystem by launch of an advanced suite of AI applications including demand planning AI, route prediction AI, cargo optimization AI, sustainability AI and collaboration Hub AI.
 

Freight Forwarding Software Market Analysis

Based on enterprise size, the market is segmented into large enterprises and SME. The large enterprises segment held around 65% of the market share in 2023 and is expected to cross USD 2.1 billion by 2032. Large enterprises have operations spread across different regions which creates a need for software that can manage different regulatory requirements, currencies, and languages, which is important for efficient global logistics.
 

Additionally, these enterprises operate complex global supply chains that need advanced logistics management. Freight forwarding software helps these companies coordinate shipments across multiple countries, ensuring timely deliveries and reducing the risk of disruptions. Freight forwarding software also helps in automating routine tasks, which helps in reducing operational costs and increases efficiency. This allows large enterprises can focus on strategic activities, driving growth and competitiveness in the global market.
 

Based on industry vertical, the freight forwarding software market is divided into manufacturing, retail and e-commerce, oil & gas, healthcare, automotive, food & beverage and others. The manufacturing segment held around 29% of the market in 2023. Manufacturers often operate on a global scale, dealing with complex supply chains involving multiple countries, suppliers and transportation modes. Freight forwarding software helps manage these complexities by integrating various logistics functions and providing a clear view of the entire supply chain.
 

Additionally, with increased globalization, manufacturers face varying trade regulations and customs requirements across different countries. Freight forwarding software helps navigate these regulations and ensures compliance, reducing the risk of costly delays or penalties.

North America holds around 38% of the freight forwarding software market share in 2023 and is expected to expand significantly through 2032.  The market in the region is growing owing to the rise in e-commerce. This increase has led to a higher demand for efficient logistics and freight forwarding solutions. These solutions are crucial for handling large shipment volumes and ensuring timely deliveries. Additionally, ongoing investments in infrastructure, including ports, highways, and logistics hubs, are enhancing the efficiency of freight forwarding operations and reducing transit times.
 

For instance, in March 2024, the U.S. Department of Transportation’s Maritime Administration (MARAD) published a Notice of Funding Opportunity (NOFO) for USD 450 million in Federal Fiscal Year 2024 funding through MARAD’s Port Infrastructure Development Program (PIDP). These investments focus on transforming the Nation’s coastal and inland waterway ports as well as strengthening its supply chains and economic security for future generations.
 

The European Union’s focus on sustainability and reducing carbon emissions drives demand for eco-friendly logistics solutions and software that can optimize routes and reduce environmental impact. Also, the European market is influenced by strict regulatory frameworks and customs procedures. Freight forwarding software helps manage compliance with these regulations and streamline cross-border movements.
 

The UAE’s strategic location as a major logistics hub connecting Asia, Europe, and Africa drives demand for efficient freight forwarding solutions to manage transshipment and distribution. Additionally, the UAE’s efforts to diversify its economy and develop sectors such as manufacturing, retail, and logistics increase the need for advanced freight forwarding solutions to support growth and efficiency.
 

Freight Forwarding Software Market Share

Oracle Corporation and SAP SE hold a significant market share of around 10% in the market in 2023. Oracle focuses on integrating its freight forwarding solutions with its broader ERP suite. This integration ensures that logistics processes are well-aligned with other business functions like finance, procurement, and inventory management, offering a unified platform for managing the entire supply chain. This helps the company to maintain a strong hold in the market.
 

SAP invests in AI and machine learning to enhance its freight forwarding software with predictive analytics, intelligent automation, and advanced decision support, improving efficiency and reducing costs. The company also forms strategic alliances with technology providers, logistics companies, and consultants to extend its reach and enhance its freight forwarding solutions.
 

Freight Forwarding Software Market Companies

Major companies operating in the market are:

• Descartes Systems Group
• e2open
• Magaya Corporation
• Mercurygate International
• Oracle Corporation
• Reige Software
• SAP SE
• Softlink
• Werner Enterprises
• WiseTech Global
   

Freight Forwarding Software Industry News

• In March 2024, Cargofive, a leading innovator in the freight forwarding industry, raised USD 2.8 million. The funding round included participation of various venture capitalists Indico Capital and EIT Urban Mobility, an initiative of the European Institute of Innovation and Technology (EIT), a body of the European Union. The new funding round will further innovation and enhancement of Cargofive’s product and invest in marketing & sales for strategic expansion across Europe and the Americas.
   
• In June 2023, FIATA partnered with Wisetech Global for second consecutive year to facilitate digital trade for its members with its Digital FBL. The collaboration is formed to enhance digital trade for the global forwarding sector.
   

The freight forwarding software market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Enterprise Size, 2021 – 2032

• Large enterprises
• SME

Market, By Deployment Model, 2021 – 2032

• On-premises
• Cloud

Market, By Application, 2021 – 2032

• Freight tracking and monitoring
• Customs & compliance management
• Order management
• Transportation management
• Warehouse management
• Others

Market, By End-User, 2021 – 2032

• Freight forwarders
• Third-party logistics providers (3PLs)
• Shippers/Beneficial Cargo Owners (BCOs)
• Carriers and shipping lines
• Customs brokers
• Distributors and wholesalers

Market, By Industry Vertical, 2021 – 2032

• Manufacturing
• Retail and e-commerce
• Oil & gas
• Healthcare
• Automotive
• Food & beverage
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA