Europe Long Haul Transport Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 3.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Long Haul Transport Market Analysis
During the time frame of the forecast, the Europe long-haul transport market is expected to register a CAGR of more than 3%.
- Due to COVID-19, road freight rates in June 2020 were down 14.3% year over year. The rates were up by 3% compared to May 2020. Although rates were stable through Q1 2020, price levels declined sharply from April on as COVID-19 lockdowns dragged down demand and available capacity increased significantly. As a result of COVID-19, most demands eroded, but there were sector-by-sector variations. Production in the automotive sector largely came to a standstill, whereas there were violent jumps in demand for grocery-related transport, chemical and pharmaceutical products saw sustained higher demand levels, and the fashion retail and industrial sectors suffered. The COVID-19 pandemic increased the importance of digitalization in the industry.
- Strong increases in all types of operations drove a 6.5 percent increase in European road freight transport from 2020 to 2021.In the second quarter of 2020, lockdowns and restrictions on cross-border movements were put in place. In the second quarter of 2021, the number of tonne-kilometers done in the EU rose by 19.3%, to 496.5 billion tonne-kilometers.In terms of tons, Germany had the highest volume of road freight traffic on its territory in 2021.Fuel prices play an important role in long-haul trucking. As the trucks have to cover longer distances, fuel costs can significantly impact freight costs. Similar to the first quarter of 2022, the spike in diesel prices was the main driver of the increase in transportation costs.
- Although this factor contributed to the increase in 2021, demand growth was primarily responsible.Although there are different developments in different countries, the EU-27 pre-tax diesel price jumped 69% from its January level. At EUR 1.9 (USD 1.99) per liter, the average price of diesel at the pump in Q2 2022 in the main European countries showed an increase of 13% compared to Q1 2022. Many countries have taken steps to minimize the impact of this surge in fuel prices, including through reductions in taxes. Despite this, the increase remains significant. Fuel now accounts for about 50% of the operating costs of a long-distance truck, compared to a third before.
- According to information from an industry group, the European road freight market will slow down in 2023, growing by only 1.1% in real terms to reach USD 408 billion. Inflation that is going up, the energy crisis, the risk of a recession, and problems with manufacturing will all hurt the market a lot in 2023. Long-haul transportation, which is a part of the road freight market, will be affected in the same way. Since the COVID-19 pandemic, the automotive industry, which used to be a big part of road traffic in Europe, was having trouble. For the year 2022, European production was expected to have fallen by 0.5%. The shortage of semiconductors had a negative impact on supply in Europe. But at the end of 2022, demand was also beginning to crumble. In Germany, the largest market in Europe, sales are expected to fall by 5% this year. One small positive factor is e-commerce. As cross-border e-commerce (purchasing in a country other than that of delivery) accounts for 40% of purchases, it is a strong provider of flows for international transport. But this driving force is also starting to weaken.
Europe Long Haul Transport Market Trends
Shrinking Automotive Sector May Impact the Market Growth
The European automotive market is particularly hard hit in the first half of 2022. The semiconductor crisis, rising raw material and logistics costs, and now the conflict between Russia and Ukraine conflict combined with other factors are weighing down the automotive industry of Europe each month. In the first quarter of 2022, the European automotive market was down 10.6% compared to the same period in 2021. With the exception of a few countries that were spared, all European countries experienced a significant drop in registrations, and for most of them, it was a double-digit decline. According to ACEA - the European Automobile Manufacturers Association - 844,147 units were sold in March 2022 representing -20.5% compared to March 2021, and even -51% compared to March 2019. Putting aside 2020 and the pandemic-related paralysis of the economies, never before have sales volumes for the month of March been so low and for comparison, the first quarter of 2021 had a dramatic jump of 62.7% compared to the same month in 2020. In the first quarter of 2022, registrations were down 12.3% compared to the first quarter of 2021 with 2,245,976 new passenger vehicles sold.
