24 October, 2019
RALEIGH, North Carolina, October 24, 2019 - The global market size for road freight services is currently growing at a CAGR of 4 - 5 percent yearly, according to Beroe Inc., a procurement intelligence firm. With the impact of Brexit, trade volume with emerging economies would expand in the next 4 - 5 years, which would result in improved road freight activity.
Regions such as Western Europe, North America, and Australia have a high maturity for buyer and supplier verticals due to advanced technology adoption. Due to the increase in e-commerce and global trade, APAC and parts of Africa are expected to be the future growth-driving markets for road freight services.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Retail sales will increase by 5 - 6 percent, which will drive the demand for trucking and ultimately overall road freight services. Since retail e-commerce is growing at 14 - 15 percent per annum, it will also create new demand for logistics, especially in metropolitan cities. However, the fuel prices are a major constraint in the road freight industry and hold nearly 30 - 35 percent of trucking freight rates.
The major cost components are labor and fuel costs, which comprise 55 - 60 percent of the total cost. The driver shortages in North America, Europe, and Australia with rising fuel costs would highly impact the overall costs and profit margins of the industry. The prevalent market wage rates for truck drivers and cleaners are expected to increase in the near future due to a shortage of skilled drivers and government regulations.
The research methodology adopted for the report included:
According to Porter’s Five Forces Analysis, in developed markets such as North America and Europe, the shortage of skilled drivers coupled with high labor rates act as a deterrent to new players venturing into the market. In emerging markets such as APAC, intrusive regulatory regimes and the non-tradable nature of the market combined with the low level of market maturity makes the market difficult for new players.
The report also includes:
Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of businesses across the globe. Beroe leverages its deep domain expertise in 300 + categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.
To learn more about Beroe Inc, please visit http://www.beroeinc.com
“Rethinking Digital Procurement”: Joins us for a discussion on July 27