Road Freight Services Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Road Freight Services market reached a value of about USD 3.64 trillion in 2021. The industry is projected to grow at a CAGR of around 4% in the forecast period of 2022-2027 to reach a value of about USD 4.61 trillion by 2027.

The global Road Freight Services industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The market is being driven by the rise in demand for transport services due to globalisation. The key demand indicator is the highest category spender in the industry report by region—North America.

Industry Definition and Segmentation

The physical operation of supplying merchandise by road using motor vehicles is known as road freight. A lane/route that links the point of exit and the point of destination in this condition is known as a road. Land shipment can be made by rail or vehicle. Because it is not always possible to locate a production facility near ports due to nations' restricted coastlines, ground transportation is necessary to convey goods from their origin to the airport or seaport and their destination in air and sea shipments. Ground transportation is often less expensive than air but more expensive than the sea, especially in emerging nations with inefficient inland infrastructure. The Road Freight Services industry report comprises segments by end-use (FMCG, automotive and machinery, agro products, metallic and non-metallic minerals, oil and pharmaceuticals, and general freight) and region (North America, Europe, Asia Pacific, the Middle East, Africa, and South America).

The North America Region is Driving the Growth of the Industry

North America holds the largest share in the market as The United States contributes significantly to the market's growth. The increase in the retail industry is linked to numerous businesses switching to the internet channel. The country is constantly developing in the freight transport market, thanks to technological advances in the IT and cloud-computing sectors. The North American freight transport management system market has gained traction, particularly in the United States, due to globalisation, expanding digitisation, and increased use of the Internet of Things (IoT) by various businesses.

The market is being driven by the increase in trade operations, a shift in manufacturers' and merchants' attention to core competencies, and the growth of the e-commerce business due to Globalization. As road freight transportation has several advantages, including the ability to provide door-to-door delivery services and carry items quickly across small and medium distances, the market is witnessing expansion. Because they share a similar border, road freight transportation is primarily used in domestic nations. This allows transportation operations to be carried out at a lower cost. In addition, multiple trade agreements between adjacent countries and governments have aided the expansion of road freight transit in various regions. Manufacturers and merchants are increasing their desire for better and more efficient service providers, which helps the road freight transportation business expand. Buyers are increasingly searching for service providers to deliver end-to-end supply chain solutions, thus, resulting in increased demand.

However, factors like poor road conditions, bad weather, traffic congestion, and long-distance travel are hampering the industry's growth.

Best Procurement Practices

The global Road Freight Services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Road Freight Services regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Vehicles used in road freight transport include lorry tankers, pick-up trucks, truck trailers, refrigerated trucks, and flatbed trucks. Road freight transit is a fast, cost-effective, and door-to-door freight transportation technology. Corresponding to other transportation modes, such as rail and air, freight road transportation requires a modest capital investment. This leads to new businesses and an increase in their market presence. Furthermore, an increase in global import and export of products and commodities is expected to drive the demand for the services. The development of solid online platforms is predicted to augment road freight transport since the progress and expansion of products and services worldwide are centred on creating reliable online platforms.

Various Advancements in the Industry, Further Driving the Road Freight Services Market

The industry is being propelled by Suppliers' efforts in improving their capabilities to satisfy the needs of customers by providing value-added services in addition to transportation. To increase the efficiency of intercity transportation, market participants are providing their road freight services with novel technology such as hybrid powertrains, RFID tagging, and predictive monitoring. They're using algorithm-driven pricing structures and a digital broker app to match freight supply and demand, allowing customers to access available freight capacity at cheap prices furthering the industry's expansion. The goal of zero emissions and the sharing economy necessitates a new level of collaboration; road freight transport businesses are likely to own just the towing vehicle, with semi-trailers and trailers becoming common-use equipment available at various places. Furthermore, road freight sector operators are looking for alternative fuels, including biofuels and electromobility.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Road Freight Services Industry Report

• DHL Freight
• Rhenus Logistics
• DB Schenker Logistics
• Linfox, Kuehne + Nagel
• Ceva Logistics

Market Landscape

Because of the numerous rivals and local actors participating in freight transportation management, it is highly fragmented. In the cloud computing area, they are also quickly advancing toward the information communication industry. The industry has become more competitive as intermodal freight transport providers have progressively used business methods in horizontal and vertical company integration to reduce operating costs and boost profit margins.

Key Initiatives by Companies

• May 2020 - In 2020, the number of China-Europe freight trains departing from Xi'an surpassed 1,000, 78 days earlier than the same time the previous year. Cargo was 1.923 million tonnes across the board, up 41.7 percent from last year. In May, the 1,000th train of 2020 left Xi'an Xinzhu Station and travelled west to Uzbekistan, marking a watershed moment in China's relationship with its European trading partners.
• February 2020 - On February 4, 2020, the SmartCargo initiative was formally inaugurated at the BB headquarters. The technology was given by the Rail Cargo Group's (RCG) board of directors. A SmartCargo gadget is installed in each 13,700 RCG wagons, providing detailed information throughout the freight transit operation. Around 300 automobiles are now equipped with SmartCargo as part of preliminary testing. Simultaneously, an IT platform will be established, allowing all information about a particular mode of transportation to be accessed digitally, clearly, and concisely. Third-party vehicles that are on the railway route but not owned by RCG may also be able to be integrated.