Spotlight on Freight Audit & Payment: Interest is Up in Keeping Costs Down
Optimizing transportation spend is top of mind for shippers today—and the emphasis is likely to grow as companies seek ways to maximize budgets across every department. As a result, the need for freight audit and payment services is growing.
That’s the key finding of The Global Freight Audit and Payment Market Report from Verified Market Research, which notes that an increase in demand for effective transportation and logistics management systems is driving market growth.
Some key questions the report answers include:
• Why outsource this function? In addition to cost reduction, outsourcing the freight audit and payment function enables shippers to reduce time spent on tasks like collecting carrier invoices, conducting freight invoice audits, making payments to carriers, and pulling detailed reporting on freight costs and services.
The highly regulated nature of the U.S. transportation market is another factor pushing shippers to freight audit and payment services. The report shows that shippers are adopting these services to ensure compliance with various regulations.
• How big is the market? The report notes a market value of $696.11 million in 2022 and projects that number to reach $1.85 billion by 2030, growing at a compound annual growth rate (CAGR) of 13.67% from 2024 to 2030.
• What are the market segments? Currently, the market is bifurcated based on organization size, mode, industry verticals, and geography.
- Large organizations make up the largest market share, accounting for 64.48% of the market in 2022, with a market value of $448.87 million. The report projects this number will grow at a CAGR of 13.67% during the forecast period.
- Road freight accounted for the largest market share of 39.16% in 2022, with a market value of $272.59 million. It is projected to grow at the highest CAGR of 14.33% during the forecast period.
- Top industries included in the market are retail, manufacturing, food and beverage, and healthcare. Retail accounted for the largest market share of 31.35% in 2022, with a value of $218.21 million and a CAGR projection of 13.84% during the forecast period.
- Regionally, the market is classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America accounted for the largest market share of 44.9% in 2022, with a market value of $312.57 million and is projected to grow at a CAGR of 13.77% during the forecast period.