Transport Services Market Definition
The transport services market consists of sales of transportation services and related goods by entities (organizations, sole traders and partnerships) that transport goods and people from one location to another for an amount or fee. The transportation services industry includes establishments that provide services to move people, goods and materials through air, rail, road, water, and pipeline. The market also comprises sales of warehousing and storage services by entities that are involved in the operation of warehousing and storage facilities for merchandise, refrigerated goods, and other materials.
Transport Services Market Size
The global transport services market reached a value of nearly $6,630.5 billion in 2018, having grown at a compound annual growth rate (CAGR) of 7.1% since 2014.
Growth in the historic period resulted from strong economic growth in emerging markets, rising e-commerce platform, low oil prices and growth in mining activities. Factors that negatively affected growth in the historic period were weak wage growth in developed economies and changing consumer preference towards the ownership of private vehicles. Going forward, economic growth, and growing technology and emphasis on cutting carbon emissions will drive growth. Factors that could hinder the growth of the transport services market in the future include a shortage of drivers and operators and government regulations.
Transport Services Market Drivers
The Key drivers of the transport services market include:
Rise Of On-Demand Transportation Services — The historic period saw the rise of on-demand transportation services. Rise in the number of user-friendly mobile taxi apps, increased internet penetration, and the lack of parking spaces boosted the demand for on-demand transportation services. In 2017, the global on-demand transport services market reached a value of $75 billion in 2017, growing at a compound annual growth rate higher than 5%. The rise in demand for on-demand transportation services drove the revenues of the transportation services companies.
Transport Services Market Restraints
The key restraints on the transport services market include:
Government Regulations – Safety improvement initiatives by federal and state governments lead to an increase in operational costs, restraining the growth of the transport services market. The emphasis on safety by government agencies compels transportation services companies to increase their investments in terms of infrastructure and safety systems. For example, the replacement of New Jersey’s Portal Bridge built in 1900 will cost around $900 million to Amtrak, the USA National Railroad Passenger Corporation. Stringent government regulations focusing on the safety of the public transportation are expected to restrain the growth of the transport services market going forward.
Transport Services Market Trends
Major trends influencing the transport services market include:
Big Data Analytics To Improve Real-Time Operations
The implementation of big data analytics is increasing rapidly in the transport services market as it allows services providers to improve real time transport operations, transportation planning, and predictive operations. Big data analytics is the process of examining large amounts of data to understand market patterns, correlations, trends, and customer preferences to make improve decision-making. Transportation services generally make use of big data analytics in congestion management and traffic control, network, capacity, risk, and delivery planning. The technology also allows companies to reduce operational costs by reducing errors, predictive analysis of the journey, and detecting and minimizing revenue leakages. As a result, companies in this market are implementing big data analytics in their major departments as well as daily operations. For instance, United Airlines uses their ‘collect, detect, act’ protocol to examine more than 150 variables in each customer profile to provide customized offers and ensure loyalty. Governments around the world are also responding to the benefits of big data by investing in projects related to the implementation of big data in the transit industry. The European Union’s transport policy in 2017 aimed to strengthen transport infrastructure through Leveraging Big Data to Manage Transport Operations (LeMO) project. LeMO is a 3-year project started in 2017 and ending in 2020 initiated to understand the implications of big data to enhance the economic sustainability and competitiveness in the region’s transportation industry.
SCADA Systems To Detect Discrepancies In Pipeline Transportation
Pipeline transportation companies are increasingly adopting supervisory control and data acquisition (SCADA) systems to enable preventative management and improve safety shutdown systems. SCADA refers to an industrial PC incorporated with sensors and fiber optic cables to control and monitor various processes by gathering real time data about the equipment conditions. Pipeline transportation companies make use of this system to manage their distribution and maintain their infrastructure. Companies are incorporating these systems with IoT and automation to facilitate leakage detection, curb security issues related to pipeline transportation, and enable alarm management. Pipeline transportation services providers and infrastructure developers are focusing on collaborations to develop such innovative systems for their line. For instance, in 2018, Trans-Anatolian Natural Gas Pipeline (TANAP) Project Company transporting natural gas from Caspian Sea to Turkey cooperated with ABB to develop a SCADA system with more than 4,000km fiber optic cable imbibed with security and telecommunications through surveillance and intruder detection.
