Road Logistics Market size is set to grow by USD 710.3 billion from 2024-2028, Growing demand for green logistics boost the market, Technavio

NEW YORK, June 4, 2024 /PRNewswire/ -- The global road logistics market size is estimated to grow by USD 710.3 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 3.2%  during the forecast period. 

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Market Driver

The road logistics market is experiencing a shift towards autonomous solutions to mitigate rising fuel, maintenance, and labor costs. Autonomous logistics offers accurate outcomes and reduces logistics operation duration by 80-85%. IoT technology is revolutionizing warehouse picking, while robotics enhances efficiency by 25-27%. Robotic spending is anticipated to rise due to labor cost increases and skilled labor scarcity. 

The road logistics market is currently experiencing significant growth, driven by the increasing demand for efficient and cost-effective transportation solutions. Trucks and trailers are the primary mode of transport in this sector, with a focus on improving fuel efficiency and reducing transportation costs.

The use of technology, such as GPS tracking and temperature control systems, is becoming increasingly common to ensure timely and accurate delivery of goods. The market is also witnessing a trend towards consolidation, with companies looking to expand their operations and increase their market share. Additionally, the growing e-commerce industry is driving demand for faster and more reliable delivery services, further boosting the growth of the road logistics market. 

Market Challenges

• The LTL market faces rising costs due to labor, high demand for logistics, and e-commerce deliveries. Last-mile delivery, a significant challenge, incurs major expenses on labor and fuel. Intense competition based on pricing and delivery time adds to the profitability concern. Fuel volatility and real-time tracking infrastructure investments further increase freight rates, potentially hindering market growth.
• The road logistics market faces several challenges in ensuring efficient and timely transportation of goods. Frequent traffic congestion and delays, particularly in urban areas, impact transit times and increase costs. Truckers encounter difficulties in finding parking spaces, especially during peak hours, leading to additional expenses and lost productivity. Additionally, the need for secure and reliable transportation solutions, particularly for perishable goods, is crucial.
• The use of advanced technologies such as real-time tracking and predictive analytics can help mitigate these challenges, enabling better route planning and improved supply chain visibility. Furthermore, the implementation of regulations like hours of service and driver compliance adds complexity to the logistics landscape. Collaboration between stakeholders and the adoption of innovative solutions are essential to address these challenges and optimize road logistics operations.

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Segment Overview 

1. Application 
• 1.1 Domestic
• 1.2 International
2. Type 
• 2.1 Truckload
• 2.2 Less than truckload
• 2.3 Parcel
• 2.4 Same day
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Domestic-  The road logistics market is a significant sector, handling the transportation of goods via roads. Companies provide services such as freight forwarding, warehousing, and distribution. This market is driven by factors like increasing consumer demand, e-commerce growth, and cost-effective solutions. Road logistics plays a crucial role in ensuring timely delivery of products, making it an essential component of the global supply chain.

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Research Analysis

The Road Logistics Market encompasses various transportation services, including Domestic, Full-Truck-Load, Less than Truckload, Parcel, and Courier parcel. These offerings cater to different distance requirements, such as Short Haul and Long Haul, and diverse cargo types, including Fluid Goods and Solid Goods. The market further segmented into Non-Temperature Controlled and Temperature Controlled services.

Warehousing solutions are integral to the market, ensuring efficient storage and handling of goods. The Express market and VAS Market are significant end-users. Road freight plays a crucial role in Domestic Flow corridors and Neighboring Countries. Real estate developers and Small fleet owners are key stakeholders in this dynamic industry.

Market Research Overview

The Road Logistics Market encompasses the transportation of goods via roadways, a crucial segment in the global logistics industry. This market is driven by factors such as increasing international trade, the growing e-commerce sector, and the need for just-in-time delivery. The market is characterized by the use of advanced technologies like GPS tracking, telematics, and route optimization to enhance efficiency and reduce costs.

Companies in this sector offer various services including full truckload, less than truckload, and intermodal transportation. The market is also influenced by regulatory frameworks and fuel prices. The demand for road logistics is expected to grow significantly in the coming years due to the increasing globalization and the need for faster and more reliable delivery solutions.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Domestic
• International
• Type
• Truckload
• Less Than Truckload
• Parcel
• Same Day
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
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Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio