Market Size of Europe Long Haul Transport Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 3.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Europe Long Haul Transport Market Analysis
During the time frame of the forecast, the Europe long-haul transport market is expected to register a CAGR of more than 3%.
- Due to COVID-19, road freight rates in June 2020 were down 14.3% year over year. The rates were up by 3% compared to May 2020. Although rates were stable through Q1 2020, price levels declined sharply from April on as COVID-19 lockdowns dragged down demand and available capacity increased significantly. As a result of COVID-19, most demands eroded, but there were sector-by-sector variations. Production in the automotive sector largely came to a standstill, whereas there were violent jumps in demand for grocery-related transport, chemical and pharmaceutical products saw sustained higher demand levels, and the fashion retail and industrial sectors suffered. The COVID-19 pandemic increased the importance of digitalization in the industry.
- Strong increases in all types of operations drove a 6.5 percent increase in European road freight transport from 2020 to 2021.In the second quarter of 2020, lockdowns and restrictions on cross-border movements were put in place. In the second quarter of 2021, the number of tonne-kilometers done in the EU rose by 19.3%, to 496.5 billion tonne-kilometers.In terms of tons, Germany had the highest volume of road freight traffic on its territory in 2021.Fuel prices play an important role in long-haul trucking. As the trucks have to cover longer distances, fuel costs can significantly impact freight costs. Similar to the first quarter of 2022, the spike in diesel prices was the main driver of the increase in transportation costs.
- Although this factor contributed to the increase in 2021, demand growth was primarily responsible.Although there are different developments in different countries, the EU-27 pre-tax diesel price jumped 69% from its January level. At EUR 1.9 (USD 1.99) per liter, the average price of diesel at the pump in Q2 2022 in the main European countries showed an increase of 13% compared to Q1 2022. Many countries have taken steps to minimize the impact of this surge in fuel prices, including through reductions in taxes. Despite this, the increase remains significant. Fuel now accounts for about 50% of the operating costs of a long-distance truck, compared to a third before.
- According to information from an industry group, the European road freight market will slow down in 2023, growing by only 1.1% in real terms to reach USD 408 billion. Inflation that is going up, the energy crisis, the risk of a recession, and problems with manufacturing will all hurt the market a lot in 2023. Long-haul transportation, which is a part of the road freight market, will be affected in the same way. Since the COVID-19 pandemic, the automotive industry, which used to be a big part of road traffic in Europe, was having trouble. For the year 2022, European production was expected to have fallen by 0.5%. The shortage of semiconductors had a negative impact on supply in Europe. But at the end of 2022, demand was also beginning to crumble. In Germany, the largest market in Europe, sales are expected to fall by 5% this year. One small positive factor is e-commerce. As cross-border e-commerce (purchasing in a country other than that of delivery) accounts for 40% of purchases, it is a strong provider of flows for international transport. But this driving force is also starting to weaken.
Europe Long Haul Transport Industry Segmentation
Long-haul trucking (sometimes called 'over-the-road' trucking) involves long-distance cargo movements by trucks, usually using tractor-trailer combinations. Long-haul drivers are often away from home for days or weeks at a time. The European long-haul transport market is segmented by Destination (Domestic and Cross-border), End User ((Construction, Oil and Gas and Quarrying, Agriculture, Fishing, and Forestry, Manufacturing and Automotive, Distributive Trade, and Other End Users (Pharmaceutical and Healthcare)), and Country (Germany, United Kingdom, France, Italy, Spain, Russia, and Rest of Europe). The report offers market sizes and forecasts in value (USD) for all the above segments.
By Destination | |
Domestic | |
Cross-border |
By End User | |
Construction | |
Oil and Gas and Quarrying | |
Agriculture, Fishing, and Forestry | |
Manufacturing and Automotive | |
Distributive Trade | |
Other End-Users (Pharmaceutical and Healthcare) |
By Country | |
Germany | |
United Kingdom | |
France | |
Italy | |
Spain | |
Russia | |
Rest of Europe |
Europe Long Haul Transport Market Size Summary
The European long-haul transportation market is experiencing a period of transformation, driven by digitalization and the need for innovation to stay competitive. The market is characterized by a fragmented landscape with both large and small players, such as DB Schenker, DHL, DSV, Kuehne + Nagel, and Dascher, all vying for market share. The COVID-19 pandemic has accelerated the adoption of digital technologies, reshaping traditional practices and highlighting the importance of e-commerce as a significant driver of demand for long-haul transport services. Despite challenges such as rising fuel costs and geopolitical tensions, the market is poised for growth, with initiatives like the European Clean Transport Network Alliance aiming to decarbonize road freight transport.
The market's growth trajectory is influenced by various factors, including the recovery from the pandemic, fluctuations in fuel prices, and the ongoing semiconductor shortage impacting the automotive sector, a major end-user of long-haul transport. While the European road freight market faced a slowdown in 2023 due to inflation and economic uncertainties, the demand for long-haul transportation remains supported by the robust growth of e-commerce, particularly in Western Europe. Innovations by tech start-ups and strategic investments in electrification and low-carbon solutions are expected to further shape the market, with companies like Trucksters leading the charge in adopting AI and big data to enhance operational efficiency.
Europe Long Haul Transport Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Current Market Scenario
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1.2 Value Chain/Supply Chain Analysis
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1.3 Government Regulations and Initiatives
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1.4 Technology Innovation and its Impact
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1.5 Insights into the E-commerce Industry in the Region (both Domestic and Cross-border)
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1.6 Insights into Cross-border Trade
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1.7 Insights into Commodity Flow Statistics for Key Countries
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1.8 Effects of BREXIT on the Road Freight Transport Market
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1.9 Insights into Key Routes (Used for Trucking)
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1.10 Spotlight on Freight Rates
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1.11 Commentary on Operating Costs (Share of Fuel Costs, Wages, Vehicle Maintenance, etc., and Trends for Key Countries)
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1.12 Demand and Supply Analysis (Trucks, Drivers, Labor, etc.)
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1.13 Insights into Intermodal Transportation/Container Utilization in Trucking
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1.14 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION (Market Size by Value)
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2.1 By Destination
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2.1.1 Domestic
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2.1.2 Cross-border
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2.2 By End User
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2.2.1 Construction
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2.2.2 Oil and Gas and Quarrying
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2.2.3 Agriculture, Fishing, and Forestry
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2.2.4 Manufacturing and Automotive
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2.2.5 Distributive Trade
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2.2.6 Other End-Users (Pharmaceutical and Healthcare)
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2.3 By Country
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2.3.1 Germany
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2.3.2 United Kingdom
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2.3.3 France
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2.3.4 Italy
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2.3.5 Spain
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2.3.6 Russia
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2.3.7 Rest of Europe
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Europe Long Haul Transport Market Size FAQs
What is the current Europe Long Haul Transport Market size?
The Europe Long Haul Transport Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in Europe Long Haul Transport Market?
Deutsche Post DHL, Deutsche Bahn AG, DSV, Kuehne + Nagel International AG and Dascher are the major companies operating in the Europe Long Haul Transport Market.