Freight Management System Market size is expected to witness major expansion over 2021-2027. This strong growth is driven by the growing emphasis on ensuring on-time delivery to meet customer expectations and the deployment of innovative technologies like IoT for freight management. Rising transportation challenges that are difficult to manage by using manual systems will further boost the need for TMS (transportation management system) and other freight management in logistics.
Freight management refers to the process of efficiently managing and overseeing the delivery of goods from the point of origin to the desired destination. It is a part of the logistics process that covers the entire operation of the supply chain, including inventory control and warehousing-to-supplier relationships.
Rapid digitization, big data revolution, and evolving customer expectations are among the key trends characterizing the freight management system market growth. Accelerating adoption of big data, AI, and cloud computing technologies has enabled the shippers and logistics service providers to gain real-time visibility into supply chains for freight management. For example, Intel® Connected Logistics Platform is an IoT platform equipped with battery-operated wireless sensor devices to offer greater visibility into the security, condition, and location of packages. Furthermore, the rise in global trade is anticipated to create ideal growth conditions for the industry over the foreseeable future. In the European Union, shipping accounts for 80% of the total imports and exports by volume.
With regards to the end-user spectrum, the shipper segment will hold a commendable share by 2027. This can be attributed to the high potential of freight management services in simplifying the shipping process, streamlining supply chain operations, and increasing logistical efficiency. Rapid automation and optimization of the shipping process through the usage of freight management software will further escalate the segmental growth over the estimated timeline.
On the regional front, the Asia Pacific freight management system industry is anticipated to register strong revenue over 2021-2027. This is attributable to the mounting sales of personal care, beauty and wellness, and electronics products through online channels in emerging economies like India. The e-Commerce sector witnessed a growth of 36% Y-o-Y in the Q4 of 2020. The regional market expansion will further be proliferated by increasing government spending to boost railway and road infrastructure, which could help cut logistics costs and increase the overall industry demand.
Key freight management system market players include Blue Yonder (formerly JDA Software), BluJay Solutions, 3Gtms, Inc., ImageSoft, Manhattan Associates, Logisuite, Linbis, Magaya Corporation, FreightView, Riege Software, McLeod Software, ReTrans (Kuehne + Nagel International AG), C.H. Robinson, DB Schenker, United Parcel Service, CEVA Logistics (CMA CGM), Accenture, SAP, Werner Enterprises, MercuryGate, and Oracle, among others. These firms are incorporating various strategies including new service launches and business expansions to strengthen their foothold across the global market.
For example, in January 2021, Werner Enterprises sold its freight forward services business, Werner Global Logistics, to Scan Global Logistics. This agreement was inked with an objective to provide comprehensive international logistics solutions to customers across North America.
The novel coronavirus pandemic has resulted in supply chain disruptions across several industries including pharmaceuticals, automotive, and electronics. Due to the shortage of truck drivers to collect containers amid the travel restrictions, cargos were backlogged in major container ports in China. Several ocean carriers have also canceled their sailings to limit the virus spread, which may impede the demand for freight transportation and distribution systems to some extent.
However, the pandemic has led to an accelerated digital transformation and a surge in e-commerce. As social distancing became the new normal, consumers and businesses began going increasingly digital, purchasing and providing services and goods online. This dramatic increase in penetration of e-commerce will thereby asset positive influence on the freight management system market dynamics over the coming years.