Road Haulage Market to Reach USD 5.9 Trillion by 2034, Growing at a CAGR of 5.7%

Introduction

The Global Road Haulage Market is projected to reach approximately USD 5.9 trillion by 2034, rising from an estimated USD 3.4 trillion in 2024. This growth is expected to occur at a compound annual growth rate (CAGR) of 5.7% over the forecast period from 2025 to 2034.

Road haulage refers to the transportation of goods by road using commercial vehicles such as trucks, lorries, and trailers. It is a critical component of the logistics and freight transport industry, enabling the movement of raw materials, manufactured goods, and consumer products across domestic and international routes. The road haulage market comprises all economic activities involved in providing road-based freight transportation services, including vehicle fleets, logistics providers, infrastructure services, and regulatory frameworks.

The growth of the road haulage market is primarily driven by the expansion of e-commerce, rising industrial output, and the increasing need for efficient last-mile delivery solutions. Additionally, the global increase in trade volumes, supported by urbanization and infrastructure development, has resulted in sustained demand for road freight services, particularly in emerging economies.

The shift toward just-in-time delivery models and supply chain optimization has further boosted demand for reliable and flexible road transport solutions. Moreover, advancements in fleet telematics, route optimization software, and fuel-efficient vehicles are enhancing operational efficiency and reducing costs, making road haulage more attractive to businesses. A notable opportunity lies in the integration of green logistics and the adoption of electric and hybrid trucks, which align with sustainability goals and regulatory emissions targets.

Furthermore, the growing penetration of digital freight platforms and transport management systems (TMS) is facilitating better coordination and visibility across the logistics value chain. These technological and infrastructural advancements are expected to create favorable conditions for market players to expand service offerings, enter new markets, and meet the rising expectations for faster and more transparent freight services

Key Takeaways

• The global Road Haulage Market was valued at USD 3.4 trillion in 2024 and is projected to reach USD 5.9 trillion by 2034, expanding at a CAGR of 5.7% during the forecast period.
• Domestic road haulage accounted for 63.8% of the type segment in 2024, attributed to its robust logistical networks and operational flexibility across national and regional supply chains.
• In 2024, Heavy Commercial Vehicles (HCVs) held the largest market share in the vehicle type segment, driven by their high load capacity and adaptability for bulk and long-haul freight operations.
• The Food & Beverages segment dominated the application category in 2024, supported by the constant demand for timely and voluminous deliveries across retail, hospitality, and distribution channels.
• The Retail and FMCG sector emerged as the leading end-user segment in 2024, reflecting high-frequency transportation needs and the consistent consumer demand for fast-moving goods.
• Asia Pacific led the global market with a 45.6% share in 2024, contributing approximately USD 1.55 trillion in revenue, owing to its dense trade networks, rapid urbanization, and expanding manufacturing base.

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Impact of U.S. Tariffs on Road Haulage

The impact of U.S. tariffs on road haulage has been multifaceted, affecting both operational costs and supply chain dynamics. As tariffs increase, road haulage companies face heightened costs associated with the transportation of goods, particularly when dealing with imported products. These costs can stem from various factors, including higher prices for raw materials, fuel, and vehicle components.

The imposition of tariffs on foreign goods increases the price of these goods, leading to a rise in transportation costs for companies that rely on the importation of raw materials or finished products. This price increase is often passed down the supply chain, ultimately leading to higher transportation fees for end consumers.

Moreover, road haulage companies operating in the U.S. are affected by the ripple effects of tariffs on international trade. With higher tariff rates, companies may face a reduction in the volume of goods being imported and exported, which can lead to decreased demand for haulage services.

As a result, companies may experience reduced revenues, especially those heavily reliant on cross-border transport. In the case of domestic transport, the impact is more indirect; however, the rising cost of goods can still lead to reduced demand as consumers adjust their purchasing behaviors in response to price increases.

Road Haulage Statistics

• Over 70% of all freight in the United States is transported by road.
• UPS is the largest road haulage company in the world, with a fleet of over 100,000 vehicles.
• The average truck driver in the U.S. drives over 100,000 miles per year.
• The U.S. rail network spans over 140,000 miles.
• The transportation sector is responsible for about 14% of global greenhouse gas emissions.
• Rail haulage produces up to 75% less CO2 emissions per ton-mile compared to road haulage.
• India relies heavily on road haulage, with trucks carrying over 60% of the country’s freight.
• The longest road train ever recorded was over 1,400 meters long, consisting of 112 trailers.

Emerging Trends

• Adoption of Autonomous Trucks: The integration of driverless trucks is revolutionizing freight transport. For instance, Aurora Innovation is deploying autonomous trucks for freight haulage between Dallas and Houston, aiming for “level 4” autonomy, which allows operation without a human driver in specific areas.
• Shift to Alternative Fuels: Trucking fleets, especially in Asia, are increasingly using liquefied natural gas (LNG) instead of diesel. In China, over 108,000 LNG trucks were sold in the first half of 2024, contributing to a decline in diesel demand and affecting global oil prices.
• Implementation of Smart Logistics: Technologies like predictive analytics and blockchain are enhancing freight management. Predictive analytics optimizes routes and forecasts demand, reducing operational costs and improving delivery times, while blockchain provides a tamper-proof record of transactions and movements.
• Expansion of Shared Freight Models: Collaborative shipping, or freight pooling, consolidates multiple shipments into a single transport load. This approach maximizes truck capacities, reduces less-than-truckload shipments, and minimizes empty return trips, leading to cost savings and reduced carbon emissions.
• Growth of E-commerce Logistics: The rising e-commerce industry is significantly increasing the demand for efficient and reliable logistics services. In India, e-commerce platforms achieved a gross merchandise value of US$60 billion in fiscal year 2023, marking a 22% increase from the previous year.

Top Use Cases

• Last-Mile Delivery in Urban Areas: The surge in online shopping necessitates efficient last-mile delivery solutions. Road haulage provides the flexibility required to navigate urban environments and meet tight delivery schedules.
• Cross-Border Freight Movement: International road haulage facilitates the transport of goods across borders, handling a variety of cargo, including bulk goods and perishable items, with greater flexibility compared to other transport modes.
• Transportation of Perishable Goods: Road haulage is essential for the timely delivery of perishable items such as food and pharmaceuticals, ensuring they reach their destinations quickly to maintain quality and safety.
• Support for Manufacturing Supply Chains: Manufacturing industries rely on road haulage for the transportation of raw materials and finished products, ensuring the smooth functioning of supply chains.
• Integration with Multimodal Logistics: Road haulage serves as a critical link in multimodal logistics, connecting different modes of transport such as rail, air, and sea, to provide comprehensive freight solutions.

Major Challenges

• Driver Shortage: The industry faces a significant shortage of heavy vehicle drivers. In Europe, the driver shortage across the freight transport sector was between 20% to 22% between October 2018 and January 2019.
• Infrastructure Constraints: Aging roads and inadequate infrastructure pose challenges to efficient freight movement, requiring substantial investment in maintenance and upgrades.
• Regulatory Compliance: Varying standards across regions complicate international logistics, making regulatory compliance a significant hurdle for the industry.
• Freight Theft and Security Risks: Organized crime gangs target freight carriers, leading to significant losses. In the UK, freight crime contributes to over £250 million in annual losses, with supermarket lorries carrying high-value cargo being frequent targets.
• High Operational Costs: The reliance on diesel fuel leads to high operational costs and emissions. In India, logistics expenses account for 14% of GDP, highlighting the need for cost reduction strategies.

Top Opportunities

• Electrification of Trucking Fleets: Transitioning to electric vehicles can significantly reduce fuel costs and emissions. In India, the deployment of Zero Emission Trucks (ZETs) is expected to lower fuel costs by 46%.
• Development of Multimodal Logistics Parks: The establishment of logistics parks enhances operational efficiency by integrating various modes of transport, reducing transit times, and improving supply chain management.
• Implementation of Advanced Telematics: Utilizing GPS and telematics systems allows for real-time tracking of shipments, improving customer service and enabling proactive management of logistics.
• Government Initiatives and Incentives: Programs like India’s PM Gati Shakti and FAME II support the adoption of electric vehicles and infrastructure development, fostering a more sustainable and efficient logistics sector.
• Expansion into Emerging Markets: Rapid economic growth in regions like Asia-Pacific presents opportunities for market expansion. In 2024, Asia Pacific accounted for the largest revenue share of 47.0% in the global road haulage market, driven by economic expansion and infrastructural developments.

Key Player Analysis

The global road haulage market in 2024 is significantly shaped by the strategic operations and competitive positioning of leading logistics companies. Key players such as DHL Supply Chain, XPO Logistics, and DB Schenker continue to dominate through expansive fleets, integrated IT infrastructure, and global contract logistics. Kuehne + Nagel and DSV Panalpina have leveraged their mergers and acquisitions to enhance cross-border road freight capabilities, especially within Europe.

UPS Supply Chain Solutions and FedEx Freight maintain strong North American operations, driven by e-commerce demand and robust last-mile delivery networks. J.B. Hunt Transport Services and YRC Worldwide are optimizing route efficiencies and adopting electric trucks to reduce operational costs and emissions.

Ryder System and CEVA Logistics are investing in dedicated contract carriage and real-time visibility tools to enhance service reliability. Meanwhile, Nippon Express and C.H. Robinson Worldwide are expanding their footprint in Asia and utilizing digital freight platforms to improve capacity utilization and customer engagement.

Major Companies in the Market

• DHL Supply Chain
• XPO Logistics
• DB Schenker
• Kuehne + Nagel
• DSV Panalpina
• UPS Supply Chain Solutions
• FedEx Freight
• J.B. Hunt Transport Services
• YRC Worldwide
• Ryder System
• CEVA Logistics
• Nippon Express
• C.H. Robinson Worldwide

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Regional Analysis

Asia Pacific Leads the Road Haulage Market with 45.6% Market Share in 2024

In 2024, Asia Pacific has emerged as the dominant region in the global road haulage market, accounting for the largest market share of 45.6%, with a total valuation reaching approximately USD 1.55 trillion. The region’s market dominance can be attributed to its robust logistics infrastructure, increasing freight demand driven by e-commerce growth, and expanding cross-border trade within major economies such as China, India, and Southeast Asian countries.

China, in particular, continues to be a logistics powerhouse due to its manufacturing output and strong government investment in transportation infrastructure, including expressways and freight corridors. India’s road freight market is also witnessing double-digit growth, propelled by the implementation of the Goods and Services Tax (GST), which has reduced interstate transport delays and enhanced the efficiency of logistics operations.

Moreover, Japan and South Korea contribute significantly to the region’s road haulage activity due to their advanced vehicle technologies and strategic investments in smart transportation systems. The growing integration of digital freight platforms and fleet management technologies further enhances route optimization and cost efficiency, bolstering market growth. Furthermore, the Belt and Road Initiative (BRI) has facilitated regional connectivity, increasing the volume of road-based freight movements across borders. In contrast, the United States market is experiencing pressure due to recently imposed tariffs, which have disrupted supply chains and led to increased operating costs for logistics providers.

These tariffs have particularly affected the U.S.–China trade corridor, where increased levies have raised freight rates and shifted some cargo movement away from traditional road haulage methods toward alternative modes or less tariff-impacted routes. In this global context, Asia Pacific not only maintains the largest market share but also sets the benchmark for logistics modernization, efficiency, and volume scalability in the road haulage sector.

Recent Developments

• In 2024, DSV announced a major move by signing a deal to acquire Schenker from Deutsche Bahn. The agreement is valued at EUR 14.3 billion and marks the largest acquisition in DSV’s history. This step is expected to expand DSV’s global presence and improve its logistics services for clients worldwide.
• In 2025, Amazon shared news of placing its biggest order for electric heavy trucks. The company ordered over 200 eActros 600 trucks from Mercedes-Benz, aiming to support eco-friendly deliveries. These vehicles are expected to carry more than 350 million packages each year with zero tailpipe emissions.
• In 2023, Alexander Dennis, part of the NFI Group, introduced two new battery-electric buses for the UK and Ireland markets. The new models, Enviro100EV and Enviro400EV, were developed fully in-house and designed from the start as clean energy vehicles. These buses are part of the company’s push towards zero-emission transport solutions.

Conclusion

The global road haulage market is poised for steady growth, driven by increasing demand from e-commerce, manufacturing, and perishable goods sectors. Technological advancements, such as autonomous driving and real-time tracking, are enhancing operational efficiency and service reliability. The shift towards sustainable practices, including the adoption of electric and hybrid vehicles, is gaining momentum, supported by government initiatives and infrastructure development. Despite challenges like driver shortages and regulatory complexities, the market is expected to expand, with Asia Pacific leading due to rapid urbanization and industrialization. Overall, the road haulage industry is evolving to meet the dynamic needs of global trade and logistics.

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