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The Europe Road Freight Transportation Market size is forecast to increase by USD 40.71 billion, at a CAGR of 1.84% between 2023 and 2028.
The market's expansion hinges on several critical factors, notably the pivotal role of road freight in intermodal transportation, the surging demand for road freight spurred by the e-commerce industry, and the escalating volumes of cross-border trade. These dynamics underscore the essential nature of efficient road freight services in facilitating the seamless movement of goods across various sectors and geographical boundaries. The e-commerce sector, in particular, has emerged as a major driver, relying heavily on road freight to meet the escalating demands of online consumers. Additionally, the surge in cross-border trade necessitates robust road freight infrastructure and logistics solutions to ensure timely and reliable delivery of goods, further fueling the market's growth trajectory. The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The market is driven by the increasing demand for goods & services transport across roadways, utilizing trucks, vans, and cargo vehicles. Key trends include the rise of Intermodal Transportation to enhance efficiency and the growth of Cross-Border Trade Activities due to globalization and favorable trade agreements between neighboring countries. However, challenges such as traffic congestion, fluctuating fuel prices, and border controls pose hurdles to seamless operations, highlighting the need for strategic partnerships and innovative delivery services for speedy delivery. 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.
Increasing cross-border trade is notably driving the market. Cross-border trade comprises the sales and purchase of goods and services across international land borders. In addition, it allows enterprises to expand their businesses in terms of geography and demographics. Furthermore, it also helps countries boost their economy as the export and import of goods lead to an increase in tax revenue, which, in turn, contributes to the GDP of countries.
Moreover, this has encouraged various countries in Europe to increase their cross-border trade. In addition, the EU is the leading exporter of clothing globally. Furthermore, France and Italy are the major exporters of beauty and personal care products and industrial machinery. In addition, factors such as the presence of many landlocked countries, liberalization of cabotage, increasing trade activities, and rising disposable income are expected to drive the demand for cross-border road transportation in Europe. Hence, such factors are driving the market during the forecast period.
Growing digital transformation in road freight transportation is an emerging trend in the market. Digital transformation is transforming the road freight transportation landscape in Europe, reshaping how supply chains operate, and improving the efficiency, transparency, and responsiveness of the transportation industry. In addition, this transformation entails the integration of digital technologies across all aspects of transportation operations.
Moreover, at the core of this trend are technologies such as artificial intelligence (AI), the Internet of Things (IoT), data analytics, and blockchain. In addition, AI and data analytics enable predictive insights and real-time decision-making by analyzing vast amounts of data to optimize routes, anticipate demand, and enhance resource allocation. Furthermore, the IoT connects devices, vehicles, and equipment, allowing for real-time tracking, remote monitoring, and seamless communication among all stakeholders. Hence, such factors are driving the market during the forecast period.
The lack of truck drivers is a major challenge hindering the market. There is a lack of drivers in the transport industry in Europe. In addition, countries such as the UK, Spain, Norway, and Germany have been affected by a shortage of drivers in the market. Furthermore, the potential pool of drivers had decreased drastically in Spain.
Moreover, one of the reasons for the unavailability of drivers is the fading interest among individuals and the lack of women and the young population opting for driving as a profession. In addition, the increasing average age of drivers is expected to further negatively impact market growth. Hence, such factors are negatively impacting the road freight transportation market in Europe. Hence such factors hinder the market during the forecast period.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis 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.
CEVA Logistics S A: The company offers road freight transportation services such as Intermodal Carrier Haulage and Intermodal Multi Carrier are designed to address end to end logistics concerns with a focus on the inland transportation of full container loads FCL.
The market research and growth 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 is a critical component of the region's logistics infrastructure, facilitating the movement of goods & services across roadways using various vehicles such as trucks, vans, and cargo carriers. This market thrives on providing efficient door-to-door delivery services and ensuring speedy delivery to meet the demands of businesses and consumers. One of the key drivers of this market is the presence of common borders and trade agreements between neighboring countries, allowing for seamless cross-border trade activities. Governments play a crucial role in regulating and supporting this trade flow, especially in sectors like food & beverages, agriculture, metal & mining, and healthcare. The trend of globalization has further boosted the demand for Intermodal Transportation, integrating different modes of transport to optimize efficiency and cost-effectiveness. Online Shopping and Custom orders drive the need for warehousing, order fulfillment, and delivery services, often outsourced to Third-Party Logistics (3PL) providers offering Contract Logistics Services.
Moreover, the medium and heavy commercial vehicle segment is estimated to witness significant growth during the forecast period. The medium and heavy commercial vehicle type dominates the market owing to its ability to accommodate a wide range of cargo requirements. In addition, established manufacturers such as Volvo, DAF Trucks, and Mercedes-Benz dominate the market with modern versions that offer larger payloads, fuel efficiency, and emissions compliance. Furthermore, electric and hybrid models are gaining popularity in order to meet rigorous environmental regulations.
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The medium and heavy commercial vehicle segment was the largest segment and was valued at USD 272.16 billion in 2018. Moreover, the market is being pushed by e-commerce growth, which necessitates effective logistics. However, challenges include alternative fuel infrastructure and driver shortages. In addition, The continued shift towards sustainable practices is shaping the market future, with innovations such as autonomous driving and networking improving operational efficiency and safety. Hence, owing to such factors, the demand for medium and heavy commercial vehicle types is expected to increase and hence drive the growth of the market during the forecast period.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is a dynamic sector influenced by various factors, such as the movement of goods & services, efficient roadways, and logistics transportation. With a focus on door-to-door delivery services and speedy delivery, road freight plays a vital role in connecting destinations within and across domestic countries. Trade agreements and common borders between neighboring countries further stimulate cross-border trade, supported by governments' policies. This market serves diverse industries like food & beverages, metal & mining, and healthcare, aligning with the trend of globalization. Manufacturers & retailers rely on freight transportation service providers to ensure timely delivery, reflecting the trust of consumers and the importance of cost-effective transportation solutions.
Moreover, logistics service providers offer multi-modal transportation systems to overcome challenges like flight cancellations and movement restrictions. They navigate logistics activities in the air, freight, and sea sectors, adapting to border controls, health screenings, and closures during emergencies. Despite facing moderate growth rates and challenges in the healthcare segment, the market thrives with activities such as cross-border trade, online shopping, warehousing, and order fulfillment. Strategic partnerships, contract logistics services, and automation solutions enhance supply chain management, particularly in the online retailing sector, catering to the consumption needs of urban populations. The market's future evolution will be shaped by advancements in road infrastructure, autonomous vehicle technologies, and trade policies, aiming for efficient and sustainable road freight operations.
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Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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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 1.84% |
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Market Growth 2024-2028 |
USD 40.71 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
1.64 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
CEVA Logistics S A, DACHSER SE, DB Schenker, Deutsche Bahn AG, Deutsche Post AG, DSV AS, Ewals Cargo Care Holdings BV, FedEx Corp., GEODIS, H.Essers, Hellmann Worldwide Logistics SE and Co KG, Kuehne Nagel Management AG, MARITIMA SURESTE SHIPPING SLU, Raben Group, Rhenus SE and Co. KG, Schneider and Cie. AG, UAB Girteka Logistics, XPO Inc., Ziegler Group Corp., and AP Moller Maersk AS |
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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.
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 Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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