ASEAN Cross Border Road Freight Transport Market Size
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 40.11 Billion |
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Market Size (2030) | USD 60.92 Billion |
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Largest Share by End User Industry | Manufacturing |
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CAGR (2024 - 2030) | 7.21 % |
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Largest Share by Country | Indonesia |
Major Players |
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*Disclaimer: Major Players sorted in alphabetical order. |
ASEAN Cross Border Road Freight Transport Market Analysis
The ASEAN Cross Border Road Freight Transport Market size is estimated at 40.11 billion USD in 2024, and is expected to reach 60.92 billion USD by 2030, growing at a CAGR of 7.21% during the forecast period (2024-2030).
40.11 Billion
Market Size in 2024 (USD)
60.92 Billion
Market Size in 2030 (USD)
5.77 %
CAGR (2017-2023)
7.21 %
CAGR (2024-2030)
Fastest Growing Market by End User Industry
8.50 %
Projected CAGR, Wholesale and Retail Trade, 2024-2030
Vietnam has one of the fastest-growing cross-border e-commerce markets in the region, while Thailand's Industry 4.0 initiative promotes the importance of technological innovation for boosting economic growth.
Largest Market by End User Industry
34.03 %
value share, Manufacturing, 2023
The ASEAN manufacturing sector is estimated to reach USD 1.4 trillion by 2028. A 35-40% increase in manufacturing value added (MVA) is expected by 2028 due to productivity gains.
Fastest Growing Market by Country
7.59 %
Projected CAGR, Vietnam, 2024-2030
Vietnam has emerged as a prominent market for foreign investors in the e-commerce sector, driven by the growth of cross-border trade and advancements in technology.
Largest Market by Country
45.80 %
value share, Indonesia, 2023
The Indonesian government is focusing on the development of expressways to facilitate the smooth functioning of international road freight services.
First Leading Market Player
1.69 %
market share, DB Schenker, 2022
DB Schenker's Asia LANDbridge solution offers cross-border road transportation services in the ASEAN region. The company also provides cross-border door-to-door groupage services.
Singapore and Malaysia account for about 50% of the cross-border e-commerce market in Southeast Asia
- Indonesia’s manufacturing industry grew by 5.01% in 2022. It was the strongest component of the country’s economic growth in terms of productivity. Moreover, total exports from the industrial sector reached USD 206.35 billion in 2022, a 16.45% increase compared to 2021. The Indonesian government estimated a 5.4-5.8% growth for the manufacturing industry in 2023. Similarly, Thailand's automotive industry has established itself as a major player in the global market, with auto parts and accessories accounting for a significant portion of its exports. As a result, the demand for cross-border services increasing in the region.
- Singapore and Malaysia account for about 50% of the cross-border e-commerce market in Southeast Asia. Thailand is undergoing huge growth in the e-commerce market. The Thailand 4.0 policy is designed to foster internet connectivity in each village of the country. The demand of customers and the viability of sourcing products or services by manufacturers have been the prime reasons for growing cross-border e-commerce. The retail industry in Indonesia remains one of the most promising markets among ASEAN countries.
- In the coming years, the growth in the cross-border e-commerce market is expected to boost the wholesale and retail trade end-user segment. Vietnam has one of the fastest-growing cross-border e-commerce markets in the region, while Thailand's Industry 4.0 initiative promotes the importance of technological innovation for boosting economic growth. These markets offer significant opportunities for cross-border brands. The 'unbanked' population, primarily in Vietnam, is expected to grow by 57% in digital payments by 2025.
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Implementation of the ASEAN Customs Transit System (ACTS) is expected to boost the cross border road freight transport
- In Southeast Asia and Vietnam, cross border shopping is booming, creating new market opportunities for companies and enabling consumers to access various goods. Vietnam currently holds 15% of Southeast Asia's overall internet retail market, second only to Thailand (16%) and equal to the Philippines (15%). In 2021, the government of Vietnam adopted the Road Network Development Plan for 2021-2030, with a vision to 2050. Under this plan, the country aims to develop over 5,000 km of expressways by 2030, up from 3,841 km in 2021.
- Cross border business opportunities are visible at shipping companies such as Ninja Van. Especially throughout 2021, the company has delivered 2 million orders daily in the ASEAN region, with a coverage density of 100%. Cross border e-commerce is expanding, giving firms the drive to operate globally and across numerous nations. As a result, top transportation companies are pushing hard to prepare for the region's cross border economic operations. As of July 2023, the production volume of trucks in Thailand amounted to around 19,390 units. In 2022, Thailand had a total vehicle production of 1.88 million units. From January to April 2023, the sales volume of 2-4 ton trucks amounted to around 4.2 thousand units in Thailand.
