Freight Transport Market Trend, Share, Growth, Size and Forecast 2030

Freight Transport Industry Prospective:

The global freight transport market size was evaluated at $30 billion in 2022 and is slated to hit $73 billion by the end of 2030 with a CAGR of nearly 11.4% between 2023 and 2030.

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Freight Transport Market: Overview

Freight transport is a key component of supply chain and logistics systems. Moreover, it is defined as a process of moving sorted items from one place to their destination through various modes of transport such as roadways, aircraft, seaways, and railways. It is used for transporting freight to distant locations and hence it is utilized in retail, automotive, pharmaceuticals, e-commerce, energy, and aerospace sectors.    

Key Insights

• As per the analysis shared by our research analyst, the global freight transport market is projected to expand annually at the annual growth rate of around 11.4% over the forecast timespan (2023-2030)
• In terms of revenue, the global freight transport market size was evaluated at nearly $30 billion in 2022 and is expected to reach $73 billion by 2030.
• The global freight transport market is anticipated to grow rapidly over forecast timeline owing to the massive need for reducing fixed expenditure, logistics costs, and inventory costs.
• In terms of mode of transport, the roadways segment is slated to register the fastest CAGR over the forecast timeframe.
• Based on offering, the service segment is predicted to lead the segmental growth in the next eight years.
• Based on vertical, the retail & e-commerce segment is predicted to dominate the segmental surge in the next eight years.
• Region-wise, the Asia-Pacific freight transport industry is projected to register the fastest CAGR during the assessment timeline.

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Freight Transport Market: Growth Factors

Rise in demand for freight transport in e-commerce activities to spearhead the global market trends 

The thriving e-commerce sector along with escalating requirements of fleet tracking, maintenance of warehouse management systems, and a rise in the need for effective 3PL services will steer the expansion of the global freight transport market. The need for effective freight transport activities and supply chain execution competencies will prompt a global market surge in the upcoming years. Additionally, the massive need for reducing fixed expenditure, logistics costs, and inventory costs is likely to provide impetus to the expansion of the global market. Moreover, surging globalization has contributed majorly to the growth of the market across the globe. In addition to this, freight transport helps in reducing capital costs, door-to-door service costs, and costs of products in transit due to insurance coverage of products, thereby driving the global market trends. Industry 4.0 revolution and swift industrialization will steer the expansion of the market across the globe. The humungous need for prompt product delivery will chart a profitable roadmap for the global market.  

Freight Transport Market: Restraints

An increase in the fuel emissions from diesel can put brakes on freight transport activities in coming years

A rise in carbon emissions and an increase in the costs of diesel can hamper the growth of the global freight transport industry. In addition to this, ongoing conflicts between Israel and Hamas as well as Russia and Ukraine have hampered the expansion of the global industry.  

Freight Transport Market: Opportunities

Technological innovation in freight transport to open new growth avenues for the global market 

Technological breakthroughs and the need for developing new freight transport solutions are likely to improve the position of the giant players in the global freight transport market. This will also help the market expand by leaps & bounds in the coming decade. For instance, in the last quarter of 2020, CargoSmart, a key software firm based in Hong Kong, introduced an IoT-driven ‘CargoSmart Connected Reefer Solution’ for shippers and ocean carriers.

Freight Transport Market: Challenges

Strict government legislation over the transport of particular goods can prove to be a huge challenge for the global industry over the coming years

Strict government laws pertaining to the transport of particular types of products which can be toxic in nature as well as restrictions placed on transport of certain perishable goods can pose a huge challenge for the expansion of the global freight transport industry in the upcoming years.

Freight Transport Market: Segmentation

The global freight transport market is sectored into the offering, mode of transport, vertical, and region.

In offering terms, the freight transport market across the globe is segregated into solutions and services segments. Furthermore, the services segment, which led the offering segment in 2022, is predicted to continue dominating the segmental sphere even during the forecast timeline. The expansion of the segment from the period of 2023 to 2030 can be owing to the offering of various services such as managed freight transport services and business services by firms in the business of freight transport. Moreover, these services help businesses of all sizes fulfill orders through just-in-time manufacturing, thereby helping firms maintain low shipping inventories and reduced storage spaces.

