Europe Road Freight Transport Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Europe Road Freight Transport Market Analysis

The Europe Road Freight Transport Market size is estimated at 496.83 billion USD in 2024, and is expected to reach 601.59 billion USD by 2030, growing at a CAGR of 3.24% during the forecast period (2024-2030).

The European road freight transport industry continues to demonstrate resilience amid evolving market dynamics and technological advancements. The sector maintains a robust employment base, with Germany alone employing approximately 430,000 workers across 35,000 road freight companies as of 2023. Infrastructure development remains a key focus, with countries like France allocating substantial investments approximately USD 107 billion for 2023-2042 specifically for transport infrastructure projects. The industry has also witnessed significant consolidation, as evidenced by the Italian road haulage sector reaching 100,797 operational units in 2022, marking a 1.34% increase from the previous year.

Sustainability initiatives and alternative fuel adoption are reshaping the road freight market landscape. In June 2023, Air Liquide and Iveco Group marked a milestone by inaugurating France's first high-pressure hydrogen refueling station for long-haul trucks in Fos-sur-Mer. This development aligns with broader European sustainability goals, as demonstrated by Copenhagen's introduction of its first fully electric truck for waste collection in 2023. These initiatives reflect the industry's commitment to reducing environmental impact while maintaining operational efficiency.

Cross-border collaboration and international trade agreements are strengthening regional connectivity. A significant development occurred in 2023 with the signing of an agreement in Moscow regarding international transportation between Belarus and Russia, aimed at unifying transportation market regulations by 2030. The Nordic region has shown particular dynamism in international trade, with overseas truck shipments increasing by 6.7% in 2022, while Denmark has established strong trade routes with the Netherlands, Poland, and Germany, which collectively account for 54% of its exports.

Technological innovation and infrastructure modernization are driving operational efficiency improvements across the sector. Countries are making substantial investments in road infrastructure and digital technologies to enhance freight movement efficiency. For instance, Spain has allocated EUR 99.1 million (USD 108 million) for road maintenance and operations under the New Highway Conservation Strategy 2023-2026. Additionally, the implementation of advanced fleet management systems and real-time tracking solutions is becoming increasingly prevalent, enabling better route optimization and cargo monitoring capabilities across road transport in Europe networks.

Europe Road Freight Transport Market Trends

European Union allocated USD 5.76 billion to 135 transportation projects to boost economic recovery

• The transportation and warehouse sector plays a crucial role in supporting operations across various industries, with Germany leading as the dominant player, surpassing France and the United Kingdom. Globally, Germany ranks third in both imports and exports of goods. The German federal government expressed its intention to increase investments in transportation infrastructure, allocating over EUR 12 billion (USD 12.80 billion) for federal highways and around EUR 1.7 billion (USD 1.81 billion) for waterways in 2022, thereby demonstrating its commitment to improving transportation networks.
• The German government intends to invest more in rail than road network. In 2022, Deutsche Bahn, the federal government, and the local and regional governments invested roughly EUR 13.6 billion (USD 14.51 billion) in rail infrastructure. Lower Saxony, Hamburg, Bremen, Mecklenburg-Western Pomerania, and Schleswig-Holstein are partnering with DB to invest in modernizing their rail network by 2030.
• In 2022, the European Union approved EUR 5.4 billion through grants for approximately 135 transport infrastructural projects. These projects aim to aid post-pandemic economic recovery in the EU Member States, enhance transport links, promote sustainable transportation, boost safety, and create job opportunities. All supported projects are part of the Trans-European Transport Network, which connects EU Member States and aligns with the European Union's goal of completing the TEN-T core network by 2030 and the comprehensive network by 2050, all while aligning with climate objectives outlined in the European Green Deal.

Since February 2023, diesel imports from the Middle East, Asia, and North America have increased due to the ban on imports from Russia

• Gasoline prices surpassed EUR 2 (USD 2.13) per liter in most of the 19 eurozone countries in Q1 2022. The main reason behind the increased prices was supply issues due to the conflict between Russia and Ukraine, as Russia supplied more than a quarter of the EU's petroleum needs. In 2021, the average price for a liter of gasoline in the eurozone was EUR 1.30 (USD 1.38); at the start of 2022, the price was about EUR 1.55 (USD 1.65) per liter.
• Russia has been Europe’s largest supplier of diesel. In 2023, diesel prices declined in Europe. Since February 2023, when the European Union implemented the ban on petroleum product imports from Russia, diesel exports from Russia to Europe have averaged 24,000 barrels per day (b/d), down by 96% from the 630,000 b/d Russia sent to Europe in 2022. From February through May, diesel exports to Europe increased by 51% (160,000 b/d) from the Middle East, by 97% (147,000 b/d) from Asia, and by 65% (47,000 b/d) from North America.
• Denmark is the most expensive country for petrol, and Finland is the most expensive for diesel. Austria has the cheapest petrol, and Spain is the cheapest for diesel. Fuel prices in the United Kingdom reached record highs in 2022, with the average price of petrol hitting 191.53 p-per-litre and diesel reaching 199.05 p-per-litre in July. The average cost of petrol at UK forecourts has risen to break 150p a liter (USD 1.80) since the start of 2023, and diesel has risen to 152.41p a liter (USD 1.83). Spanish fuel prices were lower than in the United Kingdom by about 20 cents per liter for petrol and 40 cents per liter for diesel in January 2023.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

• The manufacturing sector is driving European economies on the back of massive investments from public and private players
• The construction industry and oil and gas production are boosting GDP growth amid lingering challenges arising from the Russia-Ukraine War
• United Kingdom, France, and Germany together account for 60% of the total e-commerce revenue of Europe
• Manufacturing industry's contribution grew by over 7% YoY in 2022, led by the automobiles sub-segment
• France ranked 13th in the Logistic Performance Index in 2023 due to opportunities for business expansions across Europe
• Germany ranked 3rd in 2023 Logistic Performance Index with a score of 4.1, dominates in the European market
• Italy secures 19th ranking in 2023 LPI due to strong trade infrastructure and competence in logistics services
• Netherlands climbs to the 3rd rank in LPI 2023 due to rise in infrastructure investment to USD 26.68 billion by 2028
• Russia's Logistic Performance Index ranks 88th in 2023, due to the Russia-Ukraine crisis and trade disruptions
• Spain's LPI rank witnessed a rise by four places due to upgrades in its infrastructure network and new high-capacity roads
• UK's global trade efficiency declines with LPI rank falling to 19th place in 2023 due to logistics infrastructure quality
• Major road investments in key road logistics markets, like Germany, France, and Italy, expected to strengthen connectivity and conditions of roads
• Automobiles and agricultural exports were among the top export contributors to the regional economy in 2022
• European economies are diversifying their LNG import channels around the world, with a focus on reducing Russian imports
• Fuel prices and a shortage of truck drivers in the region are leading to an increase in trucking operational costs
• Commercial vehicle registrations in the region witnessed a decline, with a slight growth in light commercial vehicle registrations
• To reduce carbon emissions, European truck manufacturers aim to sell only electric or hydrogen trucks by 2040
• Regional economies undertaking massive road infrastructure investments to strengthen freight transport volume in the European region
• Rising prices of road freight transportation majorly due to slashing oil imports from Russia in 2022
• The European Union invested more than USD 5 billion in 2022 to increase rail in-freight transport's market share to 25% by 2030
• Increase in production and consumer prices is largely attributable to energy supply disruptions caused by the Russia-Ukraine War

Segment Analysis: End User Industry

Manufacturing Segment in Europe Road Freight Transport Market

The manufacturing segment dominates the European road freight transport market, accounting for approximately 44% of the total market value in 2024. This significant market share is driven by Germany's robust manufacturing sector, where about 84% of manufacturers plan to invest USD 10.52 billion annually in smart manufacturing technologies by 2025. The segment's strength is further reinforced by Italy's position as Europe's second-largest manufacturing country, with 75% of Italian manufacturers having initiated advanced manufacturing projects. The UK manufacturing sector also contributes substantially, generating 51% of all UK exports. France's recent investment plan worth EUR 5 billion (USD 5.33 billion) for semiconductor development and manufacturing capacity expansion by 2026 further solidifies the segment's dominance in the road freight transport market.

