Market Trends of Freight Transport Management Industry
Rail Freight to Account for a Significant Demand for Freight Management Solutions
- Freight railway transport uses railways as a means of shipping cargo on land. It is employed for the transportation of many types of cargo, e.g., chemicals, earth-building materials, agricultural products, automobiles, energy feedstocks, oils, and wind turbines, as well as forestry production.
- Furthermore, rail transport is one of the most frequent modes of transport and has a large infrastructure in place all over the world. The increasing use of railways for transportation increases the growth of freight transportation management for managing rail freight transportation.
- In terms of performance in the environment, land use, energy consumption, and safety, rail freight transport has a competitive edge over other modes. As a result, the railway logistics environment is complex and difficult to navigate due to an increased preference with companies having to rely on rail cargo experience and IT systems for their management.
- This has led to the emergence of a range of management solutions for rail freight traffic, which are geared towards small cargo trains, intermodal railroads, and private railway lines that have been confronted with an increased level of operating complexity and increasingly pressing demands for process simplification. As a result, the portfolio of products developed by companies like DXC Technology and Goal Systems is being concentrated on these needs.
- Furthermore, the main growth driver for this market will be a higher demand for rail freight services, particularly in Organization for Economic Co-operation and Development (OECD) countries. With that in mind, rail freight management solutions are expected to grow significantly over the forecast period.
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North America is Expected to Hold a Major Share in Market
- It is estimated that the United States will play a major role in this region. As a result of the increasing number of companies moving into the Internet channel, this share is attributed to an increase in retailers' sales. The US has continued to grow its freight transport sector, thanks to technological progress in the IT and Cloud computing sectors.
- The North American market for freight transport management solutions picked up momentum, particularly in the US, because of globalization as a result of growing digitalization and increased use of the Internet of Things by various sectors. North America's road freight market is one of the most mature markets in the world.
- The rapid growth of the online sales sector has led to a need for companies to improve their supply chain's efficiency, decrease transit time, and provide the products at customers' disposal as soon as possible. This has resulted in the increased movement of domestic traffic via roads, with a high volume of trucks being mobilized to do so. The increasing development of road technology is driving the global freight transport management market in all regions.
- According to the US Department of Transport, truck traffic in the United States accounts for nearly 70% of freight movements. It is expected to rise by 45% over the coming decades, requiring more highways, railroads, ports, or pipelines, as well as improved intermodal connections that move cargo efficiently. The increased demand for trucking, especially due to the boom in e-commerce in the country, is expected to lead to an increased demand for freight transport management solutions in the region.
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