Growth of e-commerce driving the road freight transportation market in Europe
The road freight transportation market size in Europe has the potential to grow by $31.47 billion from 2020 to 2024
E-commerce is providing the major impetus for growth in the road freight market in Europe says a report from Technavio.
The report authors expect an average Compound Annual Growth Rates (CAGR) of almost 2% in the period 2019 to 2024, although the research notes that year-over-year growth for 2020 was noticeably higher at 3.98%.
This growth will inject $31.47 billion into European road freight over the forecast period.
Technavio said that the rapid penetration of the internet and an expansion in the region’s middle class has significantly contributed to the growth of the e-commerce industry, which is behind this growth.
The report singles out the food and beverage segment as being a huge growth driver for the sector, estimating that 35% of the growth will originate from associated logistics.
It attributed this to the increase in income levels, changing consumer preferences, an increase in the adoption of organic and packaged food and drinks and rising demand for more sustainable food products.
"The growth in the e-commerce industry will be crucial in driving the growth of the road freight transportation market in Europe. Also, the increasing cross-border trade will present significant opportunities for vendors during the forecast period," said an analyst at Technavio.