Freight Forwarding Market Outlook 2025–2032
The global Freight Forwarding Market was valued at USD 198.98 billion in 2024 and is projected to reach nearly USD 260 billion by 2032, growing at a CAGR of 3.4% during the forecast period. This steady expansion is supported by rising international trade, digital transformation in logistics, and the rapid growth of e-commerce and cross-border supply chains.
Freight Forwarding Market Overview
Freight forwarding refers to the organized coordination and transportation of goods from origin to destination using one or more modes of transport, including air, ocean, rail, and road. Freight forwarders act as logistics specialists, ensuring cost-effective, secure, and timely delivery of shipments while managing complex processes such as customs clearance, documentation, freight consolidation, and shipment tracking.
In an increasingly globalized economy, freight forwarders play a critical role by providing end-to-end logistics solutions that enable smooth international trade operations. Advanced digital tools and real-time data analytics have become essential for maintaining efficiency and competitiveness in modern freight forwarding.
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Freight Forwarding Market Dynamics
Key Growth Drivers
- Expansion of International Trade Agreements
The rise in bilateral and multilateral trade agreements has significantly increased cross-border trade volumes, directly boosting demand for freight forwarding services. Initiatives such as the Regional Comprehensive Economic Partnership (RCEP), which connects 15 Asia-Pacific economies, are expected to eliminate nearly 90% of tariffs among member countries. Trade within this bloc already exceeds USD 2.3 trillion, with tariff reductions anticipated to generate additional export growth of over USD 40 billion. - Adoption of Artificial Intelligence in Logistics
Artificial intelligence is transforming freight forwarding by automating pricing, route optimization, demand forecasting, and documentation processes. The AI-enabled logistics market is projected to reach USD 14 billion by 2029, expanding at a CAGR of around 20%.
Leading players such as Kuehne + Nagel have introduced AI-driven platforms like eTrucknow, which allow shippers to compare costs, optimize routes, and select the most economical transport solutions in real time. - Growth in Air and Ocean Freight Trade
Ocean freight continues to dominate global freight forwarding due to its cost efficiency for bulk and long-distance shipments. International ocean trade is expected to grow at a CAGR of 4.5%, supported by rising global consumption and new trade routes.
Air freight forwarding is also witnessing strong growth, with a 14.9% year-on-year increase recorded in 2022 and a projected CAGR of 5.4% through 2032. Sectors such as pharmaceuticals, medical devices, and cross-border e-commerce are major contributors to this growth. - Rapid Expansion of E-Commerce
E-commerce has become a major growth engine for the freight forwarding industry. It currently accounts for 15% of air freight volumes and nearly 18% of air cargo revenues, a figure expected to exceed 22% in the near term.
The global e-commerce logistics market, valued at €441.47 billion in 2021, is growing at a CAGR of 11.65%, driven by increasing online retail penetration. China remains the largest e-commerce market, followed by South Korea, the UK, and the United States.
Market Challenges
Despite strong growth prospects, the freight forwarding market faces challenges from nearshoring and reshoring trends, as manufacturers relocate production closer to end markets. This shift may reduce long-distance trade volumes over time. However, rising global consumption, diversification of supply chains, and continued demand for international freight transportation are expected to offset these challenges in the long run.
Freight Forwarding Market Segment Analysis
By Mode of Transport
Ocean freight forwarding dominated the market with approximately 43% share in 2024 and is expected to grow at a CAGR of about 4.5% through 2032. The segment benefits from increasing port infrastructure, containerization, and cost advantages compared to air freight. Rising air cargo costs have further shifted demand toward maritime transport.
By Application
The market serves a wide range of industries, including industrial and manufacturing, healthcare, automotive, electronics, military, oil and gas, food and beverages, and others.
Pharmaceutical trade gained momentum during the COVID-19 period and accounted for around 2.2% of global traded goods, while medical instruments contributed approximately 0.78%. The automotive sector remains one of the most traded categories globally, with Germany and Japan leading car exports.
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Regional Insights
North America
North America held the largest market share of around 32% in 2024, driven by the strong economic position of the United States and its extensive trade network. The U.S. alone accounts for nearly one-fifth of global GDP and maintains trade relationships with over 30 major partners, supporting sustained demand for freight forwarding services.
Asia-Pacific
Asia-Pacific is the fastest-growing region in the freight forwarding market, supported by expanding manufacturing activities, government investments in logistics infrastructure, and the presence of major economies such as China and India. Strategic mergers and acquisitions are common as global players seek to strengthen their regional footprint. For instance, Kuehne + Nagel’s acquisition of Apex International Corporation significantly enhanced its presence in the Asian market.
Competitive Landscape
The freight forwarding market is highly competitive, with global players focusing on digitalization, service diversification, and geographic expansion. Key market participants include:
Agility, Bolloré Logistics, CEVA Logistics, DB Schenker, DHL Global Forwarding, Dachser, DSV Panalpina A/S, Expeditors International, Hellmann Worldwide Logistics, Kuehne + Nagel International AG, Nippon Express Co., UPS Supply Chain Solutions, and others.
Report Objective
The purpose of this report is to provide a comprehensive and strategic analysis of the Freight Forwarding Market, covering historical performance, current trends, and future growth prospects. It includes detailed PORTER’s Five Forces and PESTEL analyses, segment-wise evaluation, and competitive benchmarking to support informed decision-making for investors, industry stakeholders, and policymakers.
