United Kingdom Road Freight Transport Market Report and Forecast 2025-2034

United Kingdom Road Freight Transport Market Outlook

The United Kingdom road freight transport market size was valued at USD 69.23 billion in 2023. The market is further projected to grow at a CAGR of 2.90% between 2024 and 2032, reaching a value of USD 89.99 billion by 2032.

Key Takeaways

Road freight transport refers to the movement of goods and cargo via road-based transportation. It includes a diverse range of logistics services, which connects businesses across the country by facilitating the efficient distribution of goods. The exponential growth of e-commerce activities, such as online shopping has significantly increased the United Kingdom road freight transport market demand, as businesses seek reliable and flexible logistics solutions for the transportation of goods to meet consumer expectations.

Changes in consumer purchasing behaviour, with a preference for online shopping and doorstep deliveries, also drive the need for agile road freight transport services. This is expected to increase the United Kingdom road freight transport market value in the forecast period. Moreover, the ongoing infrastructure developments, including road network enhancements and improvements, contribute to the efficiency and accessibility of road freight transport, positively impacting the United Kingdom road freight transport market development.

Key Trends and Developments

Increasing adoption of digital technologies, rising use of EVs as a freight, and the rising partnerships among logistic and e-commerce companies are boosting the market growth

In 2023, the UK Government introduced Freight Innovation Fund (FIF) for SMEs to enhance the efficiency and thereby increase United Kingdom road freight transport market size. FIF provides EUR 7 million in financial assistance for small and medium-sized enterprises to develop innovative approaches for reducing emissions and improving efficiency. This funding allows businesses to access the resources needed to explore new technologies, data solutions, and smart logistics systems for tackling environmental issues and create a more sustainable road freight industry in the UK.

Furthermore, FedEx, one of the key players in the market, has been actively pursuing digital transformation to improve its freight services and operations. The company has been investing in next-generation technologies such as computer-assisted vehicles, artificial intelligence, and robotics. FedEx Express is exploring the use of electric carts as well for last-mile deliveries, which facilities smooth and fast delivery of goods and hence, may propel the United Kingdom road freight transport market growth.

Challenges in the United Kingdom Road Freight Transport Market

Market Segmentation

United Kingdom Road Freight Transport Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Domestic destination segment is expected to hold a significant market share due to the high demand for last-mile delivery

As per  United Kingdom road freight transport market analysis, road freight transport in domestic areas is expected to hold a significant share, largely due to the high demand for last-mile delivery services in domestic areas. This demand is expected to be further amplified by the recent partnership between Royal Mail Group Ltd, a British postal service and logistics company, and Amazon, which will provide last-mile delivery services for the e-commerce giant's customers in UK, affecting the road freight transport market in United Kingdom.

According to statistics, in 2020, 85% of the  domestic freight moved in Great Britain was transported on roads, underscoring the pivotal role of road transport in the country's domestic freight movement. Additionally, road freight within the UK offers a convenient option for businesses, as the existing well-established road infrastructure reduces the need for additional infrastructure, thereby cutting operational costs and saving time.

The United Kingdom road freight transport market report indicates that international road freight transport is expected to hold a significant market share. This is supported by the provision of door-to-door international road freight services, including same-day deliveries to some destinations, as offered by companies such as PBS International. Additionally, the statistics on international road freight transport in the United Kingdom show a substantial amount of goods being lifted, reflecting the ongoing international transportation of goods.

Construction sector holds leading position due to rapidly increasing construction activities

Road freight transport plays a crucial role in transporting construction materials, which contributes significantly to the United Kingdom road freight transport market share. As the construction sector experiences growth and infrastructure projects advance, the demand for road freight transport services is expected to rise.

Furthermore, there is a high demand for road transport services in agriculture, fishing, and forestry as it plays a vital role in the efficient marketing of agricultural and perishable goods, providing essential connectivity from farms to markets and urban communities.

However, as per United Kingdom road freight transport market report, the market witnessed a surge in demand for road transport services in wholesale and retail sector as well. This is due to the increasing need of delivering temperature-sensitive goods, including pharmaceuticals and fresh produce.

Competitive Landscape

The market players are investing in digital technologies to stay ahead in the competition, further increasing their partnerships and acquisitions to strengthen their image.

Other key players included in the United Kingdom road freight transport market analysis are A.P. Moller – Maersk, JJX Logistics, CEVA Logistics SA, Parcel Monkey Ltd., DTDC Express Limited, and Royal Mail Group Ltd, among others.

Key Highlights of the Report