Global Road Freight Transportation Market Assessment, By Product Type [Liquid, Solid], By Vehicle Type [Light Commercial Vehicle, Medium Commercial Vehicle, Heavy Commercial Vehicle], By Carrier Type [Full Truckload, Less-Than-Truckload], By End-user [Automotive, Food and Beverages, Oil and Gas, Chemicals, Healthcare, Others], By Region, Opportunities and Forecast, 2017-2031F

Global road freight transportation market is projected to witness a CAGR of 4.61% during the forecast period 2024-2031, growing from USD 559.83 billion in 2023 to USD 802.55 billion in 2031. The market is growing due to the surge in e-commerce, driving the demand for efficient and fast delivery solutions, especially in the last mile delivery where road transport plays a key role. Companies rely on road cargo to meet these requirements as consumers are increasingly expected to deliver quickly. The results of the technology field, such as tracking GPS and optimizing routes, have more efficient and economically effective road cargo and more companies use this type of transportation. Urbanization and globalization are expanding market reach, creating a need for reliable logistics networks to connect regions and support supply chains. Improved infrastructure such as better roads and highways facilitate faster and safer transportation fueling the growth of the market. Many companies value the flexibility of road freight, as it offers door-to-door service and access to remote areas that may not be accessible by other forms of transportation such as rail or air. As a result, the road freight market is expanding, driven by increased demand, technological advances, infrastructure investments, and the adaptability it offers to meet diverse logistical needs.

In March 2023, ArcBest Corporation introduced Vaux, a suite of hardware and software that revolutionizes freight loading, unloading, and transfer. Vaux enables unloading entire trailers in under five minutes, offering full visibility into freight movement and enhancing efficiency in warehouse operations. By modernizing traditional methods, it addresses supply chain challenges, reduces damage, and improves working conditions. This technology helps the road freight transportation market by streamlining operations, reducing costs, and supporting sustainability, which is crucial for meeting the increasing demand driven by e-commerce and global trade. The Vaux system's ability to integrate with existing warehouse management systems and provide real-time tracking further optimizes the supply chain logistics, making it a game-changer for the industry.

E-commerce to Fuel Road Freight Transportation Market Growth

E-commerce is a key driver for the growth of the road freight transportation market with more consumers shopping online, needing efficient logistics to meet demand for fast and flexible delivery. Road freight offers a reliable way to transport goods from distribution centers to final destinations, often providing same-day or next-day services that consumers expect. E-commerce requires frequent smaller shipments instead of bulk orders making road transport ideal for handling high-frequency deliveries and last-mile logistics. As e-commerce expands into rural and remote areas the need for flexible road networks grows, increasing the volume and reach of road freight services. This shift has pushed companies to invest in better technology and fleet expansions, further fueling the growth of the road freight market.

In March 2023, CEVA Logistics, ENGIE, and SANEF launched the European Clean Transport Network Alliance (ECTN) to decarbonize road freight transport by building a network of relay terminals along European motorways with high-power electric chargers and biogas and green hydrogen pumps. This initiative aims to address battery capacity issues, improve truck drivers' working conditions, and provide seamless access to low-carbon energy solutions for all shippers and carriers. By enabling more sustainable long-haul trucking, the ECTN will enhance efficiency and reduce emissions, fostering the growth of the road freight transportation market through innovation and improved logistics solutions.

Infrastructure Development to Drive Market Growth

Infrastructure development is significantly enhancing the growth of the road freight transportation market. Investments in expanding and upgrading roads, highways, and bridges lead to smoother and faster travel routes reducing transit times and fuel costs for freight operators. Improved infrastructure minimizes congestion and wear on vehicles, lowering maintenance expenses and increasing reliability in deliveries. These advancements support higher volumes of road traffic allowing freight companies to handle larger shipments with greater efficiency. Additionally, the extension of highways to rural and underserved areas opens new markets for goods transportation, expanding the customer base for road freight services. With better-connected cities and regions, companies can optimize their supply chains, improving speed and cost-effectiveness critical factors as demand grows. Consequently, infrastructure development is a foundation for the road freight transportation market's expansion.

In April 2024, Deutsche Post AG Freight deployed fully electric Mercedes-Benz eActros 300 trucks for delivery and distribution transport at its Koblenz and Hagen sites. These trucks, with a range of 220 kilometers, support DHL's sustainability strategy by reducing greenhouse gas emissions and enhancing operational efficiency. This initiative aligns with the company's plan to increase the share of electric vehicles in its fleet and promotes sustainable logistics solutions. By incorporating advanced electric vehicles, DHL Freight addresses environmental concerns and sets a precedent for greener practices in the road freight transportation market, fostering growth through innovation and improved sustainability.

Full Truckload Segment to Dominate the Road Freight Transportation Market Share

The full truckload segment dominates the global road freight transportation market share due to its ability to move large loads over longer distances efficiently. FTL is ideal for businesses with large volume shipments as it reduces loading and unloading times, minimizes risk of damage, and allows for faster transportation compared to less-than-truckload shipments. This segment is particularly popular in industries such as manufacturing, retail and agriculture where large single-destination shipments are common with the growing demand for cost-effective and on-time delivery solutions FTL remains the dominant choice, especially as businesses look for reliable options to optimize their supply chains and reduce overall delivery costs.

