Road Haulage Market Analysis Report By Type, By Vehicle Type, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The road haulage market size across the globe was valued at USD 2,811.7 billion in the year 2018. It is anticipated to witness a CAGR of 5.5% over the forecasted period, 2019 to 2025. The rising need for transportation of goods coupled with the increased production of commercial vehicles like trucks is driving the market growth. Also, features like the responsiveness and flexibility of these trucks are gaining popularity among goods transporters and service providers.

Rapid technological advances like enhanced supply chains, improved vehicle to vehicle communication, and cost-effectiveness in freight transport are driving the logistics industry across the globe. Moreover, emerging concepts like online deliveries in the retail and food industry are gaining traction among the millennial population. These factors are projected to drive market growth in the upcoming years.

Several e-commerce industries are engaged in integrating their supply chain and logistics networks to provide an enhanced experience to their customers. They are also focusing on optimizing the time and cost of parcel delivery to gain a competitive advantage. Further, the rising trend to change location and shift houses is also expected to fuel the demand for road haulage.

But, factors like shortage of vehicle drivers and road accidents caused due to negligence in following safety norms are hindering the market growth for road haulage. Also, other factors like the low maintenance of roads, congested roads conditions, and lack of awareness about personal safety while driving are projected to hamper the market growth. Further, stringent norms being imposed by governing bodies regarding emissions caused by diesel engines are projected to impact the growth in the upcoming years.

Type Insights

The segment of domestic road haulage held the largest share of 60% across the global road haulage market, in 2018. The rising emphasis on providing fast and in-time delivery of parcels by improving operational efficiency is driving the growth of this segment. Moreover, the cost-effectiveness of domestic deliveries over international ones is further projected to fuel up the market growth.

The segment of international road haulage is projected to witness more than 7.0% CAGR in the upcoming years. Rising international trade across all countries coupled with the growth of roadways and infrastructure activities is positively impacting the growth of this segment. Also, rapid technological advances like GPS tracking prevailing across the logistics industry are projected to fuel up the market growth. Moreover, reductions being provided in cost and import duties for promoting international trade are spurring the growth of road haulage across the globe.

Vehicle Type Insights

The segment of heavy-duty commercial vehicles held the largest share of around 80% across the global market, in 2018. It is also projected to continue its dominance over the forecasted period, 2019 to 2025. This can be associated with the increasing need for transportation of heavy goods over the long haul. Moreover, the rising production of commercial vehicles and trucks is expected to fuel up the market growth of this segment.

The segment of light commercial vehicles is anticipated to witness a CAGR of more than 8.0% from 2019 to 2025. This can be associated with the increasing demand for delivery services at the local level. Moreover, rapid advances being carried out in the production of vehicles like enhanced reliability of light-duty trucks and improved fuel efficiency are anticipated to drive the demand for light commercial vehicles in the upcoming years.

Application Insights

In 2018, the application segment of food and beverage held the largest share across the global market. It is projected to witness a 6.0% CAGR in the upcoming years. This can be associated with the increasing demand for perishable food items like vegetables, fruits, and other commodities across the globe.

The segments of retail, oil, and gas, and mining and construction collectively held a share of around 37% across the global market, in 2018. This can be associated with the surging need for transportation of construction and petroleum products across the globe. The emergence of the e-commerce industry is driving the growth of the retail segment.

Regional Insights

The Asia Pacific dominated the global road haulage market in 2018. It is also anticipated to witness the highest growth with a 6.0% CAGR from 2019 to 2025. This growth can be associated with the rising foreign investments coupled with the enhanced road infrastructure across countries like India and China. Moreover, surging growth across the e-commerce sector is projected to drive the market growth for services of road haulage.

In 2018, North America also accounted for a significant share of around 25.0% across the global market. It is also anticipated to account for a healthy share during the forecasted period. This can be associated with the rising trade activities coupled with the huge highway network across this region.

COVID-19 Impact Insights

The market is being affected due to the ongoing COVID crisis. This can be associated with the need for transportation of essential products like groceries and medicines to remote areas across the globe. As other modes of cargo transport like airways and waterways have been restricted by the majority of the countries, the need for road transport has increased significantly, thereby driving the market growth for road haulage.

But, abrupt disruption in the supply chain, reduced demand for commercial vehicles due to their non-essential nature, and cash crunch caused during the lockdown are anticipated to hinder the market growth in the upcoming years. Moreover, an increase in fuel prices by several governments to revive financial losses coupled with the reduced investments in R&D activities for the next few years is expected to hamper the growth.

Road Haulage Market Share Insights

The market is fragmented across the globe on account of the surging presence of many regional manufacturers. The key players in the market are Gosselin Group, CONCOR, Kindersley Transport Ltd., Monarch Transport, SLH Transport Inc., UK Haulier, Woodside Logistics Group, and Manitoulin Transport Inc. They are constantly engaged to focus on the integration of logistic technology in transportation service for enhancing the customer base.

They are also engaged in implementing strategies like partnerships with other service providers of logistics for enhancing their capacity for good scaling. The rising usage of technologies like GPS and automated cars is boosting their profits by reducing operational costs.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For this study, Million Insights has segmented the global road haulage market based on type, vehicle type, application, and region:

• Type Outlook (Revenue, USD Billion, 2014 - 2025)
    • International Road Haulage
    • Domestic Road Haulage

• Vehicle Type Outlook (Revenue, USD Billion, 2014 - 2025)
    • Light Commercial Vehicles
    • Heavy Commercial Vehicles

• Application Outlook (Revenue, USD Billion, 2014 - 2025)
    • Mining & Construction
    • Oil & Gas
    • Food & Beverage
    • Retail
    • Manufacturing
    • Healthcare
    • Automotive
    • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • France
        • Germany
        • Italy
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa