Freight Transport Management Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| CAGR | 9.80 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Freight Transport Management Market Analysis
The Freight Transport Management Market is expected to register a CAGR of 9.8% over the forecast period. One major trend that has emerged in international freight transport in these challenging times is the increase in the number of freight trains between China and Europe.
- According to data from China Railway, the network recorded an 11% increase in the number of operating trains to 1,517 in July 2022 and the amount of delivered freight to 149,000 TEUs. The network has so far continued to run "1,000 trains every month" for 27 straight months. The volume of freight trains between China and Europe has been steadily increasing, which ensures the seamless operation of global supply and industrial chains. According to data from China Railway, a total of 8,990 China-Europe freight trains were run cumulatively from January to July 2022, delivering 869,000 TEUs, rising 3 and 4% annually, respectively.
- Further, Intermodal transportation is an emerging trend in the market that uses more than one mode of transportation. Due to globalization, companies are trading internationally, which requires safer, more flexible, and high-capacity transportation options.
- Improved operational efficiency in freight movement is critical to any country’s economy. The demand for goods and services is increasing with the increase in population and globalization. Many shipping companies opt for freight transport management solutions to overcome various environmental concerns and security aspects of their operations.
- Technological advancements have led to innovative ways of conceptualizing the process and developing new efficiencies. In the rising sectors, the emergence of information networks with quick contacts, transaction times, and 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 costs. Furthermore, the risk associated with cross-border transportation is projected to restrain the development of the freight transport market. However, transport management systems are evolving to fit the business needs of the logistics industry and address the existing challenges.
Freight Transport Management Market Trends
This section covers the major market trends shaping the Freight Transport Management Market according to our research experts:
Rail Freight to Account for a Significant Demand for Freight Management Solutions
- Rail freight transportation has had advantages over other modes in 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 challenged by the increasing operational complexity and a growing need to automate and 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 transport 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 considerable growth over the forecast period.
- In January 2021, then-Railway Minister Piyush Goyal created an exclusive portal to promote and enhance the railroads' freight sector in order to substantially boost freight traffic in India. The freight business development platform for Indian Railways will serve as a "one-stop, single-window" solution for all of its freight customers' demands. The Indian Railways has adopted a "freight on priority" policy and is promoting an aggressive customer-centric strategy to increase the amount of freight it carries, both from the traditional segments and by luring new customers into its fold.
- Hackers have more access points as fleet telematics systems are used more frequently to monitor the whereabouts, condition, and status of physical assets. The most serious concern to transportation companies is the possibility for cybercriminals to physically harm the vehicle or its valuable cargo, even though breaking into a private network does reveal private customer data. As a result, cybersecurity continues to be a major challenge for systems that manage freight transport.
North America is Expected to Hold a Major Share in Market
- The United States is estimated to make a major contribution to the region. The share is attributed to the rise in the retail sector due to many firms moving toward the online channel. With the advancement in technology in the 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 the 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 most mature 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. The increased demand for trucking, especially due to the boom in e-comemrce in the country is expected to lead to the increased demand for freight transport management solutions in the region.
- A USD 5 million grant under the National Trade Corridors Fund (NTCF) was announced by the Canadian government. The money will go toward a project at the Port of Windsor that would boost storage capacity and quicken loading processes, such moving cargo from a truck to a rail car. The overall investment is USD 11.2 million, with USD 6.2 million of that coming from the Essex Terminal Railway Company. The Canadian government is funding effective trade routes through the National Trade Corridors Fund in order to maintain Canada's supply-chain competitiveness, help the country compete in important international markets, and improve trade with foreign partners.
Freight Transport Management Industry Overview
The freight transport management is highly fragmented due to many competitors and local players. 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 reduced operational costs and increased 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.
- February 2022 - The trucking logistics tech startup Freterium, which offers transport management software, announced that it had raised USD 4 million in venture funding. According to a press release from the Software-as-a-Service (SaaS) company, which was established two years ago, its transportation management software is intended to link shippers with their logistics network to work together in real-time to reduce time and shipping costs. The program is designed for businesses that transport goods on a daily basis, including retailers, producers, distributors, and logistical service providers.
- May 2022 - A load optimization function has been released by Shipwell, a leader in cloud-based shipping and logistics, and it has been integrated into the company's transportation management system (TMS). The time it takes to plan and route shipments, the cost of moving them, and the carbon emissions generated by the carriers transporting them are all significantly decreased for clients due to this function.
Freight Transport Management Market Leaders
Accenture PLC
JDA Software
Manhattan Associates
DSV A/S
CTSI-Global
*Disclaimer: Major Players sorted in no particular order
Freight Transport Management Market News
- February 2022 - The leading provider of refractory goods in the world, RHI Magnesita, has chosen Oracle Fusion Cloud Transportation Management, a component of Oracle Fusion Cloud Supply Chain & Manufacturing (SCM), to support its growth and technological modernization, according to an announcement from Oracle. After the deployment, all RHI Magnesita's shipping facilities will utilize a single, integrated transport management system for all its logistical operations. With Oracle Transportation Management, the business can cut expenses, improve service standards, and automate procedures to run its logistics operations even more successfully.
