Intermodal Freight Transportation Market Size

Intermodal Freight Transportation Market Size

Intermodal Freight Transportation Market size was valued at USD 82.2 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 and 2032. The growth of the market is driven by numerous factors such as cost-saving and efficiency, growing environmental awareness, and rising global trade. Intermodal freight transportation combines multiple modes of transport (rail, road, maritime) to move goods more cost-effectively than single-mode transportation.

To get key market trends

  Download Free Sample

It reduces fuel costs, labor expenses, and equipment costs, making it an attractive option for shippers. In addition, the rising awareness and growing need to reduce carbon footprints and CO2 emissions are propelling the adoption of intermodal transportation, which is more environmentally friendly compared to traditional transportation. For instance, in April 2024, DHL Express and Mytheresa partnered to reduce CO2 emissions by adopting sustainable aviation fuel (SAF) instead of traditional jet fuel. This collaboration aims to enhance environmental sustainability through the use of SAF.

Furthermore, the expansion of free trade agreements and the globalization of supply chains has increased the demand for efficient and reliable intermodal solutions. Innovations such as autonomous trains, advanced tracking systems, and improved logistics software using AI and machine learning further enhance the efficiency and reliability of intermodal transportation. These technological advancements make it easier to coordinate multiple transport modes and monitor shipments in real-time. thus, leading to quick decision-making.

For instance, in January 2024, Oracle announced new AI and machine learning enhancements to its Oracle transportation management cloud. These enhancements are designed to improve real-time decision-making and efficiency in intermodal transportation.

The intermodal freight transportation market faces numerous challenges such as complexities in the coordination, reliability, visibility, and infrastructure gaps. Intermodal shipments involve multiple entities including trucking companies, railroads, terminals, and potentially customs agencies. Smooth coordination across all these parties is complex and time-consuming. In addition, railroad schedules can be susceptible to delays, due to weather, infrastructure issues, or other unforeseen circumstances. This can impact the overall delivery time of intermodal shipments.

Further, tracking and tracing shipments across different modes of transport can pose a challenge for the companies. In some regions, a lack of intermodal terminals or underdeveloped infrastructure can lead to problems in seamlessly connecting different modes of transport which poses a challenge in front of the companies to provide seamless transportation across borders.