Slovakia Road Freight Transport Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 3.91 Billion |
| Market Size (2030) | USD 4.32 Billion |
| Growth Rate (2025 - 2030) | 2.00% 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. |
|
Slovakia Road Freight Transport Market Analysis by Mordor Intelligence
The Slovakia road freight transport market size stands at USD 3.91 billion in 2025 and is projected to reach USD 4.32 billion by 2030, reflecting a steady 2% CAGR between 2025-2030. Slovakia’s geographic location on the core TEN-T corridors positions the country as a preferred transit gateway between Western and Eastern Europe, and this role continually shapes network design, equipment choices, and pricing strategies. The automotive cluster’s 35% share of national exports, multiple announced battery gigafactories, and a dense web of logistics parks around Bratislava underpin baseline freight volumes, while expanding e-commerce flows, parcel-locker rollouts, and digital compliance rules add incremental demand layers and service complexity. Fleet modernization incentives tied to EU Green Deal objectives, the rollout of e-CMR documentation, and smart tachograph v2 requirements elevate technology adoption and, in turn, differentiate premium carriers from traditional haulers. However, driver shortages, highway construction delays no new motorway kilometers were delivered in 2024 and rising road-toll fees temper growth momentum. M&A activity, exemplified by DSV’s EUR 14.3 billion (USD 15.78 billion) acquisition of DB Schenker in April 2025, is accelerating the shift toward scale-driven platforms that can amortize compliance costs and deploy electric vehicles across cross-border routes.
Key Report Takeaways
- By end user industry, manufacturing led with 33.33% of the Slovakia road freight transport market share in 2024, while wholesale and retail trade posted the fastest forecast CAGR (2025-2030) at 2.3%.
- By destination, international freight commanded an 86.76% share of the Slovakia road freight transport market size in 2024, and it is set to expand at a 2.03% CAGR between 2025-2030.
- By truckload specification, full-truck-load (FTL) operations represented 83.70% of the revenue share in 2024; less-than-truck-load (LTL) is projected to grow faster at a 2.24% CAGR between 2025-2030.
- By containerization, non-containerized freight captured 88.88% of the revenue share in 2024, with containerized transport advancing at a 2.04% CAGR between 2025-2030 on the back of the planned Bratislava HARBOUR PARK port.
- By distance, long-haul trips accounted for 81.63% of the revenue share in 2024 and show the strongest growth outlook at a 2.1% CAGR between 2025-2030.
- By goods configuration, solid goods held 73.09% share of the revenue in 2024; fluid goods are set to expand at a 2.16% CAGR between 2025-2030.
- By temperature control, non-temperature-controlled cargo dominated with 94.69% share in 2024, but temperature-controlled freight is slated to grow at the highest 2.2% CAGR between 2025-2030 on increased pharmaceutical and fresh-food flows.
Slovakia Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce fulfillment boom in Bratislava | +0.4% | Bratislava region, spillover to western Slovakia | Short term (≤ 2 years) |
| Near-shoring of Central-European automotive | +0.3% | National, concentrated in western and central corridors | Medium term (2–4 years) |
| EU Green Deal fleet incentives | +0.2% | National, EU-wide alignment | Long term (≥ 4 years) |
| Digitization mandates (e-CMR, smart tachograph) | +0.2% | National, cross-border operations | Medium term (2–4 years) |
| Parcel-locker network rollout | +0.1% | Urban centers beyond Bratislava, expanding to rural areas | Short term (≤ 2 years) |
| Battery gigafactory inbound freight | +0.3% | Šurany and Košice regions with nationwide distribution effects | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
E-commerce Fulfillment Boom in Bratislava Logistics Hub Cluster
E-commerce penetration in Slovakia continues to rise, and retailers are clustering fulfillment centers along the D1 motorway near Bratislava to secure one-day delivery into Austria, Czechia, Hungary, and Poland. Biedronka’s newly opened 28,700 m² facility at CTPark Voderady—50 km from the capital—highlights how multinationals leverage Western Slovakia’s freeway density to shorten lead times while scaling payrolls from 66 to an estimated 500 positions. Parcel-locker provider Packeta already operates 2,404 Z-BOXes and 3,248 pickup points nationwide, allowing e-tailers to shift from single-parcel courier services toward consolidated LTL drops. Freight density in the Bratislava catchment area reduces per-unit delivery costs and raises asset utilization on the most lucrative cross-border lanes. The SKU breadth associated with online retail also increases demand for flexible vehicle bodies that can handle palletized and parcel traffic on the same route. In aggregate, the e-commerce surge is the main catalyst behind the 2.24% CAGR between 2025-2030 forecast for the LTL segment of the Slovakia road freight transport market[1]“Transport Statistics,” United Nations Economic Commission for Europe, unece.org.
Near-shoring of Central-European Automotive Production Lines
Volvo’s EUR 1.2 billion (USD 1.32 billion) electric-vehicle plant near Košice, slated to produce 250,000 units annually from 2026, together with Gotion-InoBat’s EUR 1.2 billion (USD 1.32 billion) battery gigafactory in Šurany, anchor the next wave of Slovak automotive supply-chain contracts. Near-shoring cuts ocean lead times and replenishes inventory buffers, thereby lifting intra-European component shuttles that move predominantly by FTL. Just-in-time assembly lines rely on synchronized arrivals of powertrains, battery modules, and seating systems, boosting recurring spot rates for compliant carriers equipped with synchronized tracking systems. Temperature-controlled vehicles are also required for sensitive battery chemistries and electronics, lifting that niche segment’s growth beyond the average market pace. Over the medium term, Slovakia’s western and central corridors gain traction as component corridors, making automotive the single most influential end-user driver of freight capacity expansion[2]“Battery Gigafactory Šurany,” InoBat Auto, inobatauto.eu .
EU Green Deal Incentives for Euro VI and Electric Trucks
Only 19 N3-class electric trucks were registered in Slovakia by March 2025, yet the EU Recovery Mechanism now reimburses up to 50% of eligible capex for zero-emission vehicles, narrowing total cost of ownership gaps. Urban low-emission zones (LEZs) in Bratislava and Košice are set to block Euro V diesel vehicles by 2027, forcing fleets to accelerate Euro VI renewals and pilot battery-electric trucks on urban shuttle loops. Clean-fleet credentials already enable premium rates for supermarket deliveries inside city limits, and those premiums gradually filter into the line-haul network as pan-EU customers harmonize their sustainability scorecards. Charging-infrastructure build-out along the D1 and R1 corridors remains a bottleneck, but the policy certainty embedded in the Green Deal secures lending appetite for early mover carriers. As a result, asset-heavy operators that adopt electric units and digital energy-management dashboards strengthen their retention of multinational contracts.
Digitization Mandates (e-CMR Roll-out, Smart Tachograph v2)
Smart tachograph v2 devices become compulsory for international transports in August 2025, with penalties ranging from EUR 1,659 (USD 1,830.94) to EUR 16,596 (USD 18,316) for non-equipped rigs. The e-CMR electronic consignment note now covers 30% of Slovakia’s cross-border loads, dramatically cutting paper handling and border dwell times. High-frequency connectors such as the Bratislava-Vienna lane benefit most, saving up to 12 minutes per crossing. Technology investments favor larger asset operators capable of securing API-level integrations with shipper TMS platforms, while sub-contractors must add telematics units or risk exclusion from preferred-carrier lists. In parallel, continuous driver-hour monitoring reduces infringement fines and insurance premiums, anchoring the long-haul segment’s 2.1% CAGR between 2025-2030 outlook within the Slovakia road freight transport market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Acute driver shortages and aging workforce | –0.3% | National, especially eastern regions | Short term (≤ 2 years) |
| Road-toll (e-mýto) cost escalations | –0.2% | National, higher impact on long-haul routes | Medium term (2–4 years) |
| Limited motorway density in eastern Slovakia | –0.2% | Eastern Slovakia, network-wide efficiency spillover | Long term (≥ 4 years) |
| Urban low-emission zones restricting diesel | –0.1% | Bratislava and Košice urban freight catchments | Medium term (2–4 years) |
| Source: Mordor Intelligence | |||
Acute Driver Shortages and Aging Workforce
Slovakia’s average truck-driver age has surpassed 51 years, and retirements outpace new license issuances by roughly 1,000 annually. Wage inflation reached 12% in 2024, squeezing thin-margin operators who lack bargaining power with consolidated shippers. Driver scarcity forces higher vehicle utilization, leading to harsher maintenance cycles and more downtime for unplanned repairs. Cross-border runs suffer disproportionately because linguistic and regulatory knowledge requirements dissuade younger entrants. Carriers address the gap via Ukrainian and Serbian recruitment, yet residence-permit quotas cap inflows and keep asset-hour targets elusive[3]“Electric Vehicle Statistics Slovakia,” Ministry of Economy of the Slovak Republic, economy.gov.sk.
Road-Toll (e-myto) Cost Escalations
Distance-based tolls increased by 11% on average in January 2025, with Euro VI rigs paying EUR 0.20/km (USD 0.22/km) on class-one motorways. Operators recalibrate route algorithms to combine toll savings with fuel-burn trade-offs, but detours raise lead times and jeopardize just-in-time delivery promises. While discounts apply for low-emission vehicles, electric tractors currently lack sufficient range for Bratislava–Košice loops, limiting short-term mitigation. Smaller regional haulers, heavily dependent on standard-gauge highways, face a proportional cost hit that erodes competitiveness against larger 3PLs capable of toll pooling[4]“Biedronka moves into 28,700 sqm facility at CTPark Voderady,” CTP N.V., live.euronext.com.
Segment Analysis
By End User Industry: Manufacturing Maintains Dominance, Retail Accelerates
Manufacturing generated a 33.33% share of the Slovakia road freight transport market size in 2024, anchored by Slovakia’s position as the highest per-capita car producer globally. FTL shuttle frequencies between tier-1 suppliers and OEM assembly lines remain predictable, securing steady asset utilization. The automotive-centric load mix features palletized powertrains, stamped steel panels, and molded plastic interiors that rely on synchronized supply chains to minimize inventory buffers.
Wholesale and retail trade, representing USD 0.98 billion in 2024, is forecast to post a 2.3% CAGR between 2025-2030, propelled by e-commerce growth, omnichannel inventory strategies, and the rapid expansion of parcel-locker infrastructure around secondary cities. Retailers increasingly split inventory across multiple fulfillment centers, multiplying LTL runs and tightening delivery windows for high-velocity SKUs. Agriculture, fishing, and forestry shipments remain seasonally steady, while construction benefits from EU co-financed residential and highway projects requiring bulk material hauls. Oil and gas, mining, and quarrying loads center on refined-fuel distribution and limestone feedstock, but limited domestic resource endowment caps volume upside. The “others” bucket—comprising pharmaceuticals, renewable-energy equipment, and high-tech electronics—adds diversity and underpins the 2.2% CAGR forecast for temperature-controlled freight.
Note: Segment shares of all individual segments available upon report purchase
By Destination: International Freight Capitalizes on Transit Geography
International shipments accounted for 86.76% of the Slovakia road freight transport market share in 2024, with a growth of 2.03% CAGR expected between 2025-2030. Slovakia’s Schengen membership enables frictionless crossings into Austria, Hungary, Czechia, and Poland, supporting single-shift delivery to Vienna, Budapest, Prague, and Kraków. Cross-border lanes enjoy backhaul opportunities that raise round-trip yields, especially on automotive feeders into Germany’s Bavaria cluster.
Domestic freight, valued at USD 0.52 billion in 2024, expands at a slower CAGR between 2025-2030 due to Slovakia’s compact land mass. The modal split leans toward short-haul shuttles connecting Bratislava’s logistics parks to secondary urban centers. Infrastructure bottlenecks, particularly on the unfinished sections of the D1, occasionally divert domestic loads onto secondary roads, limiting equipment productivity. Nevertheless, growing intra-country parcel-locker restocking missions provide incremental growth.
By Truckload Specification: FTL Scale vs. LTL Flexibility
FTL held 83.70% of the Slovakia road freight transport market size in 2024, underpinned by high-volume automotive and bulk commodity corridors. Economies of scale allow FTL to sustain lower cost per ton-kilometer through direct factory-to-factory routes.
LTL, is set to outpace FTL with a 2.24% CAGR between 2025-2030, driven by e-commerce B2C fragmentation and SME export consignments needing pallet-level consolidation. Digital freight marketplaces match partial loads with empty deck space, improving lane balance and providing return-load economics that narrow the historical rate premium over FTL.
By Containerization: Bulk Dominates but Intermodal Gains
Non-containerized shipments contributed 88.88% market share in 2024, mirroring industrial freight’s heavy reliance on tailor-made trailers. Oversized machine parts, auto-body shells, and construction aggregates all favor customized load securing over standardized containers.
Containerized moves are forecast to grow 2.04% CAGR between 2025-2030 as Bratislava’s EUR 1 billion (USD 1.10 billion) HARBOUR PARK terminal unlocks new intermodal routes along the Danube ASB. The port’s 1 million-TEU potential will draw shippers looking to bypass congested Adriatic gateways, stimulating truck drayage demand for hinterland transfers into Czechia and Poland.
By Distance: Long Haul Remains the Workhorse
Long-haul traffic reached 81.63% share in 2024, leveraging Slovakia’s central position to ensure same-day reaches to eight EU capitals. Efficient double-manning practices on Bratislava–Cologne and Žilina–Turin loops trim dwell times and support higher average utilization.
Short-haul freight is expected to grow at a 1.8% CAGR between 2025-2030, driven by retail restocking, construction material shuttles, and last-mile cold-chain runs. While yields per kilometer remain higher, short trips suffer from dwell-time penalties, making them viable primarily for agile fleets with dynamic dispatch systems.
By Goods Configuration: Solid Goods Secure Scale, Fluids Gain Momentum
Solid goods captured 73.09% share in 2024, with car parts, electronics, and white goods dominating trailer deck space. The just-in-sequence protocol for assemblers keeps solid-goods lane density predictable.
Fluid goods are expected to gain ground at a 2.16% CAGR between 2025-2030, propelled by petrochemical throughput, biofuel blending mandates, and growing demand for chemical precursors supporting battery manufacturing. Specialized tanker rigs and ADR-certified crews elevate entry barriers and yield premium rates.
By Temperature Control: Cold Chain Climbs from a Low Base
Non-temperature-controlled freight captured 94.69% revenue share in 2024, as the segment approaches capacity equilibrium.
Temperature-controlled hauls are expected to record the fastest 2.2% CAGR between 2025-2030, fueled by pharmaceutical distribution and high-value perishables imported via Vienna airport and transshipped into Slovakia. Pharma GDP (Good Distribution Practice) audits make end-to-end temperature logging mandatory, giving an edge to fleets equipped with dual-zone reefers and real-time telemetry.
Geography Analysis
Slovakia’s domestic network hinges on the D1 corridor, where Bratislava (432,000 inhabitants) anchors west-to-east flows toward Košice (230,000). The corridor handles more than 65% of internal tonnage, yet stalled highway extensions near Ružomberok choke traffic at peak hours, raising unit costs for carriers absent time-slot flexibility. E-commerce restocking along the Bratislava–Trnava–Nitra triangle injects additional LTL volume, but parcel-locker density outside the western zone remains sparse, limiting growth potential.
Cross-border lanes into Austria, Hungary, Czechia, and Poland dominate, enabled by Schengen open borders and synchronized customs systems. Slovakia processed 31,428 million ton-kilometers of road freight in 2022 and registered a 15.9% year-on-year increase in 2023-2024, the highest among EU states. Automotive feeder lines into German, French, and Spanish factories represent the largest outbound flows by value, while inbound streams include French wine, Italian ceramics, and Dutch horticultural products for domestic retail shelves.
Future network re-balancing hinges on the HARBOUR PARK trimodal port, which will link Danube barges with rail and road. Successful completion promises to divert intra-Danube container flows away from Vienna’s Albern terminal, capturing hinterland volume and creating new drayage demand for Slovak carriers. Yet execution risks remain, as public-consultation delays and environmental-impact assessments could push completion beyond 2030.
Competitive Landscape
The Slovakia road freight transport industry features fragmentation: the top five operators account for a minor share of revenue in 2024. DSV’s April 2025 takeover of DB Schenker reshapes market power, producing a EUR 39 billion (USD 43.04 billion) European giant that immediately absorbs DB Schenker’s Bratislava gateway and integrates it with DSV’s existing Žilina depot DSV. Kuehne+Nagel, Gefco (now Ceva-owned), and Dachser remain strong contenders, each boasting dense Central European networks and proprietary IT platforms.
Technology distinguishes leaders from the fragmented long-tail of regional fleets. Early rollouts of API-enabled customer portals, e-CMR compatibility, and predictive-maintenance telematics cut empty-run ratios by up to 14%, translating directly into price headroom. Meanwhile, local specialists such as Slovak Lines Logistika carve out niches in oversized machinery transport, while Thermo-Trans focuses on GDP-compliant pharmaceuticals.
Regulatory pressure accelerates fleet renewal: operators array electric rigids for LEZ compliance and biodiesel-compatible tractors on long-haul lanes where range anxiety persists. Leasing companies respond by bundling telematics-as-a-service and CO₂-tracking dashboards, lowering adoption barriers for midsize haulers. M&A chatter suggests further consolidation as private-equity funds circle family-owned fleets lacking succession plans.
Slovakia Road Freight Transport Industry Leaders
-
DHL Group
-
DSV A/S (De Sammensluttede Vognmænd af Air and Sea)
-
GARTNER KG
-
Raben Group
-
Kuehne + Nagel
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2025: DSV completed its EUR 14.3 billion (USD 15.78 billion) acquisition of DB Schenker, creating the largest integrated logistics network in Europe DSV.
- March 2025: CMA CGM expanded its partnership with Slovak automotive OEMs to provide containerized EV-component lanes via its CEVA Logistics arm.
- February 2025: Kuehne+Nagel signed a multi-year logistics contract with Volvo Cars to manage inbound and outbound flows for the Kosice EV plant VOLVO.
- December 2024: GEODIS partnered with Slovak Railways to pilot intermodal road-rail services linking Bratislava with Western Europe.
Slovakia 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.| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
| Domestic |
| International |
| Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) |
| Containerized |
| Non-Containerized |
| Long Haul |
| Short Haul |
| Fluid Goods |
| Solid Goods |
| 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 |
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. |
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
