Market Overview
| Study Period | 2020 - 2031 |
|---|---|
| Forecast Data Period | 2026 - 2031 |
| Base Year Market Size (2025) | USD 39.83 Billion |
| Market Size (2026) | USD 41.24 Billion |
| Market Size (2031) | USD 49.77 Billion |
| Growth Rate (2026 - 2031) | 3.83% CAGR |
| Market Concentration | Medium |
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. | |
Italy Road Freight Transport Market Analysis by Mordor Intelligence
The Italy road freight transport market size is expected to grow from USD 39.38 billion in 2025 to USD 41.24 billion in 2026 and is forecast to reach USD 49.77 billion by 2031 at a 3.83% CAGR over 2026-2031.
Digital tolling, resilient pharmaceutical cold-chain corridors, and weight-limit harmonization are reshaping network economics, while Euro V toll penalties and night-time access bans compress margins in urban nodes. The EUR 25 billion (USD 29.43 billion) National Recovery and Resilience Plan earmarked for transport digitization underpins corridor upgrades that trim border-crossing dwell times by up to 40%. International corridors gain further tailwinds from the European Investment Bank’s EUR 1.8 billion (USD 2.12 billion) in TEN-T financing, giving operators a hedged buffer against domestic congestion headwinds. Wholesale and retail trade overtakes legacy manufacturing growth as omnichannel retailers demand denser last-mile grids, and temperature-controlled freight expands fastest on surging pharmaceutical exports.
Key Report Takeaways
- By end user, manufacturing accounted for 33.12% of the Italy road freight transport market size in 2025, while wholesale and retail trade is expected to expand at a CAGR of 5.01% from 2026 to 2031.
- By destination, domestic shipments held a dominant 64.88% share of the Italy road freight transport market size in 2025, and international transport is projected to grow at a CAGR of 4.86% during 2026-2031.
- By truckload specification, full truckload (FTL) represented 80.9% of the Italy road freight transport market size in 2025, whereas less-than-truckload (LTL) is set to record the fastest growth at a CAGR of 5.88% between 2026 and 2031.
- By containerization, non-containerized freight captured 85.11% of the Italy road freight transport market share in 2025, with containerized shipments anticipated to grow at a 6.13% CAGR over 2026–2031.
- By distance, long-haul transport accounted for 73.49% of the Italy road freight transport market size in 2025, and long-haul routes are projected to expand at a CAGR of 4.55% from 2026 to 2031.
- By goods configuration, solid goods dominated with a 71.07% share of the Italy road freight transport market share in 2025, while fluid goods are expected to see a CAGR of 4.59% during 2026-2031.
- By temperature control, non-temperature-controlled shipments held a significant 94.92% of the Italy road freight transport market size in 2025, and temperature-controlled logistics are forecast to advance at the fastest CAGR of 7.15% between 2026 and 2031.
Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of 2026.
Italy Road Freight Transport Market Trends and Insights
Drivers Impact Analysis*
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Nationwide toll-road digitalization program | +0.7% | National, TEN-T corridors, Alpine crossings | Medium term (2-4 years) |
| Re-shoring of high-value fashion & textile manufacturing | +0.6% | Lombardy, Veneto, Tuscany | Long term (≥ 4 years) |
| 44-tons gross-vehicle-weight limit harmonization | +0.5% | Cross-border corridors | Short term (≤ 2 years) |
| Expansion of pharmaceutical cold-chain export corridors | +0.4% | Milan, Rome, and Bologna hubs | Medium term (2-4 years) |
| Carbon Border Adjustment Mechanism incentives for low-carbon fleets | +0.3% | EU cross-border routes | Long term (≥ 4 years) |
| Freight-fintech factoring improving SME cash-flow | +0.2% | National | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
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Nationwide Toll-Road Digitalization Program
Interoperable electronic tolling mandated by the EU reduces manual-booth delays and shortens border clearance by up to 40% on key Alpine crossings. Automatic plate recognition and GNSS billing enable dynamic off-peak rate incentives that already redirect 15-20% of heavy-duty traffic to overnight slots. Fleet operators integrating live toll feeds into routing algorithms record lower detention and gain real-time cost visibility, bolstering competitiveness on high-frequency lanes connecting Milan to Munich and Lyon.
Re-Shoring of High-Value Fashion & Textile Manufacturing
Luxury brands revive “Made in Italy” capacity to secure supply-chain resilience and ESG credentials. Textile exports to other EU nations rose 6.8% in 2024 and sustain frequent, smaller consignments that reward less-than-truck-load carriers equipped for humidity-controlled, high-value shipments. Nearshoring compresses order-to-delivery cycles from triple-digit days to under one month, reinforcing premium service niches within the Italy road freight transport market[1].European Commission, “Electronic Tolling Service Directive,” transport.ec.europa.eu
44-Tons Gross-Vehicle-Weight Limit Harmonization
EU alignment lifts permissible gross weight to 44 tons, abolishing the former 38-40 tons caps in neighboring states. Italian full-truck-load fleets now boost payload utilization by 10-12%, cut empty backhaul kilometers, and streamline ISO 1161 container protocols. Competitive tension intensifies as international fleets leverage the cost edge to bid on domestic source-to-border contracts.
