UK Digital Freight Forwarding Size & Share Analysis - Growth Trends and Forecast (2026 - 2035)
UK Digital Freight Forwarding Market: by Type (Air, Sea, Road, Rail, Intermodal, Others), Application (Retail & E-commerce, Manufacturing, Automotive, Healthcare, Consumer Goods, Others), Distribution Channels (Direct, Third-Party Platforms, Freight Marketplaces, Digital Brokers, Partners, Others), Technology (AI & Machine Learning, IoT & Telematics, Blockchain, Cloud Computing, Big Data Analytics, Others), Organization Size (Small, Medium, Large) and By UK Historical & Forecast Period (2020-2035) Comprehensive Study 2025
Last Updated: 31-07-2025 | Format: PDF | Report ID:20574 | Author: Ankit
UK Digital Freight Forwarding Market Size, Trends, and Analytics 2025-2035
The UK digital freight forwarding market represents a transformative leap in logistics, integrating advanced digital solutions with traditional freight management. Digital freight forwarding involves the use of web-based platforms and technologies to automate, optimize, and streamline freight booking, tracking, and management. This approach minimizes paperwork, boosts transparency, and enhances communication between shippers, carriers, and customers. Leading technologies such as AI, IoT, big data analytics, and cloud computing power this evolution, delivering benefits like real-time shipment visibility, dynamic pricing, and predictive insights. As the UK navigates supply chain complexities, post-Brexit trade dynamics, and rising e-commerce demand, digitalization is essential for agility, efficiency, and cost effectiveness. The market’s growth is supported by both established logistics players and disruptors who leverage digital tools for value-added services, fostering competition and innovation. Future growth will hinge on regulatory adaptation, ongoing tech investment, and increasing customer demand for rapid, reliable, and flexible freight solutions.
Latest Market Dynamics
Key Drivers
Rising E-commerce and Retail Sector: The surge in UK e-commerce, combined with consumer demand for real-time delivery and tracking, fuels the adoption of digital freight forwarding. Zencargo, for example, has expanded its platform to offer seamless integrations for e-commerce businesses, supporting scalable and transparent logistics.
Operational Efficiency and Cost Reduction: Logistics firms leverage digital solutions for automating shipment documentation, route optimization, and predictive analytics. In 2025, Flexport’s AI-driven platform is helping UK companies cut transit times and lower overhead, reinforcing the value of digital transformation.
Key Trends
Integration of AI and Automation: AI-based tools enable personalized shipping options, predictive demand planning, and last-mile delivery optimization. DHL Global Forwarding has recently invested in AI algorithms to improve forecasting and dynamic pricing.
End-to-End Visibility: Customers and shippers increasingly require 24/7 real-time tracking. Forto introduces enhanced tracking systems combined with IoT, enabling full supply chain transparency from port to delivery.
Key Opportunities
Adoption of Blockchain for Secure Transactions: Blockchain ensures data integrity and seamless transactions in freight management. Freightos is pioneering blockchain-driven smart contracts, offering greater security in document handling.
Expansion in SME and Direct-to-Consumer Segments: Digital-forward solutions are becoming more affordable for SMEs. InstaFreight has launched packages tailored for small UK exporters, tapping into previously underserved markets.
Key Challenges
Integration with Legacy Systems: Many traditional logistics providers face challenges merging legacy IT infrastructure with digital platforms. Kuehne + Nagel is investing in modular APIs to ease integration with older systems.
Cybersecurity Concerns: As freight forwarding digitalizes, cybersecurity risks multiply. Uber Freight has recently boosted its cybersecurity frameworks for the UK market to counter potential threats.
Key Restraints
Regulatory Uncertainty: Ongoing changes in customs and trade regulations post-Brexit can create compliance hurdles for digital forwarders. Shipwaves is working with UK regulators to streamline digital documentation compliance.
High Initial Technology Investment: Upfront costs for advanced digital platforms can hinder adoption, especially among smaller players. Cogoport’s pay-as-you-go platform offers a flexible alternative for startups with limited resources.
UK Digital Freight Forwarding Market Share by Type, 2025
In 2025, road freight accounts for the largest portion of the UK digital freight forwarding market, benefiting from extensive domestic e-commerce flows and last-mile requirements. Sea freight ranks second, supported by robust global trade routes and increasing digitalization in port operations. Air freight, while smaller, sees steady growth due to demand for expedited deliveries, especially in high-value sectors. Combined, these segments reflect the evolving strategic preferences of UK shippers who are increasingly choosing digital solutions for speed, visibility, and cost efficiency.
