Road Freight Transportation Market

Global Road Freight Transportation Market Size (2024 to 2029)

The global road freight transport market is predicted to reach USD 540 billion in 2024 and USD 649.13 billion by 2029, growing at a CAGR of 3.75% during the forecast period.

Road freight transport is defined as road transport between two places (loading and unloading). The carriage of goods by road is the transport of goods or shipments. Road freight transportation is the most widely used method of transporting goods. Road freight transportation includes a variety of vehicles, such as pickup trucks, tank trucks, refrigerated trucks, truck trailers, and flatbed trucks. Road freight is a fast and cost-effective door-to-door service that provides freight transportation systems.

MARKET DRIVERS

The growth of bilateral trade and the rise of industrialization, complemented by revised trade policies, are the main factors expected to drive the Road Freight Transport market during the forecast period.

Road freight transport has a lower capital investment compared to other transport systems such as rail and air transport. This has led to the establishment of new companies and strengthened their position in the road freight transport market. Also, increased imports and exports of goods and materials around the world are supposed to boost the Road Freight Transport market during the foreseen period. The development and expansion of goods and services companies around the world is focused on the development of a powerful online platform that is estimated to improve the transport of goods by road because it provides fast, flexible, and frequent services. Market growth is driven by the need to improve operational efficiency. Operating efficiency has increased due to the increase in vehicle operating costs and fuel prices. This has affected the profit margins of the Road Freight Transport business. The main reasons for the increasing use of intermodal transport are increased efficiency, cost savings, and environmental impact. It offers many advantages over other modes of transport. Additionally, increased productivity will create a high demand for material handling activities, likely to drive the Road Freight Transport market. The global market is supposed to show significant growth during the foreseen period due to rapid urbanization, population growth, and the expansion of the global e-commerce industry. Rapid industrialization and increased adoption of Industry 4.0 are the main factors expected to drive the growth of the Road Freight Transport market during the outlook period. Industry 4.0 represents the fourth industrial revolution in which machinery, raw materials, and all processes are connected, which is believed to lead to the low-cost production of high-quality products. To support Industry 4.0, road freight transport is ideal as it provides flexible and economical short-distance transport.

Furthermore, as the population grows, the demand for food, beverages, and other consumer goods is expected to increase, stimulating the Road Freight Transport market entry.

The rapid development of technology and the increasing role of e-retailing are expected to boost the Road Freight Transport market during the forecast period. Road freight transport is ideal for short destinations and offers a number of advantages, such as cheap, flexible, and cost-effective packaging. This is estimated to revitalize the Road Freight Transport market during the conjecture period. Increased economic activity in the United States has led to an increase in per capita income. Additionally, sales of commercial vehicles for logistics and transportation applications have increased as railroads do not provide last-mile connectivity, and e-commerce sites have gained popularity. Furthermore, implementing artificial intelligence (AI) is transforming the automotive industry. The automobile is equipped with Internet of Things (IoT) devices and can be connected to a smartphone and accessed using voice commands. Therefore, road freight transport is expected to increase with the adoption of IoT and applied artificial intelligence technology. Furthermore, the increase in FDI in the automotive industry is likely to contribute to the growth of the Road Freight Transport market. The growth of the global Road Freight Transport industry is one of the key factors driving regional market growth during the forecast period.

MARKET RESTRAINTS

Factors such as an increase in carbon emissions from the use of diesel fuel for road transport and an increase in the number of road accidents around the world are foreseen to hamper the growth of the road freight transport market during the conjecture period. Along with long-distance transportation, road freight transport faces great challenges due to road conditions, weather, and traffic congestion. These factors are likely to limit the road freight market during the envisioned period.

Impact of COVID-19 on the Global Road Freight Transport Market

The coronavirus pandemic has disrupted the activities and supply chain in several industries, including the road freight transport market. The impact of the pandemic on transport, especially exports and imports, has caused a loss in terms of demand. The industry faces many problems, mainly due to production unit closures and logistic restrictions. The Road Freight Transport market is estimated to resume with the relaxing lockdown conditions in the following days.

 REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Road Freight Transportation Market Analysis By Industry

The oil and gas category is expected to drive the market during the forecast period primarily due to the expansion of the industry. The food and beverage category is expected to grow the fastest in 2023-2028. Markets in this category are expected to benefit over the forecast period as demand for food increases with world population growth, strong economic growth, and middle-class population growth in developing countries.

Global Road Freight Transportation Market Analysis By Type of Vehicle

During the forecast period, the market is expected to see faster growth in the quarter of light commercial vehicles, mainly due to the increasing adoption of these vehicles for the transport of food and beverages and other consumer goods.

REGIONAL ANALYSIS

Asia Pacific Road Freight Transport is projected to dominate the market during the foreseen period. Population growth and favorable government policies in countries such as China and India regarding e-commerce and other industries are expected to drive the growth of the Road Freight Transport market in the area. Additionally, developing countries in the region are investing heavily in port development to handle more cargo. Therefore, according to global requirements, the Government of India plans to improve the efficiency and capacity of existing ports. As imports and exports among Asian countries increase and expenditures on developing new ports in the region rise, the market here is believed to witness significant size during the conjecture period. The United States was North America's largest trucking market in 2020, and the region will provide market providers with several growth opportunities during the foreseen period. To increase the industry's production capacity, freight forwarding will greatly drive the growth of the North American Road Freight Transport market during the prediction period.

KEY PARTICIPANTS IN THE GLOBAL ROAD FREIGHT TRANSPORTATION MARKET

The major players operating in the global road freight transport market include Schenker AG, Cargo Carriers Limited, CJ Logistics Corporation, Kuehne + Nagel International AG, Kerry Logistics Network Limited, DHL Global Forwarding, CEVA Logistics, TNT Express, DSV Panalpina A/S, Nippon Express, Overland Total Logistics Services (M) Sdn Bhd., Gefco SA, and Region.

DETAILED SEGMENTATION OF THE GLOBAL ROAD FREIGHT TRANSPORTATION MARKET INCLUDED IN THIS REPORT

This global market research report is segmented and sub-segmented by industry, type of vehicle, and region.

By Industry

• Chemicals

• Food and Beverage

• Oil and Gas

• Medical, etc.

By Type of Vehicle

• Light Commercial Vehicles

• Heavy and Medium Commercial Vehicles

By Region

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus