Australia Road Freight Transport Market Analysis
The Australia Road Freight Transport Market size is estimated at 43.23 billion USD in 2025, and is expected to reach 53.11 billion USD by 2030, growing at a CAGR of 4.20% during the forecast period (2025-2030).
The Australian road transport industry is undergoing significant transformation driven by infrastructure investments and sustainability initiatives. The federal government has committed to a comprehensive 10-year infrastructure pipeline valued at USD 120 billion, focusing on delivering land transport projects of national significance. This commitment is further evidenced by the allocation of USD 11.8 billion specifically for new rail and transport projects in Western Australia through 2028, demonstrating the government's dedication to enhancing transportation networks. In February 2024, the Australian and Queensland governments jointly announced USD 511.5 million in funding for 71 safety upgrade projects, highlighting the continued focus on infrastructure development and safety improvements.
The industry is witnessing a remarkable shift toward sustainable transportation solutions, particularly in the adoption of electric and low-emission vehicles. In 2023, the transport industry in Australia recorded a significant milestone with 367 low and zero-emission trucks sold, representing a substantial 270% year-over-year increase. This trend continues into 2024, with heavy-duty truck sales rising 5.7% year-over-year to 1,615 units in May 2024, indicating strong market momentum. The transition to sustainable transport is further supported by innovative solutions such as Janus Electric's initiative to convert diesel-powered trucks to electric power, enabling travel distances of up to 600 kilometers on a single charge.
The mining and resource sector remains a crucial driver of freight transport in Australia demand, with significant developments in regional areas. South Australian mineral and petroleum exports demonstrated robust growth, increasing by 14.3% year-over-year in 2023 to more than USD 5 billion, necessitating enhanced transportation infrastructure. The government's Future Gas Strategy, released in May 2024, emphasizes the importance of securing new gas supply sources while maintaining commitment to the net-zero transition by 2050, indicating continued demand for specialized transportation services in the energy sector.
Infrastructure development continues to shape the industry's landscape, with major projects underway across the country. The Torrens to Darlington (T2D) project, scheduled for construction from 2025 to 2031, represents a significant development in Adelaide's transportation network, creating a 78 km continuous motorway from Gawler to Old Noarlunga. Additionally, the Tasmanian government's 2024 announcement of USD 2.2 billion investment in transport infrastructure over four years, coupled with USD 1.5 billion for housing construction, signals sustained demand for road freight transport services to support construction and development activities across the region.
Australia Road Freight Transport Market Trends
Australia invested USD 120 billion in infrastructure projects, focusing on nation-building and land transport projects
- The Australian Government remains resolutely dedicated to a 10-year infrastructure pipeline (till 2032) valued at USD 120 billion, focusing on delivering land transport projects that hold national significance and contribute to shaping the nation's future. The 2023-24 budget represented a stride forward in establishing an infrastructure investment pipeline integral to nation-building endeavors. This initiative formed the bedrock for constructing a sustainable and credible lineup of projects, selected based on diverse economic and societal goals, encompassing regional connectivity, quality of life enhancement, and safety enhancement.
- Till 2028, USD 11.8 billion will be spent on new rail and transport projects in Western Australia, as part of the state’s USD 42.4 billion infrastructure investment. The 2024-25 State Budget includes USD 4.8 billion for the METRONET program, with USD 2.9 billion from the Commonwealth Government. This budget adds USD 254 million for METRONET, with the Morley-Ellenbrook Line set to finish by the end of 2024, and three more major rail projects the Victoria Park-Canning Level Crossing Removal, Byford Rail Extension, and Thornlie-Cockburn Link expected in 2025.
Tightening global oil markets and the weakening Australian dollar led to an increase in fuel prices in Australia
- In March of 2024, retail petrol prices in Australia’s five largest cities were lower, averaging 193.2 cents per litre (USD 1.93), down from 194.9 cpl (USD 1.94) in Q4 of 2023. However, daily average prices hit a new high in April. Among the cities, Perth saw the biggest drop (4.1 cpl), while Brisbane's prices increased by 1.4 cpl, making Brisbane the highest at 200 cpl (USD 2). In April 2024, although average retail petrol prices in Australia were not at their all-time highest when adjusted for inflation, recent international and geopolitical events have kept petrol prices relatively high.
- Australia's federal government will introduce a new fuel efficiency standard for passenger and light commercial vehicles starting January 1, 2025. This follows a one-month consultation period before drafting the new laws. Announced as part of the 2023 budget and linked to the EV strategy released in April 2023, the standard sets average CO2 targets for vehicle manufacturers. These targets will gradually decrease, requiring the production of more fuel-efficient and low or zero-emissions vehicles.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Australia is expected to strengthen the mining sector in line with its Critical Minerals Strategy 2023–2030
- E-commerce in Australia is expected to register a CAGR of 10%, supported by the rise in social commerce and BNPL services
- Australia's LPI Rank drops to 19 in 2023, with a focus on trade diversification and digital transformation for economic growth
- Australian agriculture industry aims to become a USD 100 billion industry by 2030 to boost exports
- Rising fuel costs, increasing charges, and toll costs are leading to increased operational costs
- June 2024 truck sales dropped 14.8% but remained the second-highest June on record, reflecting the effects of the economic slowdown
- Australian road freight rates witnessed an increase since 2022, owing to the increase in fuel prices due to the war
- Labor shortage, high freight costs, and rising global crude oil demand increased producer and consumer prices
- Generative AI is anticipated to contribute between USD 3 billion and USD 9 billion annually to the retail sector by 2030
- The Australian government is investing USD 10.18 billion to support Australia's manufacturing industry
- Australia accelerates road construction and infrastructure investments for WestConnex, Great Western Highway Upgrades, and the gas industry
- Imports from India are expected to increase supported by a 100% tariff-free agreement from the start of 2026
- The Australian trucking industry is transitioning its fleet to achieve the government's aim of net-zero emissions by 2050
- Australia's freight volume is expected to witness a substantial growth of 60% over the next two decades, reaching its peak by the year 2040
- Rising focus on development of land infrastructure both road and rail witnessed, to promote Australia's economic growth
Segment Analysis: End User Industry
Wholesale and Retail Trade Segment in Australia Road Freight Transport Market
The Wholesale and Retail Trade segment dominates the Australia road freight transport market, commanding approximately 40% of the total market share in 2024. This significant market position is primarily driven by the robust growth in e-commerce, with the sector experiencing substantial expansion in online shopping activities. The segment's dominance is further strengthened by the increasing adoption of digital shopping platforms, where over 80% of Australian households are actively participating in online shopping. The retail sector's digital transformation has led to increased demand for efficient logistics and delivery services, particularly in metropolitan areas. Major retailers are increasingly investing in omnichannel fulfillment services, with companies like DHL Supply Chain expanding their strategic collaborations to provide comprehensive logistics services in key cities like Brisbane and Sydney.
Manufacturing Segment in Australia Road Freight Transport Market
The Manufacturing segment is emerging as the fastest-growing sector in the Australian road freight logistics market, projected to grow at approximately 5% during 2024-2029. This growth is primarily driven by significant government initiatives, including the establishment of a USD 10.18 billion financing vehicle to support Australia's manufacturing industry. The segment's expansion is further supported by the Future Made in Australia (FMIA) Act, which has allocated more than USD 22.7 billion until 2040-41, focusing particularly on renewable energy and advanced manufacturing sectors. The manufacturing sector's contribution of USD 124 billion in value-add to the Australian economy in 2023 has created substantial demand for road logistics services, with companies expanding their logistics networks to accommodate the growing production and distribution needs.
Remaining Segments in End User Industry
The other segments in the Australian road freight transport market include Oil & Gas, Mining and Quarrying, Agriculture, Fishing and Forestry, Construction, and Others, each contributing uniquely to the market dynamics. The Oil & Gas, Mining and Quarrying segment benefits from Australia's position as a leading global producer of minerals and energy resources. The Agriculture, Fishing and Forestry segment is driven by Australia's substantial agricultural exports and the National Farming Federation's ambitious goals. The Construction segment is supported by ongoing infrastructure development projects and government investments in urban development. The Others segment encompasses various industries including healthcare and waste management, which contribute to the diverse demand for road freight services.