Expansion of Pharmaceutical Cold-Chain Export Corridors
Italy’s EUR 4.8 billion (USD 5.65 billion) cold-chain sector derives more than 35% of revenue from pharma handling. GDP-compliant hubs in Milan, Rome, and Bologna support vaccines and biologics requiring -80 °C to +25 °C lanes, commanding freight premiums of up to 60%. IoT-equipped trailers generate continuous temperature logs that satisfy EU audits, reinforcing moat advantages for specialized carriers.
Restraints Impact Analysis*
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Emissions-indexed toll surcharges on Euro V & older trucks | -0.6% | National highway network | Short term (≤ 2 years) |
| Stricter nighttime urban access bans in major cities | -0.4% | Milan, Rome, Naples, Turin, Bologna | Medium term (2-4 years) |
| Driver talent drain to gig-economy parcel platforms | -0.3% | National | Short term (≤ 2 years) |
| Sparse public megawatt-charger network for heavy e-trucks | -0.2% | Long-haul corridors | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Emissions-Indexed Toll Surcharges on Euro V & Older Trucks
From 2026, Euro V tractors will face 15-25% higher tolls under the Euro vignette Directive, significantly increasing operating costs for carriers. With roughly 28% of Italy’s national fleet still running pre-Euro VI engines, long-haul operators are experiencing sharply compressed margins of just 3-5%. This regulatory pressure is driving a strategic shift across the industry, prompting accelerated fleet retirements, targeted retrofits, and investments in cleaner, more efficient vehicles to remain competitive and compliant. The move also highlights the growing importance of sustainability and emissions reduction in shaping cost structures and fleet planning in Italy’s road freight sector.
Stricter Night-Time Urban Access Bans in Major Cities
Milan’s Area B low-emission zone now restricts Euro 5 diesel trucks between 23:00 and 06:00, with Rome and Bologna implementing similar measures, reducing truck utilization by up to 18%. These curbs are reshaping logistics operations, forcing retailers and carriers to re-time restocking schedules, navigate higher daytime congestion fees, and rely on smaller, compliant vehicles. Beyond the immediate cost impact, the restrictions are accelerating investments in cleaner fleets and prompting more strategic route planning, highlighting how urban emissions policies are increasingly influencing operational efficiency, supply chain resilience, and the broader competitiveness of Italy’s road freight sector[2].IRU, “Italy Faces Critical Driver Shortage,” iru.org
*Our updated forecasts treat driver/restraint impacts as directional, not additive. The revised impact forecasts reflect baseline growth, mix effects, and variable interactions.
Segment Analysis
By End User: Wholesale Trade Outpaces Manufacturing Legacy
Manufacturing generated 33.12% of the Italy road freight transport market size in 2025, and wholesale and retail trade is forecast at a 5.01% CAGR to 2031. The boom reflects e-commerce parcel volume of 120 million in 2023, 18% higher than the prior year.
Omnichannel retailers increasingly favor less-than-truck-load consolidation centers, while niche machinery and aerospace orders sustain full-truck-load demand. Construction freight remains subdued following tax incentive withdrawals, yet public works under the NRRP prop up cement and steel lanes. Agriculture and forestry capitalize on Mediterranean fresh-produce routes into Northern Europe.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: International Corridors Leverage Gateway Position
International flows rose 4.86% CAGR, benefiting from 44-ton harmonization that lifted payload efficiency and slashed repositioning miles. Domestic operations still represented 64.88% of the 2025 Italy road freight transport market share.
CBAM rewards low-carbon fleets on Italy-Germany and Italy-France axes, while toll digitalization eliminates paper vignettes and streamlines billing across France, Austria, and Switzerland. Fashion re-shoring in Lombardy injects high-value cargo into Milan-Paris quick-response corridors, further bolstering cross-border legs.
By Truckload Specification: LTL Gains Through Digital Matching
Less-than-truck-load volumes are set to post a 5.88% CAGR, reinforced by fintech factoring that trims SME cash cycles and funds telematics. Full-truck-load still dominated 80.9% of Italy road freight transport market share in 2025 freight but now faces driver shortages and emissions toll burdens that compress unit margins.
Digital platforms execute algorithmic co-loading, cutting space and elevating service KPIs. Conversely, FTL carriers exploit 44-tonne weights for dense commodities but struggle to backfill lanes amid diverging northbound and southbound demand.
By Containerization: Intermodal Efficiency Drives Containerized Growth
Containerized freight is jumping 6.13% CAGR as port-to-inland dry‐port shuttles gain from standardized handling and customs simplification. Non-containerized traffic still held an 85.11% share in 2025, covering bulk, oversized, and cold-chain cargo.
The Italy road freight transport market share for container drayage should edge higher as Genoa’s throughput rebound integrates with rail nodes and weight harmonization permits heavier boxes to transit Alpine tunnels without splits.
By Distance: Long-Haul Dominance Amid Urban Constraints
Long-haul lanes represented 73.49% of Italy road freight transport market share in 2025, and is expected to grow at a 4.55% CAGR, lifted by gateway linkages to Northern Europe and emerging North African feeder routes. Short-haul shuttles endure tighter curfews and congestion pricing that lower daily truck turns.
Sparse megawatt chargers curb electric adoption on 900-km Naples-Munich runs, leaving LNG and HVO as interim fuels. Urban same-day delivery vehicles, however, pivot to battery power to sidestep access bans.
Note: Segment shares of all individual segments available upon report purchase
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By Goods Configuration: Solid Goods Stability with Fluid Specialization
Fluid cargo such as petrochemicals and food-grade liquids is on a 4.59% CAGR path, capitalizing on ADR-certified tank assets and higher freight yields. Solid goods still contribute 71.07% of Italy road freight transport market share in 2025 value yet remain exposed to toll surcharges and driver attrition.
CBAM fees on carbon-heavy commodities encourage CNG fleets for chemical exports, while ISO-tank intermodality lets operators hedge rail and sea options.
Note: Segment shares of all individual segments available upon report purchase
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By Temperature Control: Cold-Chain Commands Premium Growth
Non-Temperature Controlled captured 94.92% of the Italy road freight transport market size in 2025, but temperature-controlled will outpace all other goods classes through a 7.15% CAGR. Over 80% of pharma depots satisfy GDP protocols, enabling high-margin biologic exports to Northern Europe.
Ambient cargo still drives bulk tonnage but faces fierce price competition and emissions penalties, whereas cold-chain operators leverage IoT telemetry and irreversible temperature logs to warrant surcharges up to 60%.
Geography Analysis
Northern Italy hosts the densest freight corridors, with Lombardy alone accounting for one-third of national industrial output and anchoring Milan’s role as a consolidation hub. Alpine tunnels modernized under TEN-T financing shave hours off Milan-Munich itineraries, amplifying the Italy road freight transport market’s export profile.
Central regions add pharmaceutical and perishables volume via Rome-based GDP hubs that funnel vaccines toward France and Spain, while toll digitalization across the Apennine spine improves real-time charge reconciliation for SMEs. Southern corridors lag on infrastructure quality, yet EU funds ring-fence upgrades on the Salerno-Reggio Calabria artery, opening fresh lanes for agri-food exports to Germany[3]. European Commission, “Weights and Dimensions Road Harmonization,” transport.ec.europa.eu
Internationally, CBAM steers low-carbon fleets toward Austria and Slovenia gateways where surcharge-exempt Euro VI vehicles lock in predictable cost bases. Meanwhile, North African feeder services moving through Genoa and Gioia Tauro ports inject new demand for containerized drayage into hinterland cities.
Competitive Landscape
Italy’s road freight arena is moderately fragmented; the top five operators control an estimated 42% of the Italy road freight transport market share. DSV’s EUR 14.3 billion (USD 16.84 billion) purchase of DB Schenker in 2025 created a pan-European giant with reinforced Italian density. Large incumbents exploit network scale for contract logistics, yet nimble SMEs sustain niche flexibilities via fintech-backed liquidity and digital freight matching.
Poste Italiane is pivoting 27,900 low-emission vehicles to capture e-grocery surges while navigating stricter night curfews. Cold-chain specialists expand GDP-certified trailers with real-time telemetry that underpin their 40-60% rate premiums. Technology distinguishes winners: APIs that ingest live toll data slash route cost uncertainty, and AI scheduling platforms mitigate driver shortages by raising asset turns[4].IVECO, “S-eWay Artic Electric Truck Launch,” iveco.com
Sustainability remains a commercial lever. Fleets integrating CNG or HVO engines seize CBAM exemptions, while manufacturers such as IVECO and Scania supply early-adopter electric rigs for urban grocery loops. Investments in megawatt charging stay tentative pending grid clarity, entrenching a dual-fuel landscape over the medium term.
Italy Road Freight Transport Industry Leaders
Arcese Trasporti SpA
DHL Group
DSV
Fercam SpA
Kuhene+Nagel
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- November 2025: Italian freight forwarder Sogedim SpA acquired the Overseas division of Raben Group, strengthening its air and sea forwarding capabilities in Italy.
- November 2025: Kuehne + Nagel (Italy) reportedly advanced with a sustainability-focused initiative in its Italian operations, including adopting electric vehicles and route optimizations to reduce carbon emissions.
- June 2025: Kuehne + Nagel opened a new office in Naples, Italy, expanding its local presence with sea, air, and road freight services tailored to agri-food, pharma, electronics, textile, and naval sectors.
- April 2025: DSV A/S completed the acquisition of DB Schenker from Deutsche Bahn, creating one of the world’s largest transport and logistics groups with expanded global scale across air, sea, and road freight.
Italy Road Freight Transport Market Report Scope
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 |
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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. |
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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.
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