Road Haulage Market Trends

Growth Drivers

• Rise in infrastructure development and maintenance - Investments in infrastructure development and maintenance contribute to the growth of the road haulage market by improving the efficiency and reliability of transportation networks. The World Bank reported that in developing countries, investors have directed an average of USD 85 billion to infrastructure projects over the past five years. Upgrades to roads, highways, bridges, and tunnels reduce travel times, enhance safety, and enable the transportation of heavier loads, thereby benefiting companies in market.
• Technological advancements - Large market participants are concentrating on increasing the amount of goods they can transport by introducing cutting-edge delivery choices or forming partnerships with outside logistics service providers. Businesses are also placing a strong emphasis on enhancing the customer experience and cutting expenses associated with running their road haulage services by utilizing cutting-edge technologies like automated vehicles and the Global Positioning System (GPS) & Location-Based Services. To improve business operations, haulage companies are now establishing operations centers where they will store goods and vehicles and do any necessary vehicle repairs.  
  
  Moreover, over the aforementioned forecast period, the market will have numerous potential prospects due to the expansion of the automation and transportation industries. For instance, Businesses can solve the driver shortage in the US - which was over 60,000 in 2018 and is predicted to reach 160,000 by 2028—by automating freight.
• Rising cross-border trade and liberalization of trade agreements - Global market dynamics are mostly driven by the liberalization of trade agreements. Cross-border trade is greatly increased as nations sign new trade agreements and remove current trade obstacles. The need for various haulage services has expanded as a result of these changes, which have also increased the import and export of products and services. Additionally, the ease of mobility has significantly grown as a result of nations concentrating on improving infrastructure.
  
  Along with trade liberalization, improved road networks have made it simpler for haulage companies to develop internationally, guaranteeing quicker and more effective delivery of commodities. The estimated trade between the two countries in 2022 is USD 10 billion USD 12 billion, a 15 % increase from 2021. It's also critical to remember that a system of free and open international trade promotes specialization, competition, and innovation-all of which boost the market.

Challenges

• Environmental issues - The environmental effects of truck diesel engines, which pollute the environment and break emission regulations, pose the biggest threat to the market's expansion. This is the main obstacle to the market's expansion.
• Miscellaneous concerns - The growth of the market is expected to be slowed down by a number of important issues, e.g. increasing fuel prices, transport strikes and governmental rules on logistics and transportation.