More globally, with a 2.4% decline in January and 5.4% in February, the entire European market (European Union + United Kingdom, Switzerland, Norway and Iceland) suffered a 20.5% drop in March 2022, with a total of 1,127,077 registrations (a deficit of 260,908 units compared to March 2021). Unsurprisingly, the markets that are the most affected are -39.5% for Sweden - the country with the largest decline, -30.2% for Spain, -29.7% for Italy, -19.5% for France, -17.5% for Germany, and -14.3% for Great Britain. In addition to the crisis related to the shortage of semiconductors, the war in Ukraine and the factory closures aggravate the situation since, Ukraine is the main supplier of wiring harnesses. The war further complicates the delivery problems that had already persisted since the spring of 2021. Because of these various shortages and logistical problems, several European factories have seen their production temporarily interrupted, like some German sites of the Volkswagen group. If this scenario continues, the Europe long haul transport will take a hit as automotive sector is the major end-user of long haul market.
Flourishing eCommerce Sector to Support the Market Growth
In 2021, European e-commerce experienced an increase in B2C turnover, despite some countries reporting lower e-commerce sales due to fewer Covid-19 pandemic measures. For quite some time, Eastern Europe has experienced higher growth rates in B2C e-commerce sales than many Western European countries. However, Western Europe still holds the largest share of total turnover at 63% compared to Eastern Europe's 2%. Europe's Western region remains the leader in terms of B2C e-commerce turnover, accounting for over 60% of total turnover. The E-GDP of the regions reflects this share of turnover, with Western Europe having the highest E-GDP. Although Northern Europe appears to lag behind in terms of share of total European turnover, e-commerce markets are robust, contributing over 4% to total GDP. Even though the digital economy in Eastern Europe continues to grow, it still has a long way to go before it can compete with Western and Southern European markets.
France saw, over the past two years, the digitalization of retailers, particularly SMEs, speeding up considerably. The amount of revenue coming from online really boomed during Covid-19, although the rate of change is now slowing a little bit because we went very high during lockdowns. Germany saw an increasing share of ecommerce in the retail sector, probably following increasing investments during the pandemic. Ireland, on the other hand, saw a rapid shift towards online retail, with Covid-19 a catalyst in accelerating digital adoption and usage. In Luxembourg, the percentage of internet users that bought goods or services online grew by 1% from 2021. In the Netherlands, traditional brick-and-mortar retailers were forced to sell online due to the lockdowns during the Covid-19 pandemic. In the UK, the percentage of the population accessing the internet grew by 1% from 2021. With this massive growth of eCommerce in the region the demand for Long haul transport will continue to rise.
Europe Long Haul Transport Industry Overview
The European Long Haul Transport market is fragmented and undergoing transformative changes, with digitization promising to revolutionize traditional practices. Additionally, initiatives by tech start-ups and the biggest players in the market reinforce the need to constantly innovate to remain competitive. Smaller and medium-sized logistics companies must take advantage of technology and other opportunities to innovate services for shippers and compete successfully with the bigger players. DB Schenker, DHL, DSV, Kuehne + Nagel, and Dascher are some of the smaller players in the market.
Europe Long Haul Transport Market Leaders
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Deutsche Post DHL
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Deutsche Bahn AG
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DSV
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Kuehne + Nagel International AG
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Dascher
*Disclaimer: Major Players sorted in no particular order
Europe Long Haul Transport Market News
- July 2023: Trucksters, a Spanish road freight operator which has disrupted the long-haul sector with the use of AI and big data, has closed a Series B round of €33 million. The new capital injection, backed up by new and existing investors, will be used to fulfil some of the company’s strategic objectives including electrifying its routes, potentially making Trucksters the first electric long-haul operator in Europe
- March 2023: CEVA Logistics, ENGIE and SANEF—the ECTN Alliance envisions building and operating a network of truck terminals with low-carbon energy solutions to transport merchandise along Europe’s motorways. The disruptive system will be tailored to electric trucks’ limited range and charging requirements. Three major groups are joining forces to fight climate change and launch the European Clean Transport Network Alliance (ECTN Alliance), a concrete solution to decarbonize road freight transport.
Europe Long Haul Transport Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Value Chain/Supply Chain Analysis
4.3 Government Regulations and Initiatives
4.4 Technology Innovation and its Impact
4.5 Insights into the E-commerce Industry in the Region (both Domestic and Cross-border)
4.6 Insights into Cross-border Trade
4.7 Insights into Commodity Flow Statistics for Key Countries
4.8 Effects of BREXIT on the Road Freight Transport Market
4.9 Insights into Key Routes (Used for Trucking)
4.10 Spotlight on Freight Rates
4.11 Commentary on Operating Costs (Share of Fuel Costs, Wages, Vehicle Maintenance, etc., and Trends for Key Countries)
4.12 Demand and Supply Analysis (Trucks, Drivers, Labor, etc.)
4.13 Insights into Intermodal Transportation/Container Utilization in Trucking
4.14 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Buyers/Consumers
5.4.2 Bargaining Power of Suppliers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION (Market Size by Value)
6.1 By Destination
6.1.1 Domestic
6.1.2 Cross-border
6.2 By End User
6.2.1 Construction
6.2.2 Oil and Gas and Quarrying
6.2.3 Agriculture, Fishing, and Forestry
6.2.4 Manufacturing and Automotive
6.2.5 Distributive Trade
6.2.6 Other End-Users (Pharmaceutical and Healthcare)
6.3 By Country
6.3.1 Germany
6.3.2 United Kingdom
6.3.3 France
6.3.4 Italy
6.3.5 Spain
6.3.6 Russia
6.3.7 Rest of Europe
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Deutsche Post DHL Group
7.2.2 Dachser Logistics
7.2.3 DSV Panalpina
7.2.4 Kuehne + Nagel
7.2.5 Ceva Logistics Limited
7.2.6 Bollore Logistics
7.2.7 DPDgroup
7.2.8 Rhenus Logistics
7.2.9 FIEGE Logistics
7.2.10 XPO Logistics
7.2.11 Karl Schmidt Spedition GmbH & Co. KG*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
9.1 Macroeconomic Indicators for Key Countries (GDP Distribution, by Activity)
9.2 Insights into Capital Flows
9.3 Economic Statistics - Transport and Storage Sectors Contribution to the Economy
9.4 External Trade Statistics - Export and Import, by Product
Europe Long Haul Transport Industry Segmentation
Long-haul trucking (sometimes called 'over-the-road' trucking) involves long-distance cargo movements by trucks, usually using tractor-trailer combinations. Long-haul drivers are often away from home for days or weeks at a time. The European long-haul transport market is segmented by Destination (Domestic and Cross-border), End User ((Construction, Oil and Gas and Quarrying, Agriculture, Fishing, and Forestry, Manufacturing and Automotive, Distributive Trade, and Other End Users (Pharmaceutical and Healthcare)), and Country (Germany, United Kingdom, France, Italy, Spain, Russia, and Rest of Europe). The report offers market sizes and forecasts in value (USD) for all the above segments.
| By Destination | |
| Domestic | |
| Cross-border |
| By End User | |
| Construction | |
| Oil and Gas and Quarrying | |
| Agriculture, Fishing, and Forestry | |
| Manufacturing and Automotive | |
| Distributive Trade | |
| Other End-Users (Pharmaceutical and Healthcare) |
| By Country | |
| Germany | |
| United Kingdom | |
| France | |
| Italy | |
| Spain | |
| Russia | |
| Rest of Europe |
Europe Long Haul Transport Market Research FAQs
What is the current Europe Long Haul Transport Market size?
The Europe Long Haul Transport Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in Europe Long Haul Transport Market?
Deutsche Post DHL, Deutsche Bahn AG, DSV, Kuehne + Nagel International AG and Dascher are the major companies operating in the Europe Long Haul Transport Market.
What years does this Europe Long Haul Transport Market cover?
The report covers the Europe Long Haul Transport Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Long Haul Transport Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
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