Wholesale and Retail Trade Segment in Europe Road Freight Transport Market

The wholesale and retail trade segment is experiencing remarkable growth in the European road freight transport market, driven primarily by the booming e-commerce sector. The segment's expansion is supported by significant developments across multiple countries, with Spain leading the growth of e-commerce in terms of sales volume, traffic, and orders in Europe. The e-commerce sector is projected to register a growth rate of approximately 9% during 2024-2029, with online shoppers expected to reach 586 million by 2027. The Netherlands has witnessed substantial growth in this segment, with retail turnover increasing by 5.6% year-over-year in 2023, while its e-commerce sector grew by more than 6%. The segment's growth is further accelerated by the increasing adoption of online shopping, with nearly 8 in 10 people in the Netherlands making online purchases in 2023.

Remaining Segments in End User Industry

The other segments in the European road freight transport market include construction, agriculture, fishing and forestry, and oil and gas, mining and quarrying sectors. The construction segment benefits from various infrastructure development projects across Europe, particularly in Germany and France. The agriculture, fishing, and forestry segment maintains steady growth through increasing agricultural exports and cross-border trade. The oil and gas, mining and quarrying segment, while smaller in market share, plays a crucial role in energy resource transportation and distribution across the region. These segments collectively contribute to the diverse nature of the road freight transport market, each influenced by specific regional developments and government initiatives aimed at sector-specific growth.

Segment Analysis: Destination

Domestic Segment in Europe Road Freight Transport Market

The domestic segment dominates the European road freight transport market, accounting for approximately 64% of the total market value in 2024. This significant market share is primarily driven by robust internal trade activities within individual European countries. In Germany, domestic cargo transportation reached substantial volumes, comprising various goods including agricultural products, raw materials, consumer goods, and petroleum products. The French domestic transport sector has shown remarkable strength, with national transport for hire accounting for nearly 84% of all domestic transport. Additionally, Italy's domestic road transport sector has maintained its dominance, with road transport accounting for around 88% of total transportation, primarily in the domestic segment. The regions generating maximum road traffic are concentrated in Lombardy, Emilia-Romagna, and Veneto, with the northern part of Italy representing 65% of the total domestic movement.

International Segment in Europe Road Freight Transport Market

The international segment is experiencing the fastest growth in the European road freight transport market, with an expected annual growth rate of approximately 4% between 2024 and 2029. This growth is primarily driven by increasing cross-border trade activities and the expansion of e-commerce across European nations. Switzerland and Germany have emerged as key players, holding a significant share of the total EU/extra-EU road transport tonnage. The implementation of the Connecting Europe Facility (CEF) has further boosted cross-border movement, with 15 projects launched in 2023 focusing on deploying advanced smart solutions for Intelligent Transport Systems across Mediterranean, Atlantic, and North Sea-Mediterranean corridors. These developments cover extensive networks spanning 8,621 km of main networks and 10,990 km of complete networks, connecting major countries including France, Italy, Spain, and Portugal. The segment's growth is further supported by strategic infrastructure investments, such as the European Commission's trans-European transport network objectives aimed at completing the TEN-T core network by 2030.

Segment Analysis: Truckload Specification

Full-Truck-Load (FTL) Segment in Europe Road Freight Transport Market

The Full-Truck-Load (FTL) segment continues to dominate the European road freight transport market, holding approximately 82% market share in 2024. The segment's strong performance is primarily driven by several key sectors across the region, including retail, pharmaceuticals, and heavy machinery industries. In France, the retail sector has shown remarkable growth with sales recording a 9.9% increase year-over-year in the third quarter of 2024, indicating strong demand for FTL services. The pharmaceutical sector in Spain, which has become the country's third-largest export category, has significantly contributed to FTL demand. Additionally, the Netherlands has witnessed substantial growth in agricultural exports, generating over EUR 49.6 billion in revenue, further driving the demand for FTL services. The construction sector's growth, particularly in the Netherlands with a 2.3% quarter-over-quarter increase in the first quarter of 2024, has also boosted the need for FTL transportation of construction equipment and materials.

Less-than-Truck-Load (LTL) Segment in Europe Road Freight Transport Market

The Less-than-Truck-Load (LTL) segment has emerged as the fastest-growing segment in the European road freight transport market, projected to grow at approximately 4% during 2024-2029. The segment's growth is primarily driven by the significant presence of small and medium enterprises across Europe, particularly in countries like the Netherlands, which recorded about 1.45 million small- and medium-sized enterprises in the first half of 2024. The booming e-commerce sector has been a major catalyst for LTL services, with countries like Denmark reporting that SMEs account for 98.7% of all enterprises. In Sweden, SMEs represented around 99.8% of all enterprises, reflecting the strong demand for LTL trucking services. The segment's growth is further supported by various government initiatives, such as Italy's legislation for innovative start-ups and SMEs, which provides a system of periodic monitoring, and the "Transition 4.0" Plan for enterprise digitalization. Several market players are also contributing to the segment's growth by introducing electric trucks for sustainable transport, as evidenced by recent developments in Amsterdam, Norway, and Finland.

Segment Analysis: Containerization

Non-Containerized Segment in Europe Road Freight Transport Market

The non-containerized segment dominates the European road freight transport market, accounting for approximately 88% of the total market value in 2024. This segment's prominence is primarily driven by goods from industries such as automobiles, construction, agriculture, food, clothing, and personal items that are usually bulky and do not require special containers for storage. The construction industry, a prominent user of non-containerized trucking services, has been a significant contributor to the segment's growth. Finland, Sweden, and Norway's extensive legacy in mineral exploration, mining, and metal fabrication, with Sweden being the most prolific contributor, has further strengthened the non-containerized segment's position. Currently, metals and steel output and sales are increasingly affected by more sluggish economic performance, with persistently high inflation and interest rates impacting the segment's dynamics. The United Kingdom's steel import levels remain stable, with the EU supplying 58% of the total and the rest of the world supplying 42%, demonstrating the segment's resilience in international trade.

Containerized Segment in Europe Road Freight Transport Market

The containerized segment is projected to be the fastest-growing segment in the European road freight transport market between 2024 and 2029. The demand for containerized transport has been expanding due to the augmented demand for products such as pharmaceuticals, chemicals, lubricants, oils, and beverages, which require containers for transportation. France remains the key foreign market for transport container exports from Italy, comprising 35% of total exports by value, followed by Spain and the United States. Spain has emerged as a leader in Europe in terms of container handling, with Valencia being the leading port handling 5.6 million TEUs, placing it fourth in Europe after Rotterdam, Antwerp, and Hamburg. The rising maritime volumes have led to increased demand for intermodal container terminal support services. The UK ports handle 95% of imports and exports by volume, with 120 cargo-handling ports and over 400 non-cargo-handling ports and harbors around the United Kingdom, contributing to the segment's growth trajectory.

Segment Analysis: Distance

Long Haul Segment in European Road Freight Transport Market

The long haul segment dominates the European road freight transport market, accounting for approximately 74% of the total market value in 2024. This significant market share is driven by extensive cross-border trade activities and international commerce across European nations. The segment's prominence is particularly evident in key trade routes between major European economic centers, with Germany, France, and the Netherlands serving as crucial hubs for long-distance freight movement. The growth in e-commerce operations and the expansion of manufacturing supply chains across Europe have further strengthened the long haul segment's position. Additionally, recent infrastructure developments, such as the European Commission's trans-European transport network objectives and significant investments in cross-border road infrastructure, have enhanced long-haul transportation capabilities. The segment has also benefited from technological advancements in fleet management and the increasing adoption of sustainable transport solutions for long-distance freight movement.

Short Haul Segment in European Road Freight Transport Market

The short haul segment is experiencing notable transformation in the European road freight transport market, driven by several key factors. The segment's growth is supported by the increasing demand for last-mile delivery services and the rising need for efficient urban logistics solutions. In 2024, several European countries have implemented initiatives to enhance short-haul transportation efficiency, particularly in urban areas. For instance, Spain has allocated significant investments to boost direct investments in transport and mobility, while France has implemented new online application systems for specialized cargo movement. The segment is also witnessing substantial innovation in sustainable transportation, with major logistics companies introducing electric trucks specifically designed for short-haul operations. The growth is further supported by the expansion of regional distribution networks and the increasing focus on reducing delivery times in metropolitan areas.

