Freight Management System Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3112
Freight Management System Market size will experience substantial demand to 2025 led by growing need among logistics service providers to gain operational efficiency and improve warehouse efficiency by reducing the overall lead time. With the globalization of e-commerce, freight companies require efficient freight management software to manage their day-to-day operations and business deals. A freight management system encompasses the technology, knowledge, and human resources to facilitate the coordination between various carriers to ensure that goods are delivered at the right time. As the whole process involves controlling the flow of goods and services to meet the customers’ requirements, the demand for the software is expected to increase over the forecast timeline.
Creating visibility into the company’s supply chain is one of the important aspects of the logistics management. Thus, companies are widely using the software for optimum utilization of resources in logistics and avoiding potential disruptions. The freight management system includes record maintenance, process monitoring, and inventory management, which helps in the management of complex process efficiently and provides a homogenized solution to 3PL and other freight-forwarding companies.
Another factor accelerating freight management system market growth is the increased adoption of IoT, providing logistics providers with more visibility into inventory and vehicles. The IoT platforms have drastically transformed logistics business operations from raw materials to inbound/outbound transportation. The technology helps to track the real-time location of the freight and receive information on the condition and maintenance of vehicles.
Based on the deployment model, the cloud-based freight management system is expected to exhibit an accelerated growth over the forecast timeline. Cloud-based software gives companies better visibility into orders, shipments, and inventory, supporting omnichannel fulfillment, and promotes a real-time collaboration between various stakeholders. As cloud-based deployments are cost-effective as compared to the on-premise model, the demand for this software is expected to increase.
The multimodal freight transportation is projected to hold a significant share in the global freight management market as it combines various modes of transportation such as road, rail, and sea and allows logistics companies to cost-effectively manage shipments. A multimodal system allows companies to handle all shipping and interactions through a single provider and contract. Thus, it eases the process of communication between contracts and carriers.
North America is projected to dominate the freight management system market share due to profound growth of the logistics and transportation industry. According to the U.S. Bureau of Transportation Statistics (BTS), in 2015, the U.S. transportation system moved a daily average of around 49.3 million tons of freight, valued amounting to value more than USD 52.5 billion. Road transport dominated all other transportation modes with trucks being the most utilized mode for freight transportation from both Canada and Mexico, carrying 63.3% of the freight transported.
The Asia Pacific freight management system market is projected to exhibit a remarkable growth over the forecast period due to the intense growth of the logistics industry with the rapid adoption of e-commerce platforms. The determination of the optimal distribution network is a challenging task, compelling shippers to maintain a balance between service and cost. The rapidly-growing e-commerce industry is driving the demand for efficient freight management software, enabling companies to manage their supply chain.
The government authorities in the region are also providing support for the development of the logistics industry by working towards an open-door policy to promote the international trade. For instance, China’s Belt and Road initiative seeks to build a trans-regional international trade logistics network. The network is governed by various policies, and standards for air, land, and maritime connectivity. In June 2018, the Indian government started working to finalize the new logistics plan, which is expected to accelerate the government’s mission to develop a cost-effective method for goods transportation till 2035.
Some of the major companies in the freight management system market are Oracle, Accenture, Descartes, MercuryGate, Werner Enterprises, SAP, Accenture, Ceva Logistics, UPS, DB Schenker, C.H. Robinson, Retrans, McLeod Software, Riege Software, FreightView, Freight Management, Magaya Corporation, Linbis, Logisuite, Manhattan Associates, ImageSoft, 3GTMS, BluJay Solutions, and JDA Software. The companies operating in the market are forming partnerships to strengthen their existing capabilities and develop new solutions for logistics companies. For instance, in September 2018, ReTrans Freight and 3dcart entered into a partnership to streamline their supply chains for e-commerce. Under the partnership, ReTrans’s freight-management services were made available via API integration to 3dcart clients. This provides shippers with freight visibility and bill administration.
In May 2018, Honeywell partnered with AT&T to develop solutions for aircraft and freight deployments. The companies developed connected freight and connected aircraft solutions enabling users to solve problems faster and improve operational efficiency.
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