Hit the brakes: Revenue has grown over the past five years, but is forecast to contract in 2018-19

The Freight Road Transport industry operates the most extensive transport network of all freight modes, providing much-needed flexibility and the convenience of door-to-door haulage. The industry has historically offered faster and more reliable delivery times and less damage to goods than other freight methods. According to the latest data from the Department for Transport, road transport accounted for 77.8% of all goods moved in the United Kingdom in 2017. The industry is highly competitive and fragmented, with only one company, DHL Supply Chain, accounting for a market share greater than 5%.The industry has encountered mixed conditions over the past five years...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Government transport policies generally favour alternative transport methods
  • High fuel prices at the beginning of the period put pressure on profit margins
  • Government efforts to reduce emissions may be detrimental over the next five years
  • Industry Report - Industry Analysis Chapter

    Roads are the main method of transporting freight within the United Kingdom. According the Department for Transport (DfT), 77.8% of all goods are moved within the United Kingdom by road in 2017, with 13.2% being transported by water and 9% by rail. International road freight by UK-registered HGVs decreased consistently over the five years through 2017, from 4.4 billion tonnes at the beginning of the period to just 3.7 billion tonnes. On the other hand, domestic freight activity increased over the period, to reach 147 tonne kilometres in 2017, up from just over 131 million tonne kilometres in 2013. In addition to this, the number of light goods vehicles on British roads has increased over the period, reaching almost four million in 2017. Thi...purchase to read more.

    Additional Insights for the Freight Road Transport Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Freight Road Transport Industry are

  • Output is sold under contract - incorporate long-term sales contracts
  • Optimum capacity utilisation
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Industrial production index in the Freight Road Transport industry impact industry performance..

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    What's in this report

    What is the Freight Road Transport Industry?

    This industry transports freight by road. This includes the haulage of bulk, stock and heavy, as well as both liquid and refrigerated transport. The industry also carries vehicles, waste materials and logs. The operation of terminals, packing and courier activities are not included in the industry.

    Industry Products
  • Transport by articulated lorry
  • Transport by rigid lorry
  • Transport by light goods vehicle
  • Industry Activities
  • Transporting freight by road
  • Hiring road haulage vehicles with drivers
  • Haulage of refrigerated and liquid goods
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Industrial production index
  • Real private consumption expenditure
  • Demand from sea and coastal freight water transport
  • Fuel prices
  • Demand from freight rail transport

  • Current Performance
  • On the road
  • Emissions limits
  • Levelling the field
  • Duty on fuel
  • Chart: Revenue Growth

  • Industry Outlook
  • Government involvement
  • Electric switch
  • Heavy goods vehicles
  • Table: Freight Road Transport Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Petroleum Refining
  • Building Project Development
  • Supermarkets
  • Freight Forwarding & Customs Agents

  • Key Selling Industries
  • Motor Vehicle Maintenance & Repair
  • Motor Vehicle Parts Wholesaling
  • Petrol Stations

  • Products & Services
  • Transport by articulated lorry
  • Transport by rigid lorry
  • Transport by light goods vehicle
  • Other
  • Chart: Freight Road Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Construction industries
  • Retailers and wholesalers
  • Hydrocarbon and manufacturing industries
  • Other
  • Waste
  • Agriculture
  • Chart: Major Market Segmentation for the Freight Road Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitMargins are expected to increase over the five years through 2018-19, from approximately 13% in 2013-14. As owners cut the number of employees, wages as a proportion of revenue decreases and profit increases. Over the past five-year period, profit margins hit a low of 13.8% in 2015-16 as new companies entered the industry, attracted by the low fuel costs, but margins improved over the following year as wage and capital costs fell. Over the final two years of the period, rising fuel costs combined with the weak pound are expected to weigh on profit margins. WagesPurchasesDepreciationOtherRent and utilities
  • Chart: Cost Structure Benchmarking – Sector vs Freight Road Transport

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Freight Road Transport Industry

  • Industry Globalization
    DHL Supply Chain Ltd,
  • Table: DHL Supply Chain Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Freight Road 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 Freight Road Transport Industry
  • 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
    Heavy Goods Vehicle (Hgv)
  • A freight vehicle that weighs more than 3.5 tonnes.
  • Tail Swing
  • The distance between the rear axle and the rear of the vehicle.
  • Telematics
  • The integrated use of telecommunications and information processing to measure and send data.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Freight Road Transport market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Freight Road 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 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 Freight Road 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 Freight Road Transport, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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