- Implementing the ASEAN Customs Transit System (ACTS) has been one of the most significant developments in the road freight industry in the last year. The ASEAN community's aims of doubling intra-ASEAN trade between 2017 and 2025 and cutting trade transaction costs by 10% in three years from 2017 were considered when the ACTS was developed and launched in 2020 in Cambodia, Laos, Malaysia, Singapore, Thailand, and Vietnam. The ACTS is expected to strengthen cross border road freight in ASEAN countries during the forecast period.
ASEAN Cross Border Road Freight Transport Market Trends
ASEAN's transportation and storage sector recorded 26.02% growth in 2022, driven by rising infrastructure demand
- In 2022, the transportation and storage sector saw a substantial 26.02% YoY growth, primarily attributed to the rising demand for transportation infrastructure. The economic growth in ASEAN nations over recent decades has boost the trade and investment activities, consequently increasing the need for transportation and storage services to facilitate the movement and storage of goods. Malaysia has made significant strides in enhancing its logistics industry to position itself as a regional logistics hub and an ASEAN gateway.
- Foreign direct investment (FDI) inflows in ASEAN surged by 42% in 2021, reaching USD 174 billion. The key drivers behind this increase were investments in manufacturing, finance, and select service sectors linked to the rapidly expanding digital economy and Industry 4.0 initiatives. Among these, manufacturing experienced the most substantial growth, with a 134% increase to USD 45 billion, particularly in industries like electric vehicles (EVs), electronics, biomedical, and pharmaceuticals. However, the foreign direct investment in vehicle and other transportation industries in Indonesia amounted to approximately USD 1.5 billion in 2022.
- Logistics costs in certain ASEAN member countries can make up as much as 20% of the total cost of finished products, nearly twice the worldwide average. Indonesia has plans to invest around USD 240 billion in enhancing its infrastructure between 2022 and 2024. However, the country's main emphasis on infrastructure development is the transportation sector. Within this category, ongoing and upcoming road, rail, and port infrastructure projects make up 29%, 22%, and 23% of the total value of these initiatives, respectively.
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Impact of the Ukraine-Russia war on ASEAN countries led to increased fuel prices and supply chain disruptions
- The price of diesel has gradually fallen since February 2023 to THB 32 (USD 0.92) a liter in response to declining global oil prices. Thailand’s Oil Fuel Fund decided to maintain the current retail price of diesel at USD 1.01 per liter in an attempt to help mitigate the high living cost amidst global oil price fluctuations. As part of Malaysia's goal to construct the oil refining and storage hub to meet the domestic demand for refined petroleum products, Petronas has invested about USD 16 billion in the Refining and Petrochemicals Integrated Development Project (RAPID) in Johor. The RAPID facility will be the country's first refinery to produce diesel and gasoline that meet the Euro V standard, which lowers carbon dioxide emission levels.
- The YoY growth of natural gas prices was recorded at 34.3%, and the YoY growth of gasoline prices stood at 12.8% in 2021. With the rising fuel costs, trucking carriers and operators across the region are struggling to keep up with the increasing prices, and the cost of diesel is affecting freight rates and trucking capacity. Many of the current measures in Southeast Asia were implemented in response to the energy market dynamics in the second half of 2021 and are yet to incorporate the impact of the Russia-Ukraine war.
- To reduce growing subsidies, the Indonesian government increased subsidized fuel prices by approximately 30% in September 2022 despite the potential risk of mass protests. The price of subsidized gasoline was raised from IDR 7,650 (USD 1.18) per liter to IDR 10,000 (USD 0.67) per liter, while the price of subsidized diesel rose from IDR 5,150 (USD 0.35) per liter to IDR 6,800 (USD 0.46) per liter.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- ASEAN economies are promoting the manufacturing sector by introducing several strategic initiatives to stimulate growth
- ASEAN's e-commerce market is expected to grow rapidly, registering a CAGR of 11% during 2023-27
- Construction of new expressways, coupled with significant road expansions and infrastructural investments, are driving market growth in the region
- Huge reliance on wheat imports has become a major concern to food security for ASEAN countries
- Increasing fleet production and sales of commercial vehicles witnessed in Indonesia, Vietnam, and Malaysia
- The primary focus of Thailand's government within the ASEAN region is on infrastructure projects, with an investment exceeding USD 45 billion
- ASEAN countries witnessed a significant rise in producer and consumer prices due to increases in fuel and food costs
- Indonesia, Malaysia, and Thailand are leading oil and gas GDP growth in the ASEAN region, followed by the manufacturing sector demand
- The GVA of the manufacturing industry in the region grew by over 10% YoY in 2022, led by food and beverages sub-segment
- ASEAN economies anticipates growth in exports by 2030 led by development in manufacturing sector
- Vietnam aims to reduce the country's logistics costs and bring it between 16% and 20% of GDP by 2025
- ASEAN's truck volume is expected to reach 1.7 million units by 2030, registering a CAGR of 7.9% during 2020-2030
- Countries in the ASEAN region are aiming to reduce road freight costs via various initiatives during 2023-2030
ASEAN Cross Border Road Freight Transport Industry Overview
The ASEAN Cross Border Road Freight Transport Market is fragmented, with the top five companies occupying 2.80%. The major players in this market are DB Schenker, DHL Group, K Line Logistics, Kerry Logistics Network Limited and Tiong Nam Logistics (sorted alphabetically).
