Global Overview of the Transport and Storage Industry

January 2024

The briefing examines how the transport and storage industry is performing globally and in the largest countries in terms of transport and storage output. The report also provides data for production, market size, industry costs, industry profitability and number of companies.

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Key findings

Global economic slowdown clouds the near-term industry outlook

Following a strong post-pandemic uptick, the growth of the global transport and storage industry is expected to moderate. Slower economic development, especially across advanced economies, accompanied by softer consumer and B2B demand, and weaker investment are likely to result in subdued demand for freight transport services. On the other hand, a more resilient demand for travel is expected to bolster the growth of passenger transport.

Transport and storage companies grapple with rising cost pressures

Companies continue to face substantial costs pressures stemming from rising wages due to widespread labour shortages, elevated fuel costs amid persisting energy market volatility, rising borrowing and debt servicing costs in the high interest rate environment, coupled with the need to invest into greener solutions.

Shift towards sustainability demands substantial investments

Amid intensifying sustainability imperatives, transport companies invest in fleet electrification and adoption of low-carbon fuels, intermodal solutions, energy-efficient warehousing and infrastructure modernisation. Despite requiring significant upfront investments, the long-term benefits promise cost reduction and improved operational efficiency.

Expanding e-commerce drives up the importance of last mile delivery

A surge in online retailing and growing consumer demand for convenience have underscored the importance of last mile logistics. To reduce costs, minimise delivery times and keep pace with evolving consumer preferences, logistics companies focus on expanding fulfilment capacity, delivery fleets and collection points, decentralising warehouse locations and developing urban storage facilities.

Scope
Key findings
Industry’s growth to moderate as global demand slows amid macroeconomic headwinds
China and the US continue to drive global transport and storage industry growth
Transport and storage companies under pressure due to elevated energy and labour costs
Global transport and storage industry profits continue to grow, largely supported by the US
Key future trends in the transport and storage industry
Global macroeconomic and industry trends
China Railway continues to dominate the global transport and storage industry
Many countries see the number of firms grow due to the large amount of small entrants
Industry remains highly fragmented despite the consolidation trend
China : Weaker trade amid global slowdown to limit short-term industry expansion
China: Lingering property crisis and lacklustre post-covid recovery weigh on industry growth
US : Industry’s growth to ease amid slowing domestic economic development
US: Companies focus on process optimisation to meet rising demand for last mile delivery
India : Industry to see healthy growth over the medium term
India: Strong economic development and public support to facilitate industry expansion
Germany : Weak economic development clouds industry’s near-term outlook
Germany: Long-term industry outlook supported by i nfrastructure improvements
Japan : Reviving air transport to support industry development in the near to medium term
Japan: Labour shortages and rising cargo demand call for efficient solutions and modal shifts
Russia : Slower domestic and foreign demand to subdue industry growth
Russia: W idespread trade and financial constraints cloud industry outlook
UK : After the post-pandemic uptick, the industry’s real growth is set to slow
UK: Industry outlook is clouded by macroeconomic headwinds
Italy : Industry to maintain growth despite the slowdown in external demand
Italy: Logistics to remain the major driver of future industry growth
France : Macroeconomic headwinds to constrain industry growth in real terms
France: Long-term development to be characterised by a shift towards sustainable solutions
Canada : Industry’s real growth is poised to moderate amid economic headwinds
Canada: Government investments to support transport sector’s long-term development
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