Need a report that reflects how COVID-19 has impacted this market and its growth?
The Freight Transport Management Market is expected to register a CAGR of 9.8% over the forecast period (2021 - 2026). 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 the Ministry of Commerce of China, freight trains between China and Europe increased by 15% to 1,941 and number of containers transported by 18% to 174,000 in the first quarter of 2020. While all other modes of international freight transport have been adversely affected by the pandemic- the increase in freight carried by railways is not surprising, given its distinct features that are working to its advantage in the current situation.
- Further, Intermodal transportation is an emerging trend in the market which uses more than one mode of transportation. Due to globalization, companies are trading at the international level which requires safer, more flexible, and high capacity transportation options.
- Improved operational efficiency in the movement of freight is a critical aspect of any country’s economy. The demand for goods and services is increasing, with the increase in population and globalization. To overcome various environmental concerns and security aspects of their operations, many shipping companies are opting for freight transport management solutions.
- Technological advancements have led to innovative ways of conceptualizing the process along with the development of new efficiencies. In the rising sectors, the emergence of information networks with quick contacts and transaction times along with 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 cost. Furthermore, the risk associated with cross border transportation is projected to restrain the growth of the freight transport market.
Scope of the Report
Freight transport management is the physical process of transporting commodities and merchandise goods and cargo by land, sea, or air. With mobility solution which is making rapid inroads into the logistics industry, the traditional landscape of the manual processes is getting replaced with automation impacting the standardized processes and workflows. Moreover, proper sharing and integration of data will substitute for full-scale control in the market.
|Freight Transportation Cost Management|
|Freight Security and Monitoring System|
|Freight Mobility Solution|
|Warehouse Management System|
|Freight 3PL Solutions|
|By Mode of Transport|
|By End User|
|Aerospace and Defense|
|Oil and Gas|
|Consumer and Retail|
|Energy and Power|
|Other End Users|
|Middle East and Africa|
Key Market Trends
Rail Freight to Account for a Significant Demand for Freight Management Solutions
- The rail freight transportation has had advantages over other modes in the areas of 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 that are challenged by the increasing operational complexity and a growing need to automate and/or 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 transports 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 a considerable growth over the forecast period.
To understand key trends, Download Sample Report
North America is Expected to Hold a Major Share in Market
- The United States is estimated to make a major contribution in the region. The share is attributed to the rise in the retail sector due to many firms moving toward the online channel. With an advancement of technology in 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 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 matured 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.
- With an advancement of technology in the IT and cloud computing sector, the United States is continuously growing in the freight transport business.
To understand geography trends, Download Sample Report
The freight transport management is highly fragmented due to various competitors and local players involved in it. 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 the reduction of operational costs and increase 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.
- May 2020 - SAP SE integrated its InstaFreight’s service offerings with SAP Logistics Business Network to support fast and efficient handling of road shipments in Europe. By leveraging digital processes, shippers can reduce complexity in managing their relationships with transportation service providers, and carriers can reduce their administrative effort, both key benefits during the pandemic.
- May 2020 - The number of China-Europe freight trains originating in Xi’an reached 1,000 in 2020, 78 days earlier than the same period last year. Cargo throughout totaled 1.923 million ton, an increase of 41.7% over the same period last year. The 1,000th train of 2020 embarked from Xi’an Xinzhu Station and headed west to Uzbekistan in May, a landmark journey in connecting China with its European trade partners. In response to COVID-19, Xi’an opened up a dedicated channel for the trains to help maintain normal operations and support enterprises getting back to business. Xi’an recognized the need to optimize the transportation declaration and approval procedures and also intensify the schedule by reducing the intervals between trains.
- February 2020 - The SmartCargo project was officially launched on 4 February 2020 at the ÖBB headquarters. Rail Cargo Group’s (RCG) board authorities presented the technology. Around 13,700 RCG wagons are each fitted with a SmartCargo device, which provides comprehensive information throughout the entire freight transport process. As part of initial tests, around 300 cars are currently being fitted with SmartCargo. At the same time, an IT platform will be set up, where all information relating to a specific transport can be accessed digitally in a clear and compact manner. It may also be possible to integrate third-party cars that are in the train line but are not owned by RCG.
Table of Contents
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
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
5.3 By Mode of Transport
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
5.4.1 Aerospace and Defense
5.4.3 Oil and Gas
5.4.4 Consumer and Retail
5.4.5 Energy and Power
5.4.6 Other End Users
5.5.1 North America
5.5.3 Asia Pacific
5.5.4 Latin America
5.5.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 JDA Software
6.1.2 Manhattan Associates
6.1.4 Accenture PLC
6.1.5 Descartes Systems Group Inc.
6.1.6 DSV A/S
6.1.8 CEVA Logistics
6.1.9 DB Schenker
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
You can also purchase parts of this report. Do you want to check out a section wise price list?
Frequently Asked Questions
What is the study period of this market?
The Freight Transport Management Market market is studied from 2021 - 2026.
What is the growth rate of Freight Transport Management Market?
The Freight Transport Management Market is growing at a CAGR of 9.8% over the next 5 years.
Which region has highest growth rate in Freight Transport Management Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Freight Transport Management Market?
North America holds highest share in 2020.
Who are the key players in Freight Transport Management Market?
- Accenture PLC
- JDA Software
- Manhattan Associates
- DSV A/S
Are the major companies operating in Freight Transport Management Market.