Market Trends of Freight Transport Management Industry
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.
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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.
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