Segment Analysis: Goods Configuration

Solid Goods Segment in Europe Road Freight Transport Market

The solid goods segment continues to maintain its dominant position in the European road freight transport market, accounting for approximately 73% of the total market value in 2024. This substantial market share is primarily driven by the robust demand from various industries including automotive manufacturing, construction materials, and retail goods transportation. The segment's strength is particularly evident in Germany, where the sale of over 312,000 commercial vehicles in 2022 has bolstered solid goods transportation capabilities. The medium-duty trucks segment is emerging as a key player, with projections reaching nearly 5,000 electric units in Germany by 2026, positioning the country as the European leader in electric fleet size. The solid goods transportation sector has also benefited significantly from the construction and wholesale/retail trade segments, which have been major contributors to GDP growth across Europe.

Fluid Goods Segment in Europe Road Freight Transport Market

The fluid goods segment is demonstrating remarkable growth potential in the European road freight transport market, with projections indicating steady expansion through 2024-2029. This growth is primarily driven by increasing demand for liquid cargo transportation, particularly in the energy sector. Spain's gas system has emerged as a worldwide reference for ensuring supply reliability, benefiting from its advantageous geographical positioning and robust infrastructure. The segment's growth is further supported by the presence of 19 different supply sources made feasible through regasification terminals, solidifying Spain's role as a pivotal entry point for liquefied natural gas (LNG) within Europe. The System Operator has effectively maintained substantial storage levels, with LNG tanks exceeding 80% capacity and underground storage surpassing 90% capacity, demonstrating the segment's operational efficiency and reliability in managing fluid cargo transportation.

Segment Analysis: Temperature Control

Non-Temperature Controlled Segment in Europe Road Freight Transport Market

The non-temperature controlled segment dominates the European road freight transport market, accounting for approximately 95% of the total market value in 2024. This segment's prominence is primarily driven by the manufacturing sector, including machinery, apparel, and automotive parts transportation. Italy, being the second-largest manufacturing country in Europe, significantly contributes to this segment's growth through its export-oriented manufacturing sector. The segment has shown remarkable resilience in international trade, particularly evident in the United Kingdom where around 81% of automobiles are exported to the European Union. The growth in exports of metals, machinery, and automotive parts across major European economies continues to fuel the demand for non-temperature controlled trucking services. Additionally, the construction industry's robust performance and increasing cross-border trade activities have further strengthened this segment's market position.

Temperature Controlled Segment in Europe Road Freight Transport Market

The temperature-controlled segment is experiencing the fastest growth in the European road freight transport market, projected to grow at approximately 4% annually from 2024 to 2029. This growth is primarily driven by the expanding pharmaceutical and food & beverages industries across Europe. Germany, the United Kingdom, Denmark, and Sweden's positions as net exporters of pharmaceuticals have significantly contributed to this segment's expansion. The increasing demand for temperature-sensitive pharmaceutical products, including vaccines and medicines, requires specialized transportation solutions that maintain constant temperatures. Furthermore, the growing food processing sector, coupled with the rising availability of frozen food products including fruits, meat, snacks, and vegetables, is propelling the market forward. The segment has also benefited from the expansion of cold chain logistics networks and increasing investments in temperature-controlled transportation infrastructure across major European economies.

Europe Road Freight Transport Market Geography Segment Analysis

Road Freight Transport Market in United Kingdom

The United Kingdom maintains its position as the leading road freight transport market in Europe, driven by its robust logistics infrastructure and strategic geographical location. The country accounts for approximately 15% of the European road freight transport market value in 2024, supported by its extensive network of 120 cargo-handling ports and over 400 non-cargo-handling ports and harbors. The UK's road freight sector has shown remarkable resilience through its adaptation of sustainable practices, with several companies introducing zero-emission electric lorries for urban deliveries. The government's commitment to strengthening road infrastructure is evident through its EUR 850 million investment in transport infrastructure, focusing on improving roadside facilities for lorry drivers and modernizing the network. The sector's growth is further bolstered by the significant presence of over 5.47 million small businesses and 35,940 medium-sized enterprises, which generate substantial demand for various freight services. The market's dynamics are increasingly influenced by the evolving e-commerce landscape, with in-store retail shopping leading the market and online sales showing strong momentum. The presence of European trucking companies plays a pivotal role in maintaining the UK's competitive edge in the European road freight sector.

Road Freight Transport Market in Netherlands

The Netherlands demonstrates exceptional growth potential in its road freight transport sector, with projections indicating a robust growth rate of approximately 4% from 2024 to 2029. The country's strategic position as a gateway to Europe, combined with its advanced logistics infrastructure, continues to drive market expansion. The Dutch government's forward-thinking approach is evident in its substantial allocation of EUR 7.5 billion until 2030 for transportation improvements, with EUR 2.7 billion specifically designated for road enhancement projects. The country's commitment to sustainable transport is reflected in its progressive policies, such as allowing only emission class 6 diesel trucks or electric trucks in environmental zones. The market's evolution is further supported by about 40 construction projects scheduled for highways, demonstrating the government's commitment to infrastructure development. The Dutch logistics sector's efficiency is enhanced by its seamless integration with maritime transport, leveraging its strategic location and world-class port facilities. The government's focus on maintenance and improvements is underscored by an investment of EUR 1.25 billion, ensuring smooth operations and maintaining the country's competitive edge in European logistics. The presence of some of the largest trucking companies in Europe further solidifies the Netherlands' position in the European freight transport market.

Road Freight Transport Market in France

France's road freight transport market continues to demonstrate strong performance, supported by its strategic position and comprehensive infrastructure development initiatives. The country's commitment to modernizing its transport network is evident through its infrastructure spending project extending to 2028, with significant investments in highway maintenance and construction. The French government's forward-looking approach includes substantial investment in developing the road freight industry through the France 2030 investment plan, supporting the production of electric and hybrid vehicles. The market's dynamics are further enhanced by the country's robust e-commerce sector, ranking third in Europe with over 51 million users. The government's focus on sustainable transport is demonstrated through initiatives like the inauguration of high-pressure hydrogen refueling stations for long-haul trucks. France's strategic approach to cross-border transportation is strengthened by its participation in the Connecting Europe Facility (CEF) projects, which aim to enhance connectivity across European transport corridors. The role of European road freight companies is crucial in supporting France's logistics and transport strategies.

Road Freight Transport Market in Germany

Germany's road freight transport market maintains its position as a crucial hub in European logistics, supported by approximately 430,000 employees across 35,000 road freight companies. The country's market strength is underpinned by significant infrastructure investments, including substantial allocations for federal highways and new construction projects. The market's evolution is characterized by innovative developments, such as the NeuConnect interconnector project linking Germany with the United Kingdom. The sector's growth is further supported by the government's commitment to sustainable transport, evidenced by initiatives like the deployment of advanced smart solutions for heavy-duty vehicles. Germany's strategic location along the 'Blue Banana' logistics corridor enhances its position as a key transit hub for European freight movement. The market's resilience is demonstrated through continuous adaptation to environmental regulations and technological advancements, positioning Germany as a leader in sustainable freight transport solutions.

Road Freight Transport Market in Other Countries

The road freight transport market across other European countries exhibits diverse growth patterns and unique market characteristics. Countries like Italy demonstrate strong potential in manufacturing and cross-border trade, while Spain focuses on developing its e-commerce logistics capabilities. The Nordic countries, including Denmark, Sweden, and Finland, show significant progress in sustainable transport solutions and cross-border cooperation. Eastern European nations such as Poland and the Czech Republic continue to strengthen their position as important transit corridors. Switzerland and Austria leverage their strategic Alpine locations for crucial freight movements, while Belgium and Luxembourg benefit from their central location in Western Europe. The Baltic states - Estonia, Latvia, and Lithuania - are developing their transport infrastructure to enhance connectivity with both Eastern and Western European markets. These markets collectively contribute to the robust and interconnected European road freight transport network, each bringing unique strengths and opportunities to the overall market landscape.