Segment Analysis: Destination
Domestic Segment in Australia Road Freight Transport Market
The domestic segment dominates the Australian road freight transport market, accounting for approximately 100% of the total market value in 2024. The Australian truck industry is witnessing significant growth in domestic freight movement, with truck traffic expected to increase by 25% by 2030. The gross value added (GVA) of the road transport industry stands at USD 22.4 billion, highlighting its substantial contribution to the economy. The domestic segment's strength is further reinforced by the government's investment of USD 3.5 million in the 2023-24 State Budget to address the trucking workforce challenges, particularly focusing on attracting more drivers to the industry where the average age is currently 43 years. The segment's dominance is supported by extensive infrastructure development, with the government investing USD 79.58 billion in land transport infrastructure across the country over the next 10 years through its rolling infrastructure pipeline. Additionally, initiatives like the USD 20 million Hume Hydrogen Highway joint initiative with Victoria, establishing hydrogen refueling stations between Sydney and Melbourne, demonstrate the commitment to enhancing domestic freight capabilities.
Growth Trajectory of Domestic Segment in Australia Road Freight Transport Market
The domestic segment is projected to maintain strong growth momentum between 2024 and 2029, with an expected growth rate of approximately 4.3% annually. This growth is driven by several key factors, including the Australian government's continued partnership with state and territorial governments to ensure efficient road freight logistics within the nation. The segment's expansion is supported by significant infrastructure developments, including the Australian Renewable Energy Agency's USD 20 million grant to Team Global Express for their 'Depot of the Future' project, which aims to revolutionize metropolitan deliveries through 60 new small electric trucks. The growth is further bolstered by urban freight projections, which indicate an expected increase of nearly 60% over 20 years till 2040. The government's commitment to reducing emissions through initiatives like the establishment of hydrogen refueling corridors and the transition to electric vehicles in metropolitan areas demonstrates the segment's evolution towards sustainable practices, supporting its continued growth trajectory.
Segment Analysis: Truckload Specification
Full-Truck-Load (FTL) Segment in Australia Road Freight Transport Market
The Full-Truck-Load (FTL) segment dominates the Australian road freight transport market, commanding approximately 82% of the total market value in 2024. The segment's strong performance is driven by the increasing demand for bulk transportation of goods across the country's vast geography. The Australian government's commitment to invest USD 79.58 billion in land transport infrastructure over the next 10 years through its rolling infrastructure pipeline has significantly boosted FTL services. Major industries utilizing FTL services include mining, agriculture, and manufacturing sectors, which require dedicated vehicles for transporting large volumes of goods. The segment has also benefited from the growing export market, particularly in commodities like iron ore, coal, and agricultural products. Additionally, the implementation of advanced tracking systems and fleet management technologies has enhanced the efficiency of FTL operations, making it the preferred choice for large-scale freight movement across Australia.
Less-than-Truck-Load (LTL) Segment in Australia Road Freight Transport Market
The Less-than-Truck-Load (LTL) segment is emerging as the fastest-growing segment in the Australian road haulage market, projected to grow at approximately 5% during 2024-2029. This growth is primarily driven by the booming e-commerce sector and the increasing demand from small and medium enterprises. Online shopping has become a major driver of LTL trucking in the country, with user penetration expected to grow from 76% in 2023 to 77.6% by 2027. Several market players are working toward adopting electric trucking in the LTL segment to cut down carbon emissions, which may further strengthen demand. For instance, Team Global Express has deployed electric trucks as part of its metropolitan pick-up and delivery fleet. The segment's growth is also supported by the retail sector's digital transformation and the increasing preference for flexible shipping options among businesses. The convenience and cost-effectiveness of LTL services for smaller shipments continue to attract more customers, particularly in urban areas where frequent, smaller deliveries are becoming the norm.
Segment Analysis: Containerization
Non-Containerized Segment in Australia Road Freight Transport Market
The non-containerized segment dominates the Australian road freight transport market, commanding approximately 88% of the total market value in 2024. This significant market share is primarily driven by the thriving e-commerce sector, which continues to show robust growth in Australia. The segment's dominance is further strengthened by the exponential increase in parcel movements, including e-commerce deliveries, which has been straining Australia Post's pre-existing delivery model. Road freight continues to grow steadily, with interstate road freight representing close to one-third of all road freight movement in Australia. Metropolitan road freight shows no signs of slowing down and remains one of the fastest-growing segments in the freight industry, with urban freight expected to grow by nearly 60% over the next two decades.
