The road haulage market size was estimated in the range of approximately 2,811.7 billion at the end of 2018, It is predicted to expand by a compound annual growth percentage (CAGR) of5.5 percent between 2020 and 2028. The significant increase in truck production worldwide is helping to meet the increasing demand for freight in sectors like manufacturing and retail. Furthermore, trucking is the most adaptable economically, responsive, and efficient way of transporting freight favored by distributors who require the transportation of a wide range of products, further driving the growth of the road haulage market. In addition, numerous technological advancements like vehicle-to-vehicle communications as well as integrated supply chains remote diagnostics auto-driving, and remote diagnostics are revolutionizing the logistics industry. This will in turn increase the demand globally for transportation services.
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The flourishing worldwide online retail market has created the need for fast parcel delivery. The rapid growth of the e-commerce business has led to the rise of new requirements for service such as express delivery and a whole new category of logistics companies. The bright future growth prospects of the e-commerce business due to the rapid rise of smartphones as well as the increasing global internet penetration are likely to result in a rise in demand for road transport in the near future. Additionally, the growth of the transportation and automobile industries has been a major factor in the growth in the global road haulage industry size.
Many e-commerce retailers have made significant investments in establishing their logistics infrastructure and capabilities to improve customer experience. In addition, increasing industrialization and increased investments in improving the parcel delivery process are further openings to expand the road haulage market. Alongside these investments, increasing populations and shifting preference for residential properties (location shifting or change) also drive the need for road haulage during the next few years.
But, other factors like the massive lack of drivers with heavy vehicles, and the high-risk drivers are exposed to injuries sustained in traffic accidents limit the road haulage market growth. Road accidents are the result of factors like inadequate road maintenance, speedy motorization, the absence of safety features on automobiles, the rapid growth of population as well as crowded roads and the absence of police enforcement. Additionally, the environmental impacts of emissions from diesel engines as well as the requirement to comply with strict emission standards are predicted to hinder the road haulage industry growth. However, the advent of self-driven trucks, as well as the introduction of innovative logistics techniques, are providing new growth opportunities for businesses operating in the road haulage market.
The type of road haulage is divided into two kinds of transportation: international road haulage as well as domestic road haulage. The road haulage sector for the domestic market led the road haulage market in 2018 and was responsible for over 60 percent. This is due to the increasing importance of ensuring that express parcels get promptly delivered, while also increasing efficiency in operation. Domestic deliveries are also less expensive than international ones, thus accelerating the development of the road haulage market for road haulage.
The road haulage sector in the international market is predicted to record an increase in CAGR of more than 7 percent during the forecast time. International trade between countries is growing at an alarming pace due to the growing infrastructure for roads as well as technological advances like GPS trackers in the logistics sector. In addition, the ease of import and taxation duties, as well as flexible cost structures for transport services, are also boosting the global road haulage sector. Additionally, the growing number of trade transactions due to increased demand from consumers and the vast network of trucking across the globe will further boost the growth of the sector.
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Based on the kind of vehicle that is used for the transport of goods and other goods, this market can be classified into two segments: light commercial and heavy commercial. The segment for light commercial vehicles is expected to grow at an increase of more than 8 percent during the forecast time. This could be due to the growing demands for services for local deliveries which include the dispersal of business and residential areas that must be traveled using light vehicles. In addition, the advancements in technology in vehicles like enhanced fuel efficiency as well as the greater performance of light trucks have significantly improved the efficiency of road haulage firms.
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However, the commercial heavy vehicle segment is expected to continue to dominate the road haulage market throughout the forecast time. This segment had an over 80 percent in 2018, and is predicted to remain in the top tier of most of the road haulage market until 2028, too. The rise can be attributed to the substantial increase in the transport of various items for long-distance transport. In addition, an increase in the manufacturing of trucks as well as large commercial vehicles will increase the growth of this segment.
Road haulage services are utilized in many areas of diverse industries like mining and construction, oil and gas, food & beverages manufacturing, retail as well as healthcare, automotive and many more. Food and beverage represented the majority part of the road haulage market in the year 2018 and is predicted to record an impressive CAGR of over 6percent over the forecast time. This could be due to the increasing demand for perishables like fruits vegetables, fruits, and other commodities across the globe.
Mining & Construction and oil & gas and retail segments combined made up more than 37 percent of the market share in the year 2018. The rise of the mining and construction segment is due to the increasing demand for construction and petroleum products around the world. The retail market is anticipated to increase significantly because of the flourishing e-commerce sector across the globe. Mining and construction is anticipated to show significant growth potential due to the increasing need for reliable transport services on the road for the transport of metal ore and other mining and quarrying materials.
It is anticipated that the Asia Pacific regional market accounted for the majority of the total market in the year 2018 and is expected to have the highest CAGR, which is more than 6 percent over the forecast time. The increase is due to the improvement in road infrastructure as well as the increasing international investments within the Asia Pacific region. In addition, the fast-growing market for e-commerce in developing nations like India and China will further increase the need for efficient transport services on the road.
In line with the Asia Pacific in terms of revenue and the Asia Pacific in terms of revenue and growth potential In terms of growth prospects, the North American regional market accounted for more than 25% of the total revenue share in the year 2018. The market for regional markets is experiencing an increase in its growth rate and is likely to hold a substantial portion of the market until the close of the forecast. The potential for growth in the regional market could be explained by the expanding amount and extent of trade operations as well as the vast network of highways in the region.
The road haulage market is extremely dispersed and is characterized by intense competition due to being dominated by well-established regional players. Businesses are looking to integrate logistics-related technologies into their transportation services to increase their customers. Lower delivery fees have led to increased prices among the major players in this sector.
Companies are working on ramping up their capacity to carry goods through partnerships with third-party logistics providers or through the introduction of new delivery services that are modern. Businesses are also focusing the importance of improving customer service and are working to reduce the operational expenses associated with their transport service by using technology like automated vehicles and GPS. In addition, haulage firms are also establishing operations centers where they can keep goods and vehicles in storage and perform any maintenance to improve the efficiency of their business processes. Some of the most well-known companies in the field of road haulage include: