Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 39.83 Billion |
| Market Size (2030) | USD 47.38 Billion |
| Growth Rate (2025 - 2030) | 3.53% 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. |
|
Italy Road Freight Transport Market Analysis by Mordor Intelligence
The Italy road freight transport market size is estimated at USD 39.83 billion in 2025, and is expected to reach USD 47.38 billion by 2030, at a CAGR of 3.53% during the forecast period (2025-2030), confirming the steady expansion of the market. Rising e-commerce volumes, a gradual rebound in export-oriented manufacturing, and European Union infrastructure funding underpin demand even as GDP slipped 0.1% quarter-over-quarter in Q2 2025. Domestic freight retains a 63.94% share, yet international corridors grow faster as Italy maximizes its gateway role along TEN-T routes upgraded through a EUR 1.8 billion (USD 1.98 billion) EIB facility. Consolidation reshapes the competitive field after DSV closed the EUR 14.3 billion (USD 15.78 billion) DB Schenker acquisition in April 2025. Parallel advances in AI-enabled routing, fleet electrification, and hydrotreated vegetable oil (HVO) adoption position technology-centric carriers to capture emerging opportunities across the Italy road freight transport market.
Key Report Takeaways
- By end user industry, manufacturing led with 34.47% Italy road freight transport market share in 2024 while wholesale and retail trade is forecast to expand at a 4.06% CAGR between 2025-2030.
- By destination, domestic haulage accounted for 63.94% of the Italy road freight transport market size in 2024 and international traffic is projected to grow at a 4.14% CAGR between 2025-2030.
- By truckload specification, full-truck-load commanded 82.35% share of the revenue in 2024, whereas less than-truck-load is set to post a 3.95% CAGR between 2025-2030.
- By containerization, non-containerized freight held 85.50% share in 2024 and containerized cargo is expected to rise at a 3.60% CAGR between 2025-2030.
- By distance, long-haul services represented 73.14% of the revenue share in 2024 with a 3.71% CAGR between 2025-2030 outlook, while short-haul growth hinges on last-mile optimization.
- By goods configuration, solid goods led with 70.42% share, and fluid goods are forecast to post a 3.78% CAGR between 2025-2030.
- By temperature control, non-controlled freight dominated with 94.65% share in 2024; temperature-controlled volumes are poised for a 3.88% CAGR between 2025-2030 on the strength of pharmaceutical and food exports.
Italy Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Surge in E-commerce and last-mile demand | +0.8% | National, concentrated in Milan, Rome, Naples metropolitan areas | Short term (≤ 2 years) |
| Manufacturing export rebound post-COVID | +0.6% | Northern Italy industrial corridors, Po Valley region | Medium term (2-4 years) |
| EU-funded road-bridge megaproject pipeline | +0.4% | TEN-T corridors, Alpine crossings, Southern Italy infrastructure | Long term (≥ 4 years) |
| OEM fleet modernization and HVO adoption | +0.3% | National, with early adoption in Lombardy, Veneto regions | Medium term (2-4 years) |
| AI-optimized empty-backhaul exchanges | +0.2% | Major freight corridors, industrial clusters | Short term (≤ 2 years) |
| OEM battery-swap trucks for Alpine corridors | +0.1% | Alpine regions, cross-border routes to Austria, Switzerland | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Surge in E-Commerce and Last-Mile Demand
Italy’s e-commerce boom propels structural change as omnichannel retailers push parcel volumes into dense urban networks. Wholesale and retail trade therefore record the fastest segment growth at a 4.14% CAGR between 2025-2030. Poste Italiane deployed 27,900 low-emission vehicles and expanded its Piacenza and Caserta hubs to boost parcel capacity. DHL strengthened reach via the Locker Italia venture, capturing pickup-drop-off demand spikes. A Rome pilot combining autonomous robots with public transit cut last-mile costs by 7.5%. These dynamics accelerate less-than-truck-load service uptake as retailers seek consolidation to relieve congestion and emissions limits[1]“EIB Supports Italian Transport Infrastructure with EUR 1.8 Billion,” European Investment Bank, eib.org.
Manufacturing Export Rebound Post-COVID
Despite a 1.8% industrial production dip in March 2025, Italy’s high-value subsectors regained momentum. Food exports grew 9.8% and pharmaceuticals 9.5% in 2024, lifting temperature-controlled freight volumes. The National Recovery and Resilience Plan channels EUR 100 billion (USD 110.36 billion) into logistics upgrades that sharpen export competitiveness over 2025-2026. International corridors consequently show a 4.14% CAGR (2025-2030) as plants restore overseas orders. Cargo mix shifts toward higher-value and time-sensitive loads that reward carriers with compliance expertise and modern fleets[2]“AI-Optimized Urban Freight Distribution: Rome Case Study,” IEEE Xplore, ieee.org.
EU-Funded Road-Bridge Megaproject Pipeline
The EIB’s EUR 1.8 billion (USD 1.98 billion) package accelerates TEN-T bottleneck removal and bridge rehabilitation, expanding axle-load limits and cutting transit times. Fast chargers mandated every 60 km by end-2025 leverage EUR 740 million (USD 816.69 million) in public grants for 21,400 new points. Infrastructure gains strengthen long-haul economics, supporting the 73.14% revenue share held by that segment. Carriers positioned along upgraded corridors capture utilization benefits and reduce maintenance downtime formerly caused by detours around weight-restricted bridges.
OEM Fleet Modernization and HVO Adoption
Euro 5 diesel bans entering force in October 2025 require rapid upgrades for urban routes. IVECO unveiled the S-eWay Artic electric tractor, deliveries starting 2026, to meet zero-tailpipe targets. Hydrotreated vegetable oil offers a bridging fuel compatible with existing engines, easing compliance costs. Italy hosts one-third of EU CNG stations, adding another transition pathway. Retailers such as Lidl Italia adopted Scania battery trucks for grocery distribution, reinforcing commercialization of alternative drivetrains.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Driver shortage and aging workforce | -0.5% | National, acute in Northern industrial regions | Short term (≤ 2 years) |
| Diesel and power prices | -0.3% | National, higher impact on long-haul operations | Medium term (2-4 years) |
| Border E-CMR data-compliance costs | -0.2% | International corridors, Alpine crossings | Short term (≤ 2 years) |
| Bridge load-class downgrades in South Italy | -0.1% | Southern Italy, Calabria, Sicily routes | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Driver Shortage and Aging Workforce
Vacancies stand near 17,000 and 45% of drivers are older than 50, capping fleet availability at peak periods. Northern regions feel the pinch most acutely as factories ramp shipments yet struggle to schedule outbound slots. Wage increases of 3-4% failed to draw sufficient entrants during 2024. EU training mandates lengthen qualification timelines, while lifestyle alternatives in construction and services lure potential recruits. Carriers respond with signing bonuses, modular schedules, and in-cab technology that lowers fatigue to stabilize retention[3]“Italy Faces Critical Driver Shortage,” International Road Transport Union, iru.org.
Diesel and Power Prices
National energy indices fell 5.4% year-on-year in November 2024 but remain volatile, undermining margin forecasting. July 2025 toll hikes elevate cost per kilometer on cross-border corridors. Electric truck rollouts confront infrastructure gaps; only 58,189 public chargers existed in 2024 against 110,000 required by 2030. Capital intensity therefore delays fleet turnover for mid-sized carriers, pressing consolidation as a hedge against price shocks[4]“Electric Vehicle Market Italy 2024,” MOTUS-E, motus-e.org.
Segment Analysis
By End User Industry: Manufacturing Resilience Amid Export Volatility
Manufacturing maintained a 34.47% share of the Italy road freight transport market in 2024 despite a 3.4% sector turnover decline that year. The Italy road freight transport market size attached to manufacturing is expected to expand at a muted CAGR from 2025-2030 as producers prioritize value-added exports such as pharmaceuticals and specialty foods. Wholesale and retail trade is the fastest-growing end user, registering a 4.14% CAGR between 2025-2030, buoyed by e-commerce and omnichannel distribution strategies that intensify parcel flows.
Specialized freight niches fortify margins: temperature-controlled hauls for drugs and food leverage GDP and HACCP compliance to secure premiums. Construction demand lags amid residential weakness following tax incentive withdrawal, yet public infrastructure works provide offsetting volume. Agriculture, fishing, and forestry maintain steady northbound flows of Mediterranean produce, while oil, gas, mining, and quarrying shipments retreat alongside refining throughput. Logistics providers such as DHL pivot to life sciences and energy segments to defend revenue diversity.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Dominance with International Acceleration
Domestic lanes accounted for 63.94% of the Italy road freight transport market size in 2024, supported by dense internal consumption corridors. International freight, however, posts a 4.14% CAGR between 2025-2030 as carriers exploit upgraded Alpine links and growing U.S. trade surpluses totaling EUR 34.7 billion (USD 38.29 billion) in 2024.
Cross-border operations experience higher compliance costs from e-CMR and toll changes but benefit from superior yield per kilometer. DSV’s acquisition of DB Schenker broadens network density, offering shippers seamless trans-Alpine coverage. Domestic freight advantages include predictable scheduling and lower paperwork, yet carriers must adapt to urban emissions caps that raise fleet upgrade necessities.
By Truckload Specification: FTL Efficiency Versus LTL Innovation
Full-truck-load services represented 82.35% of the Italy road freight transport market in 2024, reflecting direct-route cost advantages. Less-than-truck-load values are forecast to rise at 3.95% CAGR (2025-2030) as e-commerce fragmentation increases palletized movements. The Italy road freight transport market share for LTL therefore climbs gradually through 2030, buoyed by AI routing that matches loads and backhauls in real time.
FTL carriers battle driver scarcity and rising road tolls but leverage manufacturing rebound for steady outbound utilization. LTL providers invest in hub-and-spoke consolidation, IoT tracking, and API integrations to satisfy retailers’ next-day expectations. Consolidation accelerates as mid-tier fleets seek cost advantage via shared networks and digital dispatch platforms.
By Containerization: Non-Containerized Dominance with Modal Shift Potential
Non-containerized freight held 85.50% of the Italy road freight transport market in 2024 as domestic distribution patterns favor bulk or pallet formats. Containerized cargo grows at a 3.60% CAGR between 2025-2030, stimulated by intermodal efficiency gains and seaport expansions at Genoa and Trieste.
Operators able to synchronize hinterland trucking with port terminal systems capture dwell-time savings. Standardized containers simplify customs and e-CMR compliance, enhancing cross-border throughput reliability. Specialized haulers of oversized or perishable loads retain non-containerized leadership but face equipment upgrades to meet safety and environmental mandates.
By Distance: Long-Haul Network Effects Amid Urban Optimization
Long-haul services generated 73.14% of the Italy road freight transport market size in 2024, expanding at a 3.71% CAGR (2025-2030) as gateway corridors integrate deeper into European supply chains. Short-haul segments grow on last-mile and regional logistics though constrained by urban congestion and Euro 5 bans.
Electric light-duty trucks gain traction for city deliveries, backed by EU charger mandates yet hampered by the current 58,189 station count. Long-haul fleets assess LNG and HVO hybrids to hedge diesel volatility and emission charges, aligning investment cycles with infrastructure rollouts on key highways.
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By Goods Configuration: Solid Goods Stability with Fluid Specialization
Solid goods comprised 70.42% of market revenue in 2024 and will post moderate growth tied to manufacturing and retail trade. Fluid goods is expected to grow 3.78% CAGR (2025-2030) as chemicals, petroleum, and food-grade liquids require ADR-compliant tanks and monitoring systems.
Higher capital intensity shields fluid carriers from price wars, and rising demand for sustainable fuels extends contract tenures. Solid-goods haulers compete on network scale and digital visibility, integrating telematics to cut empty runs and improve on-time performance.
By Temperature Control: Non-Controlled Volume with Cold-Chain Innovation
Non-temperature-controlled cargo dominated with 94.65% share in 2024. Temperature-controlled freight accelerates at a 3.88% CAGR (2025-2030) on pharmaceutical and agri-food export gains. The Italy road freight transport industry therefore witnesses elevated investment in refrigerated units, IoT probes, and GDP-compliant chain-of-custody documentation.
Operators with validated processes and sensor analytics command premium rates while minimizing spoilage claims. Regulatory oversight tightens under EU Good Distribution Practice, pushing smaller fleets toward partnership models or exit.
Geography Analysis
Northern Italy anchors demand with Lombardy, Veneto, and Emilia-Romagna generating the bulk of shipments owing to manufacturing density. TEN-T upgrades through the Brenner Base Tunnel and Ligurian hinterland roads cut transit times into Germany, Austria, and Switzerland, reinforcing the growth of the Italy road freight transport market. Southern corridors lag in infrastructure yet receive targeted bridge and motorway funding that improves access to Calabria and Sicily.
International lanes leading into France and Slovenia benefit from digitized customs via e-CMR, lowering dwell times by up to 30 minutes per border crossing according to early trials. Italy’s export surplus with the United States underscores trans-Atlantic container feeder services that interface with truck corridors to Milan logistics parks.
Island logistics demonstrate innovative pilots: Sicily’s renewable-powered urban distribution center cut energy costs 12% while shortening delivery windows for perishables. These initiatives align with regional development goals that reduce northern–southern supply-chain disparities, broadening addressable volumes for national carriers.
Competitive Landscape
The Italy road freight transport market shows fragmentation. April 2025 saw DSV finalize the DB Schenker deal, forging a EUR 41.6 billion (USD 45.91 billion) revenue behemoth and intensifying competitive pressure on mid-sized fleets. DACHSER strengthened Italian reach by acquiring 80% of Fercam in March 2024, adding regional general-cargo and contract-logistics capacity.
Technology stands out as a key differentiator. Route-optimization pilots in Rome delivered 7.5% cost savings and showcased the advantage of AI dispatch over manual planning. Carriers race to electrify fleets ahead of October 2025 Euro 5 bans, yet infrastructure gaps slow mass deployment, favoring operators with private depot charging.
White-space opportunities surface in temperature-controlled and last-mile networks, segments characterized by regulatory complexity and customer service sensitivity. Established players leverage network scale, certified processes, and capital access, while digital startups insert asset-light brokerage platforms targeting small shippers.
Italy Road Freight Transport Industry Leaders
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Arcese Trasporti SpA
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DACHSER
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La Poste Group (Including BRT)
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DSV A/S (Including DB Schenker)
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DHL Group
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- June 2025: IVECO launched the S-eWay Artic electric heavy truck with first customer deliveries scheduled for 2026.
- March 2025: Poste Italiane established dedicated logistics entities, expanded Piacenza and Caserta hubs, and deployed 27,900 low-emission vehicles.
- December 2024: La Poste Group’s Geopost unit surpassed 10,000 electric vehicles across European operations, expanding coverage in Italian cities.
- April 2024: DACHSER has acquired an 80% stake in its joint venture with Fercam Italia, gaining majority control over Fercam's groupage and contract logistics divisions.
Italy 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 |
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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.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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