Thursday 11 June 2020

India Road Freight Market Outlook to 2024


The report titled India Road Freight Market Outlook to 2024 – Driven by BS VI Norms, revision in Existing Axle Norms by the Government and Technological Advancementsprovides a comprehensive analysis on the status of logistics sector in India. The report covers various aspects including the current logistics scenario in India, its components viz, freight transportation, warehousing, CEP and VAS. The report specially focuses on Road freight market highlighting its issues and challenges, major growth drivers, investment in infrastructure, tech disruptions and innovations, and competition benchmarking. The report concludes with market projections for future of the Road freight market including forecasted industry size by Revenue.
India Logistics Market Overview and Size
India Logistics Sector has witnessed a robust CAGR with highest share to freight forwarding Market followed by Warehousing, Courier parcel and Express market and VAS Market. Road freight is the dominant mode with transportation to Domestic Flow corridors and international Neighboring Countries also. Many real estate developers such as Indospace, Logos India, ESR and many more are making constant investments in warehousing market in Gurgaon, Chennai and Mumbai. E commerce sector is becoming extremely popular with introduction of online payments such as Amazon Pay, Paytm, Gpay and new popular delivery apps.
India Road Freight Market Overview and Size
Small fleet owners dominated industry (70% of all fleet) operating at a margin of 8-12% and average transaction days of 12-15 per month.  SFOs primarily operating on Spot bookings while MFOs and LFOs working on LHAs. India Road Freight Market has witnessed an average CAGR during 2014-19 due to revision in BF VI Norms, Scrappage Policy, GST and new axle norms from the Government with rise in Average highway construction of Roads. The developments of  Bhratamala Pariyojana and the Sagarmala projects and the Eastern and Western Dedicated Freight Corridors, Developments of ports along with  Public Private partnership Projects has stimulated the growth in the market. On the front of assessing seasonality fluctuations in demand, Freight rates usually high during festive season in September-December with WAFC being ₹ 2.58/tonnes/km in 2019.
India Road Freight Market Segmentation
Road Freight Market Segmentation by LTL and FTL
The Road freight market is dominated by FTL by revenues and by Volume. The average freight cost charged for LTL is higher than FTL due to additional risk in carrying multiple loads, higher insurance cost and more.
Road Freight Market Segmentation by type of trucks
There are 12 million+ trucks in India, with net additions of over 6 lakh trucks in the market annually and there exist 40+ variants of trucks in the market.The Country is dominated by Light Goods Carrier Vehicles in comparison to High Goods Carrier Vehicles. The ratio of LCGV to HGCV is around 6:5. The LCGVs are expected to remain the dominant category in India Trucking Market.
Competitive Landscape of Major Players Operating in the India Road Frieght Market
The trucking Industry in India are extremely fragmented in nature. The trucking Industry is dominated by local domestic players who have large number of fleets and providing competitive prices. Big Companies such as Mahindra and All Cargo are moving towards Asset Light Model, subcontracting with local transport vendors and provide  Value added services such as Kitting, Assembling, packing and other which are very important in road freight market. Online platforms such as Blackbuck, TruckOla, rivigo and many more are disrupting the logistics space. The major players in the India Road freight market include GATI, VRL logistics, TCI, Om Express, DGFC, Varuna, Express logistics and many more.
India Road Freight Market Future Outlook & Projections:
The Trucking Industry in India will be impacted by COVID in the country and is expected to revive back in 2021 with faster growth rate. The truckers who have bought trucks with 50-100% institutional finance will see a tough time and need to maintain 90% capacity utilisation for upcoming EMIs, Insurance premiums & Permit with same freight cost in spite of high diesel cost.  This is due to disturbed production- consumption cycle with only 30% of trucks operating with cut throat competition for loads. Increasing Demand of e commerce products, growing Reefer trucks, technical innovations such as E vehicles, Fleet Management Software and more are disrupting the competition space.
Key Segments Covered:-
Freight Forwarding Market
By  Mode of Transportation
Road Freight (Fleets, Volume, FTK, Price/ton/km and Revenue)
Sea Freight (Volume, Price/ton/km, Revenue and Inland Coastal Shipping Price/ton/km)
Air Freight (Volume, Price/ton/km and Revenue)
By Road transportation
Less than Truck load (Revenue)
Full truck load (Revenue)
By Type of Fleets (Number of Fleets)
Less Goods Carrier Vehicles
High Goods Carrier Vehicles
Companies Covered:-
GATI-KWE
VRL Logistics
TCI
OM Logistics
DGFC
Varuna
Express Logistics
Aggarwal Packers and Movers
NTC Logistics
FSC
Associated Road Carriers
KerryIndev Logistics
Coastal Roadways
Stellar Value Chain
Sical Logistics
VTrans
CEVA
Anand Roadlines
Southern Cargo
Andhra Bangalore Roadways
DHL
CTC Freight Carriers
Mahindra Logistics
ALL Cargo
TVS
Key Target Audience:-
Freight Forwarding Companies
E Commerce Logistics Companies
3PL Companies
Consultancy Companies
Logistics/Warehousing Companies
Time Period Captured in the Report:-
Historical Period – FY14-FY19
Forecast Period – FY20-FY24
Key Topics Covered in the Report:-
India Logistics and Warehousing Market Introduction
Logistics Infrastructure
Cross Comparison of Logistics Performance in Different Countries (Germany, US, India, Australia, China, Vietnam, Philippines)
India Logistics and Warehousing Market Size
India Logistics and Warehousing Market Segmentation
India Logistics and Warehousing Market Future Outlook
India Logistics And Warehousing Market Future Segmentation
India Freight Market Size
India Freight Market Segmentation
India Freight Market Future Outlook
India Freight Market Future Segmentation
India Trucking Market Size
India Trucking Ecosystem
India Trucking Market Segmentation
India Trucking Market Future Outlook
India Trucking Market Future Segmentation
Innovations in Transportation Market
Investment Model on Road freight transportation
Regulatory Environment
Issues and Challenges
For More Information on the research report, refer to below link:-
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