Freight Matching Market Synopsis

Freight Matching Market Size Was Valued at USD 27.21 Billion in 2023, and is Projected to Reach USD 144.67 Billion by 2032, Growing at a CAGR of 20.4% From 2024-2032.

Freight matching is very important in the logistics and transportation since it works the match between the shipper and a carrier in order to satisfy the shipper’s demand on the cargo. This is done through different means and tools which connect shippers, those who have products or goods that require transport, with the carriers who have the ability to transport the goods.

• Freight matching guarantees that customers will be able to transport their goods by the effective matching of buyers and sellers in the freight markets thus eliminating wastage of the carriers’ time and resources, and search for transport solutions by the shippers. The objective is to enhance the management of the logistics chain, increase the effectiveness of its work to deliver goods, and overall, minimize the expenses connected with freight.
• In the past, freight matching was done through a comparative and direct approach which involved but was largely accomplished through paper work and through the help of brokers which could at times take a lot of time as well as sometimes come with the issue of great in accuracies. Yet, it is important to note that the landscape of such affiliations has changed with time fuelled by technological progress. The new transport platforms employ the use of technology, including the use of computers, applications, and data to match freight loads with prospective carriers swiftly.
• These platforms provide services like load boards – these are online marketplaces where carriers go to see what loads are available and shippers go to see what transport options are available; mobile apps – they are digital tools where shippers and carriers get immediate information about loads and transportation capacity respectively; automated matching systems – here, shippers and carriers receive notifications about loads and transport options respectively. This does not only make the whole process faster, but also increases visibility, credibility, and satisfaction levels of both shippers and carriers.
• Further, the advancement of AI and ML in the freight area has also increased the efficacy of matching to actual rates and optimization of load space. These technologies enable huge data to be examined with a view of determining the trends of freight demands, determining the best possible routes, and the specific carriers and loads that seem to fit the situations and conditions of certain parameters such as load size, destination and preference among others.
• It can also be used in anticipating and preventing the number of empty miles, and hence conserve the maximum amount of fuel possible in the least expended miles reducing the overall carbon-emitting effects of transport activities. With the ever-increasing changes within the logistics sector, the incorporation of such technologies in the freight match making system is poised for significant contribution towards the near future trends of freight transportation.

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Freight Matching Market Trend Analysis

Blockchain Technology Integration

• The use of blockchain technology is also gaining attention as the new direction in freight matching where the system acts as an open platform without a central authority to coordinate all the transactions and information flow within the logistics sector. In simple terms, blockchain is an open-source, decentralized database management technology that ensures the registration and authentic and consistent confirmation of the transactions across the parties involved.
• Taking into consideration the case of SM, within the area of the freight matching, it is possible to discover how blockchain can transform the way in which data is exchanged and how shipping transactions are completed in between shippers, carriers, brokers, and all other individuals or parties that are involved within the chain of supply.
• This paper notes that the application of blockchain as a solution to freight matching is useful in improving transparency and trust in participants since this technology incorporates decentralized ledgers. Due to the capability of the blockchain to provide full transparency and preservation of records, there is no doubt that all the associated parties shall gain real-time-based and accurate information of the movements of shipment, contracts, payments, and other accompanying events.
• This increases the level of understanding and accountability of the supply chain by avoiding issues like pilferage, fraudulent activities and also provides an avenue of enhancing efficiency to the supply chain process by cutting down time or error-prone manual operations of paperwork and reconciliation.
• In addition, blockchain technology offers opportunities to automate and enhance activity concerning freight matching and its outcomes in terms of enhanced efficiency and reduced costs. One of the ways of applying blockchain technology in the shipping industry is through integrating smart contracts, which represent self-made contracts that have inherent code that drives deals between shippers and carriers whenever such deals are reached.
• These smart contracts can execute further actions like payments, cargo delivery, and proofs of delivery wherever required depending on predefined norms without the involvement of any intermediaries as well as minimizing the burden of adding overheads. It can, therefore, be concluded that as blockchain progresses and more logistics companies adjust to its application, there remains enormous potential for the technology’s incorporation to advance the field of freight matching and contribute substantially toward enhancing the overall performance of the supply chain ecosystem.

Integration with Logistics Providers

• Logistics providers can be concluded to be a promising market for freight matching since both the involved parties will be equally benefited from the integration. Integrated in this context means the incorporation of the freight matching solution into the organizational structure and operating model of the logistics providers including the freight forwarders, the 3PL service providers, and carriers. If implemented effectively, freight matching shows lots of potential for value-added service to logistics providers, better operating models, and hence competitive advantage in this progressive and challenging industry.
• The enhancement of freight matching solutions with logistics providers helps they to reach to a more extensive number of shippers and carriers, making it possible for more demands to be fulfilled within a given marketplace. These platforms cover freight load visibility in real-time for available freight and carrier capability in real-time thus enabling the logistics provider to properly coordinate asset use.
• With the ability to interface smoothly with a variety of shipper and carriers simultaneously, the logistics providers enable customer satisfaction and carrier reliability to increase thus bringing about customer loyalty.
• Additionally, this allows the freight matching platforms to leverage existed logistics industry knowledge, network and client base in order to enhance its market penetration and growth. This is why freight matching solutions can utilize the expertise and experience of other logistics players with whom they enter into partnership by providing the latter with practical knowledge and suggestions regarding the improvement of the functionality of their platforms.
• On the same note, freight matching providers can employ strategies of partnering with logistic providers to can address aspects such as regulatory compliance, market access, and service differentiation, all qualities that provoke growth and innovation in the freight transportation system. In general, integrating with logistics providers offers a win-win scenario for the freight matching market where it can find new avenues of growth in the shifting environment of possibilities available for logistics.

Freight Matching Market Segment Analysis:

Freight Matching Market is segmented based on Mode and End User.

By Mode, Road Freight is expected to dominate the market during the forecast period

• In the market of Freight Matching, road freight can become the most popular segment for several reasons. To begin with, road freight is a very adaptable and versatile transport meaning it can be used to transport a large number of commodities to distinct locations specifically, the large cities and rural zones. This correlates with the nature and practice of freight matching, which is an ever-evolving business that needs tactics and strategies that can be changed at short notice to suit the immediate needs of the shippers.
• Also, there is a well-developed road network with highly developed infrastructure in many parts of the world; this assists the combination of the flow of goods and other carriers allow access to an enormous number of routes, making road freight one of the most attractive options for the freight matching.
• Also, the road freight sector is very competitive, with thousand of companies ranging from the smaller independent owner operator to large companies, which will also give shippers a great number of opportunities to find suitable transport carriers via freight matching services. These platforms operate through advanced IT interfaces to connect vacant freight loads to rightful carriers given geographical region, capacity and service needs thus providing a timely means through which products are transported. Different road freights are easily accessible and there is cut-throat competition in the road freight service sector, making road freight dominant in the freight matching environment.
• Moreover, with the higher rate of online shopping and the implementation of just-in-time inventory management systems, road freight delivery has experienced demand for faster transport and on-demand delivery in the freight match market. Like any conventional transportation mode, road freight is becoming more popular as the consumer demands more rapid delivery and the companies attempt to streamline their logistics chain.
• In sum, the above analysis of the organization of the freight matching market reveals that road freight remains the leading form of freight transport service throughout the world and continue to be one of the most crucial segments in the logistics and transportation industry.

By End User, Brokers segment held the largest share in 2023

• On the available freight matching market, brokers may come out as the segment that has the most influence because they act as intermediaries in the transactions between shippers and carriers. Freight Brokers or Freight Agents arrange for the transportation by matching customers, with available capacity to haul their shipments.
• They utilize their established knowledge of the market, specific industries, along with connections to guarantee proper and timely allocation of freight loads to carriers, while also determining the shortest and most efficient routes. Shippers value those brokers that will take on responsibilities of finding out rates in the market, transporting the freight, as well as taking responsibility of the documentation process which aids in freight matching between shippers and carriers.
• Furthermore, the current and projected dominance of brokers in the Freight Matching market is supported by shifting trends in decentralized digital freight brokerage platforms and solutions. They enable brokers to find value added tools and algorithmic technologies to automate and optimize the matching process which is a key to making huge numbers of freight transactions.
• Integrating aspects like real-time monitoring, analysis of future trends, and use of certain algorithms, digital freight brokerage platforms assist the brokers in providing a qualitative improvement to their work output by increasing speed and eliminating errors, which places them as prominent stakeholders in the freight matching market.
• In addition, they act as shippers’ and carriers’ intermediaries, who provide expertise information, assistance, and consultation throughout the chain transport service cycle. These factors, including industry knowledge, market awareness, and committed client relationships and providers assist them to become more dominant in the Freight Matching market. Using their experience and contacts brokers find themselves dealing with complicated logistics issues, securing the optimal terms of business to address the requirements of shippers and carriers, as well as offering value-added services tailored to the newly emerging needs of the market. In light of these findings, the proposition of brokers as the key players in the Freight Matching market proves crucial for augmenting the readily available supply-chain effectiveness, reliability, and advancements.

