Freight Transport Market Analysis: Growth, Size, Share & Future Trends (2024-2029)
The report covers a comprehensive analysis segmented by Offering (Solutions, Services, Others), by Types of Goods (Bulk goods, General Cargo, Specialized Goods, Others), by Mode Of Transport (Railways, Roadways, Seaways, Airways, Others), by Vertical (Retail and E-commerce, Automotive, Aerospace, Pharmaceuticals, Energy, Others), by Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa).
Freight Transport Market Snapshot
Freight Transport Market Overview
The global freight transport market is estimated to be at $32.08 Bn in 2024 and is anticipated to reach $50.81 Bn in 2029. The global freight transport market is registering a CAGR of 9.63% during the forecast period 2024-2029.
The freight transport market, involving road, rail, sea, and air, is dynamic and multifaceted. Road freight dominates due to its flexibility but faces traffic and environmental challenges. Rail is cost-effective for bulk shipments but limited by coverage and infrastructure. Sea freight is vital for global trade, handling large volumes cost-effectively but with long transit times and port congestion. Air freight plays a crucial role in transporting high-value and time-sensitive goods, being the fastest mode of transportation. However, it is also the most expensive and has limited capacity compared to other modes.
North America benefits from advanced infrastructure and cross-border trade, with a focus on modernization. Europe has well-developed networks and significant intra-EU trade, impacted by Brexit and strict regulations. Asia-Pacific is rapidly growing due to manufacturing, exports, and investments like China’s Belt and Road. Latin America and the Middle East & Africa have growth opportunities and challenges with developing infrastructure, supported by regional trade agreements.
Key trends include the e-commerce boom, and increasing demand for efficient logistics, especially last-mile delivery. Technological advancements like the Internet of Things (IoT), Artificial Intelligence (AI), and blockchain are improving logistics through real-time tracking, route optimization, and supply chain transparency. Challenges include infrastructure limitations in developing regions, requiring significant investments. Regulatory compliance is complex and costly due to varying standards across countries. The market is set for significant growth driven by digital transformation, integrated supply chains, and infrastructure investments. Automation, digital platforms, and advanced technologies will enhance efficiency and reduce costs.
​​​Freight Transport Market Coverage
| Historical & Forecast Period | 2018-2029 |
| Base Year | 2023 |
| Forecast Period | 2024-2029 |
| Units | Billion US$ |
| Segments | Offering, Types of Goods, Mode of Transport, Vertical |
| Geographies | North America, South America, Asia Pacific, Europe, The Middle East, Africa |
| Key Vendors | CEVA Logistics, CJ Logistics Corp., Nippon Express Holdings, Inc., United Parcel Service, Inc., FedEx Corp. |
Key Geographies of Freight Transport Market, 2023
Porter’s 5 Forces Analysis of Freight Transport Market
Freight Transport Market Trends
Digitalization and automation are revolutionizing freight transport by enhancing operational efficiency, transparency, and customer service. For example, Freightos, a digital freight marketplace, automates the freight quoting and booking process, allowing shippers to compare rates from various carriers and book shipments in real time. Additionally, companies like Flexport offer cloud-based platforms that provide real-time visibility and analytics for supply chain management.
Environmental concerns and regulatory pressures are driving the adoption of green logistics practices to reduce the carbon footprint of freight transport. For example, United Parcel Service (UPS) and Dalsey, Hillblom, and Lynn (DHL) are investing in electric delivery vehicles and alternative fuels. UPS is adding thousands of electric vehicles to its fleet, while DHL aims to use 70% electric vehicles for last-mile delivery by 2025. Companies are also exploring sustainable packaging solutions and energy-efficient warehouses.
The exponential growth of e-commerce is transforming freight transport, particularly in the areas of last-mile delivery and logistics management. Innovations in automated sorting systems, delivery drones, and crowdsourced delivery models are emerging to meet these demands. The rise of e-commerce has also led to the development of micro-fulfillment centers in urban areas to ensure rapid delivery. Blockchain technology is enhancing transparency, security, and efficiency in the freight transport industry. For example, IBM and Maersk developed TradeLens, a blockchain-based platform that tracks the shipment of goods in real time. This platform provides secure, immutable records of transactions and movements, reducing the risk of fraud and errors.
Technological advancements in autonomous vehicles and drones are set to revolutionize freight transport by increasing efficiency and reducing costs. For example, companies like Waymo and TuSimple are testing autonomous trucks that can operate 24/7 without the need for driver rest breaks. Zipline uses drones to deliver medical supplies to remote areas, significantly reducing delivery times and costs.
Freight Transport Market Driving Factors
Freight transport is influenced by various factors that drive demand and efficiency. Freight transport is closely tied to economic growth, reflecting a nation’s manufacturing and consumption rise. When economies thrive, the need for transporting raw materials, goods in progress, and final products surges. Vital economic metrics like GDP growth, industrial output, and consumer spending provide insights into future freight transport needs. Additionally, global trade profoundly shapes freight transport by expanding market access and facilitating cross-border transactions.
Trade agreements, tariffs, and geopolitical shifts are pivotal in influencing the volume and direction of international freight flows, thereby impacting logistics networks and strategies. Technological improvements in logistics, such as GPS tracking and automated warehousing, enhance the efficiency of freight transport. For instance, the adoption of RFID technology by major retailers like Walmart has streamlined their inventory management and supply chain operations, reducing delays and costs.
Expanding global trade agreements, such as the North American Free Trade Agreement (NAFTA), leads to higher cross-border freight activities. NAFTA’s implementation saw a substantial increase in truck and rail transport of goods between the U.S., Canada, and Mexico. The surge in e-commerce has transformed freight transport, requiring faster and more flexible delivery options. Freight transport plays a crucial role in manufacturing activities by facilitating the timely and efficient movement of raw materials and finished goods, ensuring supply chain continuity, and supporting the overall production process. For instance, in July 2023, according to Eurostat, a Luxembourg-based government statistical agency, industrial output in the European area witnessed a 0.2% increase. Moreover, a 0.1% increase was reported in the European Union during the period between May and April 2023. Therefore, increased manufacturing activities are driving the growth of the freight transport market.
Freight Transport Market Challenges
Inadequate infrastructure, including roads, railways, ports, and airports, poses a significant challenge to freight transport efficiency. For instance, congested highways and outdated rail networks can lead to delays and increased costs for transporting goods. In emerging markets, such as parts of Africa and Southeast Asia, poor infrastructure hampers the development of robust logistics networks, hindering trade and economic growth. Urban congestion and traffic congestion on key transportation routes impede the smooth flow of goods. For example, major cities like Los Angeles and Mumbai experience severe congestion, resulting in delays and increased fuel consumption for freight vehicles.
Efficient traffic management solutions, such as intelligent transportation systems and congestion pricing schemes, are needed to alleviate congestion and improve freight transport reliability. Environmental sustainability is an increasingly pressing challenge for freight transport, given its significant contribution to carbon emissions and pollution. For instance, heavy-duty trucks are a major source of greenhouse gas emissions in the transportation sector. Integrating new technologies and managing vast amounts of data present challenges for freight transport companies. For instance, implementing transportation management systems (TMS) and telematics solutions requires significant investment and organizational change.
Moreover, effectively harnessing data analytics and artificial intelligence can improve operational efficiency and decision-making but requires skilled personnel and infrastructure. Adhering to complex and evolving regulatory requirements presents a challenge for freight transport companies. For example, regulations related to emissions standards, vehicle weight limits, and driver hours-of-service can vary by region and require careful monitoring and compliance. Non-compliance can result in fines, penalties, and reputational damage for logistics firms.
Freight Transport Market – Key Industry News
- In April 2024, Nippon Express Holdings, Inc., launched the NX-GREEN SAF Program in Japan, enabling valued customers to obtain the environmental advantages of sustainable aviation fuel (SAF) to reduce CO2 emissions in their supply chains.
- In March 2024, CEVA Logistics landed a three-year deal to deliver logistics services for Biesse, a global firm specializing in producing integrated lines and machinery for processing wood, glass, stone, plastic, and composite materials.
- In January 2024, CJ CheilJedang introduced the “Next-Day Arrival” service at its official online store, CJ The Market.
Freight Transport Market Competitive Landscape
The global freight transport industry participants are always developing strategies to preserve a competitive advantage. The freight transport market is significantly competitive, characterized by a diverse landscape of global players vying for market share across various segments. Companies like FedEx, UPS, DHL, and Nippon Express dominate through extensive logistics networks and integrated service offerings spanning air, ocean, and ground transportation. For instance, FedEx and UPS compete fiercely in the express delivery sector, leveraging their extensive fleet and logistics capabilities to offer fast and reliable shipping solutions worldwide. DHL, a subsidiary of Deutsche Post, focuses on global freight forwarding and logistics services, emphasizing its broad geographic reach and comprehensive supply chain solutions. Ceva Logistics, a provider of container shipping, competes on a different front by managing the major largest fleets and offering integrated logistics solutions that include inland transportation and customs brokerage. The competitive landscape is further shaped by regional players and niche operators specializing in specific transportation modes or geographic markets, contributing to a dynamic and competitive environment where innovation and service quality are key differentiators. Nippon Express, CEVA Logistics, and UPS have distinct strengths and challenges in the freight transport market. Nippon Express leads in Asia but faces international competition. CEVA Logistics offers a global network but struggles with financial and integration issues. UPS excels in innovation and global reach but contends with fierce competition and sustainability concerns. Despite these differences, all these companies aim to adapt to customer needs and thrive in a rapidly evolving industry. The companies primarily use acquisitions, R&D, partnerships, and technological launches. Several important entities in the freight transport market include CEVA Logistics, CJ Logistics Corp., Nippon Express Holdings, Inc., United Parcel Service, Inc., FedEx Corp., and others.
Freight Transport Market Company Share Analysis, 2023 (%)
Freight Transport Market – Key Companies
Reason to Buy from us
Table of Contents
| 1. Introduction |
|---|
| 1.1. Research Methodology |
| 1.2. Scope of the Study |
| 2. Market Overview / Executive Summary |
| 2.1. Global Freight Transport Market (2018 – 2022) |
| 2.2. Global Freight Transport Market (2023 – 2029) |
| 3. Market Segmentation |
| 3.1. Global Freight Transport Market by Offering |
| 3.1.1. Solutions |
| 3.1.2. Services |
| 3.1.3. Others |
| 3.2. Global Freight Transport Market by Types of Goods |
| 3.2.1. Bulk goods |
| 3.2.2. General Cargo |
| 3.2.3. Specialized Goods |
| 3.2.4. Others |
| 3.3. Global Freight Transport Market by Mode of Transport |
| 3.3.1. Railways |
| 3.3.2. Roadways |
| 3.3.3. Seaways |
| 3.3.4. Airways |
| 3.3.5. Others |
| 3.4. Global Freight Transport Market by Vertical |
| 3.4.1. Retail and E-commerce |
| 3.4.2. Automotive |
| 3.4.3. Aerospace |
| 3.4.4. Pharmaceuticals |
| 3.4.5. Energy |
| 3.4.6. Others |
| 4. Regional Segmentation |
| 4.1. North America |
| 4.1.1. The U.S |
| 4.1.2. Canada |
| 4.1.3. Mexico |
| 4.2. South America |
| 4.2.1. Brazil |
| 4.2.2. Argentina |
| 4.2.3. Colombia |
| 4.2.4. Chile |
| 4.2.5. Rest of South America |
| 4.3. Asia Pacific |
| 4.3.1. China |
| 4.3.2. India |
| 4.3.3. Japan |
| 4.3.4. South Korea |
| 4.3.5. Rest of Asia Pacific |
| 4.4. Europe |
| 4.4.1. UK |
| 4.4.2. Germany |
| 4.4.3. Italy |
| 4.4.4. France |
| 4.4.5. Spain |
| 4.4.6. Rest of Europe |
| 4.5. The Middle East |
| 4.5.1. Turkey |
| 4.5.2. UAE |
| 4.5.3. Saudi Arabia |
| 4.5.4. Rest of the Middle East |
| 4.6. Africa |
| 4.6.1. Egypt |
| 4.6.2. South Africa |
| 4.6.3. Rest of Africa |
| 5. Value Chain Analysis of the Global Freight Transport Market |
| 6. Porter Five Forces Analysis |
| 6.1. Threats of New Entrants |
| 6.2. Threats of Substitutes |
| 6.3. Bargaining Power of Buyers |
| 6.4. Bargaining Power of Suppliers |
| 6.5. Competition in the Industry |
| 7. Trends, Drivers, and Challenges Analysis |
| 7.1. Market Trends |
| 7.1.1. Market Trend 1 |
| 7.1.2. Market Trend 2 |
| 7.1.3. Market Trend 3 |
| 7.1.4. Market Trend 4 |
| 7.1.5. Market Trend 5 |
| 7.2. Market Drivers |
| 7.2.1. Market Driver 1 |
| 7.2.2. Market Driver 2 |
| 7.2.3. Market Driver 3 |
| 7.2.4. Market Driver 4 |
| 7.2.5. Market Driver 5 |
| 7.3. Market Challenges |
| 7.3.1. Market Challenge 1 |
| 7.3.2. Market Challenge 2 |
| 7.3.3. Market Challenge 3 |
| 7.3.4. Market Challenge 4 |
| 7.3.5. Market Challenge 5 |
| 8. Regulatory Landscape |
| 9. Competitive Landscape |
| 9.1. CEVA Logistics |
| 9.2. CJ Logistics Corp. |
| 9.3. Nippon Express Holdings, Inc. |
| 9.4. United Parcel Service, Inc. |
| 9.5. FedEx Corp. |
| 9.6. Company 6 |
| 9.7. Company 7 |
| 9.8. Company 8 |
| 9.9. Company 9 |
| 9.10. Company 10 |
Freight Transport Market – Frequently Asked Questions (FAQs)
What is the current size of the global freight transport market?
The market size for the global freight transport market in 2024 is $32.08 Bn.
Who are the major vendors in the global freight transport market?
The major vendors in the global freight transport market are CEVA Logistics, CJ Logistics Corp., Nippon Express Holdings, Inc., United Parcel Service, Inc., FedEx Corp.
Which segments are covered under the global freight transport market segments analysis?
This report offers in-depth insights into each offering, types of goods, mode of transport, vertical.