Freight Trucking to Retain Tag of Most ‘Cost-effective’ Freight Transportation Alternative
Over the past few years, the freight trucking market has experienced waves of changes in terms of how freight trucks are operated, integration of cutting-edge technologies, and advancements in truck designs, among others. The production of freight trucks continues to grow across the world due to logistic requirements from an array of end-use industries, including food & beverages, oil & gas, energy & mining, chemicals, and more. Several factors are expected to influence the expansion of the freight trucking market such as a surge in automation, exponential growth of the e-Commerce sector, and focus on industrialization by governments across the Asia Pacific, and the advent of next-generation technologies, including order entry systems, warehouse management systems, transportation management systems, and global positioning systems.
The significant growth of the various industries around the world coupled with the integration of new technologies in freight trucks is expected to propel the freight trucking marketing during the forecast period. While supply chains across the world predominantly rely on freight trucking, the demand for freight trucking is anticipated to grow at a consistent pace in the coming years. However, as air transportation continues to offer greater value to end users, in the long run, freight trucking companies are expected to find new ways to retain customers and provide value. At the back of these factors, the global freight trucking market is expected to attain a market value of ~US 4 Bn by the end of 2030.
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Technological Advancements to Accelerate Market Growth
The transportation and logistics industries have witnessed consistent development at the technological front. Technological advancements are likely to propel the growth of the freight trucking market, as truck manufacturers continue to roll out new truck models with improved cargo space and technologies. Several truck manufacturers are increasingly leaning toward advanced technologies to enhance the performance and functionality of the vehicle. A surge in demand for order tracking in the freight trucking market has compelled freight trucking manufacturers to integrate new tracking technologies. While technologies continue to evolve at a rapid pace, the self-driving freight trucks could hit roads running particularly in the developed parts of North America and Europe. Self driving freight trucking could soon become a reality, as self-driving technologies continue to improve.
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Self-driving trucks backed by advanced self-navigating systems are likely to become mainstream during the latter half of the assessment period. Companies operating in the current market landscape are expected to focus on leveraging the benefits of novel technologies, including artificial intelligence (AI) and sensors. For instance, the electric semi-truck manufactured by Tesla incorporates the autopilot feature and is increasingly being used by different companies, such as Loblaw, Asko, Pepsi, etc.
The expansion of the e-Commerce sector is expected to provide a boost to the growth of the freight trucking market during the forecast period. The competition in the current market landscape is on the rise due to which, companies should focus on improving service and minimize the supply chain risks.
High Applicability in Different End-use Industries to Boost Demand
Market players operating in the food & beverages sector are primarily focused on improving their product fulfillment process by streamlining logistics and catering to the low volume high-frequency requirements of the industry. Moreover, due to cutthroat competition within the food & beverages sector, several food companies are increasingly focusing on adapting to new transportation networks and minimizing costs. Freight trucking is one of the most popular and adopted freight transportation across the world and the trend is likely to continue over the forecast period.
Transportation and Logistics Take Massive Hit as COVID-19 Pandemic Haunts Freight Trucking Market
One of the major sectors to face the effects of the novel COVID-19 pandemic is the transportation sector. The freight trucking market is expected to witness a sluggish period amidst the looming COVID-19 pandemic, as governments across the world continue to initiate preventive measures to combat casualties and spread of the virus. Shareholders in the freight trucking market are expected to be heavily impacted due to the ongoing pandemic. However, freight trucking companies involved in the delivery of essential goods and services are projected to capitalize on the opportunity and gain ground in the competitive market landscape. As the COVID-19 pandemic continues to disrupt the supply chains of major industries worldwide, market players involved in the freight trucking market are likely to seek new solutions to address these challenges.
Freight Trucking Market: Overview
- The global freight trucking market is anticipated to expand at a CAGR of ~5% during the forecast period, owing to a rise in the middle class population across the globe that has resulted in a rise in consumption and hence, is expected to boost the volume of goods transported. Changes in consumer tastes and preferences where people are inclined toward Western lifestyle have fueled the demand for deliveries that take lesser time. This is projected to boost the freight trucking market during the forecast period.
- The freight trucking market has benefitted by the introduction and use of new technologies. Some new technologies include global positioning system (GPS), order entry systems, warehouse management systems, dispatching communication systems, and transportation management systems (TMS)
Drivers of Freight Trucking Market
- Demand for online shopping is witnessing significant rise, owing to an increase in speedy Internet access, which has led to a surge in preference toward e-tailing, among consumers. Furthermore, convenience and easy access related to home delivery services are projected to boost the freight trucking market during the forecast period.
- Growing urbanization and rise in trade volume have resulted in an increase in transport volumes. Rapid expansion of the e-Commerce market across the globe is driving the freight trucking market. Increased popularity of online shopping is a major factor driving the freight trucking market.
- Belt and Road Initiative (BRI), previously known as One Belt One Road, is an ambitious effort proposed by Chinese President Xi Jinping in 2013, to jointly build the “Silk Road Economic Belt” and the “21st Century Maritime Silk Road” to advance regional cooperation and connectivity on a trans-continental scale. The Silk Road Economic Belt connects three major road routes from China to Europe, the Persian Gulf, the Mediterranean, and the Indian Ocean. However, 21st Century Maritime Silk Road is based on waterways. The main objective of BRI is to build trade routes between China and the countries in Central Asia, Europe, and Indo-Pacific littoral countries. This project involves developing infrastructure mostly around transport and energy such as roads, bridges, and power plants, which in turn is likely to propel the demand for freight transport on roadways. This, in turn, is projected to boost the freight trucking market during the forecast period.
Challenges for Freight Trucking Market
- Freight trucks are bigger, heavier, and bulkier vehicles, which makes road freight transportation comparatively slower and hence, hampers the freight trucking market. Additionally, massive backlog in proper maintenance is also a major factor that is likely to hinder the freight trucking market during the forecast period. Furthermore, toll roads or booths lead to massive time loss, which results in slow transportation of freight.
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