Freight Matching Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast Period

• North America continues to lead in the freight matching market because of indicators that have helped make the region’s logistics sector robust and facilitated the uptake of modern technology in the freight matching market. Firstly, the connectivity of North America has very strong transport connections with first-class roadways and railways, as well as air and ocean transport services available throughout the continent.
• These perceptible and imminent transport structures enhance the flow of commodities within and across borders thereby offering a natural environment for freight matching services. It also implies the feasibility of the establishment of both modern and efficient logistics hubs and distribution centers that improve connectivity of the transportation network for freight matching platforms.
• Furthermore, it is also important to note that there are also a significant number of leading logistics companies, freight brokers, and carriers in North America, which in turn, gives us a rich and competitive environment when it comes to the freight matching services. The business environment is powerful in the region, and the inhabitants have enormous potential for innovation and creativity, encouraging the development of innovative logistic solutions and technologies. Consequently, North American companies are pioneering to implement and develop sophisticated freight matching platforms and digital brokerage solutions for the Freight Matching market and hold the dominant sector.
• Besides, North American market enjoys a good legal framework and has a suitable economic climate that would provide a conducive bed for investment and development when it comes to logistics and transportation. Other factors that strengthen the prospects of the Freight Matching market in North America are government programs that stimulate the development of trade with new formats and means of transactions, infrastructure growth, and the introduction of innovative technologies.
• Due to this, many consumption demands and diverse industries along with rapidly developing supply chain networks in North America can fulfil a large number and variety of transportation requirements for freight matching providers thus establishing North America as the leading region in the freight matching market.

Active Key Players in the Freight Matching Market

• 10-4 Systems (United States)
• C.H. Robinson (United States)
• Convargo (France)
• Convoy (United States)
• DAT Solutions (United States)
• Echo Global Logistics (United States)
• Flexport (United States)
• Freightera (Canada)
• Freightos (Israel)
• J.B. Hunt Transport Services (United States)
• Kuebix (United States)
• Loadsmart (United States)
• Next Trucking (United States)
• Shipwell (United States)
• Transfix (United States)
• Transporeon (Germany)
• Trucker Path (United States)
• Truckstop.com (United States)
• Uber Freight (United States)
• XPO Logistics (United States)
• Other Key Players

Key Industry Development in the the Freight Matching Market

• In June 2024, Freight Technologies, Inc., a logistics technology solutions company, announced a significant milestone in expanding its Fr8Radar module within its Fr8App platform. The AI-powered freight-matching platform provides a real-time portal for B2B cross-border and domestic shipping within the USMCA region.
• In July 2023, Truckstop announced it had acquired the FreightFriend cloud-based capacity and freight management solution that harnesses the power of AI to manage relationships, find capacity, and match freight with greater efficiency

  Global Freight Matching Market
  Base Year:	2023	Forecast Period:	2024-2032
  Historical Data:	2017 to 2023	Market Size in 2023:	USD 27.21 Bn.
  Forecast Period 2024-32 CAGR:	20.4%	Market Size in 2032:	USD 144.67 Bn.
  Segments Covered:	By Mode	Rail Freight Road Freight Ocean Freight Air Freight
  	By End User	3PLs Brokers Shippers Carriers
  	By Region	North America (U.S., Canada, Mexico) Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe) Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe) Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC) Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa) South America (Brazil, Argentina, Rest of SA)
  Key Market Drivers:	Growth of E-commerce
  Key Market Restraints:	Data Security Concerns
  Key Opportunities:	Expansion to New Markets
  Companies Covered in the report:	10-4 Systems (United States), C.H. Robinson (United States), Convargo (France), Convoy (United States), DAT Solutions (United States), and Other Major Players.