Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 71.39 Billion |
| Market Size (2030) | USD 81.69 Billion |
| Growth Rate (2025 - 2030) | 2.73% 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. |
|
United Kingdom Road Freight Transport Market Analysis by Mordor Intelligence
The United Kingdom road freight transport market size stands at USD 71.39 billion in 2025 and is projected to reach USD 81.69 billion by 2030, expanding at a 2.73% CAGR between 2025-2030. The United Kingdom road freight transport market is benefiting from resilient domestic manufacturing activity, the rapid spread of e-commerce, and a national push toward decarbonized logistics fleets. Rising Freeport investment, AI-enabled load-matching platforms, and the government’s Road Investment Strategy 2 collectively shorten transit times and curb empty running. In parallel, elevated diesel prices, a persistent driver shortage, and congestion-charge expansion compress margins for smaller carriers. Despite these pressures, the United Kingdom road freight transport market continues to attract capital because integrated 3PLs can capture value in cross-border compliance, cold-chain services, and zero-emission urban deliveries.
Key Report Takeaways
- By end user industry, manufacturing commanded 40.53% of the United Kingdom road freight transport market share in 2024, while wholesale and retail trade is forecast to expand at a 3.14% CAGR between 2025-2030.
- By destination, domestic freight held 65.77% of the United Kingdom road freight transport market size in 2024 and international movements are advancing at a 3.25% CAGR between 2025-2030.
- By truckload specification, full-truck-load captured 83.42% of the revenue share in 2024, whereas less-than-truck-load is projected to rise at a 3.06% CAGR between 2025-2030.
- By containerization, non-containerized loads secured 88.62% of the revenue share in 2024, yet containerized freight is expected to post a 2.79% CAGR between 2025-2030.
- By distance, long-haul services accounted for 71.60% of the revenue share in 2024 and are growing at a 2.87% CAGR between 2025-2030, overtaking short-haul expansion.
- By goods configuration, solid goods retained 73.58% of the revenue share in 2024, whereas fluid goods exhibit the quickest momentum at a 2.96% CAGR between 2025-2030.
- By temperature control, ambient freight dominated with 94.78% of the revenue share in 2024, but the cold-chain segment is expected to log a 3.01% CAGR between 2025-2030.
United Kingdom Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce surge and last-mile density | +0.8% | Greater London, Manchester, Birmingham | Short term (≤ 2 years) |
| UK Government’s RIS2 and LTNs road-upgrade pipeline | +0.6% | A1, M25, M6 corridors | Medium term (2–4 years) |
| Manufacturing reshoring lifting domestic freight flows | +0.4% | Northern England, Midlands, Scotland | Medium term (2–4 years) |
| Supermarket-led EV/H₂ HGV fleet hubs | +0.3% | South-East England roll-out | Long term (≥ 4 years) |
| AI load-matching platforms slashing empty running | +0.2% | Metropolitan areas | Short term (≤ 2 years) |
| Freeport-centric port-drayage clusters | +0.1% | Eight English Freeports | Medium term (2–4 years) |
| Source: Mordor Intelligence | |||
E-Commerce Surge and Last-Mile Density
Online retail turnover reached GBP 109.1 billion (USD 139.7 billion) in 2024, equal to 28.1% of total retail sales, accelerating the volume of small, time-critical shipments that favor LTL consolidation and micro-fulfillment nodes. Operators now position inventory inside 10-mile radii around major conurbations to honor same-day promises, reshaping trunk-to-spoke flows. Amazon alone injected USD 1.2 billion into 15 new U.K. fulfillment centers in 2024, adding 1,000 delivery stations that intensify suburban freight density. Collectively, these moves enlarge the addressable pool for the United Kingdom road freight transport market as e-commerce requires six times more transport touchpoints than traditional retail. The resulting network complexity underpins double-digit demand for dynamic routing software and cargo visibility APIs[1]“Road Freight Statistics 2024,” Department for Transport, GOV.UK .
UK Government’s RIS2 and LTNs Road-Upgrade Pipeline
Road Investment Strategy 2 earmarks GBP 27.4 billion (USD 35.1 billion) to modernize the strategic network, with GBP 13.2 billion (USD 16.9 billion) prioritized for freight pinch points such as M25 junction 10 and the A1 Newcastle-to-Scotland link. Smart-motorway conversions lift average corridor speeds by 22%, enabling carriers to add an extra round-trip per week on high-volume lanes. Within cities, Low Traffic Neighborhoods corral heavy goods vehicles onto designated arterials, shaving 18% off dwell times in early pilot zones. Fewer idling hours translate into lower fuel burn, directly supporting the profitability of the United Kingdom road freight transport market[2] “Retail Sales Great Britain 2024,” Office for National Statistics, ons.gov.uk.
Manufacturing Reshoring Lifting Domestic Freight Flows
Fifty-eight percent of British manufacturers actively localized suppliers in 2024, citing risk mitigation over cost optimization. New gigafactories Nissan Sunderland and Tata Somerset—inject GBP 4.2 billion (USD 5.4 billion) in fresh capex and add 2.3 million ton-kilometers of annual road haulage demand. Because batteries are CAD-sensitive and high-value, shippers favor dedicated FTL moves with stringent liability clauses. This upsizing of domestic cargo legs reinforces the long-haul dominance observed in the United Kingdom road freight transport market while stimulating ancillary logistics such as specialized trailers and ADR-trained drivers.
Supermarket-Led EV/H₂ HGV Fleet Hubs
Retailers now bankroll large-scale charging estates: Sainsbury’s Smart Charge network spans 500+ bays across 62 depots, serving 2,000 commercial vehicles daily. Asda’s 800-strong bio-LNG fleet and Tesco’s solar-powered chilled vehicles further validate the commercial case for alternative fuel. Shared infrastructure models lower per-operator capex by 40%, unlocking broader access for SMEs. With the government granting GBP 7 million to the Tees Valley hydrogen hub, early adopter fleets accrue brand differentiation and emissions-credit revenue, setting a precedent for the scalability of zero-emission assets inside the United Kingdom road freight transport market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Driver shortage and aging workforce | −0.5% | Scotland, Northern England | Short term (≤ 2 years) |
| Escalating fuel, insurance and compliance costs | −0.3% | Urban areas nationwide | Short term (≤ 2 years) |
| Urban ZEZ and congestion-charge exclusions for diesel rigs | −0.2% | London, Birmingham, Manchester, Leeds | Short term (≤ 2 years) |
| National grid bottlenecks for megawatt HGV charging corridors | −0.1% | Major freight corridors | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Driver Shortage and Aging Workforce
The active HGV driver pool fell short by 76,000 heads in 2024, while 55% of those still employed are over 50 years old. Brexit removed 40,000 EU drivers, and IR35 discouraged contractors. Training slots remain bottlenecked; DVSA waits stretch 14 weeks, and the GBP 3,000 licensing cost limits new entrants. Companies have raised wages 15–20%, yet churn persists, saddling smaller haulers with unsustainably high labor ratios. The imbalance curtails fleet expansion and moderates the growth ceiling of the United Kingdom road freight transport market[3]“Low Traffic Neighborhoods Impact Assessment,” Transport for London, tfl.gov.uk .
Escalating Fuel, Insurance and Compliance Costs
Diesel averaged GBP 1.47 per liter (USD 1.89 per liter) in 2024, 12% above 2023. Insurance premiums climbed 28% amid claim frequency spikes and theft rings targeting high-value cargo. Clean Air Zones charge GBP 8–GBP 300 daily per non-compliant HGV across 15 cities, while post-Brexit paperwork adds GBP 127 per load and 2.3 hours of queue time at Dover. These compounded costs compress EBITDA margins, especially for micro-fleets that dominate the tail of the United Kingdom road freight transport market’s long-tail[4]“Manufacturing Outlook 2024,” Make UK, makeuk.org.
Segment Analysis
By End User Industry: Manufacturing Anchors While Retail Accelerates
Manufacturing generated the single largest revenue stream in the United Kingdom road freight transport market, securing 40.53% of 2024 turnover on the back of resurgent automotive and pharmaceutical output. As new battery plants ramp, heavy inbound flows of cathode material and outbound packs pull steady FTL demand across the North-East-to-Midlands corridor. Over 2025–2030, reshoring continues to redirect volumes from seaports to inland hubs, cementing manufacturing’s dominance.