ASEAN Cross Border Road Freight Transport Market Leaders
DB Schenker
DHL Group
K Line Logistics
Kerry Logistics Network Limited
Tiong Nam Logistics
Other important companies include Gemadept, Konoike Group, MOL Logistics, Overland Total Logistic, Profreight Group, Yatfai Group.
*Disclaimer: Major Players sorted in alphabetical order.
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ASEAN Cross Border Road Freight Transport Market News
- June 2023: DHL Express has geared up to electrify its last-mile delivery fleet by deploying 24 electric vans in Jakarta and Bandung. The new electric vehicles will join the existing fleet which includes four electric vans and six electric bikes serving areas in Jakarta and Surabaya.
- June 2023: Chery Malaysia signed a logistic services agreement with Tiong Nam Logistics Holdings Berhad, which is responsible for spare parts warehousing and transportation logistics services. Tiong Nam Logistics has obtained the rights to handle Chery’s spare parts warehousing and transportation in Malaysia, including heavy-duty vehicle models such as TIGGO 8 PRO and OMODA5.
- May 2023: Kerry Express (KEX),has announced a partnership with All Speedy Co, a subsidiary of CP All, to extend its services to 7-Eleven branches across the country. This cooperation between Kerry Express and All Speedy is aimed at increasing the availability of their express parcel delivery service by leveraging the extensive nationwide network of 7-Eleven outlets.
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We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various regions pertaining to e-commerce industry trends, economic contribution of the transportation & storage sector, export and import trends among other key indicators.
ASEAN Cross Border Road Freight Transport Market Report - Table of Contents
EXECUTIVE SUMMARY & KEY FINDINGS
REPORT OFFERS
1. INTRODUCTION
1.1. Study Assumptions & Market Definition
1.2. Scope of the Study
1.3. Research Methodology
2. KEY INDUSTRY TRENDS
2.1. GDP Distribution By Economic Activity
2.2. GDP Growth By Economic Activity
2.3. Economic Performance And Profile
2.3.1. Trends in E-Commerce Industry
2.3.2. Trends in Manufacturing Industry
2.4. Transport And Storage Sector GDP
2.5. Logistics Performance
2.6. Length Of Roads
2.7. Export Trends
2.8. Import Trends
2.9. Fuel Pricing Trends
2.10. Trucking Operational Costs
2.11. Trucking Fleet Size By Type
2.12. Major Truck Suppliers
2.13. Road Freight Tonnage Trends
2.14. Road Freight Pricing Trends
2.15. Inflation
2.16. Regulatory Framework
2.17. Value Chain & Distribution Channel Analysis
3. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2030 and analysis of growth prospects)
3.1. End User Industry
3.1.1. Agriculture, Fishing, and Forestry
3.1.2. Construction
3.1.3. Manufacturing
3.1.4. Oil and Gas, Mining and Quarrying
3.1.5. Wholesale and Retail Trade
3.1.6. Others
3.2. Country
3.2.1. Indonesia
3.2.2. Malaysia
3.2.3. Thailand
3.2.4. Vietnam
3.2.5. Rest of ASEAN
4. COMPETITIVE LANDSCAPE
4.1. Key Strategic Moves
4.2. Market Share Analysis
4.3. Company Landscape
4.4. Company Profiles
4.4.1. DB Schenker
4.4.2. DHL Group
4.4.3. Gemadept
4.4.4. K Line Logistics
4.4.5. Kerry Logistics Network Limited
4.4.6. Konoike Group
4.4.7. MOL Logistics
4.4.8. Overland Total Logistic
4.4.9. Profreight Group
4.4.10. Tiong Nam Logistics
4.4.11. Yatfai Group
5. KEY STRATEGIC QUESTIONS FOR ROAD FREIGHT CEOS
6. APPENDIX
6.1. Global Logistics Market Overview
6.1.1. Overview
6.1.2. Porter’s Five Forces Framework
6.1.3. Global Value Chain Analysis
6.1.4. Market Dynamics (Market Drivers, Restraints & Opportunities)
6.2. Sources & References
6.3. List of Tables & Figures
6.4. Primary Insights
6.5. Data Pack
6.6. Glossary of Terms
6.7. Currency Exchange Rate
List of Tables & Figures
- Figure 1:
- DISTRIBUTION OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, SHARE %, ASEAN, 2022
- Figure 2:
