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The Europe Road Freight Market stood at $34 Bn in 2021 owing to active participation of market players & government to improve the infrastructure. Will the factors induce further market growth: Ken Research
1."Focus on infrastructure & policies:" Governments all across the globe are focusing on improving the infrastructure & policies when it comes to logistics market.In Western Europe, the average return on equity (ROE) in the transport and logistics sector is 0.86%. As of January 2022, companies in the air transport industry in Western Europe saw average returns on equity of approximately -45%. Many countries are, however, improving their transportation infrastructure to improve trade flow in Europe. For instance, Germany and the United Kingdom are developing infrastructure through construction projects. Countries such as Germany are improving their road infrastructure, with total roads reaching 8,30,000 km in 2021 from 600,000 kilometers in the previous year, representing an increase of 28% YoY.
Click to Read Full Article: Recent Trends in Europe Road Freight Market
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2. "Tech to the rescue:" Technology-enabled transformations such as FMS & autonomous vehiclesand digital trucking aggregators with online load board and automated brokerage are driving the market growth.
Technology has significantly changed due to AI's important role in supply chain management, including the development of predictive optimization, which is expected to become one of the biggest drivers in the logistics industry. Technologies such as Real Time Location and Temperature Monitoring and Data Sharing which enables real time monitoring of the temperature of a refrigerated unit & customer has changed the way fleet operators view the logistics market. Other such technologies operating in the market currently are warehouse automation, fleet management software & Advanced driver assistance system.
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3. "Growth is the way ahead:" With increasing investment, technological innovation & government focus, the road freight market in Europe is expected to witness a surge in terms of development.
The Europe Freight Market is expected to grow at a steady pace owing to improvement in infrastructure & favourable government policies. The logistics investments in Europe reached approximately USD 34 Bn in H1 2022, witnessing a YoY increase of 13% in take-up driven by growth in e-commerce, which witnessed a rise by 13% YoY in 2021, amounting to approximately EUR 88.1 Bn (USD 94 Bn).
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Ken Research is a Market Research and Consulting Firm, based out of India, Indonesia and UAE. Since 2011, we have been assisting clients globally with our Syndicate and Bespoke Market Research and Advisory Services.
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