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The drayage services market size is forecast to increase by USD 3.60 billion, at a CAGR of 2.52% between 2023 and 2028. The growth of the market depends on several factors such as the growing manufacturing industry, the rising seaborne trade, and the increasing cross-border trade.
The report offers extensive research analysis on the market, with a categorization based on End-user, including electronics and electrical, food and beverage, consumer goods and retail, and others. It further segments the market by Type, encompassing inter-carrier drayage, expedited drayage, intra-carrier drayage, pier drayage, and others. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, the Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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Our researchers analyzed the data with 2023 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.
One of the key factors driving the market growth is the rising seaborne trade. Seaborne trade (in terms of volume) has been increasing continuously over the last decade. In addition, it is expected to continue its growth in the coming years due to the growing global GDP and increased demand for goods and materials produced in different regions.
Moreover, as the population continues to increase worldwide, the demand for various goods produced or manufactured in different regions, as well as the need for their transportation, increases. For instance, the popularity of French wines is increasing globally. Furthermore, seaborne transportation is more cost-efficient than other modes. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the growing e-commerce sector. E-commerce is a fast-growing market and has a significant influence on retail as well as distribution channels. In addition, the shift toward online shopping by customers seems to be permanent because of the several benefits that it offers, such as ease of buying, easy access to alternatives, and home delivery services.
Moreover, the rise in the adoption of the Internet and mobile devices is also fostering the growth of the global e-commerce market. Therefore, this has resulted in an increased demand for drayage services. Furthermore, APAC is the fastest-growing segment in the global e-commerce market due to the increase in the purchasing power of its middle-class population. Hence, such factors are driving the market growth during the forecast period.
Shortage of skilled drayage drivers is one of the key challenges hindering the market growth. Products in this supply chain need to be delivered to various destinations within a short duration. Therefore, a streamlined supply chain is required to ensure customer satisfaction. However, the global market is witnessing a shortage of skilled drayage drivers, which is negatively impacting its growth.
Moreover, this shortfall is expected to become more pronounced if various issues, such as low wages, long working hours, and the implementation of electronic logging devices (ELDs), are not addressed. In addition, in drayage especially, traffic is extremely congested in and around ports and metropolitan areas. Furthermore, many drayage drivers spend most of their time waiting, either in traffic or in line at ports. Therefore, many drayage drivers opt for long-haul driving instead of shorter-haul drayage services. Hence, such factors are hindering the market growth during the forecast period.
The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
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.
ContainerPort Group Inc: The company offers drayage services such as managed drayage services and domestic container drayage services.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 electronics and electrical segment is estimated to witness significant growth during the forecast period. Drayage services play a major role in facilitating smooth logistics and supply chain operations in the electronics and electrical segment. In addition, drayage services help in transporting components, parts, and raw materials of electronics and electrical segments from ports or manufacturing facilities to assembly plants or warehouses.
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The electronics and electrical segment was the largest segment and was valued at USD 11.31 billion in 2018. Moreover, there has been a shift in the dynamics of the industry. In addition, production has shifted from high-cost to low-cost countries, such as China, which has become an important hub for the high-volume production of electronic equipment. Furthermore, China has been implementing more environmentally friendly manufacturing practices in recent years in an effort to lower the production of dangerous greenhouse gases. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Due to the rapid economic growth in APAC, the per capita income of the people has increased dramatically over the past few years, which has resulted in an increase in the purchasing power of consumers, thereby leading to significant sales in the e-commerce sector. Therefore, the demand for drayage services is expected to predominantly stem from developing economies, including China, India, and Indonesia, as the growth fundamentals in these countries are expected to remain relatively strong. Moreover, government initiatives that emphasize trade and foreign direct investment (FDI) are strengthening the cross-border e-commerce logistics sector in APAC. Hence, such factors are driving the market growth in APAC during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth and forecasting analysis of the latest market trends and analysis and growth opportunities from 2018 to 2028.
Drayage Services Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.52% |
Market Growth 2024-2028 |
USD 3.60 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
1.76 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asiana USA, Boa Logistics LLC, ContainerPort Group Inc., Continental Logistics, Duncan and Son Lines Inc., Evans Delivery Co. Inc., G and D Integrated, Hub Group Inc., IMC Companies LLC, Interlog USA, ITS ConGlobal, J B Hunt Transport Services Inc., Knight Swift Transportation Holdings Inc., NFI Industries Inc., PLS Logistics, PORT CITY LOGISTICS, RoadOne IntermodaLogistics Inc., Schneider National Inc., Taylor Distributing Co., and Trinity Logistics Inc. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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