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The intermodal freight transportation market size is estimated to grow at a CAGR of 6.64% between 2022 and 2027. The market size is forecast to increase by USD 56.12 billion. The growth of the market depends on several factors, such as the reduced freight transportation costs with intermodal services, the ease in management of the supply chain with intermodal services, and the increasing free trade agreements.
This report extensively covers market segmentation by mode of transportation (rail transport, road transport, and sea transport), product (minerals and ores, food and farm products, equipment and instruments, chemicals, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Intermodal Freight Transportation Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
There is a high preference for intermodal freight transportation 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 of intermodal freight transportation 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 intermodal freight transportation market during the forecast period.
Both intermodal and multimodal transportation, use multiple modes of transportation and are similar in most aspects; however, there is a clear distinguishing point between intermodal and multimodal transportation. 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 intermodal freight transportation 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 intermodal freight transportation 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 intermodal freight transportation 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 50.38 billion in 2017 and continued to grow by 2021. 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.
Non-metallic minerals, such as salt, and metal ores, such as iron, fall under this segment. The segment also includes stone-related goods such as gravel. An ore shall be defined as a natural solid rock from which precious minerals are capable of being exploited in an economically advantageous manner. It contains metals such as iron, lead, and manganese. A mineral is a solid and naturally occurring inorganic solid with a definite pattern and chemical composition. Iron ore is a key source of iron for the steel and iron industry around the world. In some countries of the world, they are found to have an abundance. Australia is one of the highest producers of iron ores in the world. The anticipated growth in demand for iron ores in the above-mentioned countries is expected to increase the need for intermodal transportation for moving such materials from one place to another, in turn driving the growth of the intermodal freight transportation market during the forecast period.
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North America is estimated to contribute 33% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during 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 intermodal freight transportation 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 of intermodal freight transportation, 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.
The COVID-19 pandemic had a negative impact on the regional market in 2020. However, the introduction of COVID-19 vaccinations in 2021 initiated recovery from the negative impacts of the pandemic. As more individuals were vaccinated, the regional and global industries reopened, increasing demand for intermodal transportation, particularly in the e-commerce sector. The North American intermodal freight transportation market is predicted to grow steadily during the forecast period, aided by the reopening of economies and the growth of e-commerce. Thus, it is likely that in order to increase efficiency and capacity we will need to spend significantly more on infrastructure and technology. This, in turn, will drive the growth of the regional market 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 20 market companies, including:
BDP International Inc., C H Robinson Worldwide Inc., Convoy Inc., 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., Wabtec Corp., WiseTech Global Ltd., XPO Inc., and CSX Corp.
Technavio report provides 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 intermodal freight transportation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Intermodal Freight Transportation Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.64% |
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Market growth 2023-2027 |
USD 56.12 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.12 |
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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, Canada, China, Germany, and the 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., 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., Wabtec Corp., WiseTech Global Ltd., XPO Inc., and CSX Corp. |
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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, and Market condition analysis for the forecast period. |
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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. 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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