Truck Transport Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Truck Transport Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • January 2021 •
  • 400 pages •
  • Report ID: 6009762 •
  • Format: PDF
Major companies in the truck transport market include C.H. Robinson; J.B. Hunt Transport Services; YRC Freight; Swift Transportation and Landstar.

The global truck transport market is expected to grow from $1429.22 billion in 2020 to $1574.46 billion in 2021 at a compound annual growth rate (CAGR) of 10.2%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $2132 billion in 2025 at a CAGR of 8%.

The truck transport market consists of sales of truck transportation services and related goods by entities (organizations, sole traders and partnerships) that provide over-the-road transportation of cargo using motor vehicles, such as trucks and tractor-trailers. This market does not include household and office goods transportation services. The truck transport market is segmented into general freight trucking and specialized freight trucking.

Asia Pacific was the largest region in the global truck transport market, accounting for 30% of the market in 2020. North America was the second largest region accounting for 27% of the global truck transport market. Africa was the smallest region in the global truck transport market.

Fleet regionalization is being widely adopted by truck transportation companies to reduce operational costs and increase transportation efficiencies. As a result, companies involved in the truck transportation business are gradually shifting their services from international and national level to the regional level. Regionalization of fleets enables truck transportation companies to increase operational efficiencies and reduce costs, improves driver and truck turnaround time. Major advantages of fleet regionalization include increased ports of entry, intermodal system capabilities and shorter travel distances.

Coronavirus Pandemic - The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the truck transportation market in 2020 as governments-imposed lockdowns and restricted the movement of people and goods to contain the transmission. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in a decline in economic activity with countries entering a state of ’lock down’ and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the truck transportation market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy. ?

Faster Economic Growth -The truck transportation market growth is aided by stable economic growth forecasted in many developed and developing countries. The International Monetary Fund (IMF) predicts that the global GDP growth will be 3.3% in 2020 and 3.4% in 2021. Recovering commodity prices, after a significant decline in the historic period is further expected to aid the market growth. Developed economies are also expected to register stable growth during the forecast period. Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets in the forecast period. Stable economic growth is expected to increase investments in end user markets, thereby driving the market during forecast period.