Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 153.90 Billion |
| Market Size (2030) | USD 236.29 Billion |
| Growth Rate (2025 - 2030) | 8.95% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
India Road Freight Transport Market Analysis by Mordor Intelligence
The India road freight transport market size stands at USD 153.9 billion in 2025 and is projected to reach USD 236.29 billion by 2030, expanding at an 8.95% CAGR (2025-2030). The headline growth mirrors India’s position as the world’s fastest-growing major economy, with a robust manufacturing revival, a booming e-commerce sector, and a decisive public-sector push on highways and multimodal corridors. Infrastructure additions such as the 146,145 km national highway network, widespread FASTag tolling, and the early roll-out of Dedicated Freight Corridors are shrinking transit times, lifting truck utilization, and easing capacity shortages. Organized logistics penetration is rising as GST, e-way bills, and customer-side service-level agreements push shippers toward compliant, technology-equipped providers. Meanwhile, India’s rural consumption story, backed by digital payments and tier-3 and tier-4 e-commerce demand, is redrawing delivery routes and fortifying volume prospects for small and mid-distance hauls.
Key Report Takeaways
- By end user industry, wholesale and retail trade led with 30.63% share in 2024, while manufacturing is advancing at a 10.21% CAGR between 2025-2030.
- By destination, domestic movements commanded 63.41% of the India road freight transport market share in 2024; international freight is forecast to climb at a 10.40% CAGR between 2025-2030.
- By truckload specification, full-truck-load operations held 80.68% share in 2024, whereas less-than-truck-load values are pacing a 10.03% CAGR between 2025-2030.
- By containerization, non-containerized cargo accounted for 86.51% share of the India road freight transport market size in 2024, and containerized flows are poised for a 9.13% CAGR between 2025-2030.
- By distance, long-haul lanes represented 75.37% of shipments in 2024, and are expanding at a 9.40% CAGR between 2025-2030.
- By goods configuration, solid goods controlled 72.80% share in 2024, while fluid goods are registering a 9.65% CAGR between 2025-2030.
- By temperature control, non-temperature-controlled freight dominated with 94.37% share in 2024; temperature-controlled consignments are tracking a 9.85% CAGR between 2025-2030.
India Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce fulfilment boom beyond tier-1 and tier-2 cities | +1.8% | National; early gains in Karnataka, Tamil Nadu, Maharashtra | Medium term (2-4 years) |
| Infrastructure push via Bharatmala and Gati Shakti corridors | +2.1% | National; Golden Quadrilateral, N-S/E-W spines | Long term (≥4 years) |
| Growing adoption of organized 3PL/4PL models by MSMEs | +1.2% | Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad | Medium term (2-4 years) |
| Rapid scaling of digital freight marketplaces | +1.4% | National; key trunk routes | Short term (≤2 years) |
| Duty rationalization for alternative fuels (CNG/LNG) | +0.9% | Gujarat, Maharashtra, Uttar Pradesh | Short term (≤2 years) |
| Green-lane policy for time-critical perishables | +0.6% | Punjab, Haryana, Uttar Pradesh, Maharashtra | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Understand The Key Trends Shaping This Market
Download PDF
E-commerce Fulfilment Boom Beyond Tier-1 and Tier-2 Cities
Penetration of online retail into tier-3 and tier-4 catchments is propelling steady incremental volumes for the India road freight transport market. India’s e-commerce sector is tracking a 22% CAGR between 2025-2030 as rural smartphone ownership and UPI payments scale rapidly[1]National Payments Corporation of India, “UPI Product Statistics,” npci.org.in. Quick-commerce players are building micro-fulfilment hubs in secondary towns to meet ten-minute delivery pledges, raising demand for LTL consolidation and cross-docking. Delhivery now covers 18,700+ pin codes, signaling the breadth of new-age distribution lanes. Regional carriers that can negotiate state-level border checks, axle-load limits, and octroi substitutes are positioned to win loads that once stayed within informal networks. The digital payment backbone removes cash-on-delivery friction and supports transparent, trackable invoicing for small consignments.
Infrastructure Push via Bharatmala and Gati Shakti Corridors
Daily highway construction hit 40 km in 2024, underscoring the momentum behind Bharatmala’s 34,800 km mandate[2]Ministry of Road Transport and Highways, “Annual Report 2024-25,” morth.nic.in. Integrated planning under PM Gati Shakti has compressed right-of-way approvals from multiple years to months and is aligning road, rail, and utility corridors. Improved port-to-factory links are already nudging average truck speeds upward by 15-20% on the Ahmedabad-Mumbai and Delhi-Kanpur arteries. Maersk’s USD 5 billion port-side investment commitment underlines multinational confidence in corridor performance gains. The construction boom itself churns freight for cement, steel, and machinery, adding volume layers that reinforce basal manufacturing flows.
Growing Adoption of Organized 3PL/4PL Models by MSMEs
MSMEs are shifting to contract logistics to trim inventory days and unlock working-capital headroom. Third-party providers report 25-30% annual client-onboarding rates, riding on API-linked dashboards that furnish shipment milestones in real time. Inventory turns are improving by 15-20% for MSMEs that outsource to structured fleets, which strengthens repeat outsourcing behaviour. Formal logistics relationships additionally help small businesses remain GST-compliant and avoid state-border delays tied to incomplete e-way documentation. The shift is accelerating the organized share of the India road freight transport market toward the mid-teens and is a catalyst for tech-enabled consolidation.
Rapid Scaling of Digital Freight Marketplaces
Asset-light platforms such as BlackBuck channel billions in venture capital toward AI-based load matching, cutting empty-return miles by roughly 30% on busy lanes[3]VCCEdge, “Indian Logistics Startups Funding Report 2024,” vccedge.com. Integrated wallets, fuel cards, and micro-loans encourage fleet owners to transact repeatedly within the ecosystem, enhancing liquidity and visibility for shippers. Automated PoD uploads and e-invoicing shrink disputes and accelerate receivables for carrier partners. The model’s success signals a broad digital readiness that bodes well for subsequent SaaS layers—predictive maintenance, dynamic route allocation, and carbon-intensity dashboards—that further professionalize operations across the India road freight transport market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Driver shortage and ageing workforce | −1.5% | Nationwide; pronounced on northbound long haul | Long term (≥4 years) |
| Slow adoption of vehicle-scrappage policy | −0.8% | States with ageing CV fleets | Medium term (2-4 years) |
| Toll-cost inflation despite FASTag automation | −0.6% | Golden Quadrilateral corridors | Short term (≤2 years) |
| Limited cold-chain nodes outside metros | −0.4% | Produce-rich rural belts | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Driver Shortage and Ageing Workforce
Peak-season fleet idling due to driver gaps has clipped utilization by up to 20% on Delhi-Mumbai and Bangalore-Chennai sectors, inflating line-haul rates and stretching lead times. Young workers favor predictable shifts in e-commerce hubs over week-long interstate runs, causing an experience drain in long-haul trucking. State-run training centers work in silos, leaving skills certification uneven and safety standards patchy. Wage inflation, estimated at 12-15% year-on-year for heavy-vehicle operators, compounds cost-pass-through into shipper tariffs. Safety-tech aids help, yet human capital constraints remain a drag on capacity expansion in the India road freight transport market.
Slow Adoption of Vehicle-Scrappage Policy
Roughly 12 million end-of-life vehicles qualify for scrappage, but a voluntary compliance regime and limited shredding hubs keep ageing fleets on the road[4]Auto Car Professional, “Vehicle scrappage policy gains traction: 40% increase in scrapping rates in 2024,” autocarpro.in. Operators that defer replacement bear 20-25% higher maintenance costs and face sporadic bans in low-emission zones, disrupting service continuity. Fiscal sops—registration waivers and modest OEM discounts—have not fully bridged cap-ex gaps, especially for owner-drivers who dominate the informal tail of the Indian road freight transport industry. As BS-VI norms tighten city-entry rules, the economic case for timely fleet renewal will strengthen, but policy execution speed remains uncertain.
Segment Analysis
By End User Industry: Manufacturing Drives Diversification
Domestic manufacturing’s link to Production Linked Incentive schemes is attracting electronics, auto-component, and pharmaceutical cap-ex, translating to elevated outbound tonnage. With a 10.21% CAGR between 2025-2030, manufacturing contributes the highest incremental volume to the India road freight transport market. Wholesale and Retail Trade remains the single-largest shareholder at 30.63%, powered by consumption-led FMCG and consumer durables backflows. Agriculture, Fishing, and Forestry retains a steady base, though its share inches down as industrial freight climbs.
PLI-linked factories are clustering near ports and Western Dedicated Freight Corridor junctions, prompting higher load density on Gujarat-Maharashtra-Delhi stretches. The Indian road freight transport market size for manufacturing consignments is likely to exceed USD 50 billion by 2030, assuming stable policy continuity and sustained foreign direct investment. Agriculture’s share may steady around the low-teens as cold-chain gaps narrow, all else equal. Shipper preference for door-to-door flexibility continues to shield road carriers from modal leakage, even as Dedicated Freight Corridors bring rail into higher-value brackets.
