Transportation Industry Market is expected to grow at a high CAGR of 5.8% during the forecasting period (2022-2029).
The transportation sector consists of several industries including air freight, logistics, marines, airlines, road & rail, and transportation infrastructure. Transportation services provide transfer of goods, passengers, and other entities from one location to another for a certain amount of fee.
The market also consists of warehousing and storage services for operations like merchandise, refrigerated goods, and other materials. Further, the transportation industry is adopting advanced technology like intelligent transportation systems to curb the cost of transportation, improve traffic management, minimize environmental impact, process and share information to ease congestion, and increase the benefits of transportation to commercial users and the public in general.
Transportation Industry Market
By Types and Service, By Vehicle Type, and By Region
Report Insights Covered
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.
Fastest Growing Region
Largest Market Share
The global Transportation Industry is driven by the rising demand for online shopping through e-commerce platforms due to increasing consumer spending and surge in internet connectivity all over the world.
Rising demand for online shopping through e-commerce platforms due to increasing the consumers spending
The market is driven by rising online shopping through e-commerce platforms due to increasing consumer spending and a surge in internet connectivity all over the world. According to the Consumers International Organization, in 2016, global e-commerce sales were estimated to be around US$ 1.9 trillion and have been expected to grow up to US$ 4.06 trillion by 2020. This massive increase in the global e-commerce sale creates the demand for vehicles for transferring goods.
The rising adoption of automated systems for the transportation industry is expected to drive the market growth
An increase in the adoption of advanced technology for transportation such as high-speed rail systems and high-speed aircraft are being built in several countries which created a huge opportunity for this market. For instance, on 21st May 2020, the United States government congressional district released a proposal for the development of the high-speed rail network by investing US$ 240 billion nationwide. It can create around 2.6 million jobs in the United States population for the next five years in the transportation industry.
The global transportation industry market has been impacted adversely due to the COVID-19 pandemic, as several countries were in a lockdown state. With rising Covid-19 cases, the transportation industry across the world has had to enforce massive restrictions on public and private transportation to limit transmission of the virus. The transportation industry has shown growth in August 2020, as several countries have slowed down restrictions and several leading transportation companies have taken initiatives to support the E-commerce business as well as the agriculture sector.
For instance, FedEx launched new initiatives for providing support to the e-commerce businesses for small and medium businesses during the COVID-19 pandemic. Further on 17th April 2020, the Government of India launched ‘Kisan Rath App’ for transportation of farm produce to mandis during lockdown due to the covid-19 pandemic. The app brought together 500,000 numbers of trucks and 20,000 tractors on the mobile platform for transporting agriculture products from farm gate to markets in India.
Transportation Industry Market Segment Analysis
The global transportation industry market is segmented based on types & services, transportation type, vehicle type, end-user, and region.
The rising trend of the tours and travels around the globe which propels the transit and ground passenger segment accounted for the largest share of the global transportation industry market in 2019
In terms of type & services, the global transportation industry market is bifurcated into roadways transportation, airways transportation, waterways transportation, transit and ground passenger transportation, railways transportation, and others.
Among this transit and ground passenger transportation segment has the highest market share in 2019, this is due to rising the adoption of advanced technology for riding from one place to another with the surge in the global population. Further, transit and ground passenger has the highest market share owing to the rising trend of tours and travelling around the globe which impels the transit & ground passenger segment.
Rising demand for the E-hailing segment with the surge in the utilization of mobile-based applications is expected to hold the largest market share over the forecast period (2020-2027)
Further transit and ground passenger transportation are classified into Ride Sharing, E-Hailing, Rental and others. Among these, the e-hailing segment has the highest market share in 2019 owing to increasing demand by the travellers and adoption of mobile-based applications for riding. According to the International Transportation Clean Transportation Report among top ride-hailing companies including Didi, Uber, Ola, Lyft, Grab provided tens of billions of trips, competed for nearly 50 million trips daily, has several hundred million users around the globe, and have a market valuation of more than US$150 billion. This massive increase in daily trips has boosted the E-hailing segment.
Similarly, ride-sharing, rental segments are also growing at a faster pace owing to an increase in the number of internet users for booking vehicles on a rental and sharing basis. According to Global System for Mobile Communications in 2018, an estimated around 3.8 billion total number of mobile internet users globally propel the rental and ride-sharing technology segmental growth.
The rising adoption of advanced technology propels the smart transportation segment
Further, depending on the services, the global transportation market is divided into warehousing and storage, smart ticketing, parking management, traffic management, passenger information, freight information, vehicle telematics and others.
Depending on the transportation type, the global transportation industry market is divided into conventional transportation, smart transportation, on-demand transportation and others. Among this smart transportation has the highest market share in 2019, this is due to the growing adoption of mobile-based applications, websites for online booking have impelled the growth of this segment followed by on-demand and conventional transportation.
The rising sale of commercial vehicles propels the global transportation industry market during the forecast period.
Based on vehicle type, the global transportation industry is divided into passenger vehicles, commercial vehicles and heavy-duty vehicles, train, passenger and commercial aircraft, micro-mobility, ships & boats and aircraft. A further passenger vehicle is divided into passenger car, two-wheeler, three-wheeler, recreational vehicles (RV), electrical vehicles (EV) and others. Also, light & heavy-duty vehicles are divided into buses and trucks, tractors and others. . Among this, commercial vehicles have the highest market share in 2019, this is due to increasing the production & sale of these vehicles due to rising the demand for transportation of the goods around the globe. According to the International Organization of Motor Vehicle Manufacturers, the light commercial vehicle sale increased to 20223655 numbers of units around the globe. Similarly, Passenger vehicles and heavy trucks sale increased to 67149196 and 4142806 units around the globe. This propels the transportation industry growth. Further based on aircraft, the global transportation industry is divided into lighter-than-air aircraft (Aerostat), heavier-than-air aircraft (Aerodyne), aeroplane, amphibian, landplane, seaplane, rotary-wing aircraft unmanned aerial vehicle (UAV) and others.
Growing demand for the logistics industry with the surge in the E-commerce websites such as Flipkart, Amazon etc
Depending upon the end-user, the global transportation industry is segmented into logistics, maritime, mass transit, freight, shipping, household, public transport and others. Among this the logistics industry has the highest market share in 2019, this is due to increasing the sale and production of vehicles around the globe. According to the International Organization of Motor Vehicle Manufacturers, the automotive industry is the 6th largest economy in the world approaching to US$ 2.3 trillion mark among only the top 26 countries including the United States, Belgium, UK, Thailand Canada, Brazil, Sweden, Slovenia and many more. to the 6th largest economy in the world. Road transport contributes more than €433 billion in taxes for the 26 investigated countries.
Similarly, aviation, aviation, aerospace, logistics, maritime, mass transit, freight, shipping and rail & road transport segments are also growing at the fastest speed with rising demand for transportation worldwide. This is primarily due to rising international passengers which has generated millions of jobs ultimately huge revenue. According to the Federal Aviation Administration (FAA) Analysis report in 2017, general aviation in the United States has been generated USD 39 Billion in revenue for the economy and has been employed over 7.6 million people.
Further, an increase in the demand for transportation facilities with the surge in the global merchandise trade businesses propels the transportation industry growth. According to the World Trade Organization, the global merchandise trade valued around US$ 19.67 trillion in 2018. This propels the transportation industry for transporting goods around the globe.
North America region holds the largest market share global Transportation Industry market
By region, the global transportation industry market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, North America is the dominant region for the global transportation industry market and is expected to grow at the highest CAGR during the forecasted period due to growing the logistic business with the surge in the global trade in this region followed by Europe. According to the Select Government Organization, the logistics & transportation industry in the United States reached around US$ 1.6 trillion in 2018 which was valued at 8% GDP in that year.
Asia-Pacific is also growing at a faster pace for the transportation industry market, owing to rising consumer spending with the surge in international and domestic travelling of people in this region. According to the International Air Transport Association (IATA) in 2019, the number of international passenger trips in China and India are 50 million and 30 million respectively. This propels the transportation industry with growing population demand in this region.
The global transportation industry market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. BlueDart, Danzas, Exel, DHL, Aramex, Northrup Grumman, Wallenius Wilhelmsen Logistics, Alaska Air Group, C.H. Robinson Worldwide, CSX Corp., Con-way, Delta Air Lines, Expeditors International of Washington, FedEx and GATX are the leading market players with significant market share.
Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance, on 10th April 2018 Ryder System Inc. completed the acquisition of MXD Group for US$120 Million. This acquisition enhanced the faster delivery of big and bulky goods worldwide.
Overview: FedEx, founded in 1973 with the U.S. office based in Memphis, Tennessee, United States and the company has around 500,000 global team members. FedEx connects people and possibilities through our worldwide portfolio of shipping, transportation, e-commerce and business services. The Company has integrated business applications through collaboratively managed operating companies with collectively delivering extraordinary service to the expertise and reliability.
Product Portfolio: The company has a diverse product portfolio of the transportation industry includes shipping, logistics, eCommerce, delivery services, access, citizenship, global trade, aviation, transportation, freight, package delivery, small business, printing, business solutions, corporate citizenship, sustainability, entrepreneurship, innovation, technology, and supply chain
Key Development: On 25th Sept 2020, FedEx has launched a lightweight, sensor-based logistics device called SenseAware ID which enables the highly precise tracking of shipments.
What is the Projected CAGR value of the Transportation Industry Market?
Transportation Industry Market is expected to grow at a CAGR of 5.8% during the forecasting period 2022-2029.
Which region controlled the global market during 2022-2029?
North America region Controls the Transportation Industry Market during 2022-2029
Which is the fastest growing region in the Transportation Industry Market?
Among all regions, Asia Pacific is the fastest growing market share during the forecast period
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