Freight transport involves the physical procurement and movement of goods and cargo from one place to another through ships, aircraft, trucks and railways. It plays a vital role in international trade by facilitating the shipment of raw materials as well as finished products between manufacturers, suppliers and consumers worldwide. Advancements in transportation infrastructure and logistics have enabled faster and more efficient movement of goods. The growing demand for foreign goods from emerging economies has boosted international trade volumes significantly over the past decade.
The freight transport market is estimated to be valued at USD 34.53 Bn in 2024 and is expected to reach USD 73.1 Bn by 2031, growing at a compound annual growth rate (CAGR) of 11.31% from 2024 to 2031.
Key players operating in the freight transport are Deutsche Post DHL Group, Kuehne + Nagel, DSV, DB Schenker, GEODIS, C.H. Robinson, Agility Logistics, etc.
The market is witnessing several opportunities such as multimodal transport connectivity schemes, development of smart interconnected transport networks, and integration of modern technologies like IoT, blockchain and AI for optimized operations. Countries like China, India and Brazil are aggressively investing in infrastructure to facilitate international freight movement and position themselves as global logistics hubs.The growth in international e-commerce has sparked a boom in cross-border deliveries. Many freight companies are expanding globally through acquisitions and partnerships to capture a larger share of international cargo trade. Industry giants are focusing on integrated freight management solutions and building end-to-end supply chain visibility through digital platforms.
Market Drivers
One of the key drivers for the growth of the Freight Transport Market is the rising international trade volumes driven by increasing globalization. As companies outsource more production to low-cost regions, the demand for cross-border shipping has gone up substantially. Growing import and export of consumer goods, electronics, machinery and equipment across diverse industries is expected to drive freight transport industry revenues.
PEST Analysis
Political: The transport market regulations may impact fleet size and routes allowed. Changes in trade policies can affect import/export volumes and demand for freight transport.
Economic: A growing economy often means higher industrial production and consumer demand, positively impacting transport needs. On the other hand, an economic slowdown can significantly reduce freight volumes.
Social: Changes such as urbanization, demographics and work patterns influence the types of goods transported and transport models chosen. Rising environmental awareness pushes for green technology adoption in transport.
Technological: Advancements like self-driving vehicles, automation, electronic logging devices and fleet telematics help improve efficiency, monitoring and fleet management. IoT solutions enable real-time cargo tracking and remote fleet management.
Geographical regions with high market valueNorth America and Europe account for over 60% of the global freight transport market value due to well-developed road, rail and shipping infrastructure for domestic and international cargo movement. China, with its manufacturing strength and exports is another major regional market.
Fastest growing regionAsia Pacific region is expected to witness the highest growth in the freight transport market during the forecast period. This can be attributed to rising manufacturing in countries such as China and India, coupled with growing intra-Asian trade. Infrastructure investments in the region to aid cargo mobility will further drive the market.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
