Market Size of US FTL Freight Brokerage Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 15.68 Billion |
Market Size (2029) | USD 22.90 Billion |
CAGR (2024 - 2029) | 7.86 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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US FTL Freight Brokerage Market Analysis
The US FTL Freight Brokerage Market size is estimated at USD 15.68 billion in 2024, and is expected to reach USD 22.90 billion by 2029, growing at a CAGR of 7.86% during the forecast period (2024-2029).
- The full truckload freight brokerage market in the United States experienced a strong hit by the pandemic, as the freight transportation and logistics industry slowed down in the country due to pandemic restrictions and the closing of cross-border shipments. The impact of the pandemic has created massive challenges in freight yards and warehouses, where many facilities struggling with COVID-19 conditions have cut their staffing levels and reduced operating hours at loading and receiving docks.
- In recent years, the US has experienced substantial growth in full-truckload (FTL) services owing to the demand from inland freight movement and cross-border trade between the United States, Canada, and Mexico. The increase in year-on-year growth of the United States exports and imports also supports the development of the freight brokerage industry in the nation. The significance of freight brokers is growing owing to their role as intermediaries and facilitating the business of both shippers and carriers. Transport and freight forwarding services are on the rise in the United States due to the number of e-commerce companies emerging globally.
- Full truckload freight brokerage is still in a growth phase and is a major attraction for new shippers looking to penetrate the domestic market. However, established shippers seek long-term contracts with brokerage firms and carriers to gain a leading position in the international freight forwarding industry. FTL brokers facilitate the shipping service for shippers and monitor carriers' shipments. Many freight brokerage firms are strengthening their digital marketplace and are adopting technology, such as automated pricing, application programming interface (API) connectivity, data science, and internally facing technology. Companies are increasing their investments and spending on technologies and innovations as consumer preferences are also changing. With the increasing technological advancements, traditional players face intense competition from startups. For instance, C.H. Robinson, one of the largest freight brokers in North America, announced in 2019 that it would double its technology spending through 2024 to compete with digital startups.
- The market has seen one scenario play out repeatedly. Shippers with less-than-truckload-size loads are paying for full truckload (FTL) service to ensure faster delivery of goods, resulting in space and inefficiencies. Startups have mostly attacked this sector. This is because it is less complex than LTL and parcel and contains a larger piece of the pie. The most funded startups, like Transfix, Convoy, and Uber Freight, focus on freight matching. They are replacing traditional brokers by utilizing mobile technology and automating manual operations.
US FTL Freight Brokerage Industry Segmentation
An FTL freight brokerage serves as the intermediary between the shipper, who needs to move their cargo, and the carrier (trucking company) that has the means to do so.
The report covers United States FTL trucking companies, and it is segmented by End User (Manufacturing and Automotive; Oil and Gas, Mining and Quarrying; Agriculture, Fishing and Forestry; Construction; Distributive Trade; and Other End-users). The report offers the market size in value terms in USD for all the abovementioned segments.
By End User | |
Manufacturing and Automotive | |
Oil and Gas, Mining, and Quarrying | |
Agriculture Fishing, and Forestry | |
Construction | |
Distributive Trade | |
Other End Users |
US FTL Freight Brokerage Market Size Summary
The US full truckload (FTL) freight brokerage market is poised for significant growth over the forecast period, driven by increasing demand for inland freight movement and cross-border trade with Canada and Mexico. The market, which faced challenges due to the pandemic, is recovering as the role of freight brokers becomes more crucial in facilitating transactions between shippers and carriers. The rise of e-commerce has further fueled the demand for transport and freight forwarding services. As the market evolves, traditional brokerage firms are investing heavily in technology to enhance their digital marketplaces and compete with agile startups that are leveraging mobile technology and automation to streamline operations. This competitive landscape is characterized by a mix of established players and new entrants, all vying for market share in a relatively fragmented industry.
Despite the promising growth trajectory, the market faces challenges such as fluctuating fuel prices and potential regulatory changes that could impact capacity and pricing. These factors could affect the profitability of brokerage firms if they are unable to pass on increased costs to clients. Additionally, the ongoing geopolitical tensions, such as the Ukraine-Russia war, have contributed to volatility in fuel prices, further complicating the market dynamics. However, the medium to long-term outlook remains positive, supported by infrastructure spending and steady growth in the construction sector. The US FTL freight brokerage market is expected to continue its expansion, with major players and innovative startups shaping the future of freight logistics through technological advancements and strategic acquisitions.
US FTL Freight Brokerage Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Dynamics
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1.2.1 Market Drivers
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1.2.1.1 Increasing demand for efficient transportation
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1.2.1.2 Growing eCommerce industry
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1.2.2 Market Challenges/Restraints
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1.2.2.1 Intense competition affecting the market
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1.2.2.2 Fluctuating fuel prices
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1.2.3 Market Opportunities
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1.2.3.1 Adoption of advanced technologies
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1.2.3.2 Focus on sustainability in logistics
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Industry Value Chain / Supply Chain Analysis
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1.5 US Logistics Industry (Overview, Trends, R&D, Key Statistics, etc.)
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1.6 Key Government Regulations and Initiatives
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1.7 Insights into Freight Rates
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1.8 Technology Snapshot
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1.9 Qualitative and Qualitative Insights into the US Customs Clearance Sector
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1.10 Insights into Chicago and Illinois - FTL Freight Brokerage
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1.11 Insights into Wages and Pay Structure in the Freight Brokerage Market
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1.12 Assessment on the Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By End User
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2.1.1 Manufacturing and Automotive
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2.1.2 Oil and Gas, Mining, and Quarrying
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2.1.3 Agriculture Fishing, and Forestry
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2.1.4 Construction
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2.1.5 Distributive Trade
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2.1.6 Other End Users
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US FTL Freight Brokerage Market Size FAQs
How big is the US FTL Freight Brokerage Market?
The US FTL Freight Brokerage Market size is expected to reach USD 15.68 billion in 2024 and grow at a CAGR of 7.86% to reach USD 22.90 billion by 2029.
What is the current US FTL Freight Brokerage Market size?
In 2024, the US FTL Freight Brokerage Market size is expected to reach USD 15.68 billion.