India and China Poised to be the New Face of Asia-Pacific’s Digital Freight Brokerage Market

Introduction

The global digital freight brokerage market is estimated to reach a value of USD 75,569 by 2027, recording a CAGR of 31.3% during the forecast period, 2020–2027.

Technological innovation in the supply chain and logistics is a key factor providing impetus to the growth of the digital freight brokerage market. With technologies such as machine learning, blockchain, AI, and IoT, supply chain and logistics providers are competing to identify the right combination of these technologies to gain a competitive advantage. In addition, the adoption of telematics systems and the latest technologies to enhance driver and vehicle performance are also accelerating market growth.

Internet of Things (IoT)

• IoT holds a prominent share in the highly transformative logistics market; it helps companies manage warehouse stock, optimize fleet routes, monitor inventory, and reduce dead mileage
• A range of startups are adding innovation and unlocking value in logistics, including FreightBro (data-driven predictions) and BlackBuck (inter-city full truckload marketplace)

Autonomous Trucks and Drones

• Autonomous trucks are expected to boost the shipping, trucking and logistics, and digital freight brokerage market
• Electric-powered autonomous trucks can assuage the driver shortage issue, improve efficiency, smooth out issues in the logistical network while saving lives and money, and protect the environment
• The use of drones can extend to the over-the-road delivery of convenience items, local food, and groceries; it keeps more vehicles off the road and eliminates the inefficient process of driver delivery, all without requiring major regulatory or traffic changes

Market Highlights

• Asia-Pacific is expected to be the fastest-growing region in the digital freight brokerage market at a CAGR of 32.9%, with India and China dominating the transportation and logistics sector. China’s two digital brokerage companies, Huochebang’s and Yunmanman, merged with the Manbang group in November 2017, which is valued at around USD 6 billion. In India, emerging startups such as Blackbuck, 4tigo, TruckHall, Rivigo, and Freightbazaar seek to smoothen freight management operations.
• The railway segment is expected to emerge as the fastest-growing segment by type, with a CAGR of 34.0%. The movement of containerized cargo by rail from China to logistics hubs in Europe, such as in the Netherlands and the U.K., is seen as a significant step in the development of trade between the two continents. It has encouraged many multinational companies, such as Hewlett-Packard and Ricoh, to use the route from Europe to China for their cargoes.
• A few of the key companies operating in the market are BlackBuck (Zinka Logistics Solutions Pvt. Ltd.), Echo Global Logistics, Inc., Coyote Logistics, LLC, Transfix, Inc., Convoy, Cargomatic Inc., Trucker Path Inc., J.B. Hunt Transport Services, Inc., Uber Freight LLC, Saloodo! GmbH, and Routier (Ebix Inc.)
• In June 2019, Convoy introduced Automated Reloads, a new program to build multiple loads at the same time. The platform evaluates and optimizes loads in real-time without human intervention.

Competitive Players

1. Echo Global Logistics Inc. (The Jordan Company)
2. Coyote Logistics
3. Transfix
4. Convoy
5. Cargomatic Inc.
6. Trucker Path Inc.
7. Manbang Group
8. Cargo Chief
9. Uber Freight
10. Loadsmart
11. Freightera Logistics
12. DAT
13. Truckstop.com
14. 123 Loadboard
15. Freight Waves

Recent Developments

• July 2024- Lobb, a digital freight brokerage platform based in Bengaluru, has secured $2.9 million (INR 24.2 crore) in an extended Pre-Series A fundraising round from multiple investors.
• February 2024- Flexport has recently unveiled the Convoy Platform, some four months after acquiring the technology and intellectual property (IP) of Convoy, a digital truck brokerage that had closed down. Flexport executives stated that the streamlined technology platform is designed to provide small carriers with the opportunity to access freight while also enabling shippers and brokers to access freight at real-time competitive rates, visibility of shipments, and reliable on-time performance.

Segmentation

1. By Type
   1. Online platform-based freight brokerage
   2. Warehouse aggregation services
   3. Automated on-demand freight brokerage solutions
2. By Deployment
   1. Mobile
   2. Desktop
3. By Mode of transport
   1. Roadway
   2. Seaway
   3. Airway
   4. Railway
4. By End-Use
   1. Retail and E-Commerce
   2. Manufacturing
   3. Healthcare
   4. Automotive
   5. Others