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The road logistics market size is estimated to grow by USD 710.3 billion between 2023 and 2028 exhibiting a CAGR of 3.2%. The market is centered on the planning, execution, and control of the procurement, movement, and stationing of materials, personnel, and other resources. A key focus within this market is the adoption of green logistics solutions, driven by rising global warming concerns and the need to reduce carbon emissions. Green logistics involves implementing sustainable operations aimed at minimizing environmental pollution, which is increasingly becoming a priority for vendors in the global market. Additionally, the growing demand from the medical and healthcare industry in the US is significantly driving market growth. The increased outsourcing of logistics services further supports this expansion, as businesses seek efficient and reliable logistics partners to handle their supply chain needs. These factors collectively underscore the dynamic and evolving nature of the market, highlighting its critical role in sustainable transportation and efficient resource management.
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The market share growth by the domestic segment is significant during the forecast period. Domestic deliveries are more affordable than foreign deliveries, which has fueled the expansion of the domestic segment of the global market. Local players with a large number of fleets and offer competitive prices dominate the domestic market.
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The domestic segment was valued at USD 2.78 billion in 2018. Additionally, major players in APAC, such as Mahindra and All Cargo, are also transitioning to an asset-light business model, subcontracting with regional transport suppliers, and offering value-added services such as kitting, assembly, packing, and other crucial aspects of the market. Owing to these factors, the domestic application segment is expected to witness a growth rate of 2.47% in 2023 and 3.89% in 2024. These factors are expected to drive market growth during the forecast period.
A truckload is a mode of freight, which is mainly used for larger shipments that typically occupy more than half and up to the full capacity of a 48-foot or 53-foot trailer. This mode is commonly used when shippers decide they have enough items to fill a truck, want all their shipments in one trailer when the freight is time-sensitive, or if the shipper decide that it is more cost-effective than the other options available. The transportation mode also includes refrigerated trucks that are used for the transportation of temperature-sensitive products. Apart from providing logistics services, road freight service providers also provide value-added services, such as loading and unloading, documentation, door-to-door delivery, and packaging. The growing global manufacturing industry is expected to drive the growth of this market segment during the forecast period. Vendors 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 market.
APAC is estimated to contribute 54% 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.
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The demand is expected to increase in developing economies such as China, India, and Indonesia during the forecast period, with growth fundamentals to remain relatively strong. Rapid economic growth in APAC drastically increased per capita income over the past few years, which led to a rise in the purchasing power of consumers and, therefore, higher sales in the e-commerce industry. This will positively influence the market. The high growth of LTL carriers in APAC is also attributed to an increase in imports and exports due to a rise in industrialization that requires manufacturers to move their raw materials and finished goods worldwide. Furthermore, the large automobile manufacturing industry in Japan and India offers market potential for LTL carriers. Such factors will boost market growth during the forecast period.
The logistics industry encompasses a diverse range of goods and services, from fluid goods to solid goods, and from temperature-controlled to non-temperature-controlled shipments. In the express market, services like parcel delivery and same-day shipping are in high demand, catering to both domestic and international customers. Value-added services (VAS) further enhance the offerings, providing additional benefits such as warehousing and courier parcel services. Different transportation modes, including truckload and less than truckload, accommodate varying shipment sizes and distances, whether for short-haul or long-haul journeys. Real estate developers and small fleet owners play a crucial role in supporting the logistics infrastructure, especially within domestic flow corridors and neighboring countries. Containerized and non-containerized shipments are efficiently managed to ensure smooth operations across the supply chain, meeting the diverse needs of businesses and consumers alike.
The growth of the market is propelled by the increasing trend of outsourcing logistics services. Companies opt to outsource to avoid the substantial costs and time investment associated with building a logistics infrastructure. Third-party logistics providers offer customized solutions, enabling companies to reduce operational expenses and maintain cash flows.
Moreover, this approach also allows for savings by avoiding expenses related to warehousing, machinery, and vehicles. Shippers can partially outsource logistics requirements, focusing on their core competencies. The trend of outsourcing services is expected to persist as manufacturing companies expand operations, seeking to enhance operational efficiency and cost savings in the Market during the forecast period.
An emerging trend in the same-day delivery market is the adoption of automation. As logistics players offering same-day delivery services face increasing costs associated with fuel, maintenance, and labor, many have been investing in autonomous logistics to maintain profitability in a highly competitive market.