- May 2022 - The leading independent transportation management system (TMS) provider, MercuryGate International, Inc. (MercuryGate), announced a partnership with Amazon Freight, an Amazon-powered freight transportation service, to enable shippers to access Amazon Freight's dependable network and competitive dynamic rates through the MercuryGate platform.
Freight Transport Management Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Freight Transportation due to Increasing International Trade
4.2.2 Inclination of Growth toward Information Technology
4.3 Market Restraints
4.3.1 High Capital Investment due to Implementation of New Technologies
4.3.2 Risk and Congestion Associated with Trade Routes
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of Impact of Covid-19 on the Market
5. MARKET SEGMENTATION
5.1 By Solution (Qualitative Analysis only – Major services offered by the solution, key trends in the market, major players and products etc.)
5.1.1 Freight Transportation Cost Management
5.1.2 Freight Security and Monitoring System
5.1.3 Freight Mobility Solution
5.1.4 Warehouse Management System
5.1.5 Freight 3PL Solutions
5.1.6 Other Solutions
5.2 By Deployment (Market forecasts form 2020-2027, Key Trends, Recent Developments, Section Outlook etc.)
5.2.1 Cloud
5.2.2 On-premise
5.3 By Mode of Transport (Market forecasts form 2020-2027, Key Trends, Recent Developments, Section Outlook etc.)
5.3.1 Rail Freight
5.3.2 Road Freight
5.3.3 Waterborne Freight
5.3.4 Air Freight
5.4 By End User (Market forecasts form 2020-2027, Key Trends, Recent Developments, Section Outlook etc.)
5.4.1 Aerospace and Defense
5.4.2 Automotive
5.4.3 Oil and Gas
5.4.4 Consumer and Retail
5.4.5 Energy and Power
5.4.6 Other End Users
5.5 Geography (Market forecasts form 2020-2027, Key Trends, Recent Developments, Section Outlook etc.)
5.5.1 North America
5.5.2 Europe
5.5.3 Asia Pacific
5.5.4 Latin America
5.5.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 JDA Software
6.1.2 Manhattan Associates
6.1.3 CTSI-Global
6.1.4 Accenture PLC
6.1.5 Descartes Systems Group Inc.
6.1.6 DSV A/S
6.1.7 HighJump
6.1.8 CEVA Logistics
6.1.9 DB Schenker
6.1.10 Geodis
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Freight Transport Management Industry Segmentation
- The study analyzes the market for Freight Transport Management used by the transportation industry. A transportation management system (TMS) is a technology-based logistics platform that assists organizations in planning, executing, and optimizing the physical movement of goods, both incoming and outgoing, as well as ensuring that the shipment is compliant and that correct paperwork is accessible.
- The Freight Transport Management Market is segmented by Solution (Freight Transportation Cost Management, Freight Security and Monitoring System, Freight Mobility Solution, Warehouse Management System, Freight 3PL Solutions), Deployment (Cloud, On-premise), Mode of Transport (Rail, Air, Road, Waterborne), End User (Aerospace and Defense, Automotive, Oil and Gas, Consumer and Retail, Energy and Power), and Geography.
| By Solution (Qualitative Analysis only – Major services offered by the solution, key trends in the market, major players and products etc.) | |
| Freight Transportation Cost Management | |
| Freight Security and Monitoring System | |
| Freight Mobility Solution | |
| Warehouse Management System | |
| Freight 3PL Solutions | |
| Other Solutions |
| By Deployment (Market forecasts form 2020-2027, Key Trends, Recent Developments, Section Outlook etc.) | |
| Cloud | |
| On-premise |
| By Mode of Transport (Market forecasts form 2020-2027, Key Trends, Recent Developments, Section Outlook etc.) | |
| Rail Freight | |
| Road Freight | |
| Waterborne Freight | |
| Air Freight |
| By End User (Market forecasts form 2020-2027, Key Trends, Recent Developments, Section Outlook etc.) | |
| Aerospace and Defense | |
| Automotive | |
| Oil and Gas | |
| Consumer and Retail | |
| Energy and Power | |
| Other End Users |
| Geography (Market forecasts form 2020-2027, Key Trends, Recent Developments, Section Outlook etc.) | |
| North America | |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle East and Africa |
Freight Transport Management Market Research FAQs
What is the current Freight Transport Management Market size?
The Freight Transport Management Market is projected to register a CAGR of 9.8% during the forecast period (2023-2028).
Who are the key players in Freight Transport Management Market?
Accenture PLC, JDA Software, Manhattan Associates, DSV A/S and CTSI-Global are the major companies operating in the Freight Transport Management Market.
Which is the fastest growing region in Freight Transport Management Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Freight Transport Management Market?
In 2023, the North America accounts for the largest market share in the Freight Transport Management Market.
Freight Transport Management Industry Report
Statistics for the 2023 Freight Transport Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Freight Transport Management analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