- GROWTH OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, CAGR %, ASEAN, 2017 – 2022
- Figure 3:
- GROSS MERCHANDISE VALUE (GMV) OF E-COMMERCE INDUSTRY, USD, ASEAN, 2017 - 2027
- Figure 4:
- SECTORAL SHARE IN E-COMMERCE INDUSTRY GROSS MERCHANDISE VALUE (GMV), SHARE %, ASEAN, 2022
- Figure 5:
- GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY (IN CURRENT PRICES), USD, ASEAN, 2017 - 2022
- Figure 6:
- SECTORAL SHARE IN GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY, SHARE %, ASEAN, 2022
- Figure 7:
- VALUE OF TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), USD, ASEAN, 2017 – 2022
- Figure 8:
- TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), SHARE % OF GDP, ASEAN, 2017-2022
- Figure 9:
- SHARE OF ROAD LENGTH BY SURFACE CATEGORY, %, ASEAN, 2022
- Figure 10:
- SHARE OF ROAD LENGTH BY SURFACE CLASSIFICATION, %, ASEAN, 2022
- Figure 11:
- VALUE OF EXPORTS, USD, ASEAN, 2017 - 2022
- Figure 12:
- VALUE OF IMPORTS, USD, ASEAN, 2017 - 2022
- Figure 13:
- FUEL PRICE BY TYPE OF FUEL, USD/LITER, ASEAN, 2017 - 2022
- Figure 14:
- OPERATIONAL COSTS OF TRUCKING - BREAKDOWN BY OPERATING COST ELEMENT, %, ASEAN, 2022
- Figure 15:
- TRUCKING FLEET SIZE BY TYPE, SHARE %, ASEAN, 2022
- Figure 16:
- MARKET SHARE OF MAJOR TRUCK SUPPLIER BRANDS, SHARE %, ASEAN, 2022
- Figure 17:
- FREIGHT HANDLED BY ROAD TRANSPORT, TONS, ASEAN, 2016 - 2028
- Figure 18:
- PRICE TREND OF ROAD FREIGHT TRANSPORT SERVICE, USD/TON-KM, ASEAN, 2016 - 2021
- Figure 19:
- WHOLESALE PRICE INFLATION RATE, %, ASEAN, 2017 - 2022
- Figure 20:
- CONSUMER PRICE INFLATION RATE, %, ASEAN, 2017 - 2022
- Figure 21:
- VOLUME OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, ASEAN, 2017 - 2030
- Figure 22:
- VALUE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, ASEAN, 2017 - 2030
- Figure 23:
- VOLUME OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, TON-KM, ASEAN, 2017 - 2030
- Figure 24:
- VALUE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, USD, ASEAN, 2017 - 2030
- Figure 25:
- VALUE SHARE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, %, ASEAN, 2017 - 2030
- Figure 26:
- VOLUME OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, ASEAN, 2017 - 2030
- Figure 27:
- VALUE OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, ASEAN, 2017 - 2030
- Figure 28:
- VALUE SHARE OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, ASEAN, 2022 VS 2030
- Figure 29:
- VOLUME OF CONSTRUCTION INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, ASEAN, 2017 - 2030
- Figure 30:
- VALUE OF CONSTRUCTION INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, ASEAN, 2017 - 2030
- Figure 31:
- VALUE SHARE OF CONSTRUCTION INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, ASEAN, 2022 VS 2030
- Figure 32:
- VOLUME OF MANUFACTURING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, ASEAN, 2017 - 2030
- Figure 33:
- VALUE OF MANUFACTURING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, ASEAN, 2017 - 2030
- Figure 34:
- VALUE SHARE OF MANUFACTURING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, ASEAN, 2022 VS 2030
- Figure 35:
- VOLUME OF OIL AND GAS, MINING AND QUARRYING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, ASEAN, 2017 - 2030
- Figure 36:
- VALUE OF OIL AND GAS, MINING AND QUARRYING INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, ASEAN, 2017 - 2030
- Figure 37:
- VALUE SHARE OF EXTRACTION INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, ASEAN, 2022 VS 2030
- Figure 38:
- VOLUME OF WHOLESALE AND RETAIL TRADE INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, ASEAN, 2017 - 2030
- Figure 39:
- VALUE OF WHOLESALE AND RETAIL TRADE INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, ASEAN, 2017 - 2030
- Figure 40:
- VALUE SHARE OF WHOLESALE AND RETAIL TRADE INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, ASEAN, 2022 VS 2030
- Figure 41:
- VOLUME OF OTHERS INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, TON-KM, ASEAN, 2017 - 2030
