published Date SEP 2018

North America Road Freight Transport Industry Size is expected to reach USD 900 billion by 2023 | CAGR of 3%

The growing trade activities and the introduction of new technologies in trucks are the key factors driving the North American road freight transport market

September 10, 2018: The road freight transport market in North America is expected to reach over USD 900 billion by 2023, as per a new report published by Mordor Intelligence LLP. The market is expected to grow owing to factors, such as the growing consumer demand for goods leading to an increase in the trade flow, and the North American Free Trade Agreement (NAFTA) that facilitates the tariff-free flow of goods. Besides these factors, the adoption of advanced technologies in trucking, as well as in the management of transportation and supply chain, is also expected to reinforce the growth prospects over the forecast period.

NAFTA is a very significant factor in driving the trade between these countries and is pivotal in making them the largest trading partners for each other. As of 2017, for the United States, Canada is the second largest trading partner of goods and Mexico is the third. The imports of the United States from Mexico was increased by 687% whereas that of the exports increased by 484% in 2017, when compared to 1993 (before NAFTA). Additionally, the agreement has led to an increase in the investments resulting in the growth in the business activities. For instance, the Foreign Direct Investment (FDI) of Canada has grown by 15.3% in 2016 when compared to 2015, and has reached USD 371.5 billion mainly led by manufacturing, wholesale trade, and finance/insurance.

To know more about the coverage of the North America Road Freight Transportation Market report, click the below link:

https://www.mordorintelligence.com/industry-reports/north-america-road-freight-transport-market

A strong growth is anticipated in the freight demand in the United States, in the foreseeable future. According to the Bureau of Transportation Statistics (BTS), the total freight transported domestically by trucks is expected to reach 14,235 million metric ton by 2045 from 10,568 million metric ton in 2015. Trucking is the dominant mode of freight transportation in the United States and accounts for ~70% of the freight transport (in terms of weight). Apart from these, the shortage of drivers, due to aging and retiring, is resulting in the widening difference between the supply and the demand in the US trucking industry. This capacity crunch is leading to the rise in prices.

The rise of the emissions is leading to the shift in focus from the road transportation to other means of transportation, such as rail and intermodal, which are comparatively low-priced. Additionally, road congestion remains to be one of the critical factors influencing the modal shift. These factors altogether restrain the road freight transport market in North America. The intermodal container transport is gaining momentum in the recent years with almost 60 million drayage movement every year being contributed by North America.

Get a free overview on North America Road Freight Transportation Market (2018-2023)

Key Insights from the Report:

  • The United States holds a major share of more than 3/4th of the market and is expected to retain its position until 2023. The presence of the matured trucking industry, a growing and robust economy, etc. are some of the key factors responsible for the market growth in the region.
  • The North American road freight transport market is highly fragmented in nature owing to the presence of a large number of transport service providers. Key players in the market include FedEx, United Parcel Service (UPS), XPO Logistics, Ceva Logistics, Swift Transportation Company, Schneider National, Old Dominion Freight Line, and Knight Transportation Inc. among others.

North America Road Freight Transport Market Segmentation Based on destination, Service Type, Regional Coverage, and End Users.

North American Road Freight Transport Market Segmentation, by Destination

  • Domestic
  • International/Cross-border

North American Road Freight Transport Market Segmentation, by Service Type

  • Freight Transportation
  • Dedicated
  • Less-than-Truckload
  • Full Truck Load
  • Intermodal
  • CEP (Courier, Express and Parcel)

North American Road Freight Transport Market Segmentation, by Region

  • United States
  • Canada
  • Mexico

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