Transport Services Market Competitive Landscape
The global market for transport services is fragmented. The top ten competitors in the global construction market made up around 4% of the total market in 2018. Major players in the market include China State Construction Engineering Co, China Railway Group Ltd, China Railway Construction Corporation Limited, Vinci SA, and Odebrecht Engenharia E Construcao Sa.
China, Japan, India, Australia, USA, Brazil, UK, Germany, France, Spain, Italy, Russia
Opportunities And Recommendations In The Transport Services Market
Opportunities – The top opportunities in the transport services market will arise in the general transportation market segment, which will gain $867.4 billion of global annual sales by 2022. The transport services market size will gain the most in the China at $782.1 billion. Market-trend-based strategies for the transportation services market include adopting head on generation technology to reduce carbon footprints, exploring social media to address their passengers, investing in truck platooning to reduce costs. Player-adopted strategies in the transportation services market include reinforcing M&A strategies to expand businesses in other geographic areas, and investing in expanding networks, operations and distribution network.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the transportation services companies to focus on the increasing the use of light weight trailers, incorporating telematics in trailers, expanding into emerging markets and use social media to have maximize reach.
Transport Services Market Segmentation
The Transport Services market is segmented by type of service, by purpose and by geography.
By Type Of Service -
The transport services market can be segmented by type into
The general transportation market was the largest segment of the transport services market in 2018 at 30.4%. The pipeline transportation market is expected to be the fastest-growing segment going forward at a CAGR of 11.9%.
- a) General Transportation
- b) Truck Transportation
- c) Air Transportation
- d) Water Transportation
- e) Transit And Ground Passenger Transportation
- f) Warehousing And Storage
- g) Rail Transportation
- h) Pipeline Transportation
By Purpose –
The transport services market can be segmented by type into
The cargo and freight travel was the largest segment of the transport services market in 2018 at 33.4%. The commuter travel is expected to be the fastest-growing segment going forward at a CAGR of 8.9%.
- a) Cargo And Freight
- b) Tourism And Leisure Travel
- c) Transportation Support Activities
- d) Commuter Travel
- e) Shipping And Delivery
- f) Business Travel
By Type Of Service -
The general transportation market can be further segmented by type of service into
The truck transportation market can be further segmented by type of service into
- a) Couriers And Messengers
- b) Sightseeing Transportation & Support Activities For Transportation
- c) Postal Services
The air transportation market can be further segmented by type of service into
- a) Specialized Freight Trucking
- b) General Freight Trucking
The water transportation market can be further segmented by type of service into
- a) Air Cargo Services
- b) Chartered Air Transportation
- c) Passenger Air Transportation
The transit and ground passenger transportation market can be further segmented by type of service into
- a) Deep Sea, Coastal, And Great Lakes
- b) Inland
The taxi and limousine services market can be further segmented by type of service into
- a) Commuter Rail And Public Bus Services
- b) Taxi And Limousine Services
- c) School And Employee Bus Services
- d) Charter Bus Services
- e) Others - Transit And Ground Passenger Transportation
The warehousing and storage market can be further segmented by type of service into
- a) Mobile Application Based Taxi Services
- b) Other Taxi Services
The pipeline transportation market can be further segmented by type of service into
- a) General Warehousing And Storage
- b) Refrigerated Warehousing And Storage
- c) Specialized Warehousing And Storage
- d) Farm Product Warehousing and Storage
The transport services market is segmented into
- a) Crude Oil Pipeline Transportation
- b) Refined Petroleum Products Pipeline Transportation
- c) Natural Gas Pipeline Transportation
- d) Others - Pipeline Transportation
Asia-Pacific was the largest market for transport services market, accounting for 32.7% of the global market in 2018. It was followed by North America, Western Europe and then the other regions. Going forward, Africa and Asia-Pacific will be the fastest growing regions in this market.
- o North America
- o Western Europe
- o Asia Pacific
- New Zealand
- Hong Kong
- South Korea
- o Eastern Europe
- Czech Republic
- o South America
- o Middle East
- Saudi Arabia
- o Africa
- South Africa
Transport Services Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • China National Railway Group Co., Ltd.
- • United Parcel Service, Inc.
- • United States Postal Service
- • Deutsche Post DHL Group
- • FedEx Corporation
- • Deutsche Bahn AG
- • Delta Air Lines, Inc.
- • Lufthansa Group
- • United Continental Holdings, Inc.
- • Russian Railways
- • Deutsche Post DHL Group
- • United Parcel Service
- • FedEx
- • American Airlines Group
- • Air France – KLM
- • International Airlines Group