North America Road Freight Transportation Market by Type and Product Type - Forecast and Analysis 2024-2028

North America Road Freight Transportation Market Forecast 2024-2028 

The North America Road Freight Transportation Market size is estimated to grow by USD 130.44 million, at a CAGR of 2.47% between 2023 and 2028. The market's growth hinges on key factors including the imperative to enhance operational efficiency, the rise in cross-border trade, and the expansion of the e-commerce industry. These dynamics drive innovation and demand, prompting businesses to optimize processes and explore new markets. With an emphasis on efficiency and accessibility, the e-commerce sector serves as a catalyst for global trade, facilitating seamless transactions across borders. As businesses adapt to evolving consumer preferences and market trends, leveraging these factors becomes paramount for sustained growth and competitiveness in the dynamic market landscape.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is witnessing a surge in demand driven by various factors. The adoption of alternative fuels and self-driven trucks is reshaping the industry alongside advancements like blockchain integration for enhanced efficiency. Market Volume (ton-km) and freight transport volume are on the rise, influenced by production trends and import-export dynamics. However, challenges persist, including environmental concerns related to CO2 emissions and nitrogen oxide emissions, which urge the industry to prioritize environmental conservation. Moreover, freight pricing trends, GDP (Gross Domestic Product) fluctuations, and logistics complexities pose significant challenges in maintaining sustainable growth and operational efficiency. 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.

Key Market Driver

Growth in the e-commerce industry is notably driving the market. With the increasing popularity of online shopping, there has been a surge in demand for road transportation services to facilitate the movement of goods from warehouses and distribution centers to consumers' doorsteps. As more consumers opt for the convenience of online shopping, the e-commerce industry experiences exponential growth, thereby driving the need for efficient and reliable road freight transportation. Furthermore, the use of blockchain technology enhances operational efficiency and transparency in cross-border trade, facilitating smoother transactions and logistics operations.

Additionally, advancements in alternative fuels and the adoption of self-driven trucks contribute to environmental conservation efforts while meeting the growing demand for cargo services. Also, the connectivity between warehouses and distribution centers is crucial for the e-commerce industry. Road freight transportation plays a vital role in connecting these nodes, ensuring seamless and timely movement of products. Therefore, the growth of the e-commerce industry in the region has led to an increase in the market demand for road freight transportation in North America, thereby driving the market during the forecast period.

Key Market Trends

The introduction of self-driven trucks is an emerging trend shaping the market. Driverless trucks are expected to be the future of the road cargo transportation industry. An increasing number of automotive companies are investing in self-driving technology. For instance, Elon Musk unveiled the Tesla Semi in November 2017, which is a large electric-powered, long-haul trucking vehicle. The adoption of driverless trucks is expected to reduce the cost of cargo transport substantially and is likely to increase safety in road transportation. 

Moreover, automobile companies in Europe and Japan have started testing driverless trucks. In the US, some companies have been using semi-autonomous trucks. Thus, such developments will propel the market during the forecast period.

Major Market Challenge

A shortage of qualified truck drivers is a significant challenge hindering the market growth. The trucking industry has a shortage of qualified truck drivers. The reasons for the shortage of truck drivers are low driver wages, lack of interest in the industry, and the current demographic of drivers, with more than 46 years of age representing 25% of the industry workforce. This means that trucking companies must increase their freight charges to compensate for their losses, thus driving inflation. Werner Enterprises Inc. (Werner), an LTL company in the road freight transportation market in North America, has a fleet of 8,000 trucks but cannot haul them because of a shortage of truck drivers.

Further, to combat the situation, trucking companies are offering high incentives and bonuses to drivers. Similarly, the hiring of new drivers and equipment is raising the operational costs for companies and is becoming increasingly difficult for smaller-owned trucking industries. The purchase of new trucks now costs 55% more than it did in 2008. Thus, a shortage of qualified drivers will hamper the market during the forecast period.

Market Customer Landscape

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

Who are the Major Market Companies?

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.

ArcBest Corp. - The company offers road freight transportation services by cargo van, straight truck, and tractor trailer.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• C H Robinson Worldwide Inc.
• CMA CGM SA Group
• Estes Express Lines
• FedEx Corp.
• Hub Group Inc.
• J B Hunt Transport Services Inc.
• Knight Swift Transportation Holdings Inc.
• Landstar System Inc.
• NFI Industries Inc.
• Old Dominion Freight Line Inc.
• Penske Corp.
• R L Carriers Inc.
• Ryder System Inc.
• Schneider National Inc.
• TransForce Inc.
• United Parcel Service Inc.
• Werner Enterprises Inc.
• XPO Inc.
• Yellow Corp.