Note: Segment shares of all individual segments available upon report purchase
Get Detailed Market Forecasts at the Most Granular Levels
Download PDF
By Destination: International Growth Accelerates
The domestic lattice dominates today with a 63.41% share in 2024, yet future growth tilts toward cross-border links, which are clocking a 10.40% CAGR between 2025-2030. Near-term catalysts include paperless customs on the India-Bangladesh corridor and IMEC’s pipeline, which promises multimodal savings on westbound cargo. Maersk’s hinterland-driven port investments aim to double export-bound container capacity by 2030, lifting the international slice of the India road freight transport market.
Customs dwell time, averaging 85 hours, remains a bottleneck compared with leading Asian hubs. Digital customs and blockchain-enabled bills of lading are expected to chop that figure materially, pulling more exporters toward truck-plus-rail containerized loops. Domestic mileage will still swell as rural consumption rises, but global supply-chain realignments position India as a China-plus-one alternative, spurring bilateral lanes into GCC and Europe via emerging land-sea corridors.
By Truckload Specification: LTL Gains from E-commerce Fragmentation
Full-Truck-Load kept 80.68% share in 2024, serving minerals, steel coils, and packaged FMCG. Yet LTL’s 10.03% CAGR between 2025-2030 outpaces the overall India road freight transport market. Hub-and-spoke depots in Nagpur, Indore, and Hyderabad feed rapid trans-shipment, cutting delivery promises to under 48 hours for 90% of urban pairs. Algorithms allocate mixed orders into palletized pods, lifting fill factors and shrinking per-kilo costs.
Asset-light third-party logistics use owner-operator micro fleets for last-mile links, minimizing cap-ex and accelerating coverage. Freight platforms supply dynamic dashboards that guarantee slot times, unlocking premium pricing for predictable service. FTL will remain irreplaceable for bulk commodities, yet its share ratio is projected to erode marginally as parcelization broadens.
By Containerization: Non-Containerized Dominance Reflects Infrastructure Gaps
Bulk cargo and out-of-gauge loads keep non-containerized values at 86.51% in 2024. Still, containerized freight’s 9.13% CAGR between 2025-2030 signals a structural change, grounded in export manufacturing and ICD proliferation. Sagarmala initiatives inject new quay cranes, double-stack-ready rakes, and last-mile bridges, elevating the India road freight transport market’s container candidate pool.
Maersk has added 26 inland depots across tier-2 cities, trimming repositioning costs for empty boxes. Standardization improves cargo security, opens trade finance windows, and aligns with shippers’ ESG audits that score modal integrity. Non-containerized lanes will continue to thrive on raw material swings, yet higher container availability is set to chip away at their dominant share.
By Distance: Long Haul Maintains Leadership Despite Modal Competition
India’s spatial scale underpins long-haul preeminence, accounting for 75.37% share in 2024 and a 9.40% CAGR between 2025-2030. Upgraded highways allow 700-800 km daily truck averages on select stretches, narrowing cost parity with rail. Short-haul, centered on 200-km peri-urban loops, benefits from just-in-time inventory cycles in auto and electronics clusters.
Rail container rates pose competitive pressure on 1,000-km corridors, but door-pickup add-ons keep total landed costs favorable for truckers. Long-haul over-dimensional cargo and mixed LTL pallets remain road-locked owing to route flexibility and the absence of marshalling delays at terminals. A wider CNG and LNG station footprint will further lower operating costs on extended runs over the forecast window.
Get Detailed Market Forecasts at the Most Granular Levels
Download PDF
By Goods Configuration: Solid Goods Leverage Manufacturing Growth
Solid goods comprised 72.80% of revenues in 2024, covering finished consumer items, construction supplies, and machinery. PLI-driven exports lift palletized electronics, while domestic infra spend fuels steel and cement haulage. Fluid goods, growing at a 9.65% CAGR between 2025-2030, profit from refinery expansions and rising chemical output that necessitate stainless-steel drums or ISO-tank moves.
Stringent safety norms and ADR-compliant kits raise entry barriers in fluid lanes, facilitating better yields for specialists. Solid-goods carriers are racing to fit telematics for real-time weight and seal checks, raising fleet productivity and cutting pilferage claims. Both configurations enjoy tailwinds from regulatory preference for organized, traceable supply chains, albeit via distinct equipment pathways.
By Temperature Control: Cold Chain Infrastructure Gaps Limit Growth
Non-temperature-controlled freight towers at 94.37% in 2024, but temperature-controlled pallets still clock a brisk 9.85% CAGR between 2025-2030 on vaccine exports, processed foods, and premium produce. Blue-Dart’s pharma-grade cold boxes and Safexpress’ newly opened Andhra logistics park illustrate cap-ex appetite aimed at bridging cold-chain deficits.
Peak-season spoilage rates north of 15% for certain perishables highlight the opportunity costs of inadequate coverage. Government subsidies for solar-powered reefers and micro-cold rooms in farm gates could double cold-ready lane capacity within five years. Until then, the India road freight transport market will continue to operate with a pronounced ambient bias.
Geography Analysis
Freight density is highest on the Mumbai–Delhi spine, underpinned by JNPT port volumes, pharma factories in Gujarat, and Delhi-NCR consumption. Golden Quadrilateral arterials account for a disproportionate share of India road freight transport market tonnage despite comprising a smaller slice of the network. Western India’s supremacy is cemented by Maersk’s port-side warehousing pledge, which will amplify gateway efficiency.
Northern lanes post strong farm-led traffic spikes around harvest, yet winter smog restrictions in the NCR squeeze night-drive windows, inflating dwell. Uttar Pradesh’s expressway grid is unlocking alternative Agra–Lucknow–Varanasi segments, diffusing congestion from NH-19. Southern India hosts auto OEM orbits linking Chennai, Bangalore, and Hosur; these triangular flows yield balanced backhauls that trim empty legs. Coastal connectivity through Chennai and Vizag ports sustains two-way container flows, increasing the region’s attractiveness for electronics exports.
Eastern corridors are mixed: the Kolkata–Siliguri stretch feeds the North-East states but suffers monsoon erosions and road-width pinch points. Odisha’s mineral belts generate iron ore and coal runs, yet last-mile rails are still underdeveloped. Bharatmala Phase I brings 2,000+ km of east-west skews that may level the playing field by 2030. Across states, freight-specific industrial parks such as Integrated Multimodal Logistics Hubs in Maharashtra and Haryana promise to reroute traffic into planned clusters, reducing city-core congestion while enhancing throughput.
Competitive Landscape
Fragmentation momentum is evident as organized players captured roughly minor share of the India road freight transport market, up from single digits five years ago. Technology stands as the primary battleground: Delhivery’s predictive ETA engine and VRL’s fleet-wide IoT retrofit signal how telematics has become table stakes. Asset-light digital platforms like BlackBuck orchestrate trucker networks without owning vehicles, while incumbents such as TCI and Mahindra Logistics deploy integrated warehousing plus express parcel arms to lock in enterprise accounts.
Strategic moves in 2025 illustrate varied playbooks. Maersk is forging port-to-door bundled contracts, leveraging maritime strength to win inland legs. VRL’s Karnataka buyout secures feeder capacity in the vibrant South, enlarging its fleet by 500 trucks. Safexpress adds a 350,000 ft² cross-dock in Andhra Pradesh to tighten Trans-South turnaround times.
Competitive differentiation now leans on value-added layers: invoicing APIs, carbon analytics, insurance tie-ins, and driver wellness programs aimed at retaining scarce talent. Regulatory compliance costs, notably for BS-VI retrofits and weight-in-motion penalties, tilt the field toward capitalized, process-driven operators. Fragmentation remains significant, yet growing customer expectations, digitization and ESG pressures foreshadow an accelerated shake-out over the coming five-year horizon.
India Road Freight Transport Industry Leaders
-
Delhivery Ltd.
-
Transport Corporation of India (TCI)
-
Allcargo Logistics (including Gati Express)
-
VRL Logistics Ltd.
-
Mahindra Logistics
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competitors?
Download PDF
Recent Industry Developments
- May 2025: Safexpress inaugurated a 3.5 lakh ft² logistics park in Andhra Pradesh with cross-dock ability for 100 vehicles, enhancing hub capacity along the South-East corridor.
- April 2025: Delhivery signed a definitive agreement to acquire a controlling stake in Ecom Express, strengthening its end-to-end e-commerce logistics proposition.
- February 2025: A.P. Moller-Maersk announced a USD 5 billion investment in Indian ports and landside infrastructure, allocating 50% to Pipavav terminal expansion and the balance to Vadhavan mega-port development.
- January 2025: VRL Logistics completed the acquisition of a regional carrier in Karnataka, enlarging its South Indian footprint by 25% and adding 500 vehicles to its fleet.
India Road Freight Transport Market Report Scope
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, International 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 |
| International |
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 |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Destination | Domestic |
| International | |
| 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 |
Need A Different Region or Segment?
Customize Now
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. |
Need More Details on Market Definition?
Ask a Question
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
Get More Details On Research Methodology
Download PDF