Based on the mode of transport, the global freight transport industry is sectored into roadways, seaways, railways, and airways segments. Additionally, the roadways segment, which acquired a massive share of the global industry in 2022, is anticipated to record the highest rate of growth over the forecast period. The segmental expansion over 2023-2030 can be due to the growing demand for highly efficient and time-savvy door-to-door services for shorter distances of transportation. Moreover, the need for cost-efficiency and demand for low capital funding will steer the expansion of the segment in the upcoming years.

Based on the vertical, the global freight transport market is sectored into the automotive, retail & e-commerce, aerospace & defense, pharmaceuticals, and others segments. Additionally, the retail & e-commerce segment, which acquired a key share of the global market in 2022, is predicted to lead the segment over the next eight years. The segmental expansion over the forecast timeline can be owing to a rise in cross-border sales and a rise in the demand for efficient transportation of freight by the retail & e-commerce firms.

Freight Transport Market: Report Scope

Freight Transport Market: Regional Insights

North America is predicted to retain its leading position in the global freight transport market over the forecast timeline

North America, which contributed about three-fourths of the global freight transport market revenue in 2022, will be a leading region over the forecast timespan. Moreover, the regional market expansion within the next eight years can be due to the humongous presence of giant freight transport service providers in countries such as Canada and the U.S. In addition to this, the launch of new technologies such as AI, near-field communication, and machine learning tools will steer the expansion of the market in the region. Furthermore, the rise in the goods exported from one state to another to fulfill consumer needs and preferences has further boosted the earnings of the market in the U.S.

The Asia-Pacific freight transport industry is set to record the fastest CAGR in the forecast period. The regional industry expansion over 2023-2030 can be attributed to escalating demand for freight transport services in automotive, pharmaceuticals, packaging, and various other industrial applications in countries such as India, China, the Philippines, Bangladesh, Sri Lanka, and Myanmar. Easy availability of a cost-effective workforce and favorable government schemes supporting the establishment of various production units in the region will scale up the industry expansion in APAC. The rise in the need for generating employment has forced the government to set up new factories producing huge amounts of consumer goods and this requires transportation of freights from the place of production to the location of retail stores and supermarkets which are locations of sales. This has boosted the size of the industry in the region. Moreover, Asia has a large population base and hence demand for freight is higher in the densely populated countries of Asia. This, in turn, has contributed remarkably towards the industry earnings of the region.

Key Developments

• In September 2023, Maersk A/S, a key shipping & logistics firm based in Denmark, launched a new freight transport service in Asian countries such as China.
• In November 2023, Qatar Airways launched a new automotive transport product referred to as Drive for transporting automobiles by air.
• In the second half of 2023, 3SC Solutions introduced an intelligent transport management solution, an integrated transportation management system, which makes use of AI and data analytics along with an effective combination of a complete logistics transportation lifecycle.
• In the third quarter of 2023, Flexport introduced an end-to-end AI-driven supply chain solution for entrepreneurs in the freight, retail, and finance sectors.
• In March 2023, Kuehne + Nagel established a new transport operation center in India which will study the supply chain network for streamlining the logistics operations and increase the efficiency of freight transportation activities.
• In May 2022, Tata Motors introduced e-cargo transport services with Ace electric vehicle, a zero-emission four-wheeled small commercial vehicle of electric type, which can be used for intra-city services in India.

Freight Transport Market: Competitive Space

The global freight transport market profiles key players such as:

• CEVA Logistics
• Nippon Express Holdings
• FedEx
• DB Schenker Logistics
• DSV PANALPINA A/S
• Deutsche Post AG
• United Parcel Service of America Inc.
• Kuehne + Nagel International AG
• Schneider National Inc.
• Oracle Inc.
• SAP SE
• C.H. Robinson Worldwide Inc.
• Kerry Logistics Network Limited
• CJ Logistics Corporation

The global freight transport market is segmented as follows:

By Offering

• Solutions
• Services

By Mode of Transport

• Roadways
• Seaways
• Railways
• Airways

By Vertical

• Automotive
• Retail & E-Commerce
• Aerospace & Defense
• Pharmaceuticals
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa