Global Shipping Software Market Size, Status and Forecast 2021-2027

The global Shipping Software market size is projected to reach US$ 61 million by 2028, from US$ 39 million in 2021, at a CAGR of 6.5% during 2022-2028. Key drivers of the shipping software market include the increasing deployment of software solutions for managing land and in-house supply chain activities.

The need for consistent customer service delivery and rising complexities have driven the use of software systems to automate the various processes in parcel and courier services. This will bolster the growth of the global shipping software market during the forecast period. 

Freight forwarders face a range of challenges from deciding the pick-up, storage, and delivery of goods, to negotiating the pricing and coordinating the entire process. Hence multi-carrier shipping software is the need of the hour which in turn will fuel the growth prospects of the market. 

Increasing implementation of software in contract logistics will drive the growth of the market in the coming years. 

Shipping Software Market Trends

Land and in-house

End-to-end visibility is a must through data centralization. Shipping software provides complete flexibility and customization. It can be blended with the enterprise management systems to chalk out the optimized routes, and all possible transportation scenarios. It analyzes data online, pinpoints the necessary discrepancies, and generates dynamic reports for enhancing the decision-making process. A good software system improves the scope of global trade by connecting all cargo information and ship schedules on a single dashboard. This is expected to push the demand for the shipping software market during the forecast period. A well-connected information exchange system will keep accidents at bay and allow better coordination between the ships thereby helping them effectively during emergencies. The in-house activities like warehouse management are automated decreasing the time and resources put into data entry work. This leads to better visibility, lower freight delivery costs, and enables efficient decision-making capability. Proper automated software eliminates all the concerns related to human errors. The huge volume of datasets from all parts of the value chain drastically improves the regulation of shipping operations. 

Courier, Express, and Parcel

The high volume of trade and modern-day complexities has made relying on a single carrier for parcel delivery very risky. A diverse network of carriers is required for maximizing capacity and avoiding future disruptions. Shipping software quickly integrates new carrier services including regional and last mile providers thereby shipping goods at high volumes with decreased costs. The demand for such solutions is high which in turn will drive the growth of the shipping software market in the forthcoming years. It automatically generates the rate for each courier service and selects the optimal service based on point of origin, destination, delivery timeframe, cost, and applicable business rules. All the necessary documentation is done beforehand so that the parcel leaving the distribution center complies with all of the carrier‘s requirements. Multiple shipment orders can be generated and tracked at a centralized location for decreasing transportation costs. Moreover, software integrated with warehouse management systems can measure the volume of goods and the total capacity of a carrier in order to determine its capacity utilization. The system will trigger automated alerts whenever there is any parcel delivery issue. This allows service teams to proactively troubleshoot emergency situations and provide real-time updates to customers regarding their service delivery. Parcel shipping technology generates the required documentation as per the relevant custom rules and tariffs. This reduces consumer anxiety related to the presence of multiple tariffs and regulations in cross-border commerce. As all the information is collected on a single dashboard it allows for enhanced business intelligence reporting and analysis. 

Air and Ocean Forwarding

Air and ocean freight forwarders need to be efficient and fast. The service that they offer is highly specialized and beneficial for all the related stakeholders in the entire shipping supply chain. They are responsible for the smooth import and export of goods from one place to another. The scope of freight forwarders increases significantly by using integrated software solutions. This will bolster the growth of the shipping software market in the upcoming years. Completing each schedule on time is not an easy task. Delivery management systems eliminate the need to spend on human factors thereby reducing the possibility of mistakes. It seamlessly covers individual freight forwarding requirements, freight-specific warehousing, and transport rules.  Automated software will provide a cheaper, faster, and more effective communication process that will strengthen global relationships. A lot of flexible options are provided from booking to final delivery enhancing operational efficiency. Automatically generating a number of data and real-time processes allow for easy maintenance of regulatory compliance and save costs. It ultimately leads to the creation of a transparent and secure system. 

Contract Logistics

A multi-carrier software effectively aids in contract logistics. It gives full analysis and details into every shipment and spending. All the data is consolidated eliminating the need for maintaining lengthy contracts or keeping stacks of paperwork. The software acts as a single database for all shipments, quotes, and orders. This will drive the expansion of the shipping software market during the forecast period. This frees up the time for workers to focus more on core activities. It eliminates the need for old-school spreadsheet practice and onboards staff rather quickly and seamlessly. Shipping and logistics verify each and every aspect of the shipment 

Shipping Software Market Share Analysis

Based on type, the installed segment is expected to dominate the shipping software market share with 65%.

Based on application, the land and in-house segment will see the highest growth with 52%. While the CEP segment will be the fastest growing.

Based on region, North America will be the most dominating segment due to the presence of key software players and technological developments