Cross-Border Road Transport Market Size - By Transportation Mode (Freight Transport, Passenger Transport), By Cargo Type (Perishable Goods, Non-Perishable Goods, Specialized Cargo), By End User & Forecast, 2024 - 2032

Cross-Border Road Transport Market Size

Cross-Border Road Transport Market size was valued at USD 251.6 billion in 2023 and is estimated to register a CAGR of over 6.4% between 2024 and 2032. The growth of the economy is fueling the overall demand for goods, both domestically and internationally. Various companies have been importing raw materials and finished products to meet this growing demand. Moreover, as consumers' disposable incomes increase, they are more likely to buy imported goods, resulting in a boost in cross-border trade.
 

With a larger volume of goods being traded internationally, there has been a higher demand for efficient transportation methods to transit them between regions. Road transport often proves to be a cost-effective and relatively quick option for shorter distances or regional trade. This is especially true for goods that are not time-sensitive or perishable. Moreover, the European cross-border road freight transport market is benefiting from substantial investments in transport infrastructure.
 

For instance, in June 2022, the EU approved EUR 5.4 billion for transport projects. It aims to enhance connectivity and promote sustainable transportation. These efforts align with the EU's Trans-European transport network goals. The ban on diesel imports from Russia has also led to an increase in diesel imports from other regions, further impacting the road transport sector. ?
 

Further, urbanization leads to higher population densities and increased consumer purchasing power.  With the growing urban populations, the demand for a wide range of consumer goods including electronics, clothing, food products, and household items has also increased. It results in the concentration of consumers in specific areas, making last-mile delivery crucial. Furthermore, cross-border road transport plays a key role in delivering goods from distribution centers or ports to urban retail outlets and consumers' doorsteps. Urbanization prompts investments in transportation infrastructure, including roads and highways, to accommodate growing traffic volumes and improve connectivity between urban centers and international borders.
 

For instance, in March 2023, the Indian government announced plans to invest significantly in improving road infrastructure to facilitate smoother transportation of goods across urban centers and international borders. This initiative aims to support the growing e-commerce sector in the country and meet the increasing demand for consumer goods in urban areas.
 

Extensive paperwork and strict regulations regarding permits, invoices, and customs declarations can lead to delays and disruptions. In addition, different countries have their own customs regulations and banned/restricted goods lists. Keeping track of these variations can be complex for businesses, leading to potential fines or even cargo seizure. Further, the global shortage of qualified truck drivers can limit the availability of transport capacity and potentially drive-up labor costs. The risk of theft or damage to cargo during cross-border journeys necessitates robust security measures, adding complexity to the process and hindering market growth.
 

Cross-Border Road Transport Market Trends

The adoption of digital technologies, such as electronic documentation, real-time tracking, and automated customs clearance, significantly improves efficiency and transparency in cross-border transport operations. Additionally, advanced GPS and telematics systems enable real-time tracking of vehicles and shipments. This capability allows logistics operators to monitor the location, speed, and condition of goods in transit across borders.
 

Businesses streamline their intralogistics processes with the help of automation and digitalization. For instance, in March 2023, ArcBest Corporation launched Vaux, a groundbreaking freight movement technology that enhances intralogistics processes. This technology allows for the unloading of a trailer's full contents in less than five minutes and provides comprehensive insights into the movement of goods. It helps in optimizing warehouse operations and supply chains.
 

Moreover, governments worldwide are implementing stricter regulations aimed at reducing carbon emissions and promoting sustainable transport solutions. This includes targets for reducing greenhouse gas emissions and promoting the use of alternative fuels. Green transport practices such as using alternative fuels such as electric, natural gas, and hydrogen, and optimizing logistics routes lead to sustainable transport solutions.
 

For instance, in February 2023, DHL Freight announced the expansion of its fleet of electric trucks for cross-border road transport operations in Europe. This initiative aims to reduce carbon emissions and align with the European Union's sustainability goals. The electric trucks are equipped with advanced battery technology and will be used for transporting goods across key European borders, contributing to a greener supply chain.
 

Cross-Border Road Transport Market Analysis

Based on transportation mode, the market is divided into freight transport and passenger transport. In 2023, freight transport accounted for a market share of over 75%. This mode of transport mode includes full truckload (FTL), less than truckload (LTL), and specialized freight. It also involves transporting entire trucks filled with large. FTL is preferred for high-volume and high-value goods, due to its efficiency and reduced risk of damage. LTL shipping combines smaller shipments from multiple customers into one truck and is considered cost-effective for businesses that do not require a full truck for their goods.
 

Further, specialized freight mode involves transporting perishable goods that require specific temperature settings, such as food, pharmaceuticals, and chemicals. As a result, FTL remains the dominant mode in cross-border road transport, due to its affordability and efficiency for bulk goods. For instance, in May 2023, the US Department of Transportation reported an increase in FTL shipments across the U.S.-Mexico border, driven by growing industrial production in Mexico and demand for just-in-time delivery in the U.S. automotive sector. Further, FTL is preferred for time-sensitive shipments or when a shipper needs dedicated capacity. This highlights the importance of FTL in supporting cross-border manufacturing supply chains.
 

Based on cargo type, the cross-border road transport market is categorized into perishable goods, non-perishable goods, and specialized cargo. Non-perishable goods are expected to hold over USD 280.8 billion by 2032, owing to the growing demand for a diverse range of products such as electronics, machinery, clothing, and various raw materials. In addition, robust infrastructure, and extensive road networks enhance the efficiency and reliability of cross-border transport for non-perishable goods. Moreover, manufacturing and retail businesses rely on timely deliveries of non-perishable components and finished products, keeping inventory levels low and maximizing efficiency.


Further, embracing digital solutions for tracking, documentation, and customs clearance can streamline processes and reduce costs associated with non-perishable goods transport. For instance, in March 2024, The World Customs Organization (WCO) launched a new initiative to promote the harmonization of digital customs data standards. This initiative aims to facilitate faster clearance processes for non-perishable goods at borders. Its primary objective is to establish common standards for digital customs data across participating countries. This initiative aligns with broader global efforts towards trade facilitation and the digital transformation of customs processes.
 

North America has a significant share of the cross-border road transport market with around 32% of the revenue share in 2023. The market in the region is a crucial component of the region's logistics and trade infrastructure. The market is characterized by significant trade activities between the U.S., Canada, and Mexico, facilitated by agreements such as the US-Mexico-Canada Agreement (USMCA). These agreements have streamlined trade between the three nations, reducing tariffs and simplifying customs procedures, thus leading to a rise in cross-border freight movement.
 

In addition, the growing e-commerce sector in the region is driving demand for efficient last-mile delivery solutions, relying on cross-border road transport for regional distribution. For instance, in February 2024, FedEx announced the expansion of its cross-border e-commerce services between the U.S. and Canada. It offers faster delivery times and streamlines customs clearance for online retailers. It provides numerous benefits such as increased sales, reduced costs, improved efficiency, and enhanced customer satisfaction, which fosters the growth of e-commerce market in the region.
 

Cross-Border Road Transport Market Share

DHL International GmbH, FedEx Corporation, and UPS dominate the market with around 10% of the market share. DHL International offers a comprehensive suite of express, freight forwarding, and contract logistics solutions. They boast a strong presence in Europe and a vast international network, connecting businesses and consumers across over 220 countries and territories. Their focus on innovation includes integrating real-time tracking, IoT sensors, and blockchain technology for efficient cross-border road transport.
 

A global leader in express delivery, FedEx Corporation provides a wide range of services including overnight shipping, freight forwarding, and logistics solutions. They operate a robust air cargo network and extensive ground transportation infrastructure, facilitating rapid and reliable deliveries worldwide. The company is actively expanding its cross-border e-commerce service to streamline customs clearance for online retailers between the U.S. and Canada.

UPS offers a broad spectrum of services, including express delivery, supply chain management, and freight forwarding. They're known for their efficient package tracking systems and established global network. They also focus on innovation, with investments in automation and autonomous delivery vehicles to enhance efficiency and cater to the growing e-commerce market.
 

Cross-Border Road Transport Market Companies

Major players operating in the cross-border road transport industry are:

• DHL Supply Chain
• FedEx Corporation
• United Parcel Service (UPS)
• DB Schenker
• Kuehne + Nagel
• C.H. Robinson
• Nippon Express
• J.B. Hunt Transport Services
• Ryder System
• XPO Logistics
   

Cross-Border Road Transport Industry News

• In April 2024, DHL announced a partnership with Traton Group, manufacturers of electric trucks, to develop zero-emission refrigerated trailers for urban deliveries. This highlights the growing focus on sustainable solutions in cross-border road transport.  It addresses both environmental concerns and the growing demand for efficient urban delivery solutions.
   
• In June 2024, The North American Free Trade Agreement (NAFTA) Secretariat announced a pilot program to test the usage of blockchain technology for trade documentation and customs clearance. This initiative aims to reduce paperwork and expedite cross-border movement of goods within North America.
   

The cross-border road transport market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and volume (000’ tons) from 2021 to 2032, for the following segments:

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Market, By Transportation Mode

• Freight transport
  • Full truckload (FTL)
  • Less than truckload (LTL)
  • Specialized freight
• Passenger transport
  • Cross-border bus services
  • Shuttle services
  • Private vehicles

Market, By Cargo Type

• Perishable goods
• Non-perishable goods
• Specialized cargo

Market, By End-user

• Manufacturing
• Retail and e-commerce
• Automotive
• Agriculture
• Pharmaceuticals & healthcare
• Oil & gas
• Defense and military logistics
• Individual
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA