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The Japan Road Freight Transport Market size is forecast to increase by USD 7.36 billion, at a CAGR of 5.08% between 2022 and 2027. Market growth is influenced by several factors, including the expansion of e-commerce and the evolution of last-mile delivery solutions, catering to the increasing consumer demand for convenient shopping experiences. Additionally, urbanization and population density play a pivotal role in driving market growth, as densely populated areas create higher demand for logistics and transportation services. Furthermore, infrastructure development initiatives contribute to market expansion by enhancing connectivity and facilitating smoother transportation networks. These factors collectively shape the growth trajectory of the market, emphasizing the importance of efficient logistics and transportation systems in meeting the evolving needs of urbanized societies. As e-commerce continues to flourish and urban populations grow, the market is poised for sustained growth, offering opportunities for businesses operating in the logistics and transportation sectors to innovate and expand their services. Our market forecasting report examines historical data from 2017 to 2021, besides analyzing the current market scenario,
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In the market, the landscape is evolving rapidly with the rise of e-commerce and the demand for efficient logistics solutions. Companies in this sector cater to the transportation needs of various industries, including wholesale and retail trade, agriculture, and real estate developers. From solid goods to fluid goods, firms handle a diverse range of cargo, utilizing a mix of full truckload and less-than-truckload services. With the expansion of online payments and door-to-door service, the industry is witnessing a shift towards convenience and accessibility. Small fleet operators play a crucial role, complementing larger carriers and providing specialized services. Investment in infrastructure is vital to support the growing e commerce sector and accommodate the increasing demand for warehousing space. As the network of roads expands and technology advances, the road freight transport market continues to adapt to meet the evolving needs of the modern economy.
This market report extensively covers market segmentation by end-user (manufacturing, automotive, consume goods, food and beverage, and others), vehicle type (medium, heavy commercial vehicle, and light commercial vehicle), and type (full truckload and less than truckload). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The manufacturing segment is estimated to witness significant growth during the forecast period. The manufacturing sector of the Japan - Road Freight Transport Market is essential to the broader logistics and supply chain sector. Manufacturers that use road freight are responsible for the transportation of goods and raw materials throughout the country.
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The manufacturing segment was the largest segment and was valued at USD 5.29 billion in 2017. Road freight transport offers a dependable and effective route to convey their goods to the market for manufacturing enterprises in Japan, which frequently have many production facilities spread across various regions. Additionally, road freight transport is used for the delivery of raw materials and components to production facilities. Many of Japan's raw materials are imported, and road transportation is crucial for getting these supplies from ports or airports to factories.
Japan's road freight transport market encompasses a diverse range of vehicles, with a significant share belonging to the medium and heavy commercial vehicle segment. These vehicles are frequently used to move commodities over varied distances inside the nation. Urban delivery trucks are specially designed for driving through crowded urban areas. They must be small and quick so that they are able to offer efficient delivery of services in little places and narrow streets. Refrigerated Trucks are used to transport perishable goods, and many medium-sized commercial trucks in the road freight transport sector in Japan are fitted with refrigeration units. Heavy Commercial Vehicle Trucks having a GVWR greater than 7.5 tons are classified as heavy commercial vehicles in the road freight transport industry of Japan. The increased benefit of the medium and heavy commercial vehicles segment will drive the growth of the Japan Road Freight Transport Market during the forecast period.
In the market, various factors shape its dynamics, including long haul distances and the growing significance of less than-truck-load (LTL) services. Light commercial vehicles are instrumental in facilitating last-mile deliveries, especially in urban areas where congestion is common. CEP (courier, express, and parcel) services are a key component, catering to the needs of the booming e-commerce sector. Value-added services (VAS) such as warehousing, packaging, and tracking enhance efficiency and customer satisfaction. As e-commerce continues to expand, the demand for road freight services is expected to rise, driving growth in the market. Industry players must adapt to the evolving landscape by investing in technology, optimizing routes, and enhancing service offerings to remain competitive in the dynamic market. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
E-commerce and last-mile delivery are driving growth in the market. The market has been severely impacted by e-commerce and last-mile delivery. As the e-commerce industry continues to rapidly grow, there is a growing need for last-mile delivery services. Increases in the volume of items moved inside cities and metropolitan areas are the result of the market growth analysis of online shopping platforms and shifting customer behavior.
Additionally, the last-mile delivery segment is seeing a transformation thanks to the introduction of cutting-edge delivery techniques like drones and autonomous cars. Some organizations are trying these technologies with a view to addressing the issues of congestion and delivery time limits, as well as increasing the effectiveness of last-mile deliveries. The growth of online shopping and the need for efficient last-mile delivery services have contributed to the expansion of the Japan Road Freight Transport Market during the forecast period.
The increase in road freight demand is one of the primary market trends shaping the market. Japan's online sales have been growing, and it is expected that this will continue. There is now more need for road freight transport to convey items from distribution centers to customers' homes as a result of the growth of online shopping and home delivery services.
However, investments in the construction of infrastructure, such as new and improved roads, have been made by Japan. The increase in road freight demand in Japan can be attributed to economic growth, the rise of e-commerce, efficient infrastructure, the aging population, and disaster resilience needs, which will drive the growth of the Japan Road Freight Transport Market during the forecast period.
The availability of substitutes is a major challenge faced by the market. The Japan Road Freight Transport Market confronts difficulties because there aren't many alternatives. Due to the lack of feasible alternatives, road freight transport is the most important way in which products are transported across the country. The market is heavily dependent on road transportation due to a lack of alternatives, making it vulnerable to problems including traffic congestion, rising fuel prices, and environmental concerns.
Additionally, relying too heavily on roads has detrimental effects on the ecosystem. Vehicle and truck use of diesel fuels is adding to air pollution and climate change. To lessen the negative environmental effects of road freight transport, there is a need for further development of different modes of transport in order to meet Japan's commitment to reducing greenhouse gas emissions and promoting sustainability. The availability of substitutes will hamper the growth of the Japan Road Freight Transport Market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. The market growth and forecasting focus on adoption rates in different regions based on penetration. Furthermore, the market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data, with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The market plays a pivotal role in the transportation of various goods, ranging from finished goods to retail products. Factors such as rising income and production contribute to increased demand for transportation services, including exports and domestic deliveries. Leading brands rely on efficient road transportation services to distribute their products nationwide. However, challenges like tax hikes and fuel costs affect truckers and small fleet owners. Regulatory changes, such as the implementation of BF VI Norms and GST, impact the operational landscape. To address sustainability concerns, companies are investing in E vehicles and reefer trucks. Digitalization and automation are reshaping the industry, with startups like Blackbuck and Rivigo leveraging technology to optimize freight operations. Collaboration logistics and cross-border trade further drive growth in the market.
Further, in the market, various factors like rising production in industries such as the automotive sector drive demand for transportation services. The rise of e-commerce deliveries and the need for efficient logistics solutions are paramount for domestic entities and emerging startups alike. Challenges such as petrol prices and diesel price increases impact operational costs, while VAT cuts may offer some relief. Regulatory frameworks like the Scrappage Policy and infrastructure projects like Bhratamala Pariyojana influence market dynamics. Sustainability initiatives, including the adoption of green initiatives and asset-light models, are gaining traction amidst concerns about high inflation and the economic recovery. Companies like ArcBest Corporation, CEVA Logistics, and Scan Global Logistics play key roles in freight transportation, adapting to changing market conditions while addressing demands for efficient services and innovative solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
138 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.08% |
Market growth 2023-2027 |
USD 7.36 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.73 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Deutsche Post AG, FedEx Corp., FUJITRANS Corp., Hankyu Hanshin Holdings Group, Japan Post Holdings Co. Ltd., Kintetsu Group Holdings Co. Ltd., Kokusai Express Co. ltd., Konoike Group, LOGISTEED Ltd., Mitsubishi Logistics Corp., MITSUI and CO. LTD., Nichirei Corp., Nippon Express Holdings, Sakai Moving Service Co. Ltd., Sankyu Co. Ltd., Seino Transportation Co.Ltd., SG Holdings Co. Ltd., United Parcel Service Inc., Yamato Transport Co. Ltd., and YUSEN LOGISTICS CO. LTD. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Vehicle Type
8 Market Segmentation by Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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