Keep on trucking: Rising freight task and merchandise trade have boosted revenue

The Road Freight Transport industry dominates the Australian non-bulk market due to its ability to deliver door-to door, and its competitive advantages in price, convenience and reliability. The industry's largest vehicles transport goods between and across states, competing with rail, water and air freight industries. Industry firms typically use light commercial vehicles for the final stage of delivery. As the industry's major markets span the entire economy, demand for road freight transport services is a strong indicator of changes in economic growth.Industry revenue is expected to grow at an annualised 0.7% over the five years through 2018-19, to $46.8 billion. Increased freight task and merchandise trade have driven demand for industry services over the period...read more.

Industry Statistics & Market Size
Revenue
$47bn
Annual Growth 14-19
0.7%
Forecast Growth 19-24
Profit
Employment
142,808
Businesses
40,332
Market Share of Companies

Industry Threats & Opportunities

  • Demand for road freight transport services is a leading measure of economic growth
  • The industry benefits from its position as a necessary stage in many supply chains
  • Consolidation trends are projected to continue, with many smaller operators merging
  • Industry Report - Industry Investment Chapter

    The Road Freight Transport industry exhibits a moderate level of capital intensity. For every dollar spent on capital investment, an estimated $4.98 is spent on wages. The level of capital intensity differs substantially based on the size of the operator, with larger firms requiring greater capital investment as they have larger vehicle fleets, and capital-intensive distribution centres. Wages represent a significant expense for the industry, although the use of subcontracting within the industry and the high number of owner-operators suppresses the true level of labour intensity.Industry operators generate revenue on each trip based on distance, and it is common for interstate trucks to travel 300,000 kilometres per year. Alt...purchase to read more.

    Additional Insights for the Road Freight Transport Industry

    IBISWorld has determined the most important Key Success Factors for the Road Freight Transport are:

  • Market research and understanding
  • Access to quality personnel management
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Road freight service price and Domestic freight task in the Road Freight Transport industry impact industry performance..

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    What's in this report

    What is the Road Freight Transport Industry?

    Industry operators primarily transport freight by road. The industry also includes towing services and road delivery services, excluding couriers. Use of in-house fleet vehicles by mining, retail and construction firms is excluded from the industry.

    Industry Products
  • Interstate services
  • Intrastate services
  • Urban services
  • Industry Activities
  • Road freight transport services
  • Road delivery services
  • Driver-operated truck hire
  • Towing services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Road freight service price
  • Domestic freight task
  • Total merchandise imports and exports
  • US dollars per Australian dollar
  • World price of crude oil

  • Current Performance
  • Trading landscape
  • Demand trends
  • Industry participation
  • Skills shortage
  • Profit trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability
  • Industry consolidation
  • Road networks and congestion
  • Table: Road Freight Transport Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Road Freight Transport Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Construction
  • Wholesale Trade
  • Retail Trade
  • Road Freight Forwarding

  • Key Selling Industries
  • Commercial Vehicle Wholesaling
  • Motor Vehicle Electrical Services
  • Motor Vehicle Parts and Accessories Manufacturing
  • Petroleum Product Wholesaling
  • Tyre Retailing

  • Products & Services
  • Intrastate services
  • Interstate services
  • Urban services
  • Chart: Road Freight Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Crude material and chemical markets
  • Downstream markets for manufactured goods
  • Downstream users of agricultural output
  • Fuel retailers
  • Other markets
  • Chart: Major Market Segmentation for the Road Freight Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Road Freight Transport

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road Freight Transport Industry

  • Industry Globalization
    Toll Holdings Limited,
  • Table: Toll Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Road Freight Transport Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Road Freight Transport Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Articulated Truck
  • A vehicle with a pivot joint between segments of the vehicle. This joint allows a sharper turning circle.
  • B-Double
  • A prime mover hauling two trailers.
  • B-Triple
  • A prime mover with three trailers attached.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Road Freight Transport market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Road Freight Transport:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Road Freight Transport market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Road Freight Transport, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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