In September 2024, NTG Nordic Transport Group acquired ITC Logistic, a German company specializing in bespoke road and logistics solutions, to strengthen its market position in Germany. This acquisition will expand NTG's scale and unlock synergies worth USD 24.3 million, driven by operational and commercial optimization. By integrating ITC's strong network, management, and customer base, NTG aims to enhance its presence across Continental Europe and foster future growth. This strategic move will help the road freight transportation market by improving efficiency, expanding service offerings, and enhancing operational capabilities, thus meeting the growing demand for comprehensive logistics solutions.

Asia-Pacific to Dominate the Road Freight Transportation Market Share

Asia-Pacific is largely dominated by rapid economic growth, urbanization, and the developing e-commerce. Countries such as China and India are turning out to be major hubs of manufacturing and consumer demand, where proper logistics are needed to move commodities inside and outside big markets. Road freight, in this case, is going to be really important to meet this demand. For last-mile delivery, in particular, which must accompany the booming e-commerce sector, road freight is going to be crucial. Other regional government investments in infrastructure include new highways, expressways, and cross-border trade routes that promote connectivity and help reduce delivery times. Infrastructure development fosters smooth and reliable road transport. In road freight, this is reportedly where developments in infrastructure are most readily increasing usage by firms. With an increasingly middle-class demographic and growing demand in the marketplace outside the city centers, Asia-Pacific continues to lead global growth of road freight transportation.

In March 2023, Knight-Swift Transportation Holdings Inc. agreed to purchase U.S. Xpress, Inc. in a deal worth around USD 808 million with the two firms' companies looking to increase revenue by nearly 30% and improve the overall operational efficiency of the company. The deal, estimated to bring in about USD 2.2 billion of operating revenue, growing Knight-Swift's tractor fleet to 7,200 units with 14,400 trailers, enhance the efficiency and scale of the service offered through the use of expertise and resources of Knight-Swift. The road freight transportation market will undergo a transformation-from improved logistics and customer reach to enhanced capabilities in operations.

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Future Market Scenario (2024 – 2031F)

• Increased adoption of autonomous vehicles, electric trucks, and advanced logistics software will enhance efficiency and reduce costs.
• Growing emphasis on reducing carbon emissions will drive the shift towards greener transportation solutions, such as electric and hydrogen-powered vehicles.
• Continued expansion of e-commerce will boost demand for last-mile delivery services, leading to more localized distribution centers and innovative delivery methods.
• Rapid urbanization and improvements in infrastructure will create new opportunities and challenges for road freight transportation, requiring more efficient route planning and congestion management.

Report Scope

“Road Freight Transportation Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global road freight transportation market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2023
Historical Period	2017-2022
Forecast Period	2024-2031
Projected Growth Rate	CAGR of 4.61% between 2024 and 2031
Revenue Forecast in 2031	USD 802.55 billion
Segments Covered	Product Type, Vehicle Type, Carrier Type, End-user
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profile	XPO, Inc., FedEx Corporation, Deutsche Post AG, Kuehne + Nagel International AG, DB SCHENKER, United Parcel Service, Inc., J.B. Hunt Transport, Inc., Nippon Express Holdings Inc, GEODIS SA, CEVA Group Plc
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, global road freight transportation market has been segmented into the following categories: 

• By Product Type
  • Liquid
  • Solid
• By Vehicle Type
  • Light Commercial Vehicle
  • Medium Commercial Vehicle
  • Heavy Commercial Vehicle
• By Carrier Type
  • Full Truckload
  • Less-Than-Truckload
• By End-user
  • Automotive
  • Food and Beverages
  • Oil and Gas
  • Chemicals
  • Healthcare
  • Others
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

Companies are using many strategies to enhance efficiency and quality service in the growing road freight transportation market to stay competitive. Many of them invest in technologies to improve the efficiency of fleet management, promote significant fuel usage reduction, and ensure timely deliveries by using GPS tracking, route optimization software, and artificial intelligence. Companies are focusing on the various last-mile delivery solutions that will provide quicker and more flexible services to small, frequent shipments according to the increasing demand of e-commerce. Road freight companies are expanding their service portfolios through multimodal transportation and strategic partnership building with logistics service providers and e-commerce leaders for enlarging their domains. Electric or fuel-efficient trucks are the other alternative changes companies make regarding transition, especially to decrease the operational costs that fit into the requirement by society to tackle environmental issues. Besides this, most road freight companies spend on training, automation, and maintenance systems to ensure skilled labor and well-maintained fleets. They focus on innovation, cost efficiency, and sustainability as ways to remain ahead of their competitors in a dynamic and demanding market.

In August 2023, Schneider National, Inc. acquired M&M Transport Services, LLC Services, a specialty contract carrier, to expand its presence in the specialty market. M&M Transport with 500 trucks and 1,900 trailers primarily serves retail and manufacturing and will operate as a wholly-owned subsidiary of Schneider. The acquisition is expected to have an immediate positive impact on Schneider's earnings per share and generate USD 1.5 billion in annual revenue from dedicated contracts. Leveraging M&M's expertise and Schneider's resources, the transaction will improve operational efficiencies, customer service, and market reach thereby contributing to the growth of the road freight transportation market.

Key Players Operating in Global Road Freight Transportation Market are:

• XPO, Inc.
• FedEx Corporation
• Deutsche Post AG
• Kuehne + Nagel International AG
• DB SCHENKER
• United Parcel Service, Inc.
• B. Hunt Transport, Inc.
• Nippon Express Holdings Inc
• GEODIS SA
• CEVA Group Plc

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