Moreover, this shift toward automation is expected to gradually replace manual interaction with more accurate and efficient outcomes, reducing labor errors and shortening operations by 80-85%. Additionally, the implementation of logistics services software and the Internet of Things (IoT) in logistics, coupled with robotics in warehouse picking operations, is expected to further improve efficiency in the same-day delivery market. Logistics services software plays a pivotal role in enabling these advancements by integrating automation tools, optimizing route planning, and enhancing real-time tracking capabilities. This software facilitates seamless coordination and management of logistics operations, aligning with the evolving demands for faster and more reliable delivery services. As automation and IoT continue to transform logistics processes, businesses can achieve higher operational efficiency, cost savings, and improved customer satisfaction, thereby driving market growth during the forecast period.
The shortage of truck drivers presents a significant challenge that is hindering market growth. In the global market, lead time is a critical factor, and products must be delivered to various destinations quickly to ensure customer satisfaction. However, the shortage of skilled truck drivers is becoming increasingly severe, and this shortfall is expected to worsen if underlying issues such as low wages, long working hours, and the adoption of electronic logging devices (ELDs) are not addressed.
Moreover, the implementation of ELDs has led to protests from truckers and companies in the US, who view digital monitoring as an invasion of their privacy. This shortage of truck drivers is expected to reach 50% by 2022, compared to 2018. As a result, manufacturers and distributors must pay higher wages to attract drivers, which drives up costs. Additionally, the industry-wide shortage of truck drivers can lead to lower vehicle utilization and missed revenue opportunities. Overall, the lack of skilled drivers will significantly limit market growth during the forecast period.
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 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.
Acme Truck Line Inc. - The company offers transportation of equipment, materials, truckload consolidation, trucking logistics partnership programs, and split billing services. The key offerings of the company include road logistics.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market forecast 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market encompasses a wide range of transportation services, including Full-Truck-Load (FTL), Less than-Truck-Load (LTL), and containerized and non-containerized shipments. It caters to various goods, from fluid to solid, and offers both Non-Temperature Controlled and Temperature Controlled options. With services for long hauls, short hauls, and freight transport volume management, road logistics plays a crucial role in supporting manufacturing exports and retail operations. Urbanization and the growth of the middle-class population drive demand, while factors like fuel costs, tax hikes,
and global crude oil prices impact pricing. Real estate developers, small fleet owners, and asset light models are key players in this market, which also involves sea freight, air freight, and courier parcel services, all supported by advanced fleet management software. The logistics industry encompasses a wide range of services and factors, from long haul to short haul, catering to the transportation needs of fluid and solid goods. Both temperature-controlled and non-temperature-controlled freight services play a crucial role in ensuring the integrity of goods during transit. Pricing dynamics are influenced by factors such as petrol and diesel prices, as well as VAT cuts, impacting the profitability of logistics operations. High inflation rates and fluctuating oil prices add complexity to freight pricing strategies, affecting the express and value-added services (VAS) markets, or simply the VAS Market. Domestic flow corridors, including SFOs, MFOs, and LFOs, are vital for optimizing transportation routes. Regulatory measures such as the Scrappage Policy and GST compliance impact asset-light models and road transportation practices, particularly for E vehicles. Additionally, factors like insurance premiums, EMI, and permit regulations influence the operational landscape of the logistics sector.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market growth 2024-2028 |
USD 710.3 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.06 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks, Road Logistics Market Industry Scope |
Key companies profiled |
Acme Truck Line Inc., Agility Public Warehousing Co. K.S.C.P, ArcBest Corp., Bennett International Group LLC, C H Robinson Worldwide Inc., Deutsche Post AG, FedEx Corp., J B Hunt Transport Services Inc., Knight Swift Transportation Holdings Inc., Kuehne Nagel Management AG, Penske Corp., Quantix SCS Inc., RD Logistics, Ryder System Inc., Saltchuk, Schneider National Inc., United Parcel Service Inc., Werner Enterprises Inc., XPO Inc., and Yellow Corp. |
Market dynamics |
Parent market analysis, Market forecasting, market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period, Road Logistics Market Growth Analysis. |
Customization purview |
If our Road Logistics Market Worth 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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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