On-demand Trucking Market Size - By Service, By Truck, By Freight, By Location Outlook, By Booking Platform, By Industry Vertical, Analysis, Share, Growth Forecast, 2024 - 2032

On-demand Trucking Market Size

The global on-demand trucking market size was valued at USD 7.1 billion in 2023 and is projected to grow at a CAGR of 15.7% between 2024 and 2032. The global expansion of e-commerce platforms significantly drives the growth of the market by increasing the demand for flexible, efficient, and scalable logistics solutions. E-commerce businesses require fast and reliable delivery services to meet customer expectations for same-day or next-day deliveries, particularly for last-mile logistics.
 

In March 2022, the International Monetary Fund (IMF) issued a report on the increased consumer expenditure online. It indicated that the proportion of total online spending surged from 10.3% in 2019 to 14.9% during the height of the pandemic. Presently, this share remains higher than pre-pandemic levels in roughly half of economies, spanning from prominent emerging markets like Brazil and India to various middle-income nations such as Bahrain and Jamaica.
 

On-demand trucking platforms enable e-commerce companies to manage fluctuating delivery volumes efficiently without maintaining dedicated fleets. Additionally, on-demand trucking offers real-time freight matching and tracking, ensuring transparency in shipping times and costs. The ability to dynamically scale transport capacity based on market demand makes on-demand trucking ideal for the growing e-commerce sector, fueling the market's expansion across regions.
 

Moreover, urbanization and infrastructure expansion significantly drive growth in the on-demand trucking market. As cities expand, the demand for efficient transportation solutions increases, particularly for last-mile deliveries in densely populated areas. The rise of e-commerce and consumer expectations for fast delivery further amplify this need. Urban development also drives the demand for construction materials, increasing freight movement and necessitating flexible trucking solutions.
 

The expansion of smart city projects and modern infrastructure such as roads, bridges, and industrial zones further boosts the need for efficient, scalable, and real-time trucking services. On-demand trucking platforms are well-positioned to meet these growing logistics demands with greater flexibility and responsiveness.
 

On-demand Trucking Market Trends

On-demand trucking is witnessing significant technological advancements in GPS tracking, telematics, and mobile apps. These technologies are driving the growth of the on-demand trucking industry by enhancing operational efficiency, transparency, and real-time connectivity. GPS tracking enables shippers and fleet managers to monitor truck locations, improving delivery accuracy and reducing delays. It also optimizes routes, lowering fuel consumption and operational costs.
 

Telematics systems provide detailed insights into vehicle performance, facilitating predictive maintenance and reducing downtime, thereby improving fleet utilization. This technology also ensures compliance with safety regulations, enhancing overall reliability. Mobile applications streamline the freight booking process by offering instant load-matching services, transparent pricing, and digital payment options. These innovations increase convenience for both shippers and drivers, facilitating faster and more efficient logistics operations, and driving market growth by making on-demand trucking accessible and cost-effective.
 

For instance, in July 2024, Shahn's truck-on-demand solution gained significant traction in the UAE since its launch in October 2022. The platform, developed by Tanseeq Investment Group, offers an app-based service that connects customers with truck drivers, facilitating easy and efficient logistics.
 

The Shahn app has achieved over 10,000 downloads across Google Play and Apple App stores, boasting a 95% positive review rate. This indicates strong customer satisfaction and acceptance of the service. Shahn's integration of a real-time tracking system enhances operational efficiency, allowing users to monitor their goods in transit. This feature is crucial for reducing operational costs by up to 30%, as highlighted by industry data.
 

High operational costs significantly challenge the on-demand trucking market, driven by fluctuating fuel prices, maintenance expenses, and rising labor costs. Fleet owners and truck operators face substantial expenses to maintain vehicles, comply with regulations, and ensure driver availability. These costs erode profit margins, making it difficult for smaller operators to compete effectively.
 

Additionally, technological investments in digital freight platforms and tracking systems require continuous upgrades, adding to the financial burden. Variable costs related to road tolls, insurance, and unpredictable market demand further strain profitability. These operational challenges may slow market adoption, especially among smaller enterprises with limited resources to absorb these costs.
 

On-demand Trucking Market Analysis

Based on trucks, the market is segmented into light-duty trucks, medium-duty trucks, and heavy-duty trucks. In 2023, the light-duty trucks segment accounted for over 40% of the market share and is expected to exceed USD 11 billion by 2032. Light-duty trucks hold the largest market share in the on-demand trucking market due to their versatility and crucial role in urban logistics, especially for last-mile deliveries.
 

The rise in e-commerce has driven the demand for frequent, small-scale shipments, making light-duty trucks ideal for short-distance transport. Their ability to navigate congested city streets and operate efficiently in metropolitan areas makes them the preferred choice for retailers and delivery services. Additionally, industries such as retail, food and beverage, and healthcare, which require quick, on-demand deliveries, frequently rely on these trucks. The lower operating costs of light-duty trucks, compared to medium and heavy-duty vehicles, further enhance their market dominance. Their affordability and ease of maintenance attract a broader customer base.
 

Based on the booking platforms, the on-demand trucking market is divided into mobile apps and web-based platforms. The mobile apps segment held around 68% of the market share in 2023, due to their convenience, real-time connectivity, and widespread smartphone usage. These apps enable shippers and truckers to book, track, and manage freight operations instantly from any location, offering unmatched flexibility.

With features like real-time freight matching, GPS tracking, and digital payment integration, mobile platforms streamline logistics processes, reducing the need for traditional intermediaries. Additionally, mobile apps provide transparency in pricing and availability, enabling businesses to make informed decisions quickly. Their user-friendly interfaces appeal to both individual shippers and large enterprises. As mobile penetration continues to rise globally, especially in regions with strong logistics demands like North America and Asia-Pacific, the dominance of mobile apps in this market segment is expected to grow further.
 

North America on-demand trucking market accounted for 35% of the revenue share in 2023 and is expected to exceed USD 10 billion by 2032. Advancements in digital freight platforms and a booming e-commerce sector are driving robust growth in the market. The U.S. holds the largest market share in North America, benefiting from a well-established logistics infrastructure and high demand for flexible, scalable transportation solutions.
 

Key growth drivers include increased last-mile delivery needs, real-time freight tracking, and the growing adoption of mobile apps by shippers and carriers. Additionally, rising fuel costs and a shortage of truck drivers are pushing companies to seek more efficient, technology-driven logistics solutions.
 

Europe's on-demand trucking market is experiencing steady growth, driven by increased digitalization in logistics, rising e-commerce, and a growing need for efficient freight solutions. Germany, France, and the UK are key contributors, thanks to their advanced logistics infrastructure and high demand for flexible transportation services. Additionally, the push for sustainability is promoting the adoption of optimized freight solutions, reducing empty miles and fuel consumption. Growth in cross-border trade within the European Union is also fueling demand for real-time, on-demand trucking solutions across the region.
 

Rapid urbanization, a booming e-commerce sector, and industrial advancements are driving significant growth in the on-demand trucking market in the Asia Pacific region. Key contributors such as China, India, and Japan are experiencing increased demand for adaptable logistics and last-mile delivery solutions. The rise in smartphone usage and the digital transformation of logistics further fuel this adoption. Additionally, government-backed infrastructure projects and smart transportation initiatives are amplifying market momentum. As businesses increasingly prioritize cost-effective and scalable freight options, the Asia Pacific region is poised for substantial growth in on-demand trucking services in the coming years.
 

In the Middle East & Africa (MEA), infrastructure development and construction projects are driving the growth of the on-demand trucking market. The UAE and Saudi Arabia are leading this demand, focusing on efficient freight solutions and digital logistics platforms. In Latin America, increasing industrialization, trade activities, and e-commerce expansion, particularly in Brazil and Mexico, are fueling growth. The rising adoption of mobile freight platforms is enhancing logistics operations in these countries.
 

On-demand Trucking Company Market Share

C.H. Robinson, Convoy, and DHL Supply Chain collectively held a substantial market share of over 12% in the on-demand trucking industry in 2023. C.H. Robinson utilizes its digital platform, Navisphere, to offer real-time visibility and seamless truckload booking for shippers. The company focuses on automation and AI-driven technology to optimize freight matching, enhance operational efficiency, and reduce costs. Additionally, C.H. Robinson aims to expand its global presence by integrating its logistics solutions with advanced supply chain management services.
 

Convoy employs technology to optimize trucking logistics, providing an app-based platform that automates freight matching for shippers and carriers. Their strategy emphasizes sustainability through "carbon-efficient" routes, reducing empty miles, and increasing fuel efficiency. Convoy also prioritizes real-time shipment tracking, flexible pricing models, and a commitment to transparent, data-driven solutions for improved operational efficiency.
 

DHL Supply Chain leverages its global logistics network to deliver on-demand trucking services through scalable digital solutions. Their strategy centers on integrating IoT, AI, and predictive analytics for real-time fleet management and route optimization. DHL also prioritizes sustainability by incorporating electric vehicles and reducing carbon emissions in its transportation operations, aiming to meet evolving customer demands for flexibility and green logistics.
 

On-demand Trucking Market Companies

Major players operating in the on-demand trucking industry are:

• C.H. Robinson
• Convoy
• DHL Supply Chain
• Flexport
• Flock Freight
• J.B. Hunt Transport
• Loadsmart
• Schneider National
• Uber Freight
• XPO Logistics
   

On-demand Trucking Industry News

• In May 2024, Volvo made significant strides in the development of autonomous and electric transportation solutions, unveiling its first production-ready autonomous truck, the Volvo VNL Autonomous, and launching a new Truck-as-a-Service (TaaS) model called Volvo on Demand. Volvo on Demand is a TaaS model aimed at facilitating the adoption of battery-electric vehicles (BEVs). It allows customers to test electric trucks without significant upfront investment.
   
• In November 2022, Convoy, a digital freight network, successfully raised $400 million in funding to enhance its on-demand trucking platform. This significant investment is aimed at expanding Convoy's capabilities and services, particularly in the realm of technology-driven logistics solutions. Convoy plans to enhance its technology infrastructure, improve user experience, and expand its market reach.
   

The on-demand trucking market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2032, for the following segments:

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Market, By Service

• One-time service
• Contractual service
• Dedicated freight

Market, By Truck

• Light-duty trucks
• Medium-duty trucks
• Heavy-duty trucks

Market, By Freight

• Dry van
• Reefer
• Flatbed
• Tanker

Market, By Location Outlook

• Urban
• Regional
• Long-haul

Market, By Booking Platform

• Mobile apps
• Web-based platform

Market, By Industry Vertical

• Manufacturing
• Retail and e-commerce
• Healthcare
• Food and beverage
• Automotive
• 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
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa