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The intermodal freight transportation market size is forecast to increase by USD 62 billion at a CAGR of 6.88% between 2023 and 2028. The market's growth hinges on various factors, including the cost savings from intermodal services, streamlined supply chain management, and the rise in free trade agreements. Intermodal freight combines multiple transportation methods and is increasingly favored over single-mode options like trucking. This preference is largely driven by the cost benefits that intermodal freight provides to shippers. The integration of different transport modes not only reduces freight costs but also simplifies logistics, making it an attractive choice in today's global trade environment. As free trade agreements continue to expand, the demand for efficient and cost-effective intermodal solutions is expected to grow, further boosting the market.
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The market is influenced by several factors, including carbon footprint and trucking efficiency. Handling domestic product and cargo handling involves minimizing damage and loss through optimized transport methods. Analyzing aggregate cost and logistics expenses helps address trucking issues like improper stacking order of boxes. Coordination among truckers, terminals, and billable processes is crucial for streamlined operations. Monitoring events, such as waybill creation, check-in, and check-out, along with service requests and unit locations, ensures efficient cross-borders movement. Managing noncitizens and nonresidents in the workforce is essential for compliance and operational efficiency, making intermodal freight a complex but vital component of global trade. Our researchers studied the market research and growth data for years, 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.
There is a high preference for intermodal freight over single modes of transportation such as trucks, owing to the cost advantages offered to shippers. The costs of road haulage companies are noted to be increasing. The cost can be categorized mainly into fuel, labor, and equipment.
Moreover, the cost of equipment such as trucks is rising due to increased R&D, and the massive pressure from the government or regulators, so suppliers must strive for a reduction in vehicle emissions. The reduced freight costs owing to the use of different modes of transport while moving goods from one place to another are expected to drive the growth of the market during the forecast period.
Both intermodal and multimodal transportation, are similar in most aspects; however, there is a clear distinguishing point between intermodal and multimodal. Multimodal transport is regulated by a single contract whereas intermodal transport may have several contracts with different carriers. Multimodal uses different modes of transport but under one single bill of lading.
Moreover, the same transport carrier is responsible for moving shipments in all different modes. It means that all modes of transport are covered by one company which is responsible for the movement of goods. The increasing convenience offered to shippers while transporting goods through multimodal transportation is expected to drive the growth of the market during the forecast period.
Investments in infrastructure are needed for the haulage of goods by intermodal transport. The investment includes the construction of gantry cranes and other heavy-duty cranes necessary to lift the cranes at different ports while changing the mode of transport. In addition, necessary investments for rail and road access are also required. For example, a seaport should have a rail line so that railways can transport goods to and from the seaport.
Similarly, roads are necessary so that trucks can easily access these ports. For example, a modern crane requires around USD 5 million or more than USD 5 million, depending upon the size and needs. The high infrastructure cost requirements are expected to impede the growth of the global market during the forecast period.
The market share growth by the rail transport segment will be significant during the forecast period. Rail transport has significance in the global market. It provides cost-effective and environmentally sustainable alternatives for transporting commodities over large distances. Due to its efficiency and ability to handle large volumes, in the last five years, there has been significant growth in the rail transport sector.
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The rail transport segment showed a gradual increase in the market share of USD 53.10 billion in 2018. Technological improvements such as the adoption of autonomous trains and improved tracking systems, and the competitiveness of rail transport in the intermodal freight industry. The adoption of rail transport as a mode of transportation is expected to drive the growth of the market focus during the forecast period.
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North America is estimated to contribute 33% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
The growth of the market is expected to be moderate during the forecast period because of the slow growth of the manufacturing and industrial sectors in the countries of North America. The market in North America is likely to benefit from the increase in freight volumes at US ports of entry. The increasing demand for automobiles in the automotive industry in the US and a shift in shipper supply chain strategies are likely to favor the Mexican manufacturing industry. The appreciation of US exchange rates with the Canadian dollar and Mexican peso will further fuel the growth, as it gives a cost advantage to manufacturing companies that produce goods in both countries and transport them to the US. Such factors will increase the market in this region during the forecast period.
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.
AP Moller Maersk AS - The company offers Intermodal freight transportation that provides global traders shorter transit times, cost-friendliness, and greener service in trucks, trains and cargo ships.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
AP Moller Maersk AS, BDP International Inc., C H Robinson Worldwide Inc., Convoy Inc., CSX Corp., Deutsche Bahn AG, Deutsche Post AG, Elemica Inc., Hapag Lloyd AG, J B Hunt Transport Services Inc., Koerber AG, Kuehne Nagel Management AG, Lynden Inc., MARTEN TRANSPORT LTD., Trimble Inc., Uber Technologies Inc., United Parcel Service Inc., WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP., WiseTech Global Ltd., and XPO Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Europe Road Freight Transportation Market: Europe Road Freight Transportation Market by Vehicle Type and Product - Forecast and Analysis
North America Road Freight Transportation Market: North America Road Freight Transportation Market by Type and Product Type - Forecast and Analysis
North America - Rail Freight Transportation Market: North America - Rail Freight Transportation Market by Mode Of Transportation and End-user - Forecast and Analysis
The market faces challenges like driver shortages and productivity-stifling factors impacting capacity and causing supply chain interruption. Supply risk and rising transportation expenses necessitate a diverse carrier base to reduce reliance on a single source of capacity. Supply chain leaders emphasize multimodal freight moves for both short term and long term solutions, enhancing capabilities and reducing fuel use and greenhouse gas emissions. Integrating truck transport with intermodal rail minimizes carbon emissions per ton-mile. Efficient use of containers, effective terminal operations, and adaptive strategies like precision-planned railroading (PSR) with optimized railcars and locomotives improve rail network performance. Enhanced rail access and industrial clusters support growth, attracting new players to the market.
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Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.88% |
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Market growth 2024-2028 |
USD 62 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.3 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 33% |
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Key countries |
US, Germany, China, Canada, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AP Moller Maersk AS, BDP International Inc., C H Robinson Worldwide Inc., Convoy Inc., CSX Corp., Deutsche Bahn AG, Deutsche Post AG, Elemica Inc., Hapag Lloyd AG, J B Hunt Transport Services Inc., Koerber AG, Kuehne Nagel Management AG, Lynden Inc., MARTEN TRANSPORT LTD., Trimble Inc., Uber Technologies Inc., United Parcel Service Inc., WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP., WiseTech Global Ltd., and XPO Inc. |
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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, Market condition analysis for forecast period |
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Customization purview |
If our market 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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Transportation
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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