Digital Freight Brokerage Market

Posted by Sakshi Mishra on February 17th, 2020

The competition in the global market for digital freight brokerage will likely heat up in the next couple of years on the back of entry of a substantial number of solution providers. As a result, the market is slated to make gigantic progress in the foreseeable future.

Some of the prominent players in the global market for digital freight brokerage are Echo Global Logistics Inc., Coyote Logistics, Transfix, LLC, Convoy, Cargomatic Inc., Trucker Path Inc., J.B. Hunt Transport, Inc., Cargocentric Inc., Uber Freight and TGMatrix Limited.

A report by Transparency Market Research finds that the global market for digital freight brokerage was worth US4.5 mn in 2016 and by clocking a whopping 61.7% CAGR during the period between 2017 and 2025, it would likely become worth US,964.3 mn by 2025.

Depending upon the industry vertical, the digital freight brokerage market can be classified into food and beverage, healthcare, automotive, retail and e-commerce, manufacturing, and others such as aerospace and defense. Of them, the segment of retail and ecommerce is projected to grow at a maximum pace primarily on account of the fast growing large economies of Asia Pacific.

Geographically, the key segments of the global market for digital freight brokerage are North America, South America, Europe, Asia Pacific, and the Middle East and Africa. At present, North America rakes in maximum revenue and is expected to retain its dominant share in the market in the upcoming years as well. By 2025, the region is predicted to generate almost US.03 bn revenue.

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Proliferation of Technologically Advanced Phones Boosts Market

Majorly fuelling the global market for digital freight brokerage is the growth in the number of sophisticated smartphones, improved wireless connectivity and their swift uptake, and advantages of digital platforms. “In the traditional freight brokerage market, carriers and the load might sit idle till the deal is finalized by brokers over the phone or mail. But, the proliferation of smartphones and tablets makes this process much more efficient by letting shippers find carriers on demand and also eliminate steep brokerage fees,” explains the lead analyst of the TMR report.

Swift uptake of wireless connectivity technologies, namely 3G and 4G, particularly in developing countries and efforts by developed nations to usher in 5G in the near future will have a positive impact on the market.