Freight Transport Market size was over USD 35 Billion in 2023 and is poised to cross USD 98 Billion by the end of 2036, witnessing more than 12% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of freight transport is estimated at USD 40.45 Billion.
The increasing international trade is likely to boost the freight transport market demand for freight transport which is essential to moving commodities from ports to their actual destinations. According to the World Trade Organization (WTO), following a 1.2% decline in 2023, the volume of global merchandise trade is projected to rise by 2.6% in 2024 and 3.3% in 2025.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
12% |
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Base Year Market Size (2023) |
USD 35 Billion |
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Forecast Year Market Size (2036) |
USD 98 Billion |
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Regional Scope |
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Industry Vertical (Retail & E-commerce, Automotive, Aerospace & Defense, Pharmaceuticals, Energy)
Retail & e-commerce segment is poised to dominate over 35% freight transport market share by 2036. The segment growth can be ascribed to the expansion of e-commerce. The worldwide freight transport industry has been affected by e-commerce in recent years as more and more individuals purchase goods and services online, which has substantially increased the volume of items being sent across the nation.
In addition, the requirement for quicker delivery times is one way that online retail has affected freight transport activities, as a result, many freight transport businesses have had to make investments in new procedures and technology to keep up with demand. For instance, global retail e-commerce revenues reached over USD 5 trillion in 2023.
Mode of Transport (Railways, Roadways, Seaways, Airways)
The roadways segment is set to garner robust market revenue shortly. The volume of freight carried by roads is anticipated to rise between 2020 and 2050, presenting potential as a result of expanding e-commerce deliveries, a greater emphasis on multi-modal connectivity, and increased volume from the fast-moving consumer goods (FMCG) industry.
As per recent data, from around 6 trillion ton-kilometers in 2010 to over 25 trillion ton-kilometers in 2050, there will likely be an even greater growth in road freight transit worldwide.
Our in-depth analysis of the freight transport market includes the following segments:
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Offering |
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Mode of Transport |
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Industry Vertical |
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Logistics Function |
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North American Market Statistics
North America in freight transport market is poised to account for around 60% revenue share by 2036. The market growth in the region is also expected on account of the rising shipment of goods. An incredible number of commodities are moved annually by the freight transportation network in the region either locally, within a specified area, or even throughout the entire nation.
By weight, trucks move about 72% of American freight. Moreover, the world's largest and most coveted freight rail network is found in the United States, which is an integral part of the extensive, multimodal freight transportation network in the region. As per the Association of American Railroads, U.S. freight railroads move around 1.6 billion tons across 140,000 miles of track in a typical year.
Besides this, in Canada, the majority of commodities are moved by road, since there is a vast rail network spanning more than 35,000 kilometers.
APAC Market Analysis
The Asia Pacific region will also encounter tremendous revenue for the freight transport landscape in the coming years and will hold the second position owing to the presence of eco-friendly freight transportation systems. The freight transport ecosystem in the region plays a pivotal role in mitigating the nation's greenhouse gas emissions through the launch of numerous initiatives to foster intermodal transport solutions.
For instance, the IKI project Green Freight strives to aid partners at the federal and state levels in transforming the Indian freight and logistics industry into a climate-friendly industry by improving productivity and lessening the automotive logistics industry's carbon footprint.
Additionally, trains are a popular means of passenger transportation in Japan because they are easy to use and very efficient. As a result, the nation's freight transport market is growing and is predicted to experience profitable expansion shortly. Japan's railway freight was around 38 million metric tons in 2022.
Furthermore, one of the main drivers of the rise in global oil consumption has been China's quickly increasing need for freight transportation, and this trend is predicted to continue to drive up world oil demand for transportation in the decades to come.
There are several freight transport service providers operating in the market, resulting in a highly fragmented industry. Prominent companies engage in mergers and acquisitions to enhance their market position, diversify their range of products, extend their reach geographically, and use cutting-edge technologies to lower freight expenses. The main goal of the players is to provide secure, quick, and affordable freight transport services. These businesses are working together with local and regional businesses as well as e-commerce enterprises to obtain a competitive advantage over their rivals and a sizeable market share.
Author Credits: Saima Khursheed
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