Global Short-Haul Road Freight Transport Market Set for Strong Growth Through 2034

The short-haul road freight transport market is growing rapidly, driven by e-commerce expansion, urbanization, and advancements in digital solutions.

VANCOUVER, BC, CANADA, August 25, 2025 /EINPresswire.com/ -- The global Short-Haul Road Freight Transport Market is on track for significant growth, projected to expand from USD 1.0 trillion in 2024 to USD 1.6 trillion by 2034, reflecting a 5% CAGR. The sector is witnessing a strong push from the rapid rise of e-commerce, urbanization, and technology-driven logistics solutions, making short-haul freight an essential part of global supply chains.

North America currently holds the largest market share, supported by advanced logistics infrastructure and steady demand for efficient freight services. Meanwhile, Asia Pacific is emerging as the fastest-growing region, fueled by rapid urbanization, growing investments in infrastructure, and the booming e-commerce industry.

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Key Growth Drivers

The rise of e-commerce is the primary driver for this market, with online retail sales expected to grow by 12% annually, boosting demand for quick and reliable short-haul logistics. Additionally, expanding urban populations and the popularity of just-in-time delivery models are pushing companies to seek faster and more efficient freight solutions.

Public and private investments are also creating growth opportunities. For example, the U.S. Department of Transportation allocated $2 billion in 2023 for road infrastructure, improving delivery networks and efficiency. Similarly, the European Union’s Green Deal is driving a shift toward sustainable transport, resulting in a 30% increase in electric freight vehicle adoption in Europe.

Technology is transforming the market as well. Companies are increasingly integrating IoT and AI solutions for fleet management and route optimization. Reports show these innovations have helped logistics firms cut fuel consumption by 15% and boost delivery efficiency by 20%.

Market Restraints

Despite strong growth prospects, the market faces infrastructure and regulatory challenges. Poor road networks in developing regions affect delivery timelines and efficiency, with 40% of roads in these markets reported to be in poor condition. Inconsistent regulations, such as varied weight limits and emission standards, also raise operational costs. For instance, compliance costs in Europe have increased by 15% due to stringent emissions policies.

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Market Segmentation Highlights

By Product Type

General Cargo dominates the market, driven by growing consumer goods and retail demands.

Temperature-controlled freight is the fastest-growing segment, with rising demand for transporting food and pharmaceuticals.

By Application

Retail Distribution remains the largest segment, thanks to expanding e-commerce operations.

Manufacturing supply chains are growing quickly as industries adopt just-in-time delivery models to improve efficiency.

By End User

Retailers are the top users of short-haul freight, while manufacturers are adopting these services at the fastest pace.

By Technology

IoT-enabled fleet management leads the market, with a growing focus on digital transformation.

AI-driven route optimization is expanding rapidly, improving efficiency and reducing operational costs.

Electric and autonomous vehicles are gaining traction as sustainable logistics solutions become a priority.

By Distribution Channel

Direct logistics dominates, but third-party logistics (3PL) providers are the fastest-growing, helping businesses meet rising delivery expectations.

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Key Trends to Watch

Increased adoption of electric and autonomous vehicles in freight operations.

Growing investment in digital technologies for smarter, more sustainable logistics.

Expansion of 3PL partnerships to manage increasing demand for faster deliveries.

Short Haul Road Freight Transport Competitive Strategies & Notable Developments

DHL

FedEx

XPO Logistics

DB Schenker

DPD

Kuehne + Nagel

SF Express

Yamato Holdings

Toll Group

Aramex

Short Haul Road Freight Transport Market Segmentation

By Product Type

General Cargo

Temperature-controlled Freight

Hazardous Materials

Bulk Freight

By Application

Retail Distribution

Manufacturing Supply Chains

Agricultural Produce Transport

Construction Materials

By End User

Retailers

Manufacturers

Agricultural Producers

Construction Companies

By Technology

IoT-enabled Fleet Management

AI-driven Route Optimization

Electric Vehicles

Autonomous Vehicles

By Distribution Channel

Direct

Third-party Logistics (3PL)

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