Mobility/Transportation Market Analysis

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Mobility/Transportation Market Analysis

Key Insights:

  • In 2019, the global air freight market was valued at $270.2 billion, according to a report published in 2021. The market is expected to reach a value of $376.8 billion by 2027, growing at a rate of 5.6% (CAGR).
  • The growth of the public transportation market is being driven by an increasing human population and increasing demand for high quality and efficient public transportation facilities within cities, which is subsequently being driven by increasing population growth in urban areas. Additionally, an effort to prevent congestion and control vehicle emissions has been leading to a development in public transport infrastructure, which is further driving growth in this overall market.
  • The water transportation market segmented in the following way: deep sea, coastal, and great lakes and inland water transport.

Introduction

This research provides a snapshot of the pre-dominant sub-categories within the global mobility/transportation market, focusing on the following sub-categories: air freight and logistics, passenger air transport, mass transit (public transport), rail transportation, road freight transportation (road haulage), marine transportation (water transportation), and space launch transportation services. For each category, a description has been provided along with the category's market standing (market size in dollars and growth rate), market drivers, key players, and market segments.

Pre-Dominant Sub-Categories in the Global Mobility/Transporation Market

Air Freight and Logistics:

  • Market Description: According to Allied Markets, "air freight is a transportation mode of delivering fast-speed shipments via aircraft, mostly for longer distances. Air freight contributes to the global economic development as the global economy relies on the capability to transport valuable and superior quality products rapidly to consumers across the world." Because air freight is relatively expensive, its is commonly used to transport valuable and perishable items, including jewelry, pharmaceuticals, and expensive electronic items.
  • Market Standing: In 2019, the global air freight market was valued at $270.2 billion, according to a report published in 2021. The market is expected to reach a value of $376.8 billion by 2027, growing at a rate of 5.6% (CAGR). Air freight accounts for about 1% of total freight activities by weight.
  • Market Drivers: Within the industry, the implementation of the following factors are driving growth within the global air freight market: updated technologies in the realms of flight operations, revenue accounting, and networking planning; robotics, automated systems, A.I., Big Data, deep learning, IoT, and augmented/virtual reality. Additionally, "faster delivery of shipments as compared with other logistics solutions and rising popularity of consolidated airfreight service are anticipated to boost the growth of the air freight market during the forecast period," through 2027. "The delivery of items via cargo planes is the fastest way among other modes of transportation. While other modes of transportation, for instance, shipping, rail or road transport, usually take days or weeks to deliver the items, air transport makes the delivery of items in just a few hours. Attributed to the presence of lesser stock to unload in comparison with cargo ships, the customs clearance is quick and the requirement for local warehousing is much lesser. Moreover, air freight is the safest among all other modes as goods sent via air go through least handling and the safety controls at airports are strictly managed. This decreases the risk of both theft and damage to the shipment. In addition, as the shipment duration is quite short, the insurance premiums on air freight are usually low. These factors make air freight a superior and essential mode of goods transportation." The 2020 corona virus pandemic upset the air freight industry, decreasing demand drastically, due in large part to the closure of national and international airways, grounding aircraft for months. Additionally, "high costs associated with air freight solutions are expected to hinder the growth of the market," through 2027.
  • Key Players: The key players in this market are Bolloré Logistics, DB SCHENKER, Deutsche Post AG, DSV Panalpina, Expeditors International of Washington, Inc., FedEx, Hellmann Worldwide Logistics, Kuehne+Nagel International AG, Nippon Express, and United Parcel Service, Inc.
  • Market Segments: The air freight market is segmented by service (freight, express, mail and other services), destination (domestic and international), end-use (private and commercial) and region (North America, Europe, Asia-Pacific, and LAMEA).

Passenger Air Transport:

  • Market Description: According to Research and Markets, "the passenger air transport services market consists of sales of passenger air transportation services and related goods by entities (organizations, sole traders and partnerships) that use aircraft, such as airplanes and helicopters to provide air transportation services for passengers. It includes services offered by both scheduled and nonscheduled air carriers."
  • Market Standing: In 2020, the global passenger air transport market was valued at $460.07 billion and is expected to reach $524.82 billion in 2021. The market is expected to grow at a rate of 6% CAGR through 2025, reaching a value of $657.15 billion.
  • Market Drivers: Increasing global tourism is expected to drive growth in this market through at least 2025.
  • Key Players: Some key players in this market are American Airlines; Delta Airlines; UnitedContinental; Deutsche Lufthansa and Air France KLM.
  • Market Segments: This market is segmented into domestic air passengers and international air passengers.

Mass Transit (Public Transport):

  • Market Description: According to the CDC, "public transportation systems include a variety of transit options such as buses, light rail, and subways. These systems are available to the general public, may require a fare, and run at scheduled times. The purpose of introducing or expanding public transportation is to increase access to and use of public transit while, at the same time, reducing motor vehicle miles driven and traffic congestion. Public transportation systems are often implemented at the local or regional level and can be supported by federal initiatives, such as the Fixing America’s Surface Transportation (FAST) Act. Los Angeles County is one example of a region that expanded its public transportation system using local, state, and federal funding. Transportation systems help ensure that people can reach everyday destinations, such as jobs, schools, healthy food outlets and healthcare facilities, safely and reliably. Public transportation services play an important role for people who are unable to drive, including those without access to personal vehicles, children, individuals with disabilities, and older adults."
  • Market Standing: The global public transportation market is expected to grow at a rate of 8.11% CAGR though 2027, according to a report published in 2020. In the U.S. alone, the public transportation market is valued at $77 billion as of 2021. According to the Business Research Company, "The global transit and ground passenger transport market is expected to grow from $412.7 billion in 2020 to $460.8 billion in 2021 at a compound annual growth rate (CAGR) of 11.%. [...] The transit and ground passenger transport market consists of sales of transit and ground passenger transportation services and related goods by entities (organizations, sole traders and partnerships) that provide a variety of passenger transportation services, such as urban transit systems, chartered buses, school buses, and interurban bus transportation."
  • Market Drivers: The growth of this market is being driven by an increasing human population and increasing demand for high quality and efficient public transportation facilities within cities, which is subsequently being driven by increasing population growth in urban areas. Additionally, an effort to prevent congestion and control vehicle emissions has been leading to a development in public transport infrastructure, which is further driving growth in this overall market. "Europe acquired the second-largest share of the market in the year 2018. The primary reason for this is to prevent traffic and to control the emissions from private vehicles. And the rapid investments in the expansion of the public transports. The connecting Europe facility is working with the EU for the development of the European transport infrastructure. It has a total budget of USD 26.8 billion. It will help in the investments of the new building infrastructure or upgrade the old ones. This will lead to the sustainable growth of the public transport market." Other drivers within this market include: shifting consumer preferences in favor of eco-friendly transportation, innovative use of public transport to distribute goods, growing awareness of public transport options across industries, and government initiatives to improve public transportation infrastructure and adoption. Despite this many positive drivers, the industry is challenged by security issues and the need for a high level of capital investment to update and build public transport infrastructure.
  • Key Players: Some key players in this market include Soeul Metro (South Korea), Transport For London (UK), The San Diego Metropolitan Transit System (US), MRT Corporation (Hong Kong), Metropolitan Transportation Authority (US), Chicago Transit Authority (US), Bay Area Rapid Transit - BART (US), and Massachusettes Bay Transportation Authority (US).
  • Market Segments: The public transportation market is segmented by type (bus, light rail, regional taxi, metro, and tram) and on the basis of application (city and rural).

Rail Transportation:

  • Market Description: According to the Business Research Company, "the rail transport market consists of sales of rail transportation services and related goods by entities (organizations, sole traders and partnerships) that use trains to provide transport for passengers and/or cargo. Railroads operate either on networks with physical facilities, labor forces, and equipment spread over a wide geographic area or operate over a short distance on a local rail line. This market excludes street railroads, commuter rail, urban rapid transit, and scenic and sightseeing train transportation."
  • Market Standing: In 2020, the global trail transport market was valued at $468.6 billion after growing at a rate of 1.5% CAGR between 2015 and 2020. By 2025, the market is expected to be worth $658.4 billion with a CAGR of 7%. Between 2025 and 2030 the market is expected to grow at a CAGR of 5.1%.
  • Market Drivers: Between 2015 and 2020, the global rail transport market was driven by strong economic growth, especially in emerging markets. E-commerce, changing taxation rules, and increasing activity in the mining industry were also key growth drivers. Despite this, the market faced challenges such as political uncertainties and changing customer preferences. Beyond 2020, expected growth drivers include the implementation of high-speed trains and other technological advances, coupled with a consumer desire to cut carbon emissions. Expected challenges include a shortage of drivers and operators, stringent government regulations, growing competition from ride hailing apps, and increased options with regard to car rentals. In 2020, "the COVID-19 outbreak had a significant impact on the rail transport as governments globally imposed lockdowns and suspended domestic and international transportation services to contain the virus. The number of rail passengers during the pandemic has decreased significantly as the individuals were restricted to travel to avoid the spread of COVID-19. For instance, there has been a decrease in ridership in Sweden with 60% in Stockholm and 40% in Vastra Gotaland."
  • Key Players: Some key players in this market are Deutsche Bahn, BNSF Railway, JSC Russian Railways, Indian Railways, and SNCF.
  • Market Segments: This market is segmented by type of service (passenger rail transportation and rail freight transportation) and by distance (long-distance rail transport and short-distance rail transport).

Road Freight Transportation (Road Haulage):

  • Market Description: "Road Freight is the physical process of transporting cargo by road using motor vehicles. In this case, road is a lane/route between the point of departure and the point of destination. Compared to other types of transport system such as sea and air, the cost of maintaining roads is cheaper. Road freight can be in certain cases, the only way of transport in/to rural areas where other mode of transports is not available."
  • Market Standing: According to data published by Research and Markets, "amid the COVID-19 crisis, the global market for Road Freight Transportation estimated at US$3.5 Trillion in the year 2020, is projected to reach a revised size of US$4.8 Trillion by 2027, growing at a CAGR of 4.9% over the period 2020-2027."
  • Market Drivers: Increasing retail sales, driven by ecommerce, are expected to drive demand for road freight services and logistics. Additionally, there has been an increasing supply of high-value, light-weight goods and increasing international trade, which are also helping to drive demand in the road freight industry. As GDP growth positively correlates to freight transport development, countries that have growing GDP are also helping to drive this market. Despite these drivers, the market is facing challenges such as increasing fuel prices, which account for 30-35% of trucking freight rates; fuel prices have been increasing recently after a period of low prices. Lastly, driver shortages are driving up the costs of driver wages, which also account for 30-35% of carriers' operating costs.
  • Key Players: The following are key players within the global road freight transportation market: Deutsche Bahn AG, Deutsche Post DHL Group, FedEx Corp., United Parcel Service Inc., Kuehne+Nagal International AG, C.H. Robinson Worldwide Inc., CEVA Logistics AG, Nippon Express Co. Ltd., SNCF Logistics, and DSV Panalpina A/S.
  • Market Segments: "Based on type, the market for road haulage is segmented into two types of goods transportation, namely international road haulage and domestic road haulage. The domestic road haulage segment dominated the market in 2018 and accounted for a share of more than 60%. [...] The international road haulage segment is anticipated to register a CAGR exceeding 7% during the forecast period. (2025) [...] Based on the vehicle type used for transportation of goods, the market for road haulage is segmented into light commercial vehicles and heavy commercial vehicles. The light commercial vehicle segment is estimated to register a CAGR exceeding 8% over the forecast period. [...] Nevertheless, the heavy commercial vehicle segment is likely to retain its dominance over the forecast period. The segment accounted for a share of over 80% in 2018 and is likely to continue to account for the lion’s share of the market by 2025 as well. [...] Road haulage services are used across several applications areas in different industries such as mining & construction, oil & gas, food & beverage, retail, manufacturing, healthcare, automotive, and others."

Marine Transportation (Water Transportation):

  • Market Description: This market is based around the sale of water transportation services and goods by operators providing passenger and/or cargo transportation by watercraft (ships, barges, boats, etc).
  • Market Standing: According to Research and Markets, "The global water transport market is expected to grow from $486.47 billion in 2020 to $507.44 billion in 2021 at a compound annual growth rate (CAGR) of 4.3%."
  • Market Drivers: According to data published by IBISWorld in 2021, "The Ocean and Coastal Transportation industry is expected to encounter renewed growth over the five years. Rebounding economic conditions in both the United States and overseas are projected to renew international trade activity, bolstering demand for waterborne freight shipping during the period. Consequently, the gap between shipping demand and cargo carrying capacity in the industry's deep-sea freight shipping segment will likely narrow, enabling companies to increase shipping rates. Moreover, strong demand for oil and gas transportation will continue to generate demand for the industry's coastal services. Combined with an aging US population, rising levels of per capita disposable income will enable US consumers to spend more on cruise travel."
  • Key Players: Some key players in the water transportation market are as follows: A.P. Moller-Maersk, Mediterranean Shipping Company (MSC), CMA-CGM, Evergreen Marine Corporation, and Nippon Yusen Kabushiki Kaisha (NYK).
  • Market Segments: The water transportation market segmented in the following way: deep sea, coastal, and great lakes and inland water transport.

Space Launch Transportation Services:

  • Market Description: According to Trends Market Research, the space launch transportation services market is "associated with the activities carried out by space launch service providers. It consists of a series of events such as onboarding, conversion, construction, stacking and assembly, integration of payload, and launch."
  • Market Standing: A specific market size for the global space transportation market as a whole does not appear to be publicly available, based on research of existing market reports. Although this figure does exist, it is locked in pay-walled market reports such as this one. This is likely due to the fact that space transportation is a relatively emerging market with stiff competition and, therefore, market insights are likely to be highly coveted. This tends to be the case with many emerging and niche markets. Despite this lack of available information, some publicly available data shows the market size of the space launch services market is expect to be $32.41 billion by 2027. As of 2019 the global space launch services market was valued at $9.88 billion and is expected to grow at a rate of 15.7% CAGR between 2020 and 2027.
  • Market Drivers: Increasing investments by private companies and governments are promoting research into space and are driving growth within this market. There is also an increasing demand for non-geostationary satellite orbit (NGSO), which is driving the demand for commercial space launches. In addition to this, suborbital vehicles have been developed, which is creating new opportunities in the realm of space tourism, which is projected to take hold in the near future. The U.S. market holds the largest share of this market as of 2019 and is expected to maintain this share through 2027. Covid-19 has been a major restraint on this market as it has disrupted a number of key activities and events around the world. Additionally, there is a high initial investment related to space launch services, which is a hindrance to overall market growth.
  • Key Players: Some key players in the space launch services market include Mitsubishi Heavy Industries, Antrix Corporation Ltd., AIRBUS S.A.S (Airanspace), Space Exploration Technologies Corp (SpaceX), The Boeing Company (United Launch Alliance), Safran (Arianespace), State Space Corporation ROSCOSMOS, Lockheed Martin Corp. (United Launch Alliance), S7 Space (Sea Launch), and Rocket Lab USA.
  • Market Segments: The space transportation services market is segmented by type (orbital and suborbital) and application (commercial, scientific, and other). The space launch services market is segmented by payload (satellite, human spacecraft, cargo, testing probes, and stratollite), launch platform (land, air, and sea), service type (pre-launch and post-launch services), launch vehicle (small and heavy), end-user (government, military, and commercial) and region (U.S., Russia, Other European Countries, China, India, Japan, New Zealand, and 'Rest of the World').

Research Strategy

To conduct this research, we began by working to identify predominant sub-categories within the global mobility and transportation market. As there are a vast number of sub-categories within this market, we aimed to focus on those that are the most predominant across land, sea, air, and space. Predominance was determined based on the size ($) of the sub-categories, focusing on those that are umbrella categories for other sub-subcategories and are worth billions of dollars. For each category identified, we provided a market description, market standing (market size in dollars and growth rate), market drivers (growth drivers and market challenges to show the forces of change in each category), a sampling of key players within the market, and a breakdown of the category's key market segments. The information provided has been sourced from highly credible and recently published market reports.

Research proposal:

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