The global road freight transportation services market was valued at almost USD 3 trillion in 2016 and is expected to reach USD 4 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on road freight transportation services for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the road freight transportation services market during the forecast period. Some of the top vendors listed in this industry analysis include DB Schenker, DHL, FedEx, UPS, and Kuehne + Nagel.
In 2016, the Americas was the largest shareholder in the global market with a market share of around 38%. The US and Canada are the key revenue generators in the road freight transportation market in the Americas.
According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “Road freight service providers and various environment companies have been exploring the possibilities of shifting from conventional fossil fuels to alternative fuels for road transportation. Industry groups have been set up by different countries for studying the use of alternative fuels such as biomass, palm oil, and nuclear power. The use of alternative fuels can reduce GHG emission and is an ideal, sustainable, and long-term solution to meet clean energy goals.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Use of intermodal transportation
Infrastructure development for the use of intermodal freight transportation has picked up in countries, especially across Europe. Road and railway networks have been inter-linked and extended for providing smart and sustainable freight services. High population coupled with an increase in urbanization has enhanced the competitiveness of intermodal transportation. For example, in 2015, in the US approximately 14 million units were shipped in long-haul freight transportation using rail freight and other modes of transport (sea/air/road).
Development of contract logistics
Contract logistics entail end-to-end logistics such as designing and planning of supply chains, including warehousing, transportation, and distribution of goods. Certain aspects of customer service such as processing of orders, collecting payments, and managing inventory are also taken care. For example, Kuehne + Nagel believes in the potential of the Middle East to be a futuristic logistics hub and has invested in contract logistics solutions in Saudi Arabia, Syria, and Kazakhstan with the UAE as a central logistics distribution hub.
Improvements in productivity in the FMCG industry
Global economic recovery has drastically improved consumer spending levels. Declining oil prices have reduced logistics costs and provided new opportunities for FMCG companies. These organizations can focus on expanding their customer base and improve the efficiency of operations. For example, FMCG manufacturers in the US are trying to seek new opportunities through data and demographic analysis to focus their attention on markets where consumers have a greater affinity for their products.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Road Freight Transportation Services – Procurement Market Intelligence 2017’.