Market Trends of indonesia road freight transport Industry
This section covers the major market trends shaping the Indonesia Road Freight Transport Market according to our research experts:
Wholesale and Retail Trade is the largest segment by End User.
- The wholesale and retail trade sector has been the largest contributing sector in the road freight transport market of Indonesia, after the 'others' segment, having accounted for a voluminal contribution of 28.12%, followed by the manufacturing sector, accounting for a volume share of 27.94% in 2020. The manufacturing sector is the major contributor to Indonesia's gross domestic product, holding a share of 19.7%, which amounted to USD 234.07 billion in 2021, up from USD 214.76 billion in 2020.
- The overall volume of the end-user segment of the road freight transport market experienced a decline of 13.73% YoY in 2020 due to a fall in the trade patterns in Indonesia, owing to the impact of the COVID-19 pandemic and consequent halts in economic activities. The manufacturing segment of the road freight transport market witnessed a decline of 13.76% YoY in 2020 as a result of a fall in the outputs of various industries due to the lockdowns. The proven resiliency of the manufacturing sector in the country's output by 8.99% YoY indicates that the trajectory of industrial growth is on track, and this sector is set to become the driver of the national economy, aiming for a gross domestic product (GDP) contribution of more than 20% by 2024.
- During the forecast period, under the end-user segment of the road freight transport market, the agriculture, fishing, and forestry sector is expected to grow at the highest rate and reach a market volume of 2.28%, followed by the oil, gas, mining, and quarrying segment, holding a market volume of 1.78% by 2028. The growth scope in these segments in Indonesia's road freight market is anticipated to be massive.