COVID-19 Pandemic to Fuel Adoption of Digital Freight Brokerage Platforms
The transportation & logistics sector is gradually heading toward a digital transformation, as more number of companies are leveraging digital technologies to improve various aspects of the value chain. The considerable rise in the volume of container shipping and air freight due to consistent restocking of business inventories has resulted in the overall growth of the logistics worldwide, which, in turn, is expected to have a direct impact on the overall growth of the global digital freight brokerage market. Air freight volumes are projected to witness steady growth in the upcoming years, as air freight companies continue to focus on improving their service and addressing the complexities involved in air freight management.
The significant influx on venture capital into the global digital freight brokerage market landscape is another major factor likely to fuel the expansion of the market during the forecast period. The demand for digital freight brokerage is witnessing growth due to increasing use of technology to streamline the process of operating with a broker by making it more automated and time-efficient. As increasing number of companies continue to strive to minimize transportation costs and improve customer services, the demand for digital freight brokerage platforms has witnessed a consistent rise.
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The noteworthy rise in the adoption of smartphones and mobile applications to improve reliability and efficiency of operations is one of the key factors anticipated to drive the global digital freight brokerage market during the assessment period. At the back of these factors, the global digital freight brokerage market is on course to reach the US$ 26 Bn mark by the end of 2030.
Venture Capitalists Continue to Invest in Digital Freight Brokerage
Current trends suggest a notable shift toward the adoption of digital freight brokerage platforms– a trend that is likely to continue during the forecast period. A number of small- to large-scale digital freight brokerage players has entered the market due to the increasing monetary support from venture capitalists. A number of companies, particularly in developed regions such as North America and Europe are investing considerable resources in technology to transform their brokerage operations by leveraging the benefits of technology.
As majority of tier-1 freight shipping companies primarily depend on contract rates, volumes across the digital freight market are likely to remain low. The considerable rise in the number of startups across the digital freight brokerage market landscape that are increasingly utilizing novel technologies, including artificial intelligence (AI) and machine learning models to predict the supply and demand of commodities is another factor influencing the expansion of the global digital freight brokerage market in the upcoming decade. In addition, the increasing focus on centralizing various logistics operations and processes through mobile applications is expected to assist carriers gain access to fewer channels and streamline the interaction with the same. A number of players involved in the current digital freight brokerage market are increasingly utilizing truck equipment pools to accelerate cargo movement and boost productivity within the transportation chain.
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Market Players Focus on Forging Strategic Partnerships to Gain Competitive Edge
Several established transportation management system supplier companies are increasingly opting to partner with digital freight brokers. For instance, in October 2024, Uber Freight and Cloud Logistics by E2open announced the partnership between the two companies– a move that is expected to provide added flexibility, value, and control in shipping logistics. The companies further revealed that the move would offer shippers transparency, flexibility, and an exceptional level of ease in the current fast-moving market. While partnerships are likely to gain considerable momentum, a number of market players are also expected to focus on launching new digital freight brokerage platforms. For instance, in January 2024, Edge Logistics announced the launch of a digital freight-matching platform– a web portal that offers transparency in the brokerage’s private load board to the carriers.
COVID-19 Pandemic to Open Up New Avenues
The COVID-19 pandemic has played an imperative role in bringing about considerable changes across the global shipping and commerce sectors. Although economies around the world continue to open up gradually, restriction on travel and trade are expected to remain in place during the upcoming months. The COVID-19 pandemic is likely to augment the demand for digital brokerage platforms in the upcoming years due to which, the global digital freight brokerage market is projected to witness a steady growth. The increasing deployment of digital freight brokerage technologies to improve supply chains amid the COVID-19 crisis is anticipated to provide lucrative opportunities to players involved in the current market landscape.
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Analysts’ Viewpoint
The global digital freight brokerage market is expected to expand at an impressive CAGR of ~33% during the forecast period. The market growth is primarily driven by increasing focus on improving efficiency, reliability, and performance of supply chains, growing demand for digital freight brokerage platforms from leading carriers, growing partnerships between digital freight brokerage companies and transportation & logistics companies, and the entry of a number of startups. Market players should focus on tapping into opportunities that have opened up due to the COVID-19 situation.
Digital Freight Brokerage Market: Overview
- According to Transparency Market Research’s latest research report on the global digital freight brokerage market for the historical period 2018–2019 and the forecast period 2024–2030, increasing adoption of smartphones and mobile applications to enhance the efficiency of operations are expected to boost the global digital freight brokerage market during the forecast period
- In terms of revenue, the global digital freight brokerage market was valued over US$ 1.3 Bn in 2019 and is expected to expand at a CAGR of ~33% from 2024 to 2030, to reach US$ 26 Bn by the end of the forecast period
Use of Blockchain Technology in Transportation & Logistics and Improved Cash Flow to Drive Market
- Advanced technologies in transportation and logistics services and increasing usage of blockchain technology improve the tracking of assets and recording of the transactions process. Solution providers offer advanced solutions to reduce the execution time of the transportation and freight process. Most trucking companies are managing the transportation system by adopting the technologies for easy access and truck monitoring.
- Digital freight brokerage allows the shipper and carrier to collect fuel advance and quick pay options to increase the efficiency of the trucking operation. Companies can upload images of invoices through smartphones and devices for confirmation of the delivery and pick-up of goods.
- Solution providers offer digital freight brokerage solutions at an affordable price to increase digitization in the transportation industry. Increasing usage of blockchain technology in transportation & logistics and improved cash flow are expected to drive the demand for digital freight brokerage solutions during the forecast period.
- On the other hand, lack of confidence about digital freight brokerage platforms among truck drivers and small companies is projected to have a negative impact on the global digital freight brokerage market during the forecast period
- Small size companies and truck drivers lack confidence in the digital freight brokerage platform due to the absence of human connection. Truck drivers are not comfortable with the digital platform due to lack of awareness about the benefits of the digital freight brokerage platform.
- Truck drivers believe in maintaining direct contact with the authorized person for their commission and payment instead of dealing with a platform. Small-scale companies still use the traditional freight brokerage process to reduce the expenses on advanced solutions.
- Traditional brokers charge additional costs on both sides of the transaction, being middlemen, handling certain extra tasks such as scheduling appointments and managing exceptions. They also have access to a wide network of carriers that have been tested over the years and have proved reliable. Therefore, lack of confidence in the digital freight brokerage platform among truck drivers and small companies is likely to restrain the growth of the digital freight brokerage solutions market during the forecast period.
Digital Freight Brokerage Market: Competition Landscape
- Detailed profiles of providers of digital freight brokerages have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies
- Key players operating in the global digital freight brokerage market include
- C.H. Robinson
- Cargocentric Inc.
- CEVA Logistics
- Convoy
- Coyote Logistics
- LLC
- DAT Solutions
- LLC
- DB Schenker Logistics
- DHL International GmbH
- Echo Global Logistics
- Cargomatic Inc.
- J.B. Hunt Transport, Inc.
- Kintetsu World Express
- Kuehne + Nagel International AG
- Loadsmart Inc.
- Panalpina World Transport (Holding) Ltd.
- TGMatrix Limited.
- Transfix
- Trucker Path Inc.
- Truckstop.com
- Uber Freight
- uShip Inc.
Digital Freight Brokerage Market: Key Developments
- Key providers of digital freight brokerage, such as DHL International GmbH, Kuehne + Nagel International AG, DB Schenker Logistics, C.H.Robinson, and CEVA Logistics are focusing on advanced technologies and cost-effective digital freight brokerage solutions to attract more commercial customers. Some other key developments in the global digital freight brokerage market are highlighted below:
- In August 2024, Echo Global Logistics Inc. collaborated with Blue Yonder to offer price discovery solutions. The company emphasizes on the expansion of business operations in different industries by adopting a product diversification strategy.
- In July 2024, Uber Freight announced acquisition plans about RouteMatch Software, Inc., based in Atlanta, Georgia, U.S., a public transportation agency software company. The company is planning to expand the public transit business with advanced solutions by acquiring RouteMatch Software, Inc.
- In March 2024, C.H. Robinson Worldwide, Inc. announced the acquisition of Prime Distribution Services to provide quality services to carriers and customers to increase its market share and popularity among different industries
- In April 2019, TGMatrix Limited announced strategic collaboration with FactR based in the U.K., a leading logistic settlement platform. The company is expanding its business operation with new technology products in blockchain logistics settlement and freight matching platforms.
In the global digital freight brokerage market report, we have discussed individual strategies, followed by company profiles of providers of digital freight brokerage solutions. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global digital freight brokerage market.
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