The presence of a copious number of players, from the private as well as private sector, is what makes the global freight trucking market increasingly fragmented, finds Transparency Market Research (TMR). A growing number of players are toying with a host of strategies to consolidate their positions continuously. Prominent players are focusing on new product launches to retain their share in the global market. They are also actively entering into mergers and acquisitions, with the move to expand their geographic positions, in order to reap substantial competitive gains. Several freight service providers are also augmenting their capacities to bolster their positions.
Players with sizeable stakes in the global freight trucking market include Concargo Private Limited, Procet Freight, Transtech Logistics, Interlogix Private Limited, Tuma Transport, Kuehne+Nagel Incorporated, Swift Transportation, Cargo Carriers, FedEx Corporation, United Parcel Service Inc., and Ceva Holdings LLC.
The global freight trucking market is projected to expand at a CAGR of 5.6% from 2017 and 2025. Rising at this pace, the opportunities in this global market will reach a worth of US$6,252.81 billion by the end of the forecast period. The market stood at US$3,844.76 billion in 2016.
The various types of freight trucks in the market are truck trailer, lorry tank, flatbed truck, and refrigerated truck. Of these, the refrigerated truck is prognosticated to rise at the leading CAGR over the assessment period. The growth of the segment has been underpinned by burgeoning volumes of transport coming from perishable commodities.
The geographic landscape is led by Asia Pacific which contributed the major share of revenue to the global market in 2016. The substantially rising uptake of freight trucking in its various economies is fueling the regional market.
Burgeoning Volumes of Transported Goods World over bolster Uptake
The staggering rise in volumes of transported goods in various parts of the globe is a primary factor driving the demand for freight trucking. The market growth is also catalyzed by intensifying need for reliable truck load services to meet the various supply chain needs in end-use industries, coupled with the swift pace of industrialization in emerging economies. A rapidly rising trade and commerce in developing regions is contributing to the vast rising demand for truckload services.
Proliferating Home Deliveries from Online Shopping accentuate Growth
The proliferating demand for online shopping is imparting a robust momentum to the growth of the market. The attractive strides being experienced by the e-commerce sector, especially in emerging and developed nations, is stoking the demand for freight trucking services. Furthermore, the market is also benefitting from aggressive marketing of online shoppers, coupled with rapid advances in internet services, in various parts of the globe. Of great significance is the trend of home deliveries, which has added to the substantial uptake of freight trucking services.
Vulnerability in Oil and Gas Prices key Constraint, Technological Advancements to drive Growth
The notably rising demand for long-distance cargo transportation in developing and developed regions is boosting the demand for freight trucking services. The market growth is also propelled by the extensive demand for cold storage vehicles for the transportation of perishable products, notably food and beverages.
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However, the marked vulnerability in oil and gas prices globally is also hampering the revenue of the freight trucking market. In particular, the sharp fall and surge in fuel prices broadly hinder the revenue of freight trucking service providers. Nevertheless, the market will explore exciting paradigms underpinned by technological advances in products. Various makers of freight trucks are bringing advancement in truckload carriers’ functionality, which has created lucrative avenues for market players. The advent of diverse products also augurs well for the market.