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North America Freight and Logistics Market- Segmented by, Function, by End-user, and Geography - Growth, Trends, and Forecast (2020 - 2025)

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North America Freight and Logistics Market- Introduction

North America logistics industry is regarded as one of the major markets with extensive supply chain network across all the states of the United States, Canada, and Mexico. The logistics and transportation industry in the US is highly competitive. Domestic and international companies in this industry benefit from a highly skilled workforce and relatively low costs. The industry supports a wide range of sectors with excellent transportation and storage solutions. The wholesale and retail sector was the largest user of transportation services in 2014. Owing to the use of air, rail, truck, and water transportation services, the wholesale and retail trade sector depends heavily on in-house transportation operations. This sector also utilized a significant quantity of warehousing and other transportation services such as parcel delivery, courier, and messenger services.

Growing E-Commerce Propels Demand for Logistics Industry

The growing e-commerce sector acts as a driver for the growth of the logistics market. The US e-commerce industry was valued at USD 400 billion in 2017 and is expected to register an exponential growth rate. By 2023, the industry is expected to account for 7% of all US retail sales. The e-commerce industry has recorded robust growth, as consumers perceive that any product can be transported to any place in the least amount of time, which is made possible by logistic companies. Product manufacturing companies are willing to spend extensively on a logistics company that helps deliver products on time and with high-quality transportation standards. The e-commerce market is still in its initial phase of growth and is expected to be worth more than a trillion dollar industry soon, thus boosting the current market. Amazon spent around USD 11.5 billion on shipping costs in 2016. This is the case with most e-commerce retailers, as logistic cost account for the significant share of their operational expenditure.

Road- A Transport Mode with High Connectivity

The North American freight & logistics market, by roadways, accounted for USD 780.75 billion in 2017 and is expected to reach USD 912.67 billion by 2023, at a CAGR of 2.63% during the forecast period.  Roadways are extensively used in the United States for freight transportation; this is mainly due to its high connectivity. About 60% of US freight is carried by trucks. The cargo transported through trucks surpass trains in the weight category due to their greater numbers. Most logistics companies in the country offer all-in-one logistics, i.e., start-to-end point services, which include shipping, as well as freight forwarding and warehousing.

Role of Technology In Reshaping the Industry

Technology plays a prime role in transport as well as storage sector, which improves the connectivity through the use of advanced systems. As the penetration of these devices in the market increases, most of the companies are adopting the technologies to gain a competitive advantage over their rivalries. Currently, businesses are making great efforts with artificial intelligence, machine-human interaction, and collaboration of logistics, while automation & robotics is a vital sector for AI and logistics. Complex logistics operations and high robotics costs formed barriers to adoption, as manufacturers have had an interest in industrial robots for only some time. Currently, the prices are declining, and robots are more comfortable and flexible to program, ensuring cost-effectiveness in repetitive and physically demanding logistic tasks.

Key developments

Jun 2018: XPO Logistics, the largest provider of last-mile logistics in North America, announced the planned addition of augmented reality to its Ship XPO consumer self-service platform. Shoppers can use visualization technology prior to the delivery of heavy goods to determine the ideal placement inside the home.

Dec 2017: Americold Logistics, a provider of temperature-controlled warehousing and logistics services, opened a new addition to its Clearfield, Utah, campus. The new building adds more than 9.5 million cubic feet of temperature-controlled warehouse space, which brings the total capacity of the campus to nearly 21 million cubic feet.

Key industry Players 

XPO Logistics Inc., J B Hunt Transport Services, Deutsche Post DHL, UPS Supply Chain Solutions, C H Robinson Worldwide, Expeditors International of Washington, Ryder Supply Chain Solutions, Americold Logistics, and among others.

North America Freight and Logistics Market Report Summary

Metrics

Details

Industry

North America Freight and Logistics Market

Study Period

(2014-2023)

Market Size in 2017

Around USD 1,684 billion

Market Size in 2023

Provided in the Full Report

Growth Rate

Provided in the Full Report

Key Developments

Jun 2018: XPO Logistics announced the planned addition of augmented reality to its Ship XPO consumer self-service platform.

Dec 2017: Americold Logistics, a provider of temperature-controlled warehousing and logistics services, opened a new addition to its Clearfield, Utah, campus.

Companies Covered

XPO Logistics Inc., J B Hunt Transport Services, Deutsche Post DHL, UPS Supply Chain Solutions, C H Robinson Worldwide

Report Offerings

North America Freight and Logistics Market offers latest trends, growth prospects, industry competitiveness,   major players, segment market share and forecast to 2023.

 

Reasons to Purchase this Report

  • To study current, and future of the, market in the developed and emerging markets
  • Analyze various perspectives of the market with the help of Porter’s five forces analysis
  • Detailed analysis of the segment that is expected to dominate the market
  • Regions that are expected to witness fastest growth during the forecast period
  • Identify the latest developments, market shares, and strategies employed by the major market players
  • 3-month analyst support, along with the Market Estimate sheet in excel

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