UK Digital Freight Forwarding Market Share by Application, 2025
Retail and e-commerce dominate UK digital freight forwarding applications, holding 35% of the market due to thriving online shopping and direct-to-consumer shipping models. Manufacturing, at 28%, relies on digital solutions for efficient cross-border logistics and just-in-time supply chains. The automotive and healthcare sectors together comprise 24%, driven by complex, time-sensitive shipments. Remaining market share is split among consumer goods and other specialized industries, highlighting the broad impact digitalization has across diverse supply chains in the UK.
UK Digital Freight Forwarding Market Revenue (USD Million), 2020-2035
The UK digital freight forwarding market is poised for robust growth from 2020 to 2035, driven by expanding e-commerce, ongoing logistic digitalization, and innovative solutions. In 2025, revenue is estimated at $4,350 million, marking rapid post-pandemic acceleration. Annual growth is expected to sustain at a CAGR of 11.4%, reaching approximately $13,620 million by 2035. This significant increase reflects the sector’s adaptation to digital platforms, greater demand for end-to-end visibility, and scalable freight solutions across the UK and Europe.
UK Digital Freight Forwarding Market YOY (%), 2020-2035
Year-on-year (YOY) growth in the UK digital freight forwarding market reflects a steady upward trajectory, peaking during 2024 and 2025 as the market rebounds from global disruptions and embraces agile, digital-first logistics. YOY growth rates average 11-13% through 2028, then gradually moderate as the market matures, settling near 9% by 2035. This trajectory signals both heightened adoption and a transition toward sustainable, incremental growth supported by continuous innovation.
UK Digital Freight Forwarding Market Share by Region, 2025
In 2025, the Greater London area leads the UK digital freight forwarding market with a 36% share, attributed to its dense trade infrastructure and commercial activity. The South East region, capturing 24%, benefits from proximity to major ports and airports, facilitating speedy international links. The Midlands, known for its manufacturing and logistics hubs, maintains a 20% share. Remaining regions, including Northern England, Scotland, and Wales, cumulatively comprise 20%, reflecting broadening adoption across the UK.
UK Digital Freight Forwarding Market Share by Players, 2025
In 2025, Flexport is the market leader with a 19% share, offering comprehensive digital-forwarding services across modes. Zencargo follows at 14%, recognized for its UK-centric innovations and platform partnerships. DHL Global Forwarding, Forto, and Kuehne + Nagel each capture between 8-11% through robust end-to-end offerings. Emerging players and niche digital brokers collectively account for 41%, highlighting vibrant competition and ongoing disruption fueled by start-up innovation.
UK Digital Freight Forwarding Market Share by Buyers, 2025
Retail and e-commerce buyers constitute 31% of the UK digital freight forwarding market, driven by the continuous growth in online sales and demand for rapid logistics solutions. Manufacturing firms follow at 25%, reflecting their need for resilient, tech-driven supply chains. SMEs are increasingly engaging, making up 18% as digital platforms reduce barriers to entry. Automotive, healthcare, and other sectors comprise 26%, indicating wide applicability of digital forwarding across the UK economy.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
4350
Regions
Greater London, South East, Midlands, Northern England, Scotland, Wales
Segments
Type (Air, Sea, Road, Rail, Intermodal, Others), Application (Retail & E-commerce, Manufacturing, Automotive, Healthcare, Consumer Goods, Others), Distribution Channels (Direct, Third-Party Platforms, Freight Marketplaces, Digital Brokers, Partners, Others), Technology (AI & Machine Learning, IoT & Telematics, Blockchain, Cloud Computing, Big Data Analytics, Others), Organization Size (Small, Medium, Large)
June 2024: Flexport launches AI-powered dynamic pricing module for UK shippers, increasing rate transparency and speed.
July 2024: Zencargo partners with UK retailers to integrate direct booking APIs for seamless e-commerce logistics.
August 2024: DHL Global Forwarding unveils predictive analytics dashboard for UK clients, optimizing route selection.
August 2024: Instafreight extends its pay-as-you-go digital forwarding offer for UK SMEs, reducing entry barriers.
September 2024: Cogoport collaborates with UK Border Agency to streamline digital customs documentation workflows.
Frequently Asked Questions
About the Author
Ankit
Senior Research Consultant
Ankit is a Senior Research Consultant specializing in market research, industry analysis, and business consulting across Logistics. Ankit brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Ankit has helped organizations translate data into actionable growth strategies.