- Figure 42:
- VALUE OF OTHERS INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, ASEAN, 2017 - 2030
- Figure 43:
- VALUE SHARE OF OTHERS INDUSTRY CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY DESTINATION %, ASEAN, 2022 VS 2030
- Figure 44:
- VALUE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY COUNTRY, USD, ASEAN, 2017 - 2030
- Figure 45:
- VALUE SHARE OF CROSS BORDER ROAD FREIGHT TRANSPORT MARKET BY COUNTRY, %, ASEAN, 2017 - 2030
- Figure 46:
- VALUE OF INDONESIA CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, INDONESIA, 2017 - 2030
- Figure 47:
- CAGR OF INDONESIA CROSS BORDER ROAD FREIGHT TRANSPORT MARKET %, INDONESIA, 2017 - 2030
- Figure 48:
- VALUE OF MALAYSIA CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, MALAYSIA, 2017 - 2030
- Figure 49:
- CAGR OF MALAYSIA CROSS BORDER ROAD FREIGHT TRANSPORT MARKET %, MALAYSIA, 2017 - 2030
- Figure 50:
- VALUE OF THAILAND CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, THAILAND, 2017 - 2030
- Figure 51:
- CAGR OF THAILAND CROSS BORDER ROAD FREIGHT TRANSPORT MARKET %, THAILAND, 2017 - 2030
- Figure 52:
- VALUE OF VIETNAM CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, VIETNAM, 2017 - 2030
- Figure 53:
- CAGR OF VIETNAM CROSS BORDER ROAD FREIGHT TRANSPORT MARKET %, VIETNAM, 2017 - 2030
- Figure 54:
- VALUE OF REST OF ASEAN CROSS BORDER ROAD FREIGHT TRANSPORT MARKET, USD, REST OF ASEAN, 2017 - 2030
- Figure 55:
- CAGR OF REST OF ASEAN CROSS BORDER ROAD FREIGHT TRANSPORT MARKET %, REST OF ASEAN, 2017 - 2030
- Figure 56:
- MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, ASEAN, 2017 - 2023
- Figure 57:
- MOST ADOPTED STRATEGIES, COUNT, ASEAN, 2017 - 2023
- Figure 58:
- VALUE SHARE OF MAJOR PLAYERS, %, ASEAN 2022
ASEAN Cross Border Road Freight Transport Industry Segmentation
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Indonesia, Malaysia, Thailand, Vietnam are covered as segments by Country.
- Indonesia’s manufacturing industry grew by 5.01% in 2022. It was the strongest component of the country’s economic growth in terms of productivity. Moreover, total exports from the industrial sector reached USD 206.35 billion in 2022, a 16.45% increase compared to 2021. The Indonesian government estimated a 5.4-5.8% growth for the manufacturing industry in 2023. Similarly, Thailand's automotive industry has established itself as a major player in the global market, with auto parts and accessories accounting for a significant portion of its exports. As a result, the demand for cross-border services increasing in the region.
- Singapore and Malaysia account for about 50% of the cross-border e-commerce market in Southeast Asia. Thailand is undergoing huge growth in the e-commerce market. The Thailand 4.0 policy is designed to foster internet connectivity in each village of the country. The demand of customers and the viability of sourcing products or services by manufacturers have been the prime reasons for growing cross-border e-commerce. The retail industry in Indonesia remains one of the most promising markets among ASEAN countries.
- In the coming years, the growth in the cross-border e-commerce market is expected to boost the wholesale and retail trade end-user segment. Vietnam has one of the fastest-growing cross-border e-commerce markets in the region, while Thailand's Industry 4.0 initiative promotes the importance of technological innovation for boosting economic growth. These markets offer significant opportunities for cross-border brands. The 'unbanked' population, primarily in Vietnam, is expected to grow by 57% in digital payments by 2025.
| End User Industry | |
| Agriculture, Fishing, and Forestry | |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others |
| Country | |
| Indonesia | |
| Malaysia | |
| Thailand | |
| Vietnam | |
| Rest of ASEAN |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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