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.

What is the Largest-Growing Segments in the Market?

The full truckload segment is estimated to witness significant growth during the forecast period. The full truckload segment is likely to experience steady growth during the forecast period. These carriers generally transport bulk freight. Full truckload freight carriers ship a wide variety of items. Different types of equipment and insurance are required for different kinds of shipments. Some carriers specialize in moving freight. 

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The full truckload was the largest segment and was valued at USD 885.60 million in 2018. The growing manufacturing industry is expected to drive the growth of the North America road freight transportation market. Companies in the market are adopting intermodal transportation to provide better services to their clients. The full truckload segment is highly fragmented, with the largest carriers accounting for less than 1% of the road freight transportation market in North America. In terms of industry concentration, the top 25 full truckload carriers have a combined market share of around 8%. Therefore, increasing e-commerce activities, the growth in the manufacturing and construction sectors, rising consumer demand for fast and reliable shipping, expanding cross-border trade, and the need for capacity expansion to meet the growing transportation needs of various industries are anticipated to contribute to the overall growth and development of the full truckload segment of the market during the forecast period.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook 
  • Full truckload
  • Less-than truckload

• Product Type Outlook 
  • Solid goods
  • Liquid goods

Market Analyst Overview 

The road transportation industry is a critical component of global commerce, facilitating the movement of goods across vast distances. Market volume and freight transport volume (ton-km) reflect the ongoing production trends in manufacturing and e-commerce, alongside shifts in import-export trends. Freight Pricing Trends (USD per ton-km) are influenced by GDP fluctuations and the cost per ton-km. Environmental concerns such as carbon dioxide emissions and greenhouse gases drive efforts to reduce harmful gases and mitigate air pollution. To address challenges like traffic congestion, synchronization among agencies and the use of big data analytics are increasingly employed. Digital mobile communications and electronic toll collection enhance operational efficiency, while automated speed cameras improve safety. The logistics industry relies on a mix of light, medium, and heavy-duty vehicles, serving both domestic and international road freight transportation needs. Additionally, the bargaining power of suppliers and buyers shapes market dynamics, fostering competition and innovation.

Additionally, the sector is pivotal for global trade, encompassing various modes such as less-than-truckload (LTL), medium duty, and heavy-duty vehicles. Market volume and freight transport volume metrics track the industry's performance, influenced by production trends in manufacturing and e-commerce, as well as import-export trends. Freight pricing trends are tied to GDP fluctuations and the cost per ton-km. Airline operations and maritime transport also impact the market, alongside the adoption of information and communication technologies (ICT). The sector encompasses commercial vehicle operations (CVO), including public and private buses and taxis. Safety measures like automated speed cameras are integrated, reflecting efforts to enhance industrial activity while ensuring efficient domestic road, rail, air, and sea freight transportation. Supplier and buyer bargaining power dynamics shape market interactions, influencing pricing and service offerings. Integration of the use of blockchain technology enhances transparency and security across supply chains.

Furthermore, the market is influenced by various factors, including market volume and freight transport volume, which reflect the scale of operations. Production trends in manufacturing and e-commerce drive demand, impacting import and export trends. Fluctuations in freight pricing trends, often tied to GDP changes, affect profitability. Environmental concerns, such as greenhouse gas (GHG) emissions, drive innovation in vehicle technology, including light duty vehicles, medium duty vehicles and heavy duty vehicles. The adoption of automated speed and red-light camera systems enhances safety in domestic road freight transportation routes, complementing rail freight and air freight transportation networks. Supplier bargaining power dynamics influence pricing strategies, reflecting market competitiveness. Efficient utilization of resources is crucial to meet the growing demand for freight services while mitigating environmental impact.

Market Scope
Report Coverage	Details
Page number	146
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 2.47%
Market Growth 2024-2028	USD 130.44 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	2.25
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ArcBest Corp., C H Robinson Worldwide Inc., CMA CGM SA Group, Estes Express Lines, FedEx Corp., Hub Group Inc., J B Hunt Transport Services Inc., Knight Swift Transportation Holdings Inc., Landstar System Inc., NFI Industries Inc., Old Dominion Freight Line Inc., Penske Corp., R L Carriers Inc., Ryder System Inc., Schneider National Inc., TransForce Inc., United Parcel Service Inc., Werner Enterprises Inc., XPO Inc., 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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