The North America customs brokerage market is estimated to reach USD 6.41 Billion by 2028, at a CAGR of 3.06 % during the forecast period from 2021 to 2028. Increasing manufacturing of goods in the region and increasing demand from other countries are driving the market growth. On other side, stringent environmental regulations and other restraints are expected to hinder the growth of the market studied.
North America customs broker market has witnessed higher market growth owing to the fact that customs broker will work with importers to check that the documentation, and where necessary, licenses, are in place for the goods they are bringing into the region, move out of the region, and between the states. They’ll also make sure that the correct duty and taxes are paid, to reduce any delays. Custom brokers also check the classification and valuation of goods, and making sure use the right commodity codes, liaising with government agencies and customs authorities on behalf, advising on any necessary licenses for import of restricted or hazardous goods, preparation and submission of documents which have to be filed to clear customs processes, helping arrange correct payment of import duties and VAT as necessary, and others. As the region have significant growth in end user verticals such as manufacturing, retail, and others, expected to witness better market growth over the years.
Cross-border land transport is a major segment that is likely to experience the highest CAGR during the forecast period. Cross-border land transport is benefitted by the relaxation of tax and duties which makes custom broker and ed-users to prefer the method for transportation of goods without causing any extra costs. Various investors are encouraging the utilization of these advantages along with the support from governing bodies, which is promoting the growth of this market. The water and air segment held the larger market shares in the year 2020. This is owing to the higher volumes transported very frequently.
Geographically, states such as California, Texas, Florida, Washington, New Jersey, and others are among the largest consumers of customs brokerage services. The growth of population is significantly high in these states along with the corresponding need for commercial transport and logistics ultimately leading to consumption of customs brokerage market.
As a result of the development of economies, infrastructure, and industries such as manufacturing, health, and retail among others in United States and Canada is expected to dominate the North America customs brokerage market in terms of consumption. Also, economic production, availability of labor, and raw material in the regions are expected to result in significant production and consumption of various products leading to higher market values.
Adroit Market Research report on the North America customs brokerage market gives a holistic view of the market from 2018 to 2028, which includes factors such as market drivers, restraints, opportunities, and challenges. The market has been studied for historic years from 2018 to 2020, with the base year of estimation as 2020 and forecast from 2021 to 2028. The report covers the current status and future traits of the market at the regional as well as country level. Also, the study assesses the market based on Porter's five forces analysis and positions the key players based on their product portfolio, geographic footprint, strategic initiatives, and overall revenue. Prominent players operating in the North America customs brokerage market have been studied in detail.
The North America customs brokerage market is segmented based on mode of transport, and, service. Based on mode of transport, the market is segmented into air, sea, and cross-border land transport. Based on the service, the market is segmented by software, consulting, contract logistics, and others.
The COVID-19 pandemic is having a significant impact on the customs brokerage market. Demand for the product is suffering severe shocks across various end-use markets, worldwide supply chains are upset, and the competitive order of manufacturers/producers has witnessed a change. The shortage of demand has fast-tracked the global manufacturing sector into an oversupply situation. Movement restrictions appear to be a direct and immediate effect, and once the compulsory social distancing ends, it is expected things would get back to normal conditions.
Some of the leading companies in the customs brokerage are United Parcel Services Inc., FedEx Corporation, Deutsche Post DHL group, Livingston International, Expeditors International, A.N Deringer and others. The usage of custom brokerage is more dominant in the import and export process for goods to various countries is expected to motivate the market in the forecasted period. This is one of the major factors driving the regional segment to contribute leading to the fast-paced growth of the North America customs brokerage market.
The major players operating in the North America customs brokerage market include but are not limited to United Parcel Services Inc., FedEx Corporation, Deutsche Post DHL group, Livingston International, Expeditors International, A.N Deringer and others. North America customs brokerage market is a moderately consolidated market with the presence of major players in the market. Key players in the market are implementing mergers and acquisitions, product launches, expansions strategy to improve the market share.
Key Segments of the North America customs brokerage market
Mode of Transport Overview, 2018-2028 (USD Billion)
- Cross-border Land Transport
Service Overview, 2018-2028 (USD Billion)
- Contract Logistics
Application Overview, 2018-2028 (USD Billion)
- Trade and Transport
Regional Overview, 2018-2028 (USD Billion)
- North America
- The U.S.