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The road freight transport market is estimated to grow at a CAGR of 6.03% between 2022 and 2027. The size of the market is forecast to increase by USD 130.56 billion. The growth of the market depends on serval factors, including the rapid growth in the e-commerce industry, the growing retail sales in APAC, and the increasing cross-border trade.
This report extensively covers market segmentation by vehicle type (medium, heavy commercial vehicle, and light commercial vehicle), end-user (manufacturing, automotive, consumer goods, food and beverage, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global trucking market as a part of the global transportation market. The parent global trucking market covers companies engaged in goods and passenger land transportation, including vehicle rental and taxi companies. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rapid growth in the e-commerce industry is notably driving the market growth, although factors such as high operational costs and competitive pricing may impede the market growth. 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.
Key Road Freight Transport Market Driver
The rapid growth in the e-commerce industry is notably driving 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.
Consumers are also 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 products, health products, and others. Consequently, manufacturers and retailers are turning their attention to digital markets. Consequently, vendors in the global road transport market have adopted new strategies to support the growing e-commerce sales. Therefore, these factors will help in the growth of the market during the forecast period.
Significant Road Freight Transport Market Trend
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 the growth of the global market during the forecast period.
Major Road Freight Transport Market Challenge
High operational costs and competitive pricing are major challenges impeding the 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. 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 the growth of the market during the forecast period.
Key Road Freight Transport Market Customer Landscape
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Road Freight Transport Market Customer Landscape
Vendors 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 operates under one segment. The company under this segment offers transport vehicles under two brands namely, Galaxy interiors and Iveco Bus and their spare parts supply, as well as international cargo transportation. The key offerings of the company include road freight transport.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the medium 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 trucks and trailers.
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The medium segment was valued at USD 106.91 billion in 2017 and continued to grow until 2021. 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, road freight transport providers also provide value-added services, such as loading and unloading, documentation, door-to-door delivery, and packaging. Vendors 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 47% 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 road freight transport market in APAC is expected to grow due to the presence of a large consumer base for both food and beverage and consumer 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 resulted in an increase in 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 and, in turn, road freight transport from the healthcare and food and beverage industries.
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 road freight transport market in APAC during the forecast period. Thus, the aforementioned factors will drive the growth of the market in focus during the forecast period.
The road freight transport market in the region was negatively impacted by the COVID-19 outbreak in the region in 2020. However, with the gradual recovery of economies from the COVID-19 crisis due to the resumption of activities and the adoption of e-commerce models by various end-user industries, the regional road freight transport market has been in recovery mode since 2021. Thus, the market in focus will grow positively during the forecast period.
The 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. The market has been segmented by Vehicle Type (Medium, heavy commercial vehicle, and Light commercial vehicle), End-user (Manufacturing, Automotive, Consumer goods, Food and beverage, and Others), and Geography (APAC, North America, Europe, Middle East and Africa, and South America).
Road Freight Transport Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.03% |
Market growth 2023-2027 |
USD 130.56 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.67 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AlkomTrans, Cargo Carriers Ltd., CEVA Logistics AG, 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 and Nagel International 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 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 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 Vehicle Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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