Containerized Segment in Australia Road Freight Transport Market
The containerized segment is projected to experience the highest growth rate in the Australian road freight transport market between 2024 and 2029, with an anticipated CAGR of approximately 5%. This growth is primarily driven by Australia's significant reliance on container shipping, with approximately 7.8 million containers moving through Australian ports annually. The segment's expansion is supported by Australian exporters utilizing the container freight supply chain to transport large quantities of agricultural products such as grain, meat, and dairy products. The growth is further bolstered by Australian retailers importing significant quantities of manufactured goods used by consumers or as intermediate inputs in Australian production processes. The segment's development is also supported by the increasing trend toward larger ships in container shipping globally, with the proportion of port calls made by large ships at Australian container ports showing consistent growth.
Segment Analysis: Distance
Long Haul Segment in Australia Road Freight Transport Market
The long haul segment dominates the Australian road freight transport market, commanding approximately 73% market share in 2024. Australian road trains, which are recognized as the world's longest trucks, represent an innovative solution for long-distance freight transportation in the country. The segment's prominence is supported by significant government infrastructure investments, including a comprehensive AUD 110 billion (USD 79.58 billion) commitment to land transport infrastructure development over the next decade. The implementation of advanced technologies, such as electric trucks with battery-swapping capabilities that can travel up to 600 km on a single charge, is transforming the segment. These electric vehicles can complete battery swaps in just four minutes at strategically placed stations, enhancing operational efficiency while reducing environmental impact. The segment's growth is further bolstered by the Australian Trucking Association's push toward electrification, which promises significant cost savings for businesses by eliminating volatile diesel expenses and reducing maintenance costs.
Short Haul Segment in Australia Road Freight Transport Market
The short haul segment is projected to maintain steady growth at approximately 4% annually through 2024-2029, driven by increasing urbanization and the rising demand for last-mile delivery services. The segment's evolution is significantly influenced by the growing e-commerce sector, with approximately 33% of Australian e-shoppers making international purchases due to better product availability and attractive offers. Major industry players like Isuzu and Hino continue to innovate in the short haul space, adapting to market demands with more efficient and environmentally conscious solutions. The segment's development is particularly notable in urban areas, where the rise in construction activities and the cement industry's commitment to achieving net-zero carbon concrete by 2050 are creating new opportunities. Despite challenges such as fluctuating fuel prices, the segment maintains its crucial role in supporting local supply chains and urban distribution networks, particularly benefiting from the increasing adoption of contactless delivery solutions and the expansion of e-commerce operations.
Segment Analysis: Goods Configuration
Solid Goods Segment in Australia Road Freight Transport Market
The solid goods segment dominates the Australian road freight transport market, commanding approximately 65% of the total market value in 2024. This segment's prominence is attributed to the extensive transportation of bulk commodities, including iron ore, which accounts for 38% of Australian goods exports. The segment has experienced significant growth due to the increasing demand for dry bulk transportation services across mining, sugar, cement, and fertilizer industries. Iron ore exports between January and May 2024 rose by 2% year-over-year to 347 million tons, with May alone seeing an 8% increase from April, reaching 74.6 million tons. The recovery follows weather-related production and logistics issues, driven by increased demand from Southeast Asia and India. The solid goods segment's dominance is further reinforced by Australia's position as the world's largest exporter of iron ore and other mineral commodities.
Fluid Goods Segment in Australia Road Freight Transport Market
The fluid goods segment is projected to be the fastest-growing segment in the Australian road freight transport market between 2024 and 2029. This growth is primarily driven by the increasing transportation of hazardous materials, which is strictly regulated by the NSW Environment Protection Authority. The segment's expansion is supported by significant government investments in road infrastructure initiatives, with the federal government committing approximately USD 81.48 billion over 10 years for infrastructure projects. The Australian Gas Infrastructure Group's completion of a major natural gas pipeline project, designed to supply gas for power stations at Newmont Mining Corporation's Tanami gold mine, has further boosted the segment's growth. Additionally, the government's commitment of USD 33.61 million to support the domestic supply of diesel exhaust fluid (DEF) from 2022-23 to 2025-26 demonstrates the increasing focus on fluid goods transportation infrastructure.
Segment Analysis: Temperature Control
Non-Temperature Controlled Segment in Australia Road Freight Transport Market
The non-temperature controlled segment dominates the Australian road freight transport market, commanding approximately 94% of the total market share in 2024. This segment's prominence is primarily driven by the transportation of non-perishable goods, bulk materials, and general cargo across the country. The segment has experienced substantial growth due to the exponential increase in parcel movements, including e-commerce deliveries, which has been straining Australia Post's pre-existing delivery model. Road freight continues to grow significantly, with interstate road freight representing close to one-third of all road freight movement in Australia. Metropolitan road freight shows no signs of slowing down and remains one of the fastest-growing segments in the freight industry, with urban freight expected to grow by nearly 60% over 20 years till 2040. The Australian government's continued partnership with state and territorial governments ensures efficient freight movement within the nation, further strengthening this segment's position.
Temperature Controlled Segment in Australia Road Freight Transport Market
The temperature controlled segment is projected to exhibit the highest growth rate of approximately 5% during 2024-2029, driven by multiple factors including increased international trade of perishable goods and strict regulations on food safety and quality. Australia's position as a major producer of food and beverages, accounting for over 25% of global exports, has significantly contributed to this growth trajectory. The pharmaceutical industry is another key driver for this segment, with Australia importing substantial volumes of temperature-sensitive medical products. The surge in e-commerce and online grocery services has further accelerated the demand for temperature-controlled transportation. Almost 90% of Australian produce is transported via refrigerated trucks, highlighting the critical role of this segment in the country's food supply chain. The segment's growth is also supported by Australia's open market policies with minimal restrictions on imports of goods and services, which has increased productivity and made the economy more flexible and dynamic.
Australia Road Freight Transport Industry Overview
Top Companies in Australia Road Freight Transport Market
The leading companies in Australia's road freight transport market are actively pursuing innovation and expansion strategies to maintain their competitive positions. Australian transport companies are making significant investments in electric and sustainable vehicle fleets, with several players introducing electric trucks for major retailers and supermarket chains. Operational excellence is being achieved through digital transformation initiatives, including real-time tracking systems and automated warehouse management solutions. Strategic partnerships with retailers, e-commerce platforms, and manufacturing companies are becoming increasingly common to secure long-term revenue streams. Companies are also expanding their geographical presence through new depot openings, facility upgrades, and strategic acquisitions, particularly in high-growth regional areas. The focus on temperature-controlled logistics and specialized transportation solutions demonstrates the industry's commitment to value-added services.
Market Structure Shows Mixed Competition Dynamics
The Australian road freight transport market exhibits a fragmented competitive landscape with a mix of large national players, international logistics companies, and regional operators. Major domestic players like Linfox and Lindsay Australia maintain strong market positions through their extensive network coverage and long-standing customer relationships, while global giants such as DHL and Maersk leverage their international expertise and technological capabilities. The market is characterized by a combination of full-service logistics providers offering end-to-end solutions and specialized operators focusing on specific industries or service types.
The industry has witnessed significant merger and acquisition activity as companies seek to expand their service offerings and geographical coverage. Larger players are actively acquiring regional operators to strengthen their presence in specific territories and gain access to established customer bases. Strategic partnerships and joint ventures are becoming increasingly common, particularly in specialized segments such as cold chain logistics and e-commerce fulfillment. The market also sees collaboration between traditional freight companies and technology providers to enhance operational efficiency and service delivery.
Innovation and Sustainability Drive Future Success
Success in the Australian road freight transport market increasingly depends on companies' ability to embrace technological innovation and sustainable practices. Market leaders are investing heavily in fleet modernization, focusing on electric and low-emission vehicles to meet growing environmental concerns and regulatory requirements. Digital transformation initiatives, including advanced tracking systems, automated warehousing, and integrated logistics platforms, are becoming essential for maintaining competitive advantage. Companies are also developing specialized solutions for high-growth sectors such as e-commerce, healthcare, and temperature-controlled logistics.
Building strong relationships with key industry sectors and adapting to changing market dynamics will be crucial for future success. Companies must focus on developing tailored solutions for specific industries while maintaining operational flexibility to address evolving customer needs. The ability to provide value-added services, such as inventory management and supply chain optimization, will become increasingly important for differentiation. Regulatory compliance, particularly in areas of environmental sustainability and safety standards, will play a crucial role in shaping competitive strategies. Companies must also invest in workforce development and retention strategies to address the industry's ongoing labor challenges. The Australian trucking industry is poised to benefit from these advancements, ensuring a sustainable and efficient future for Australia's road freight transport.
Australia Road Freight Transport Market Leaders
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K&S Group
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Lindsay Australia Limited
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Linfox Pty Ltd.
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LINX Cargo Care Group
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Mainfreight
- *Disclaimer: Major Players sorted in no particular order
Australia Road Freight Transport Market News
- July 2024: Linfox invested in 250 custom-built semi-trailers from Krueger, comprising 150 temperature-controlled and 100 ambient trailers. This marked the largest trailer order placed by Linfox in their 30-year collaboration. These trailers played a crucial role in transporting essential food items, groceries, and various consumer goods. Designed for versatility, the trailers catered to a wide array of freight, especially temperature-sensitive items. Notably, the temperature-controlled trailers were equipped with integrated, tracked, and monitored cooling systems, ensuring a consistent temperature range throughout transit. Additionally, the curtain-side trailers incorporated Krueger’s Slide-A-Gate barrier system, prioritizing operator safety.
- July 2024: DHL Express introduced a range of digital tools aimed at empowering small and medium enterprises (SMEs) to broaden their global reach and enhance their international trade and shipping endeavors. These tools were designed to assist resource-limited SMEs in efficiently navigating cross-border shipping logistics, facilitating smoother import and export activities from diverse sources and locations. Among the suite of digital solutions crafted by DHL Express were My Global Trade Services (myGTS), DHL Express Commerce, Track & Trace, DHL Pass, and On Demand Delivery. In addition to digital tools, DHL Express also introduced the GoTrade program, which supports small businesses in trading their goods internationally.
- April 2024: DHL Supply Chain Australia partnered with global toy giant Mattel to form a 10-year warehousing agreement. DHL shifted Mattel's warehouse operations to a spacious 31,000 sqm facility in Truganina, Victoria. This new site was poised to accommodate the growth spurred by the surge in the brand's popularity, thanks in part to the blockbuster movie "Barbie." Building on a fruitful five-year collaboration, this extended partnership not only solidified their bond but also paved the way for enhanced sustainability measures in Mattel's upgraded warehousing.
Free With This Report
We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various regions pertaining to e-commerce industry trends, economic contribution of the transportation & storage sector, export and import trends among other key indicators.
List of Tables & Figures
- Figure 1:
- DISTRIBUTION OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, SHARE %, AUSTRALIA, 2022
- Figure 2:
- GROWTH OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, CAGR %, AUSTRALIA, 2017 – 2022
- Figure 3:
- GROSS MERCHANDISE VALUE (GMV) OF E-COMMERCE INDUSTRY, USD, AUSTRALIA, 2017 - 2027
- Figure 4:
- SECTORAL SHARE IN E-COMMERCE INDUSTRY GROSS MERCHANDISE VALUE (GMV), SHARE %, AUSTRALIA, 2022
- Figure 5:
- GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY (IN CURRENT PRICES), USD, AUSTRALIA, 2017 - 2022
- Figure 6:
- SECTORAL SHARE IN GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY, SHARE %, AUSTRALIA, 2022
- Figure 7:
- VALUE OF TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), USD, AUSTRALIA, 2017 – 2022
- Figure 8:
- TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), SHARE % OF GDP, AUSTRALIA, 2017-2022
- Figure 9:
- RANK OF LOGISTICS PERFORMANCE, RANK, AUSTRALIA, 2010 - 2023
- Figure 10:
- SHARE OF ROAD LENGTH BY SURFACE CATEGORY, %, AUSTRALIA, 2022
- Figure 11:
- SHARE OF ROAD LENGTH BY SURFACE CLASSIFICATION, %, AUSTRALIA, 2022
- Figure 12:
- VALUE OF EXPORTS, USD, AUSTRALIA, 2017 - 2022
- Figure 13:
- VALUE OF IMPORTS, USD, AUSTRALIA, 2017 - 2022
- Figure 14:
- FUEL PRICE BY TYPE OF FUEL, USD/LITER, AUSTRALIA, 2017 - 2022
- Figure 15:
- OPERATIONAL COSTS OF TRUCKING - BREAKDOWN BY OPERATING COST ELEMENT, %, AUSTRALIA, 2022
- Figure 16:
- TRUCKING FLEET SIZE BY TYPE, SHARE %, AUSTRALIA, 2022
- Figure 17:
- MARKET SHARE OF MAJOR TRUCK SUPPLIER BRANDS, SHARE %, AUSTRALIA, 2022
- Figure 18:
- FREIGHT HANDLED BY ROAD TRANSPORT, TONS, AUSTRALIA, 2017 - 2030
- Figure 19:
- PRICE TREND OF ROAD FREIGHT TRANSPORT SERVICE, USD/TON-KM, AUSTRALIA, 2017 - 2022
- Figure 20:
- MODAL SHARE OF FREIGHT TRANSPORTATION SECTOR, SHARE % BY TON-KM, AUSTRALIA, 2022
- Figure 21:
- MODAL SHARE OF FREIGHT TRANSPORT SECTOR, SHARE % BY TONS, AUSTRALIA, 2022
- Figure 22:
- WHOLESALE PRICE INFLATION RATE, %, AUSTRALIA, 2017 - 2022
- Figure 23:
- CONSUMER PRICE INFLATION RATE, %, AUSTRALIA, 2017 - 2022
- Figure 24:
- VOLUME OF ROAD FREIGHT TRANSPORT MARKET, TON-KM, AUSTRALIA, 2017 - 2030
- Figure 25:
- VALUE OF ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 26:
- VALUE OF ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, USD, AUSTRALIA, 2017 - 2030
- Figure 27:
- VALUE SHARE OF ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, %, AUSTRALIA, 2017 - 2030
- Figure 28:
- VALUE OF AFF INDUSTRY (AGRICULTURE, FISHING, AND FORESTRY) ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 29:
- CAGR OF AFF INDUSTRY (AGRICULTURE, FISHING, AND FORESTRY) ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 30:
- VALUE OF CONSTRUCTION INDUSTRY ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 31:
- VALUE OF MANUFACTURING INDUSTRY ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 32:
- VALUE OF EXTRACTION INDUSTRY (OIL AND GAS, MINING AND QUARRYING) ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 33:
- CAGR OF EXTRACTION INDUSTRY (OIL AND GAS, MINING AND QUARRYING) ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 34:
- VALUE OF DISTRIBUTIVE TRADE INDUSTRY (WHOLESALE AND RETAIL TRADE) ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 35:
- CAGR OF DISTRIBUTIVE TRADE INDUSTRY (WHOLESALE AND RETAIL TRADE) ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 36:
- VALUE OF OTHER END USER INDUSTRIES ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 37:
- CAGR OF OTHERS END USER INDUSTRIES ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 38:
- VOLUME OF ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, TON-KM, AUSTRALIA, 2017 - 2030
- Figure 39:
- VALUE OF ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, USD, AUSTRALIA, 2017 - 2030
- Figure 40:
- VALUE SHARE OF ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, %, AUSTRALIA, 2017 - 2030
- Figure 41:
- VOLUME OF DOMESTIC ROAD FREIGHT TRANSPORT MARKET, TON-KM, AUSTRALIA, 2017 - 2030
- Figure 42:
- VALUE OF DOMESTIC ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 43:
- VALUE SHARE OF DOMESTIC ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, %, AUSTRALIA, 2022 VS 2030
- Figure 44:
- VALUE OF ROAD FREIGHT TRANSPORT MARKET BY TRUCKLOAD SPECIFICATION, USD, AUSTRALIA, 2017 - 2030
- Figure 45:
- VALUE SHARE OF ROAD FREIGHT TRANSPORT MARKET BY TRUCKLOAD SPECIFICATION, %, AUSTRALIA, 2017 - 2030
- Figure 46:
- VALUE OF FULL-TRUCK-LOAD (FTL) ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 47:
- CAGR OF FULL-TRUCK-LOAD (FTL) ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 48:
- VALUE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 49:
- CAGR OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 50:
- VALUE OF ROAD FREIGHT TRANSPORT MARKET BY CONTAINERIZATION, USD, AUSTRALIA, 2017 - 2030
- Figure 51:
- VALUE SHARE OF ROAD FREIGHT TRANSPORT MARKET BY CONTAINERIZATION, %, AUSTRALIA, 2017 - 2030
