Road Haulage Market

Road Haulage Market Size:

The global road haulage market size reached USD 8.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 12.9 Billion by 2033, exhibiting a growth rate (CAGR) of 4.8% during 2025-2033. The rising e-commerce sector, regulatory support and investments in sustainable transportation solutions, advancements in vehicle technology, infrastructure development, rapid urbanization, and the increased demand for reliable and efficient logistics services are some of the major factors driving the market growth.

Road Haulage Market Analysis:

• Major Market Drivers: The rise in e-commerce, requiring efficient logistics to handle increased volumes of goods represents the major driver in the market. Rapid urbanization and the growth of megacities are intensifying the need for reliable transportation networks. Advancements in vehicle technology such as fuel efficiency and emission reductions are propelling the market growth.
• Key Market Trends: Sustainability is a significant trend in the market, with companies adopting eco-friendly practices and investing in electric and hybrid to reduce carbon footprints. Digitalization and the use of advanced logistics software for route optimization and real-time tracking are transforming operations.
• Geographical Trends: Asia Pacific accounted for the largest region in the road haulage market growth. Rapid urbanization, industrialization, expanding e-commerce, and significant infrastructure investments are driving the growth of the market across the region.
• Competitive Landscape: Some of the major market players in the road haulage industry include AM Cargo s.r.o., Gosselin Group, Kindersley Transport Ltd. (Siemens Transportation Group Inc.), Kuehne + Nagel International AG (Kühne Holding AG), LKW WALTER Internationale Transport Organisation AG (Walter Group), Manitoulin Transport Inc. (Manitoulin Group of Companies), Monarch Transport Limited (Landtran Group), Old Dominion Freight Line, Inc., SLH Transport Inc (C.A.T. Inc.), UK Haulier, Woodside Logistics Group, etc., among many others.
• Challenges and Opportunities: The market faces various challenges including fluctuating fuel prices, strict environmental regulations, and infrastructural bottlenecks. Driver shortages and high turnover rates also pose significant issues, impacting operational efficiency. However, the market also faces several opportunities such as the increasing adoption of green technologies and electric vehicles reducing operational costs and meeting regulatory demands.

Road Haulage Market Trends:

Expanding E-commerce Sector

The rising e-commerce industry is driving the growth of the market significantly. The increase in online shopping requires efficient and reliable logistics services to manage the high volume of shipments, especially for last-mile delivery. This rise in the demand is leading to a greater need for transportation solutions capable of handling frequent, smaller deliveries directly to consumers. According to IBEF, the Indian e-commerce industry is projected to reach US$ 300 billion by 2030, experiencing significant growth. Third-party logistics providers are anticipated to manage approximately 17 billion shipments within the next seven years. India’s e-commerce platforms achieved a significant milestone, hitting a GMV of US$60 billion in fiscal year 2023, making a 22% increase from the previous year. According to Invest India, as per TRAI’s Indian Telecom Service Performance indicators Jul-Sept 2023, the internet penetration in India as of September 2023, is over 918.19 million, and the number of telecom subscribers as of February 2024 is over 1199 million. With over 900 million users, India is the 2nd largest internet market in the world with 125.94 Lakh Cr UPI transactions in 2022.

Rising Infrastructural Development and Urbanization

Rapid urbanization and substantial investments in transportation infrastructure are contributing to the growth of the market. As cities expand, the need for efficient freight services to supply urban centers grows. Improved road networks and transportation facilities enhance connectivity, reduce transit times, and increase the efficiency of freight movements, making road haulage a more viable and attractive option. According to the data from the World Bank, today, some 56% of the world's population - 4.4 billion inhabitants - live in cities. This trend is expected to continue, with the urban population more than doubling its current size by 2050, at which point nearly seven of 10 people will live in cities. With more than 80% of global GDP generated in cities common urbanization can contribute to sustainable growth through increased productivity and innovation if managed well the expansion of urban land consumption outpaces population growth by as much as 50%, which is expected to add 1.2 million km² of new urban built-up area of the world by 2030.

Significant Technological Advancements

The increasing innovations in vehicle technology and digital logistics solutions a transforming the market. The widespread adoption of fuel-efficient and electric vehicles helps reduce operational costs and meet environmental regulations. Advancements in logistics software for root optimization and real-time tracking improve efficiency, reliability, and customer satisfaction, thus further driving the growth of the market. For instance, in March 2024, Maruti Suzuki will be rolling out its first electric vehicle - Evx (due in 2025) – through NEXA, the company’s premium/luxury outlet. The EV will run on a 60kWh battery pack, and will reportedly offer a range of up to 550 km.

Road Haulage Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on type, vehicle type, and application.

Breakup by Type:

• International Road Haulage
• Domestic Road Haulage
   

Domestic road haulage accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes international road haulage and domestic road haulage. According to the report, domestic road haulage represented the largest segment.