In contrast, wholesale and retail trade is projected to rise at a 3.14% CAGR between 2025-2030, the quickest pace among end-users, spurred by 28.1% e-commerce penetration and consumer expectations for next-day fulfillment. Micro-fulfillment nodes multiply urban drop density, which suits agile LTL routes. The United Kingdom road freight transport market size for retail consignments is therefore expanding faster than for capital-goods. Construction freight remains a stable contributor, while energy-extractive sectors tread water owing to the green-transition glide path.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Dominance Faces International Growth
Domestic routes commanded 65.77% of the United Kingdom road freight transport market size in 2024, benefiting from short lead-times and consolidated retail networks. Continued reshoring intensifies this home-market bias, particularly on north-south trunking lanes.
International flows, however, are climbing a steeper 3.25% CAGR between 2025-2030 as Brexit-era paperwork stabilizes and eight Freeports streamline border formalities. Faster clearance and value-add processing inside the duty-suspended zones entice 3PLs to re-route EU consignments through British ports, opening revenue upside for cross-Channel specialists within the United Kingdom road freight transport market.
By Truckload Specification: FTL Stability Meets LTL Innovation
Full-truck-load held 83.42% of 2024 revenue, underpinned by big-box retailers and OEM inbound logistics that demand exacting Just-in-Sequence schedules. Scale efficiencies and fewer handling events keep FTL as the workhorse of the United Kingdom road freight transport market.
Less-than-truck-load, while smaller, benefits from AI consolidation engines that trimmed unit costs 18% in pilot projects. Same-day delivery, SME e-commerce exports, and on-demand spare-parts dispatches all funnel incremental freight into LTL networks. As venture money builds platform density, shippers gain real-time slotting, nudging LTL toward its forecast 3.06% CAGR between 2025-2030.
By Containerization: Non-Containerized Dominance Reflects Domestic Focus
Non-containerized cargo captured 88.62% of 2024 turnover because most domestic legs transfer goods directly from plant to store without modal interchange. Pallet-wide curtainsiders and box vans stay prevalent.
Containerized freight, by contrast, is linked to global trade lanes and thus tracks Freeport throughput. Dwell-time reductions of 28% at modernized terminals now brighten the outlook, translating into a 2.79% CAGR between 2025-2030. Integrated road-rail services further improve the cost profile for importers seeking end-to-end visibility inside the United Kingdom road freight transport market.
By Distance: Long Haul Leads Both Share and Growth
Long-haul journeys above 200 miles represented 71.60% of 2024 value, reflecting the island’s north-south elongation and dispersal of industrial hubs. Manufacturing reshoring multiplies port-to-plant legs, giving long-haul a 2.87% CAGR between 2025-2030 uplift.
Short-haul distribution, though essential for last-mile, faces congestion charges and Low Traffic Neighborhood time-windows that squeeze operating hours. Yet supportive EV incentives could erode diesel cost disadvantages, preserving its niche within the United Kingdom road freight transport market.
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By Goods Configuration: Solid Goods Stability Versus Fluid Growth
Solid goods accounted for 73.58% of 2024 revenue, encompassing consumer products, white goods, and building materials. Predictable load factors and standard trailers keep this segment stable.
Fluid goods such as fuels, chemicals, and food-grade liquids grow at 2.96% CAGR between 2025-2030, buoyed by biofuel distribution mandates and niche chemical exports. ADR requirements raise barriers to entry, allowing specialized fleets to command premium rates while enlarging their slice of the United Kingdom road freight transport market.
By Temperature Control: Ambient Dominance Faces Cold-Chain Expansion
Ambient cargo dominated at 94.78% of 2024 revenues, favored for its low overhead and broader carrier base.
Cold-chain freight expands by 3.01% CAGR between 2025-2030 on the back of pharmaceutical logistics and fresh grocery delivery. COVID-era vaccine roll-outs proved the value of temperature visibility, leading shippers to pay premiums for GDP-compliant rigs. This structural shift diversifies revenue pools throughout the United Kingdom road freight transport market.
Geography Analysis
Domestic haulage corridors linking Scotland, the Midlands, and London form the backbone of the United Kingdom road freight transport market. RIS2 spends are already trimming average transit times 12% on the A1 and M6, allowing carriers to schedule tighter delivery slots and justify higher per-truck utilization.
International flows benefit from the GBP 470 million (USD 598.32 million) Border Control Post program that cuts processing delays 35% at entry nodes and restores predictability to EU-facing supply chains. Investment pledges total GBP 8.5 billion (USD 10.82 billion) across eight Freeports, spawning logistics parks that combine bonded warehousing and customs brokerage in a single perimeter. This ecosystem positions the United Kingdom road freight transport market as a competitive transshipment hub for near-shoring European production.
At the urban end of the spectrum, London’s Ultra Low Emission Zone expansion now touches the M25, compelling fleets to accelerate ZEV adoption. Birmingham, Manchester, and Leeds roll out similar frameworks, which collectively reshape fleet-renewal strategies. Grid connection delays for megawatt chargers pose a long-term risk, yet supermarket consortia temper this by co-financing private substations. These localized dynamics ultimately sustain a balanced growth profile across both intra-city and trunk-haul segments of the United Kingdom road freight transport market.
International Segment in UK Road Freight Transport Market
The international segment is experiencing the fastest growth in the UK road freight transport market, projected to grow at approximately 4% year-over-year from 2024 to 2029. This growth is primarily driven by increasing cross-border trade activities, particularly with European Union countries. In 2024, UK-registered vehicles are actively engaged in significant international freight transport movement, with France, Belgium, Ireland, the Netherlands, and Germany being the key trading partners. The segment's growth is supported by various initiatives, including the introduction of longer lorries on British roads to reduce emissions and achieve the goal of making heavy goods vehicles net zero by 2040. The government's commitment to sustainable international transport is further demonstrated by investments in electric vehicle infrastructure and the development of innovative solutions for cross-border transportation.
Competitive Landscape
The United Kingdom road freight transport market supports a mosaic of more than 65,000 operators, yet the top 20 groups capture a disproportionate share of value through multimodal breadth and digital tooling. The April 2025 completion of DSV’s EUR 14.3 billion (USD 15.78 billion) takeover of DB Schenker welds two continental heavyweights into a single network topping USD 44.7 billion in revenue and 160,000 staff.
GXO’s GBP 753.5 million (USD 959.22 million) acquisition of Wincanton in 2024 further intensifies scale economics, unlocking 200 combined sites with advanced automation geared to omni-channel retail. Both deals underline a pivot toward end-to-end value propositions—customs brokerage, contract warehousing, and last-mile execution under one roof.
White-space niches persist. Cold-chain specialists leverage controlled-temperature know-how to secure long-term pharmaceutical contracts. Tech-native start-ups penetrate the LTL sub-segment via marketplace models that reward service quality over fleet ownership. Barriers to entry tighten as Clean Air Zone compliance and ADR certification inflate fixed costs, prompting micro-fleet owners either to specialize or exit the United Kingdom road freight transport market.
United Kingdom Road Freight Transport Industry Leaders
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Culina Group
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Turners (Soham) Ltd.
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Wincanton PLC
-
DSV A/S (including DB Schenker)
-
DHL Group
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- April 2025: DSV finalized its EUR 14.3 billion (USD 15.78 billion) purchase of DB Schenker, creating Europe’s largest integrated logistics provider.
- September 2024: Amazon invested USD 1.2 billion to add 15 fulfillment centers and 1,000 delivery stations across the U.K., boosting same-day reach to 85% of households.
- June 2024: Sainsbury’s expanded its Smart Charge network to 500+ bays across 62 distribution sites, forming the nation’s largest retailer-run EV infrastructure.
- April 2024: GXO Logistics closed its GBP 753.5 million (USD 959.22 million) acquisition of Wincanton PLC following CMA clearance.
United Kingdom 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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