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2021

Europe Road Freight Transportation Market

Europe Road Freight Transportation Market Size, Share, Competitive Landscape and Trend Analysis Report by End Use Industry and Destination : Regional Opportunity Analysis and Industry Forecast, 2015-2025

AT : Freight & Logistics

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Author's: Abhay Singh | Lalit Janardhan Katare
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Europe Road Freight Transportation Market Statistics - 2025

The Europe road freight transport market was valued at $394.15 billion in 2015, and is projected to reach $596.92 billion by 2025, registering a CAGR of 6.5% from 2020 to 2025.

Road freight transportation is the process of transferring goods & services from one place to another through roadways. This includes a dedicated truck or a van in which goods or cargo is stored and transported to different destinations. Road freight transportation is considered to be a classical method of freight transportation and is treated as a versatile option now-a-days for logistics transportation. 

Europe-Road-Freight-Transportation-Market

Moreover, road freight transportation offers numerous advantages such as it is considered flexible and convenient for door-to-door delivery services and offers speedy delivery of products for shorter and medium distances. Road freight transportation is implemented mainly in domestic countries as they share a common border through which transportation activities can be carried out at a much cheaper cost. Moreover, several trade agreements between neighboring countries & governments have also supplemented the growth of road freight transport across different locations.

The major companies profiled in the Europe road freight transportation market include CMA CGM SA, Deutsche Bahn AG, DHL, DSV, KUEHNE + NAGEL, AP Moller Maersk, PRIMAFRIO SL, Turners (Soham) Ltd., UPS and Wincanton Plc.

The Europe road freight transportation market is segmented on the basis of end-use industry, destination, and European countries. By end-use industry, the market has been categorized into manufacturing, food & beverages, retail, agriculture, metal & mining, healthcare, and others. On the basis of destination, it is bifurcated into international or cross border and domestic.

Geographically, the market is analyzed across European countries, which include Germany, France, UK, Italy, Spain and rest of Europe.

Top Impacting Factors

The Europe road freight transportation market is driven by factors such as increase in trading activities due to globalization, rise in focus of manufacturers & retailers on core competencies, and development of the e-commerce industry. However, risk toward goodwill of manufacturers and lack of control of manufacturers on logistics service hamper the growth of the Europe road freight transport market. Moreover, strategic partnership with end users, surge in use of IT solutions & software, and cost cutting & lead time reduction due to adoption of multi-modal system provide lucrative opportunity for the growth of the Europe road freight transportation market. 

Increase in trading activities due to globalization

Dynamic market conditions and global economy movement are the key factors driving globalization. Various activities related to trade have been witnessed to increase, owing to rise in globalization from the last several years. Moreover, growing globalization leads to increased manufacturing and trade activities across the globe. Growing trade activities require efficient transportation solution for goods transportation, which boosts the growth of the Europe road freight transportation market.

Moreover, the road freight transport market is also supplemented by numerous trade agreements between neighboring countries. For instance, Germany shares a bilateral relation with France as it is the closest neighbor. Under this bilateral relation, both the countries exchange their goods & services with each other through different transportation means, thereby supporting the growth of road freight transportation activity in Europe. Therefore, growing trade activities and increasing concern toward seamless transportation activities are expected to drive the growth of the Europe road freight transportation market.

Rise in focus of manufacturers and retailers on core competencies

Manufacturers or retailers are vital points in the overall supply chain of a particular industry as the focus of these participants are mainly on their sub-contracting and core business activities. Transportation and logistics activities are add-on operations for these players as these activities involve high capital investment and dedicated workforce to streamline activities.

Europe Road Freight Transportation Market
By End Use Industry
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Healthcare is projected as the most lucrative segments

Moreover, for dynamic trade activities of end-use industries and effective capital management requirement, manufacturers and retailers are focused only on their core business activities and assign these transportation activities to the transportation service providers.

Moreover, freight transportation companies, such as DHL, DSV, DPD, and others, can make better use of transportation assets by balancing the needs of multiple client shippers across transportation and distribution functions, thereby resulting in economies of scale. Offshoring and outsourcing result in longer and more complex supply chains. Management of this type of supply chain is extremely difficult for manufactures; hence, the need for freight transport service providers is expected to increase in the coming years. This increasing demand for better and efficient service providers from manufacturers and retailers supplements the growth of the road freight transportation market.