The demand for domestic road haulage is driven by the growth of e-commerce, necessitating efficient and reliable logistics for local deliveries. Urbanization increases the need for transportation of goods within cities. Advancements in vehicle technology and digital logistics solutions enhance operational efficiency. Government investments in infrastructure development further support the domestic road haulage market by improving road networks and reducing transit times, making road haulage a preferred choice for local freight transportation. According to an article published by The Economic Times, India aims to elevate its road infrastructure to match that of the US within the next 5 years said Minister of Road Transport and Highway, Nitin Gadkari. As part of a comprehensive strategy, the government seeks to alleviate metro congestion, significantly reduce travel time, and minimize road accidents.

Breakup by Vehicle Type:

• Light Commercial Vehicles
• Heavy Commercial Vehicles
   

Light commercial vehicles holds the largest share of the industry

A detailed breakup and analysis of the market based on the vehicle type have also been provided in the report. This includes light commercial vehicles, and heavy commercial vehicles. According to the report, light commercial vehicles accounted for the largest market share.

The growth of e-commerce, requiring efficient last-mile delivery solutions is driving the demand for light commercial vehicles in the market. In line with this, urbanization increases the need for agile and versatile transport options. In addition to this, advancements in vehicle technology, including fuel efficiency and electric LCVs, enhance operational cost-effectiveness. Apart from this, government incentives and regulations supporting environmentally friendly transportation also boost the adoption of light commercial vehicles, making them a preferred choice for urban and short-distance haulage.

Breakup by Application:

• Mining and Construction
• Oil and Gas
• Food and Beverage
• Retail
• Manufacturing
• Healthcare
• Automotive
• Others
   

Food and beverage represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the application. This includes mining and construction, oil and gas, food and beverage, retail, manufacturing, healthcare, automotive, and others. According to the report, food and beverage represented the largest segment.

The demand for road haulage in food and beverage applications is driven by the growth of the food industry and increased consumer demand for fresh and packaged products. Efficient logistics are essential for maintaining the quality and safety of perishable goods. The expansion of e-commerce and online grocery shopping further boosts the need for reliable transportation. Additionally, advancements in refrigerated and temperature-controlled transport technology ensure compliance with stringent food safety regulations. Urbanization and changing consumer lifestyles also contribute to the rising demand for road haulage services in the food and beverage sector.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest road haulage market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for road haulage.

The robust economy and high consumer spending in Asia Pacific are driving the market demand across various sectors. The growth in e-commerce and online retail, particularly in the developed regions, is significantly driving the demand for delivery purposes. The high concentration of manufacturing industries, especially the automotive industry, in Asia Pacific also drives the market. The presence of numerous oil and gas reserves across the Asia Pacific is resulting in a higher uptake of road haulage in the extraction, refining, and distribution of these resources. Infrastructure development and urbanization across the region are driving the need for these services in construction and related industries. The technological advancements and adoption of automation in road haulage operations are improving efficiency and driving the market growth. According to Invest India, the government's commitment is evident through its allocation of 3.3% of GDP in the infrastructure sector in the fiscal year 2024, with a particular focus on the transport and logistics segments.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the road haulage industry include AM Cargo s.r.o., Gosselin Group, Kindersley Transport Ltd. (Siemens Transportation Group Inc.), Kuehne + Nagel International AG (Kühne Holding AG), LKW WALTER Internationale Transport Organisation AG (Walter Group), Manitoulin Transport Inc. (Manitoulin Group of Companies), Monarch Transport Limited (Landtran Group), Old Dominion Freight Line, Inc., SLH Transport Inc (C.A.T. Inc.), UK Haulier, Woodside Logistics Group.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The competitive landscape of the road haulage market is highly competitive with key players such as AM Cargo s.r.o., Gosselin Group, Kindersley Transport Ltd. (Siemens Transportation Group Inc.), and FedEx Freight. These players dominate due to extensive networks, advanced logistics technologies, and diversified service offerings. Regional players also hold significant market shares by catering to local demand. Mergers and acquisitions are common strategies to expand market presence and capabilities. For instance, in March 2024, the logistics flow of Vitesco Technologies' twelve European locations will be centrally managed by DHL through the LP Center of Excellence in Warsaw, Poland. This corresponds to around 1,00,000 transport movements within the supply chain to the plants as well as from the plants to the customers and thus accounts for about a third of Vitesco Technologies' total freight volume.

Road Haulage Market News:

• In October 2024, XPO a leading provider of freight transportation in North America, announced to launch of an in-house, over-the-road operation staffed exclusively by team drivers. The Road Flex program is part of the company’s previously announced strategy to insource third-party linehaul carrier miles to drive greater efficiency, expected cost savings, and better service for customers.
• In March 2024, Kuehne+Nagel agreed to acquire City Zone Express, a subsidiary of Chasen Holdings Ltd., a Singapore Exchange Mainboard-listed company. Headquartered in Malaysia and established in 2006, City Zone Express has over 500 employees and operates in Malaysia, Singapore, Vietnam, Thailand, and China. The acquisition of City Zone Express will be immediately earnings-accretive and strategically enhance Kuehne+Nagel’s cross-border road logistics service offerings in Asia.

Road Haulage Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the road haulage market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global road haulage market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the road haulage industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.