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The road freight transport market size is forecast to increase by USD 175.3 billion at a CAGR of 7.44% between 2023 and 2028. The market's expansion hinges on various factors, such as the growth of e-commerce, escalating retail sales across the Asia-Pacific region, and the rise in cross-border trade. These elements collectively drive demand for road haulage and shape market dynamics, influencing strategic decisions among industry stakeholders. The rapid evolution of e-commerce provides significant opportunities for market growth, leveraging digital platforms for road logistics to reach global consumers efficiently. Concurrently, increasing retail sales in APAC underscore the region's economic importance and consumer spending trends. Moreover, the growth in cross-border trade reflects expanding global market integration and trade partnerships, fostering greater market competitiveness. Together, these factors contribute to a dynamic landscape where businesses navigate evolving consumer behaviors, technological advancements, and international trade dynamics to capitalize on emerging opportunities and sustain market growth.
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The road freight transport market research report provides comprehensive data (country-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market share growth by the medium and heavy commercial vehicle segment will be significant during the forecast period. Medium and heavy commercial vehicle transportation involves the movement of goods by surface transport carriers, such as heavy-duty trucks and trailers.
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The medium and heavy commercial vehicle segment was valued at USD 113.20 billion in 2018. Medium and heavy commercial vehicles are a mode of freight that is primarily used for larger shipments, which typically occupy more than half and up to the full capacity of a 48-foot or 53-foot trailer. This transportation mode also includes refrigerated trucks that are used for the transportation of temperature-sensitive products. Besides providing logistics services, the system providers also provide value-added services, such as loading and unloading, documentation, door-to-door delivery, and packaging. companies in the market are also adopting intermodal transportation to provide better services to their customers. Such factors fuel the growth of the medium and heavy commercial vehicle segment during the forecast period.
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APAC is estimated to contribute 50% 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. The market in APAC is expected to grow due to the presence of a large consumer base for both food and beverage and consumer packaged goods. With the rise in disposable incomes and the growing aging population in countries such as Japan and China, the expenditure on healthcare in this region is witnessing strong growth rates. This has increased the demand for temperature-controlled transport of healthcare products. Moreover, the increased demand for organic food products due to the availability of certified organic dairy products and rising health consciousness among consumers in countries are fueling the demand for related logistics.
Moreover, the availability of low-cost labor and resources in developing economies, such as India, Indonesia, Bangladesh, and Vietnam, has attracted many global automotive OEMs to establish their manufacturing plants in the region. Countries such as China, India, Japan, South Korea, and Taiwan have a high population base, and these countries are expected to drive the growth of the market in APAC during the forecast period. Thus, the aforementioned factors will drive road freight transport market growth during the forecast period.
The market is a critical component of logistics operations, facilitating the movement of goods via loading and unloading points across extensive road networks using diverse motor vehicles. This sector supports commercial road freight transport managed by numerous logistics companies and forwarders, catering to both In-house transfers and external corporate sites. Integral to Internal manufacturing processes, it adheres to road freight laws within EU member states and adheres to national criteria to promote sustainable tourism and ecological tourism. Recognized for its positive social and economic benefits, road freight transport balances the preservation of biodiversity and indigenous cultures while upholding moral principles within the tourism value chain. However, challenges persist, such as environmental deterioration, including the depletion of forests and loss of biodiversity, necessitating sustainable practices and regulatory compliance to mitigate ecological impacts on cultural and natural resources cherished by both visitors and the local population.
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.
The rapid growth in the e-commerce industry is notably driving the market growth. The global e-commerce industry is growing rapidly due to the increasing global penetration of the internet and the increasing availability of low-cost smartphones. There has been significant growth in the e-commerce space, especially in the APAC region. China and India are the largest e-commerce markets in the region. As China is the most populous country in the world, the rapid growth of the middle-class population and the increase in the number of internet consumers in the country will lead to an increase in the demand for diversified support services owing to the significant increase in e-commerce logistics.
Also, consumers are spending less time visiting offline stores as they prefer to shop online. Therefore, road transport service sellers need to market and brand their products through e-commerce websites. In addition, consumers buy various products from online shopping sites such as food and beverages, electronic products, personal care, health products, and others. Consequently, manufacturers and retailers are turning their attention to digital markets. Companies in the global road transport market have adopted new strategies to support the growing e-commerce sales. Therefore, these factors will help in shaping road freight transport market growth and trends during the forecast period.
The use of blockchain in the road transport industry is an emerging trend in the market. Blockchain technology is a digital ledger linked to a list of blocks that stores data in a cryptographically secured and decentralized network. Each block in the blockchain contains encrypted information and a pointer to the previous block, making it difficult to change the data without the entire chain. In the transportation industry, the use of blockchain technology increases the visibility of operations and offers stakeholders throughout the supply chain the ability to effectively track products throughout the logistics process.
As blocks are interconnected, they store information about all the stakeholders involved in the process and the products involved in each move. Blockchain technology also improves security because an independent third party records and verifies every transaction. In addition, data cannot be edited, deleted, or added without the approval of all network stakeholders, which strengthens security. Hence, owning to the many benefits of blockchain technology, road transport providers are collaborating with blockchain technology providers to develop platforms that increase security and transparency in the logistics industry. These factors will drive road freight transport market growth during the forecast period.
High operational costs and competitive pricing are major challenges impeding market growth. Operating costs are rising due to the instability of world fuel prices. For example, in 2022, the world market witnessed a price hike in ordinary motor gasoline and diesel fuel. Fuel prices are rising, which in turn increases the operating costs of market sellers and shippers. Market sellers are under constant pressure from customers to keep trucking prices low. Although these suppliers make a profit from fixed-term contracts with customers, fluctuations in global fuel prices reduce their profit share. End users demand additional services at the same price, which makes it difficult for companies to set prices for their services.
Further, the market requires a very capital-intensive infrastructure with a large fleet of vehicles and containers, warehouses equipped with special technology for storing various products, and a skilled workforce. Logistics service providers also must control their operating costs to compete in the market. In addition, with the growing market demand for additional services and professional supply chain solutions, trucking companies are becoming very competitive in pricing their services. Thus, such factors will restrain road freight transport market growth during the forecast period.
The road freight transport market forecasting 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 road freight transport market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting 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.
AlkomTrans - The company offers transport vehicles under two brands namely, Galaxy Interiors and Iveco Bus and their spare parts supply, as well as international cargo transportation.
The road freight transport market forecast 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 market plays a pivotal role in global logistics, connecting loading and unloading points via an extensive road network. Utilizing diverse vehicles, including vans, semitrailers, and refrigerated vehicles, it handles various needs, from hazardous goods transportation to container semi-trailers. The industry adheres to laws and regulations, focusing on environmental management and conservation efforts, promoting ecotourism and eco-friendly travel options, supported by CSR initiatives.
With a focus on commercial vehicles, motorcycles, passenger vehicles, and marine lubricants, the market caters to various product grades to meet specific requirements. Furthermore, certification of sustainable tourism and incentives like financial support, loans, grants, and tax exemptions drive environmental concern and support from younger generations. It facilitates diverse tourism types from coastal to mountain and urban tourism, ensuring efficiency through route planning and intermodal transport integration, despite challenges like weather variations and legal conflicts at EU borders. The market continues to evolve with technological advancements and increasing trade volumes, reinforcing its critical role in global commerce and transportation networks.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.44% |
Market growth 2024-2028 |
USD 175.3 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.41 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AlkomTrans, Cargo Carriers Ltd., CEVA Logistics, CJ Logistics Corp., Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., Fercam Spa, First European Logistics Ltd., Ital Logistics Ltd., J B Hunt Transport Services Inc., Kerry Logistics Network Ltd., KLG Europe, Kuehne Nagel Management AG, NGL Gondrand Group SA, Nippon Express Holdings Inc., Overland Total Logistics Services Sdn. Bhd., SNCF Group., and Yellow Corp. |
Market dynamics |
Parent market analysis, Market forecasting, 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 market forecast period |
Customization purview |
If our road freight transport market 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 Vehicle Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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