Europe Road Freight Transportation Market
By Destination
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International or cross border is projected as the most lucrative segments

Risk toward goodwill of manufacturers

Freight transportation service providers are responsible for one of the most critical functions of the business such as management of custom, distribution, warehousing, and order fulfillment. Their mistake is expected to affect the manufacturer’s reputation and relation with customers. In case a service provider fails to deliver the order on time, it leads to decrease in creditability of the manufacturing company, thereby degrading the level of trust of consumers on the company. This factor is expected to restrain the growth of the Europe road freight transportation market.

Cost cutting & lead time reduction due to adoption of multi-modal system

Reduction in the cost of transportation and timely delivery of goods pose a challenge for logistics service providers to increase profitability. As the number of orders to be delivered in limited time is increasing, freight transportation companies have the opportunity to use multi-modal transportation system to enhance efficiency of the supply chain. Cost cutting and lead time reduction by adopting multi-modal system pose exponential growth opportunities for the key players.

Europe Road Freight Transportation Market
By Country
2025
Rest Of Europe 
Germany
France
UK
Italy
Spain

Soain would exhibit the highest CAGR of 8.10% during 2020-2025.

COVID-19 impact analysis

  • The outbreak of COVID-19 has resulted in flight cancellations, travel bans, and quarantines, which made massive slowing of the supply chain and logistics activities across the world.
  • As a consequence of the coronavirus outbreak, important supply chains in the logistics and transportation industry are hampered, though differently across the air, freight, and sea sectors.
  • Logistics firms, which are involved in the movement, storage, and flow of goods, have been directly affected by the COVID-19 pandemic.
  • The most common reasons for the decline in the growth are attributed to movement restrictions, border controls & closures, and health screening.
  • The Europe road freight transportation industry also registered a decline in the business due to the closure of national & international borders, which has halted the movement of freight carriers.

Key Benefits For Stakeholders

  • This study comprises analytical depiction of the Europe road freight transportation market trends with current trends and future estimations to depict the imminent investment pockets.
  • The overall potential is determined to understand the profitable trends to gain a stronger foothold.
  • The Europe road freight transportation market analysis report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
  • The current growth and Europe road freight transportation market forecast is quantitatively analyzed from 2015 to 2025 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the ground support equipment market share.
  • The study also comprises the Europe road freight transportation market opportunity which help key players in decision making.
  • The leading players in the industry are expecting high revenue margin from Europe road freight transportation market returns.

Europe Road Freight Transportation Market Report Highlights

Aspects Details
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By End Use Industry
  • Manufacturing
  • Food and beverages
  • Retail
  • Agriculture
  • Metal and Mining
  • Healthcare
  • Others
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By Destination
  • International and Cross Border
  • Domestic
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By Country
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
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Key Market Players

DEUTSCHE POST AG (DHL GROUP), UNITED PARCEL SERVICE OF AMERICA, INC., A.P. MOLLER - MAERSK, TURNERS (SOHAM) LTD, KUEHNE+NAGEL, DSV (DSV PANALPINA), DB SCHENKER (DEUTSCHE BAHN GROUP (DB GROUP)), WINCANTON PLC, CMA CGM GROUP, PRIMAFRIO

Analyst Review

In accordance with insights by CXOs of leading companies, the Europe road freight transportation market is projected to witness moderate growth rate, owing to increase in trading activities followed by the growth of the e-commerce industry. Companies in the logistics industry are adopting various innovative techniques to provide customers with advanced and innovative services. Moreover, numerous trade agreements carried out across neighboring countries provide lucrative opportunities for the growth of the Europe road freight transportation market. 

By end-use industry, the healthcare segment witnessed the highest growth rate during the forecast period due to increased transportation of healthcare related activities. In addition, international or cross border transportation activities encounter a suitable growth rate in the Europe market.

The market is consolidated by the presence of major key players such as CMA CGM SA, Deutsche Bahn AG, DHL, DSV, KUEHNE + NAGEL, Maersk, Primafrio SL, Turners (Soham) Ltd., UPS, and Wincanton plc. These players have adopted efficient techniques to develop innovative offerings. Spain is expected to witness the highest growth during the forecast period, due to lucrative opportunities offered by the government.

Author Name(s) : Abhay Singh | Lalit Janardhan Katare

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Europe Road Freight Transportation Market

Regional Opportunity Analysis and Industry Forecast, 2015-2025