Market Conditions and Growth of Road Transportation in Asia-Pacific

The road transportation market in Asia-Pacific is estimated to reach USD 0.97 trillion by 2024 and is projected to grow to USD 1.39 trillion by 2030, with a compound annual growth rate (CAGR) of  6.26% during the period. This growth is driven by the increasing logistics needs across various sectors, especially e-commerce, manufacturing, and agriculture which continue to expand in the region. With improved transportation infrastructure and support from government policies, many companies have started adopting technology-based solutions to improve fleet efficiency and speed up the delivery of goods.

In addition, investments in technologies such as fleet management systems, automation, and real-time monitoring play a major role in reducing operational costs and improving service reliability. This trend is in line with changing consumer demands that expect speed, accuracy, and transparency in the delivery process. Digital transformation in the industry is also driving cross-sector collaboration to create a more integrated and resilient supply chain.

With significant growth projected, the Asia-Pacific road transport market will remain an important part of the global economy, especially with the increasing role of emerging economies in the region as manufacturing and distribution hubs.

Asia-Pacific Road Transportation Market Conditions

The road transportation market in Asia-Pacific is projected to experience significant growth, with an estimated market value of USD 0.97 trillion by 2024 and increasing to USD 1.39 trillion by 2030, at a compound annual growth rate (CAGR) of 6.26%. One of the key drivers of this growth is the expansion of road infrastructure in China, which plans to expand its network to 130,000 km by 2027, strengthening the long-haul delivery segment. In addition, solid commodities dominate shipments with 69.39% market share, supported by sectors such as construction, textiles, machinery, and automotive that rely heavily on road transportation.

The manufacturing industry is the largest user of this service, with a share of 38.86% in 2022, influenced by the increase in automobile production in China. The fastest growing segment is Less-Than-Truckload (LTL) shipments, with a projected CAGR of 7.06%, driven by the region’s booming e-commerce industry, which is also expected to grow at a CAGR of 11.92% until 2027. In terms of major players, Nippon Express leads the market with a 1.73% share, operating over 13,818 vehicles and extensive warehousing areas across Asia-Pacific. This growth reflects the dynamic changes in the industry, where increasing demand for efficiency, digitalization, and integrated logistics are the main factors influencing market development.

Growth in Value of Road Transportation Market in Asia-Pacific

During this period, a steady growth trend is seen, with the market projected to increase from USD 0.97 trillion in 2024 to USD 1.39 trillion in 2030.

The manufacturing industry dominates as the largest user of road transportation services, followed by the wholesale and retail trade sectors. The construction sector also holds a significant share, followed by the oil and gas, mining, and agriculture, fisheries, and forestry sectors.

This growth reflects the increasing demand for transportation logistics from various industries, especially with the development of the manufacturing industry and retail trade in the Asia-Pacific region. The increase is triggered by the need for efficient distribution and delivery of goods in various sectors that are increasingly dependent on road transportation services. Other sectors, such as construction and energy, also contributed significantly to the overall market value, confirming the importance of road transportation in supporting various economic activities in the region.

Asia-Pacific Government Strategies

The Australian Government is currently focusing on the Modern Manufacturing Strategy project by investing more than 1.5 billion USD. This initiative is a key part of the government’s plan to create a strong, modern and resilient economy. The main objective of the project is to strengthen Australia’s reputation as a high-quality, sustainable manufacturing nation by creating business-friendly economic conditions. In addition, the project also aims to promote science and technology in the industry, focus on areas of manufacturing excellence, and build national resilience to support a stronger economy.

On the other hand, China continues to show significant growth in the agricultural sector. In 2022, the gross production value of agricultural products in the country reached 1.3 trillion USD, with annual growth of more than 6%. This increase in output, as seen in wheat production of 685 million tons in 2022, has increased the demand for domestic road transportation services. This is in line with the government’s focus on food security, where wheat production is expected to increase by another 50 million tons in the near future.

Meanwhile, India is also recording a record increase in food production with total grain production expected to reach 330.5 million tons in 2022-2023, up from 315.6 million tons. The Government of India has undertaken various initiatives to create a reliable and connected agricultural logistics network to support the distribution of agricultural products. One of the innovative initiatives launched is the smartphone app “Kisan Rath”, which makes it easy for farmers, producer groups (FPOs), and traders to rent vehicles to transport agricultural products.

Overall, both Australia, China, and India have shown a strong commitment to industrial growth through supporting both the manufacturing and agricultural sectors, which has directly impacted the demand for road transportation services in the region. These strategic initiatives are expected to continue to drive sustainable economic development in the Asia-Pacific region.

In the face of rapid growth in manufacturing, agriculture, and other industries, effective fleet management is key to maintaining distribution and transportation efficiency. Fleet Management System (FMS) from TransTRACK comes as a leading solution to optimize your fleet operations. With TransTRACK, you get real-time monitoring that enables hands-on fleet management, high-accuracy vehicle tracking, and maintenance scheduling automation that reduces the risk of downtime and vehicle breakdowns.

TransTRACK FMS is also equipped with fleet performance data analysis, which provides strategic insights for better decision-making, as well as improved safety through driver monitoring systems. In addition, our platform is flexibly integrated, allowing for easy implementation across a wide range of sectors, from manufacturing to agriculture.

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