Trucking Transportation Logistics Market

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Trucking Transportation Logistics Market

The U.S. trucking segment of the transportation and logistics industry was estimated at $732 billion in 2018. The warehousing and storage industry (not specific to trucking) in North America had a market size of $71.9 billion in 2018.

Trucking Transportation Logistics

  • In 2017, the trucking segment of the transportation and logistics industry in the United States was valued at about $700 billion. The compound annual growth rate (CAGR) for the road transport segment of the logistics industry from 2014-2018 was 4.6%. Therefore, the 2018 market size can be estimated at $732 billion ($700 billion x 1.046).
  • The roadways portion of the North American freight and logistics market is expected to be valued at $913 billion by 2023, with a CAGR of 2.63% from 2018-2023.
  • Between 60% and 71% of all U.S. freight is carried by truck.
  • Growth in the industry is being driven primarily by growth of the ecommerce sector.
  • Trends in the trucking logistics industry include a driver shortage, the shutting down of some small carriers, and driver detention becoming a bigger issue.

Warehousing and Storage Industry

  • The 2018 market size of the North American warehousing and storage industry was $71.9 billion. By 2024, it is expected to reach $86.41 billion, with a CAGR of 3% from 2019 to 2024.
  • The North American warehouse order picking market is expected to have a CAGR of 8.9% from 2019-2025. Globally, the CAGR for the same time period is 10.2%. Although the size of the market relative to North America was not publicly available, it was found that North America accounted for the largest share of the global market which was expected to reach $11.6 billion by 2025.
  • On-demand warehouses give companies the ability to find warehouse space at peak times, without having to maintain or pay for that space year round. Technology is helping companies determine how much space they need and then connect them with available warehouse space. Large companies, including Walmart and KFC, have and are using these on-demand warehouses to help keep their deliveries on track.
  • By 2023, the on-demand warehousing market is expected to reach $25 billion globally.

Distribution Centers

  • Since distribution centers are a type of warehouse, the market size of the distribution center segment is a portion of the warehousing market. Unfortunately, the market size of this sub segment does not appear to be publicly available.
  • Although new industrial space, including warehouse and distribution space, is being built regularly, there is not enough to meet demand, and rental rates for space is increasing, with rates reaching an average of $7.21 per square foot in the U.S. in January 2019.
  • According to a survey of warehouses and distribution centers, the inability to consistently attract and retain qualified workers is the top pain point of the industry.
  • Also of note, 2018 was the first time that the percentage of facilities using a warehouse management system exceeded 90%, with 93% reporting a system was used.
  • The total square footage for companies also increased in 2018 with 17% of companies reporting total square footage of more than 2 million square feet, compared to 10% with that amount in 2017.

Manufacturers and Logistics

  • There does not appear to be any publicly available information on the market size for the manufacturing segment of the logistics industry in the U.S. or globally.
  • Uber released a freight app that allows truckers to rate warehouses, and when there are long delays at warehouses, truckers may give the facility a low grade, which can cause other truckers to avoid taking jobs that involve a particular warehouse. This can complicate deliveries for manufacturers and their customers.
  • There are several technology trends that will impact manufacturing logistics including the Internet of Things, cloud-based commerce networks, advanced techniques for weighing and shipping, 3D printing, machine learning, and blockchain.

Research Strategy

We began our search for the market size of the warehousing, distribution center, and manufacturing sectors of the logistics industry in market reports from research leaders including Research and Markets and Mordor Intelligence. Although this allowed us to find the North American market size of the warehousing and storage industry, and some market data on the warehouse order picking market, there was nothing publicly available on distribution centers or manufacturing. A report from Market Research Future did provide data on the manufacturing segment of the logistics industry, but it was behind a paywall.

Since the initial hour of research had found the 2017 market size for the trucking segment of the transportation and logistics industry in the United States, we decided to attempt to triangulate an estimate of the 2018 or 2019 size by finding the CAGR for the industry. This strategy allowed us to successfully estimate the 2018 market size. Our hope was that we could then locate the market share of each of the segments of interest, manufacturing plants and distribution centers, which would allow us to estimate the market sizes by multiplying the market size by the market share. Unfortunately, extensive searches through market reports, industry sites (e.g. Fleet Owner and Logistics Management), and reputable news sites (e.g. Business Insider and BizTech Magazine), did not uncover the market share data we needed. We did find that the distribution center sector is actually a sub sector of the warehousing industry, but the breakdown was not publicly available.
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