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India Road Freight Transport Market Outlook to 2028

Region:Asia

Author(s):Abhinav kumar

Product Code:KROD9934

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Published On

January 2025

Total pages

88

About the Report

India Road Freight Transport Market Overview

  • The India Road Freight Transport Market is valued at USD 136 billion, driven by robust economic activity, the rapid expansion of e-commerce, and ongoing infrastructure developments like highway construction and logistical hubs. The sector benefits from an extensive network of national and state highways, which facilitates seamless inter-state goods movement.

India Road Freight Transport Market Size

  • Mumbai, Delhi, and Chennai dominate the market due to their strategic location as industrial and logistics hubs. Mumbai serves as a major entry port for imports, while Delhi benefits from connectivity through the Golden Quadrilateral. Chennais proximity to the southern industrial belt and its extensive port facilities ensures its dominance.
  • The Indian government has introduced the National Logistics Policy to create a more integrated and efficient logistics ecosystem. This policy aims to reduce logistics costs, improve efficiency, and promote the seamless movement of goods across the country, thereby enhancing the competitiveness of the road freight transport sector.

India Road Freight Transport Market Segmentation

By Truckload Specification: The market is segmented into Full-Truck-Load (FTL) and Less-than-Truck-Load (LTL).FTL dominates the market as it caters to industries requiring dedicated transportation for bulk goods. This segment's appeal lies in its cost efficiency and faster delivery times, making it indispensable for large-scale manufacturers.

India Road Freight Transport Market Segmentation By Truckload Specification

By End-User Industry: The market is segmented into Agriculture, Manufacturing, Retail, and E-commerce.Manufacturing dominates due to the sheer volume of goods transported, including raw materials and finished products. Industries such as steel, cement, and textiles rely heavily on road freight transport for operational efficiency.

India Road Freight Transport Market Segmentation By End User Industry

India Road Freight Transport Market Competitive Landscape

The market is characterized by intense competition among domestic and international players. The market is dominated by both organized players and smaller, unorganized firms that cater to niche segments.

India Road Freight Transport Market Competitive Landscape

India Road Freight Transport Market Analysis

Market Growth Drivers

  • Infrastructure Development: India's government has increased infrastructure spending, with expenditures on road construction rising twelvefold over the past decade. This surge in investment has led to the construction of nearly 90,000 kilometers of national highways since 2014, almost doubling the amount built in the prior decade. Such extensive development enhances connectivity and efficiency in road freight transport, facilitating smoother and faster movement of goods across the country.
  • E-commerce Expansion: The Indian e-commerce sector has experienced substantial growth, marking a year-over-year growth of 4.3%. This expansion has increased the demand for efficient road freight services to ensure timely delivery of goods to consumers nationwide. The rise of online retail platforms necessitates a robust logistics network, thereby driving growth in the road freight transport market.
  • Manufacturing Sector Growth: India's manufacturing industry is anticipated growth will require extensive transportation of raw materials and finished goods, thereby increasing the demand for road freight services. The manufacturing sector's expansion underscores the need for a reliable and efficient logistics network to support production and distribution activities.

Market Challenges

  • Fuel Price Volatility: India's trucking industry faces significant challenges due to fluctuating fuel prices. The soaring fuel costs, driven by rising benchmark Brent prices and numerous tax hikes, have impacted truckers significantly, as fuel accounts for 70% of the cost of operating a truck. This volatility affects operational costs and profitability for freight operators.
  • Regulatory Constraints: The Indian Road freight sector is subject to various regulatory challenges, including compliance with emission standards and road safety regulations. The implementation of policies such as restricting trucks over 15 years old aims to phase out older, polluting vehicles, but also requires operators to invest in newer fleets, impacting their financial resources.

India Road Freight Transport Market Future Outlook

Over the next five years, the India Road Freight Transport industry is set to experience growth, driven by continued investment in infrastructure, adoption of digital logistics platforms, and the expansion of organized retail and e-commerce.

Future Market Opportunities

  • LNG-Fueled Trucking Initiatives: India plans to switch a third of its heavy-duty long-haul trucking fleet to liquefied natural gas (LNG) in the next five to seven years. This initiative is part of India's broader goal to reduce pollution and achieve net-zero emissions by 2070. The shift to LNG from diesel is anticipated to decrease diesel consumption, impacting global markets positively.
  • Infrastructure Investments: India has significantly increased its infrastructure spending under Prime Minister Narendra Modi, with expenditures on road construction up twelvefold over the past decade. Over the last five years, infrastructure investments have totaled around $800 billion, reflecting efforts to make India a global manufacturing hub and generate employment.

Scope of the Report

End User Industry

Agriculture, Fishing, and Forestry
Construction
Manufacturing
Oil and Gas
Mining and Quarrying
Wholesale and Retail Trade
Others

Destination

Domestic
International

Truckload Specification

Full-Truck-Load (FTL)
Less-than-Truck-Load (LTL)

Containerization

Containerized
Non-Containerized

Distance

Long Haul
Short Haul

Goods Configuration

Solid Goods
Fluid Goods

Temperature Control

Non-Temperature Controlled
Temperature Controlled

Region

North

East

West

South

Products

Key Target Audience Organizations and Entities Who Can Benefit by Subscribing This Report:

  • Logistics Service Providers
  • E-commerce Companies
  • Retailers and Distributors
  • Manufacturing Firms
  • Agricultural Producers
  • Investor and Venture Capitalist Firms
  • Government and Regulatory Bodies (Ministry of Road Transport and Highways)
  • Technology Solutions Providers

Companies

Players Mentioned in the Report:

  • Gati-Kintetsu Express
  • VRL Logistics
  • Blue Dart Express
  • Mahindra Logistics
  • Delhivery
  • CJ Darcl Logistics
  • Transport Corporation of India
  • Snowman Logistics
  • Allcargo Logistics
  • Future Supply Chain Solutions

Table of Contents

1. India Road Freight Transport Market Overview

1.1. Definition and Scope

1.2. Market Taxonomy

1.3. Market Growth Rate

1.4. Market Segmentation Overview

2. India Road Freight Transport Market Size (In USD Billion)

2.1. Historical Market Size

2.2. Year-On-Year Growth Analysis

2.3. Key Market Developments and Milestones

3. India Road Freight Transport Market Analysis

3.1. Growth Drivers

3.1.1. Economic Expansion

3.1.2. Industrialization

3.1.3. E-commerce Growth

3.1.4. Infrastructure Development

3.2. Market Challenges

3.2.1. Fuel Price Volatility

3.2.2. Regulatory Constraints

3.2.3. Infrastructure Bottlenecks

3.2.4. Environmental Concerns

3.3. Opportunities

3.3.1. Technological Advancements

3.3.2. Public-Private Partnerships

3.3.3. Expansion into Rural Areas

3.3.4. Green Logistics Initiatives

3.4. Trends

3.4.1. Adoption of LNG-Fueled Trucks

3.4.2. Integration with Digital Platforms

3.4.3. Shift Towards Organized Logistics

3.4.4. Emphasis on Sustainability

3.5. Government Regulations

3.5.1. National Logistics Policy

3.5.2. Emission Standards

3.5.3. Goods and Services Tax (GST) Impact

3.5.4. Road Safety Regulations

3.6. SWOT Analysis

3.7. Stakeholder Ecosystem

3.8. Porters Five Forces Analysis

3.9. Competitive Landscape

4. India Road Freight Transport Market Segmentation

4.1. By End User Industry (In Value %)

4.1.1. Agriculture, Fishing, and Forestry

4.1.2. Construction

4.1.3. Manufacturing

4.1.4. Oil and Gas

4.1.5. Mining and Quarrying

4.1.6. Wholesale and Retail Trade

4.1.7. Others

4.2. By Destination (In Value %)

4.2.1. Domestic

4.2.2. International

4.3. By Truckload Specification (In Value %)

4.3.1. Full-Truck-Load (FTL)

4.3.2. Less-than-Truck-Load (LTL)

4.4. By Containerization (In Value %)

4.4.1. Containerized

4.4.2. Non-Containerized

4.5. By Distance (In Value %)

4.5.1. Long Haul

4.5.2. Short Haul

4.6. By Goods Configuration (In Value %)

4.6.1. Solid Goods

4.6.2. Fluid Goods

4.7. By Temperature Control (In Value %)

4.7.1. Non-Temperature Controlled

4.7.2. Temperature Controlled

4.8. By Region (In Value %)

4.8.1. North

4.8.2. East

4.8.3. West

4.8.4. South

5. India Road Freight Transport Market Competitive Analysis

5.1. Detailed Profiles of Major Companies

5.1.1. CJ Darcl Logistics Ltd

5.1.2. Delhivery Limited

5.1.3. Gati-Kintetsu Express Private Limited

5.1.4. GEODIS

5.1.5. Mahindra Logistics Ltd.

5.1.6. VRL Logistics Ltd.

5.1.7. Transport Corporation of India Limited

5.1.8. Blue Dart Express Ltd.

5.1.9. Allcargo Logistics Ltd.

5.1.10. Snowman Logistics Ltd.

5.1.11. Future Supply Chain Solutions Ltd.

5.1.12. Patel Integrated Logistics Ltd.

5.1.13. Sical Logistics Ltd.

5.1.14. Shreeji Transport Services Pvt. Ltd.

5.1.15. TVS Supply Chain Solutions Ltd.

5.2. Cross Comparison Parameters

5.2.1. Number of Employees

5.2.2. Headquarters Location

5.2.3. Year of Establishment

5.2.4. Revenue

5.2.5. Fleet Size

5.2.6. Service Offerings

5.2.7. Geographic Coverage

5.2.8. Technological Capabilities

5.3. Market Share Analysis

5.4. Strategic Initiatives

5.5. Mergers and Acquisitions

5.6. Investment Analysis

5.6.1. Venture Capital Funding

5.6.2. Government Grants

5.6.3. Private Equity Investments

6. India Road Freight Transport Market Regulatory Framework

6.1. Environmental Standards

6.2. Compliance Requirements

6.3. Certification Processes

7. India Road Freight Transport Future Market Size (In USD Billion)

7.1. Future Market Size Projections

7.2. Key Factors Driving Future Market Growth

8. India Road Freight Transport Future Market Segmentation

8.1. By End User Industry (In Value %)

8.2. By Destination (In Value %)

8.3. By Truckload Specification (In Value %)

8.4. By Containerization (In Value %)

8.5. By Distance (In Value %)

8.6. By Goods Configuration (In Value %)

8.7. By Temperature Control (In Value %)

8.8. By Region (In Value %)

9. India Road Freight Transport Market Analysts Recommendations

9.1. Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) Analysis

9.2. Customer Cohort Analysis

9.3. Marketing Initiatives

9.4. White Space Opportunity Analysis

Disclaimer

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Research Methodology

Step 1: Identification of Key Variables

A comprehensive ecosystem map was constructed, identifying all critical variables influencing the India Road Freight Transport Market. Extensive desk research and secondary data collection ensured detailed insights into market dynamics.

Step 2: Market Analysis and Construction

Historical data and current market penetration metrics were analyzed to assess market size and trends. A detailed evaluation of logistics service adoption by different sectors was conducted to validate revenue estimates.

Step 3: Hypothesis Validation and Expert Consultation

Industry hypotheses were validated through interviews with logistics experts and key stakeholders. This step provided operational and financial insights to corroborate the collected data.

Step 4: Research Synthesis and Final Output

Synthesized data was verified through engagement with leading logistics firms and government authorities. The final output included detailed segment analysis, growth drivers, and challenges specific to the market.

Frequently Asked Questions

01. How big is the India Road Freight Transport Market?

The India Road Freight Transport Market is valued at USD 136 billion, driven by robust industrial activity and growing e-commerce logistics requirements.

02. What are the key challenges in the India Road Freight Transport Market?

Challenges in the India Road Freight Transport Market include fuel price volatility, infrastructure bottlenecks, and stringent regulatory requirements. Additionally, the unorganized sector creates price competition for organized players.

03. Who are the major players in the India Road Freight Transport Market?

Key players in the India Road Freight Transport Market include Gati-Kintetsu Express, VRL Logistics, Blue Dart Express, Mahindra Logistics, and Delhivery, among others.

04. What drives growth in the India Road Freight Transport Market?

Growth in the India Road Freight Transport Market is driven by increased industrialization, e-commerce expansion, and investments in infrastructure like expressways and logistical parks.

05. What role does technology play in the market?

Technology plays a critical role in optimizing operations, including route management, real-time tracking, and enhancing service reliability.

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