Revving up: Strong consumer demand for imports has supported industry revenue

The Road Freight Transport industry dominates the Australian non-bulk freight market due to its advantages in price, speed, convenience and reliability. The industry's largest vehicles transport goods between and across states, competing successfully with rail, water and air freight industries. In cities, light commercial vehicles are the dominant form of transport for the final stage of delivery. The industry's major markets span the entire economy, and demand for road freight transport services is a leading indicator for changes in economic growth. Businesses typically hold less stock prior to and following economic downturns, which reduces demand for transporting goods.Industry revenue is expected to grow at an annualised 0.5% over the five years through 2018-19, to $48.9...read more.

Industry Statistics & Market Size
Revenue
$49bn
Annual Growth 14-19
0.5%
Forecast Growth 19-24
Profit
Employment
152,821
Businesses
39,025
Market Share of Companies

Industry Threats & Opportunities

  • Demand for road freight transport services is a leading indicator for 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 SWOT Analysis Chapter

    The Road Freight Transport industry is in the mature stage of its life cycle. Industry value added (IVA), which measures the industry's contribution to the overall economy is expected to rise at an annualised 1.6% over the 10 years through 2023-24. This represents an underperformance of the wider economy, with real GDP anticipated to grow at an annualised 2.6% over the same period. This is indicative of a mature industry.The industry's services are well-established, technological change is moderate and the industry is undergoing consolidation. No significant new products have been launched onto the market since the introduction of B-double trailers in the early 1990s. Road infrastructure significantly limits any increase in truck and trailer sizes...purchase to read more.

    Additional Insights for the Road Freight Transport Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Road Freight Transport Industry 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 Total merchandise imports and exports 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 delivery road services, excluding couriers. In-house use of fleet vehicles in mining, retail and construction are 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
  • Total merchandise imports and exports
  • Domestic freight task
  • US dollars per Australian dollar
  • World price of crude oil

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

  • Industry Outlook
  • Cost structure and consolidation
  • Domestic fuel prices
  • Skill shortages and wages
  • 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
    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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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