- Figure 52:
- VALUE OF CONTAINERIZED ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 53:
- CAGR OF CONTAINERIZED ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 54:
- VALUE OF NON-CONTAINERIZED ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 55:
- CAGR OF NON-CONTAINERIZED ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 56:
- VALUE OF ROAD FREIGHT TRANSPORT MARKET BY DISTANCE, USD, AUSTRALIA, 2017 - 2030
- Figure 57:
- VALUE SHARE OF ROAD FREIGHT TRANSPORT MARKET BY DISTANCE, %, AUSTRALIA, 2017 - 2030
- Figure 58:
- VALUE OF LONG HAUL ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 59:
- CAGR OF LONG HAUL ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 60:
- VALUE OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 61:
- CAGR OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 62:
- VALUE OF ROAD FREIGHT TRANSPORT MARKET BY GOODS CONFIGURATION, USD, AUSTRALIA, 2017 - 2030
- Figure 63:
- VALUE SHARE OF ROAD FREIGHT TRANSPORT MARKET BY GOODS CONFIGURATION, %, AUSTRALIA, 2017 - 2030
- Figure 64:
- VALUE OF FLUID GOODS ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 65:
- CAGR OF FLUID GOODS ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 66:
- VALUE OF SOLID GOODS ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 67:
- CAGR OF SOLID GOODS ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 68:
- VALUE OF ROAD FREIGHT TRANSPORT MARKET BY TEMPERATURE CONTROL, USD, AUSTRALIA, 2017 - 2030
- Figure 69:
- VALUE SHARE OF ROAD FREIGHT TRANSPORT MARKET BY TEMPERATURE CONTROL, %, AUSTRALIA, 2017 - 2030
- Figure 70:
- VALUE OF NON-TEMPERATURE CONTROLLED ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 71:
- CAGR OF NON-TEMPERATURE CONTROLLED ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 72:
- VALUE OF TEMPERATURE CONTROLLED ROAD FREIGHT TRANSPORT MARKET, USD, AUSTRALIA, 2017 - 2030
- Figure 73:
- CAGR OF TEMPERATURE CONTROLLED ROAD FREIGHT TRANSPORT MARKET, %, AUSTRALIA, 2017 - 2030
- Figure 74:
- MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, AUSTRALIA, 2017 - 2023
- Figure 75:
- MOST ADOPTED STRATEGIES, COUNT, AUSTRALIA, 2017 - 2023
- Figure 76:
- VALUE SHARE OF MAJOR PLAYERS, %, AUSTRALIA
Australia Road Freight Transport Industry Segmentation
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic are covered as segments by Destination. Full-Truck-Load (FTL), Less than-Truck-Load (LTL) are covered as segments by Truckload Specification. Containerized, Non-Containerized are covered as segments by Containerization. Long Haul, Short Haul are covered as segments by Distance. Fluid Goods, Solid Goods are covered as segments by Goods Configuration. Non-Temperature Controlled, Temperature Controlled are covered as segments by Temperature Control.End User Industry | Agriculture, Fishing, and Forestry |
Construction | |
Manufacturing | |
Oil and Gas, Mining and Quarrying | |
Wholesale and Retail Trade | |
Others | |
Destination | Domestic |
Truckload Specification | Full-Truck-Load (FTL) |
Less than-Truck-Load (LTL) | |
Containerization | Containerized |
Non-Containerized | |
Distance | Long Haul |
Short Haul | |
Goods Configuration | Fluid Goods |
Solid Goods | |
Temperature Control | Non-Temperature Controlled |
Temperature Controlled |
Agriculture, Fishing, and Forestry |
Construction |
Manufacturing |
Oil and Gas, Mining and Quarrying |
Wholesale and Retail Trade |
Others |
Domestic |
Full-Truck-Load (FTL) |
Less than-Truck-Load (LTL) |
Containerized |
Non-Containerized |
Long Haul |
Short Haul |
Fluid Goods |
Solid Goods |
Non-Temperature Controlled |
Temperature Controlled |
Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
Keyword | Definition |
---|---|
Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
Transport for hire or reward | The carriage for remuneration of goods. |
Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms