North America Freight and Logistics Market
Industry: Packaging
Published Date: August-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 175
Report ID: PMRREP34732
North America freight and logistics market is projected to expand at a CAGR of 4.0% and thereby increase from a value of US$ 1.5 Trillion in 2024 to US$ 2.0 Trillion by the end of 2031.
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Attributes |
Key Insights |
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North America Freight and Logistics Market Size (2024E) |
US$ 1.5 Trillion |
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Projected Market Value (2031F) |
US$ 2.0 Trillion |
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North America Market Growth Rate (2024 to 2031) |
4.0% CAGR |
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Historical Market Growth Rate (2019 to 2023) |
3.5% CAGR |
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Growth CAGR of Leading Country – U.S. (2024 to 2031) |
4.1% |
Key Highlights of the Market
North America freight and logistics industry is integral to global commerce, managing the movement, storage, and distribution of goods. It encompasses various transportation modes, including road, rail, air, and sea, along with warehousing, inventory management, packaging, and distribution.
The industry's adaptability and innovation are crucial for meeting the evolving needs of businesses and consumers, ensuring seamless supply chain operations and contributing to economic growth. Key trends in the freight and logistics market include the adoption of artificial intelligence and big data analytics, enhancing operational efficiency and decision-making.
The expansion of third-party logistics (3PL) services provides scalable, cost-effective solutions for complex supply chain requirements. There is also a growing emphasis on sustainability, with initiatives aimed at reducing carbon footprints and improving environmental responsibility.
As the market evolves, integrating advanced technologies and fostering strategic collaborations will be crucial for maintaining competitiveness and addressing the sector's diverse challenges. The market is highly dynamic and competitive, driven by advancements in technology, growing e-commerce demand, and the need for fast, reliable delivery services.
The industry has seen significant investments in infrastructure, automation, and sustainable practices to meet the evolving needs of businesses and consumers. However, it also faces challenges such as regulatory changes, environmental concerns, and market consolidation, particularly in the rail transport sector.
Increasing focus on operations optimization and reducing the time of transport is significantly shaping North America freight and logistics market. As global trade volumes rise and customer expectations for fast delivery times increase, logistics companies are prioritizing efficiency and speed in their operations. T
his trend is driven by technological advancements such as automation, artificial intelligence, and data analytics, which streamline operations through real-time tracking, predictive maintenance, route optimization, and inventory management.
Infrastructure improvements, including the expansion and modernization of roads, ports, and rail networks, reduce bottlenecks and enhance the flow of goods. Additionally, companies gain a competitive advantage by offering fast and efficient services, attracting and retaining customers.
Efficient operations also align with sustainability goals by lowering fuel consumption and emissions, while regulatory compliance ensures smooth and uninterrupted operations.
North America freight and logistics market recorded a CAGR of 3.5% during the historical period. The market experiences up and down due the disruptions caused by COVID-19 pandemic and thereby increase in trade due to War in Europe.
During the forecast period from 2024 to 2031, the market is expected to witness stable growth of 4.0% CAGR during the forecast period. The market is expected to benefit by the growing adoption of technologies, digitalization and sustainable practices that brings the operational efficiency, optimization and uniformity in the logistics sector.
Surge in e-commerce Trade
Expanding trade relationships between the U.S., Canada, and other countries significantly propel North America freight and logistics market. This growth can be attributed to the increased demand for transporting a diverse array of goods across borders, facilitated by the North America Free Trade Agreement (NAFTA).
The surge in e-commerce has intensified cross-border trade, as online businesses rely on efficient freight and logistics services for product delivery. In 2022, the United States reached a record US$ 8.9 trillion in total goods trade, while Canada’s merchandise trade hit a record high of US$ 1 trillion.
The flourishing trade between North America and the rest of the world necessitates robust freight and logistics services, driving the market and prompting continuous innovation and expansion to handle the increasing trade volume.
Expanding E-commerce Penetration
The E-commerce market in the North America has gained momentum particularly after the COVID-19 pandemic and the same trend is seen in in the year 2023. The E-commerce industry in the United States expanded at a CAGR of 7.6% CAGR.
The penetration of E-commerce in the United States increased from 21.2% in 2022 to 22% in 2023. This indicates a growing market for goods transportation and last mile delivery which is a key aspect of logistics. With the growing digitalization in the region, PMR anticipates a strong growth in logistics market.
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The North America Freight and Logistics Market faces several growth impediments, particularly within the rail transport sector. Industry consolidation has significantly reduced the number of rail carriers from nearly 30 in 1980 to just a few major players today.
Lack of competition has led to a 43% increase in shipping rates since 2004 and a decline in service quality. Many shippers are "captive" to a single railroad, limiting their ability to negotiate favourable terms or switch providers.
The adoption of Precision Scheduled Railroading (PSR) has further compounded service issues, causing supply chain disruptions. Addressing these challenges requires reforms such as reciprocal switching and enhanced regulatory oversight to foster competition, improve service quality, and ensure fair pricing.
Rising Oil and Gas Exports from North America to Europe
Rising oil and gas exports from North America to Europe and other parts of the world significantly drive the North America freight and logistics market. In December 2023, North America's oil production reached 41 million barrels per day, reflecting a substantial surge. This increase aligns with the shifting global energy landscape, particularly in Europe, where the ongoing Russia-Ukraine war has resulted in sanctions against Russia.
As European countries seek alternative energy sources, the United States. and Canada have become key energy allies, resulting in a notable rise in their energy exports to Europe. The United States crude oil exports to Europe increased by 60%, from 133 million barrels in 2019 to 212 million barrels in 2022, following Russia's invasion of Ukraine.
In 2023, the United States accounted for around 50% of the European Union's total LNG imports. This growing demand for North America energy necessitates substantial investments in freight and logistics infrastructure to efficiently manage the increased export volumes.
The escalating global energy demand, driven by Europe and other regions, highlights the necessity for robust freight and logistics services to facilitate the transportation of oil and gas. To meet this demand, the U.S. and Canada are expected to invest heavily in their freight and logistics sectors, thereby enhancing their capacity to transport energy products efficiently.
Such investment ensures timely delivery to international markets and strengthens the overall North America freight and logistics market by improving infrastructure, increasing capacity, and streamlining operations.
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Product Category |
Projected CAGR through 2031 |
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Road - Mode of Transport |
4.3% |
Road transport dominates the market based on mode of transport segment. In the United States, the volume of goods transported by trucks increased from 11,848 million tons in 2017 to 12,122 million tons in 2023. Transport by rail and waterways declined from 1,202 million tons to 1,058 million tons and from 662 million tons to 646 million tons, respectively.
This shift highlights a growing reliance on road transport, which now represents 68% of the total market share for goods transport. Factors contributing to this dominance include the flexibility and accessibility of trucks, an extensive and continuously improving road infrastructure, and the convenience of door-to-door services. These advantages make road transport the preferred mode of domestic freight movement in North America, overshadowing rail and waterways.
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Application Type |
Projected CAGR through 2031 |
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Warehousing and Storage |
4.8% |
The expansion of warehousing and storage facilities across North America is playing a crucial role in supporting the growth of the region's freight and logistics market. This expansion is driven by the escalating demand resulting from the booming e-commerce sector, which necessitates efficient storage solutions to meet consumer expectations.
With warehouses strategically positioned near transportation hubs and consumer markets, businesses can streamline distribution operations, minimize transit times, and reduce costs. Advancements in technology, such as automation and inventory management systems, are enhancing the efficiency and productivity of these facilities, further driving market growth.
By optimizing inventory management, facilitating just-in-time practices, and fostering industry collaboration, these warehousing facilities contribute significantly to the expanding freight and logistics landscape across North America.
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Region |
CAGR through 2031 |
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The United States |
4.1% |
The increasing number of third-party logistics (3PL) companies in the United States is significantly bolstering the growth of the North America freight and logistics market. According to industry report, the 3PL industry in the U.S. has experienced substantial growth, with the market size exceeding $200 billion in recent years. These 3PL providers offer a wide range of services, including transportation, warehousing, inventory management, order fulfilment.
The emergence of 3PL services is revolutionizing the logistics industry by providing businesses with scalable and cost-effective solutions to meet their diverse supply chain needs. By outsourcing logistics functions to specialized 3PL providers, businesses can benefit from enhanced operational flexibility, and streamlined processes. This allows companies to focus on their core competencies while leveraging the capabilities and resources of 3PL providers to improve efficiency and competitiveness.
The increasing complexity of supply chains, coupled with increasing customer demands for fast delivery and superior service, has fuelled the demand for 3PL services in the United States market. The freight and logistics market in the country is expected to expand at a CAGR of 4.1% CAGR during the forecast period.
North America freight and logistics market is dominated by key players such as A.P. Moller – Maersk, Berkshire Hathaway Inc., Union Pacific Road, FedEx, etc. These companies have strong hold in the domestic as well as international logistics and transport services. However, other players are also improving their capabilities and technologies to compete in the market.
Key Industry Developments
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Tillion for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Mode of Transport
By Logistics Type
By Country
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North America Freight and Logistics Market valued at US$ 1.5 Trillion in 2024.
The market is expected to grow with forecast CAGR of 4.0% during 2024 to 2031.
The market is expected to reach US$ 2.0 Trillion by the end of 2031.
A.P. Moller – Maersk, FedEx, Union Pacific Railroad, and United Parcel Service of America, Inc. (UPS) are the top players in the market.
Road transportation is significantly growing mode of transportation in the market.
