Freight Trucking Market Insights, 2031
The global freight trucking market was valued at USD 2,732 billion in 2021, and is projected to reach USD 4,457.4 billion by 2031, growing at a CAGR of 5.1% from 2022 to 2031.
Freight trucking comprises heavy-duty trucks which are utilized for the transportation of commodities, goods and cargo from one place to another. These heavy-duty trucks comprise a strong chassis and a powerful engine to easily carry heavier loads. Usually, these trucks transport cargo between warehouses, factories, wholesalers, and retailers. In addition, these trucks are available in different variants ranging from small pickups and semi-trailers trucks to large goods to heavy haulers that can handle oversized cargo.
The growth of the global freight trucking market is propelling, due to increase in use of telematics in automotive sector, expansion of e-commerce industry globally, and rise in urbanization. However, poor infrastructure and higher logistics costs are hampering the growth of the market. Furthermore, development of self-driving trucks is the factor expected to offer growth opportunities during the forecast period.
The freight trucking market is segmented on the basis of truck type, cargo type, end-user, and region. By truck type, it is segmented into dry van & box, refrigerated truck, tanker truck, flatbed truck, and others. By cargo type, it is classified into dry bulk goods, liquids, temperature controlled goods, and others. By end-user, it is categorized into retail & e-commerce, manufacturing & industrial, healthcare, automotive, and others. By region, the report is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Truck Type
Refrigerated truck is projected as the most lucrative segment
Some leading companies profiled in the freight trucking market report comprises A.P. Moller-Maersk, CEVA Logistics AG, Deutsche Post AG, ESTES Express Lines, FedEx, J.B. Hunt Transport Services, Inc., Knight Transportation Holding Inc., Landstar System, Inc., Nippon Express Co., Ltd., Old Dominion Freight Line Company, Saia, Inc., Schneider National, Inc., United Parcel Service of America, Inc., XPO Logistics, Inc., and YRC Freight.
Increase in use of telematics in automotive sector
Telematics plays an important role in developing unique solutions for efficient fleet management. Trucks with telematics and wireless solutions can get live traffic updates, monitoring, tracking, and roadside-assistance during a breakdown, smart routing, and others. This in turn, enhances the operational efficiency of fleets. Telematics solutions also aids in fuel cost reduction, resource optimization, and others.
In addition, several companies are also introducing new telematics solutions to enhance the capabilities of fleets. For instance, in January 2021, Mix Telematics announced the launch of a new app-based tracking solution for fleets, specially designed for providing real-time monitoring capabilities to aid the customers in improving the driver safety level and manage the risks. Thus, increase in use of telematics in the automotive sector is expected to drive the growth of the freight trucking industry during the forecast period.
By Cargo Type
Temperature controlled goods is projected as the most lucrative segment
Expansion of e-commerce industry globally
E-commerce refers to buying and selling of goods by utilizing internet. E-commerce is a virtual store where goods & services do not require any physical space and are sold through websites. The e-commerce industry utilizes logistics services to manage and oversee supply chain of e-commerce companies, thus, allowing these companies to focus on marketing and other business operations. Easy accessibility, convenient shopping experiences, and heavy discounts & offers make e-commerce a popular medium for purchase of a wide variety of products. These factors have collectively contributed toward growth of the freight trucking industry for e-commerce services.
In addition, COVID-19 also contributed in growth of the e-commerce industry across the globe. Several governments-imposed lockdown in their regions to restrict spread of the virus wherein, people started to purchase goods or products online, which, in turn, resulted in growth of the e-commerce sector.
Moreover, rise of the e-commerce industry has forced freight truckers to adopt digital technologies to address the increasing demand of customers. They have also started to use artificial intelligence, internet of things (IoT), and other technologies to ensure timely delivery of goods or products to customers. Thus, expansion of the e-commerce industry globally propels growth of the freight trucking market.
Rise in urbanization
In recent years, several countries have experienced wide-scale development, with most rural areas being converted into urban landscape. This implies that it is easier for trucks to be able to traverse through different parts of the country which they were unable to traverse in previous years. This will lead the freight trucking industry to widen its scope and reach and offer its services to a much wider customer base, thereby, helping the freight trucking industry to generate significantly more business in the process. Thus, rising urbanization is the factor contributing to the growth of the freight trucking market during the forecast period.
By End-user
Retail and e-commerce is projected as the most lucrative segment
Poor infrastructure and higher logistics costs
Logistics demands for good infrastructure, supply chain, and trade facilitation. Without these, firms have to build up more stock reserves and working capital, which can strongly affect national and regional competitiveness due to high financial costs. In addition, lack of infrastructure hinders the freight trucking market as it increases costs and reduces supply chain reliability.
These include significant inefficiencies in transport, complex tax structure, low rate of technology adoption, and poor skills of logistics professionals. For instance, according to a report by the Economist, an international newspaper, Latin America lacks adequate infrastructure. More than 60% of the region’s roads are unpaved. Further, inconsistency in the address and postal system is the other challenge for parcel delivery in Latin American countries. As many countries lack postal codes and rely on local landmarks for addresses, shipping companies often have trouble delivering parcels successfully. Moreover, logistics costs are heavily determined by the availability and quality of infrastructure. Infrastructure directly influences transport costs and indirectly affects the level of inventories, and consequently financial costs.
Thus, owing to poor transport infrastructure, firms need to have high levels of inventories to account for contingencies, which can result in higher overall logistics cost. Therefore, poor infrastructure along with high inventory prices and insufficient warehousing space are expected to hamper the freight trucking market growth.
By Region
Asia-Pacific would exhibit the highest CAGR of 6.3% during 2022-2031
The freight trucking market is segmented into Truck Type, Cargo Type and End-User.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the freight trucking market analysis from 2021 to 2031 to identify the prevailing freight trucking market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the freight trucking market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global freight trucking market trends, key players, market segments, application areas, and market growth strategies.
Freight Trucking Market Report Highlights
| Aspects | Details |
 By Truck Type |
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 By Cargo Type |
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 By End-User |
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 By Region |
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 Key Market Players | Saia, Inc., United Parcel Service of America, Inc., Landstar System, Inc., Estes Express Lines, CEVA Logistics AG, Schneider National, Inc., Old Dominion Freight Line, Inc., FedEx Corporation, Nippon Express Co., Ltd., XPO Logistics, Inc., A.P. Moller - Maersk, Yellow Roadway Corporation, J.B. Hunt Transport Services, Inc., Deutsche Post AG, Knight-Swift Transportation Holdings Inc. |
Analyst Review
The global freight trucking market is expected to witness significant growth owing to increase in use of telematics in automotive sector, and rise in urbanization.
The freight trucking market would be influenced by development of self-driving trucks during the forecast period. Top OEM’s such as Tesla, Volvo, Vera, and Daimler among others, have been developing self-driving trucks for the market. Startups such as Waymo, Einride, TuSimple, and others, have also started developing self-driving trucks. For instance, Tesla announced a plan to launch its self-driving electric truck by the end of 2022.
For instance, Waymo has started testing its self-driving trucks since January 2020. Similarly, TuSimple plans to operate autonomous trucking routes between Pheonix and Tucson in Arizona and some areas in Texas. Further, in May 2019, Einride started its testing for driver-less trucks. In January 2019, Daimler announced an investment of $570 million for self-driving trucks (Level 4). Thus, self-driving technology is expected to increase demand for freight trucks and electric vehicles in the long run, due to various advantages such as reduced accident risk, easy use, and presence of value-added features among others. This technology is expected to mature by the next 5-6 years. Thus, development of self-driving trucks is opportunistic for market growth.
In order to gain a fair share of the market, major players adopted different strategies, for instance, business expansion, acquisition, partnership, agreement, and collaboration. Among this business expansion is the leading strategy used by prominent players such as AP Moller Maersk, Deutsche Post, Estes Express Lines, FedEx, and J.B. Hunt. Aforementioned companies launched cutting-edge freight trucking products seeking to grab a fair share of the market.
The global freight trucking market size was valued at $2,732.0 billion in 2021 and is projected to reach $4,457.4 billion in 2031, registering a CAGR of 5.1%.
The leading companies in the market include .P. Moller-Maersk, CEVA Logistics AG, Deutsche Post AG, ESTES Express Lines, FedEx, J.B. Hunt Transport Services, Inc., Knight Transportation Holding Inc., Landstar System, Inc., Nippon Express Co., Ltd., Old Dominion Freight Line Company, Saia, Inc., Schneider National, Inc., United Parcel Service of America, Inc., XPO Logistics, Inc., and YRC Freight.
The largest regional market for freight trucking is Asia-Pacific.
The leading application of freight trucking is dry bulk goods.
Some upcoming trends in the freight trucking market include development of autonomous trucks and significant growth in e-commerce.
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