Freight Procurement Technology Solutions Market- Industry Dynamics, Market Size, And Opportunity Forecast To 2028

The shipping and logistics industry has long been viewed as conservative and slow-to-change, in part due to complex relationships within global shipping and transportation networks, difficult documentation and customs requirements, lack of transparency among involved parties, and obstacles to adapting quickly to sudden economic changes. However, with the advancement of freight procurement technology solutions, a revival is happening in the freight procurement market. 

The Global Freight Procurement Technology Solutions Market, analyzed by Astute Analytica, forecasts a growth in revenue from US$ 812.5 Mn in 2021 to US$ 1,392.2 Mn by 2028. The market is registering a CAGR of 8% during the forecast period 2022-2028. 

Freight procurement technology solutions is an automated optimization tool which helps in quickly assessing all the parameters in a freight procurement process including carriers’ bids and adjusts route priorities to respond to different business needs and market scenarios of a company. For instance: Cargo Smart's freight procurement solution lets shippers and logistics service providers optimize their carrier mix and make cost-effective decisions more efficiently.

The market is majorly driven by demand for greater visibility and transparency in supply chain data & processes and rising e-commerce sector. Freight procurement technology solutions assists various industries and organizations in procurement and freight shipment of goods with the help of several tools such as freight audit, payment, route planning, yard management and so on. Through the adoption of these solutions, shipping companies can improve the efficiency of their shipments, reduce the cost incurred and get real-time supply chain visibility with greater customer service. Further, the digitalization and automation in freight procurement can help optimize cargo traffic, process transparency and speed, and reduce human errors. Moreover, the rising e-commerce sector is also fueling the market growth as the freight procurement technology solutions helps in looking after all e-commerce shipments and identify the best carrier and/or mode of e-commerce based on the need. However, the high initial cost of solutions may hinder market growth over the forecast period. 

Key Insights of the Report: 

• The latest study published by Astute Analytica analyzes Global Freight Procurement Technology Solutions Market for the study period of 2017-2028; where historical years are 2017-2020, base year is 2021 and forecast period is 2022-2028.
• The research report offers detailed study of market determinants including market drivers, restraints, opportunities, and trends; along with attractive presentation in the form of impact analysis to gain a simpler and easy comparison view of all market determinants.
• The research study is a compilation of 15 chapters distributed across 160 pages with 27 lists of tables and 64 lists of figures.
• The market is segmented based on component, deployment, end use industry, and region.
• The market estimates are presented in terms of value (US$ Mn).
• Along with market estimations, the market study was conducted on the basis of various economic models such as PESTLE and Porter’s five force models.
• A detailed value chain analysis of the industry was conducted. It includes raw material providers, freight procurement technology solutions manufacturers/developers, distributors, and end-users.
• The competitive dashboard section includes analysis on the basis of Concentration Ratio (CR), based on market size and market presence of key companies.

Key Takeaways from the Global Freight Procurement Technology Solutions Market Report:

• Based on component, the software application segment holds the highest share in the freight procurement solutions technology market in 2021. This is due to the high demand of software applications from various end use industries such as retail, food & beverage, agriculture, and others. However, the services segment registers the highest annual growth rate over the projection period.
• In terms of deployment, the on-premises segment records the highest market share in 2021. However, the cloud-based segment registers the highest CAGR over the forecast period and is further estimated to dominate the market by 2028. The growth of the cloud-based segment is attributed to tremendous growth demand of this segment due to reduction in operating costs as well as easy maintenance of computing resources without additional training of new staff.
• Based on end use industry, the retail industry holds the highest share in the Global Freight Procurement Technology Solutions Market in 2021 and is further registering the highest CAGR over the forecast period. Retailers can easily track and maintain updated records of supply chain partners and analyze the gap in supply chain and quality control with the availability of such freight procurement technology solutions.
• North America is the highest shareholder region in the Global Freight Procurement Technology Solutions Market in 2021. The well-developed transportation system in the region leads to earlier adoption of newer technology, which is propelling the market growth. Further, Asia Pacific records the highest CAGR over the forecast period.

Competitive Dashboard

The key players in the Global Freight Procurement Technology Solutions Market are Blue Yonder, Nexus (Infor), Transporeon Group Americas Inc., Alpega Group, Coupa, Jaegger, nVision Global, Enterprise System Solutions Pvt. Ltd. and MercuryGate International, Inc., among others. 

Strategies Adopted by Key Market Players:

• In June 2021, Transporeon, acquired TNX Logistics, an innovative start-up in the field of autonomous procurement. The aim is to launch autonomous procurement for road freight spot capacity to new and existing Transporeon customers.
• In April 2021, Mercury Gate acquired logistics optimization leader Cheetah Software Systems (Cheetah). The Cheetah acquisition extends MercuryGate’s TMS platform to deliver both a last mile, parcel, and less-than-truckload (LTL) solution and an enhanced fleet management capability that adapts, automates, and communicates movements in real-time.
• In February 2021, Freightender entered a partnership with Pagero to provide a seamless supply chain solution for buyers in the freight industry. The partnership lets customers access the joint offering through smooth technical integration of both companies’ apps.
• In November 2020, Blue Yonder agreed to supply its shipper’s instant, seamless on-demand pricing, and capacity for both Mexico and Canada to a cross-border logistics technology startup- Forager. This will increase its geographical presence and will offer a cross-border supply chains, especially those with complex frameworks.
• In October 2020, EC Sourcing group announced its acquisition of procurement solution provider, BidMode, with full terms of the merger remaining confidential.

Segmentation Overview

The following are the different segments of the Global Freight Procurement Technology Solutions Market:

By Component segment of the Global Freight Procurement Technology Solutions Market is sub-segmented into:

• Software Applications
  • Carrier Management
  • Freight Tendering
  • KPIs and Analytics
  • Order Management and Control
  • others
• Services
  • Professional
  • Managed/Outsourced

By Deployment segment of the Global Freight Procurement Technology Solutions Market is sub-segmented into:

• Cloud-Based
• On-Premises

By Industry segment of the Global Freight Procurement Technology Solutions Market is sub-segmented into:

• Agriculture
• Retail
• FMCG Manufacturing
• Food & Beverage
• Oil & Gas
• Others

By Region segment of the Global Freight Procurement Technology Solutions Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Switzerland
  • Sweden
  • Turkey
  • Poland
  • Russia
  • Belgium
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Australia & New Zealand
  • ASEAN
    • Indonesia
    • Thailand
    • Philippines
    • Malaysia
    • Rest of ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Egypt
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Columbia
  • Chile
  • Rest of South America