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India Road Freight Transport Market

ID: MRFR/PCM/19796-HCR
128 Pages
Snehal Singh
October 2025

India Road Freight Transport Market Research Report Information By Mode of Transportation (Road Freight, Sea Freight, Air Freight), By Road Transportation (Less than truck load, Full truck load), By Type of Fleets (Less Goods Carrier Vehicles, High Goods Carrier Vehicles) – India Market Forecast Till 2035

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India Road Freight Transport Market
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India Road Freight Transport Market Summary

As per MRFR analysis, the India Road Freight Transport Market was estimated at 157.45 USD Billion in 2024. The market is projected to grow from 162.96 USD Billion in 2025 to 229.92 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 3.5 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The India Road Freight Transport Market is poised for robust growth driven by e-commerce and infrastructure advancements.

  • The rapid growth of e-commerce is significantly influencing the demand for road freight services in India.
  • Infrastructure development initiatives are enhancing connectivity and efficiency in the road freight transport sector.
  • The road freight segment remains the largest, while the air freight segment is emerging as the fastest-growing in the market.
  • Rising demand for consumer goods and government initiatives are key drivers propelling the market forward.

Market Size & Forecast

2024 Market Size 157.45 (USD Billion)
2035 Market Size 229.92 (USD Billion)
CAGR (2025 - 2035) 3.5%

Major Players

Tata Motors (IN), Mahindra Logistics (IN), Gati Limited (IN), Blue Dart Express (IN), DHL Supply Chain India (IN), Transport Corporation of India (IN), VRL Logistics (IN), Allcargo Logistics (IN), Xpressbees (IN)

India Road Freight Transport Market Trends

The India Road Freight Transport Market is currently experiencing a dynamic evolution, driven by various factors that shape its landscape. The increasing demand for efficient logistics solutions, coupled with the expansion of e-commerce, appears to be propelling growth in this sector. Additionally, the government's focus on infrastructure development, including the enhancement of road networks and the implementation of policies aimed at improving freight efficiency, seems to play a crucial role in facilitating smoother operations. As businesses seek to optimize their supply chains, the reliance on road transport for freight movement is likely to intensify, reflecting a shift towards more integrated logistics strategies. Moreover, the market is witnessing a gradual transition towards sustainability, with stakeholders exploring eco-friendly transportation options. This shift may be influenced by rising environmental awareness and regulatory pressures aimed at reducing carbon footprints. The integration of technology, such as telematics and route optimization software, could further enhance operational efficiency and reduce costs. Overall, the India Road Freight Transport Market appears poised for continued growth, driven by a combination of infrastructural advancements, technological innovations, and evolving consumer preferences.

E-commerce Growth

The expansion of e-commerce is significantly influencing the India Road Freight Transport Market. As online shopping becomes increasingly popular, the demand for timely and reliable delivery services is rising. This trend necessitates efficient logistics solutions, prompting transport companies to adapt their operations to meet consumer expectations.

Infrastructure Development

Government initiatives aimed at enhancing road infrastructure are playing a pivotal role in shaping the India Road Freight Transport Market. Improved road networks facilitate smoother freight movement, reducing transit times and operational costs. This focus on infrastructure is likely to attract further investments in the sector.

Sustainability Initiatives

There is a growing emphasis on sustainability within the India Road Freight Transport Market. Stakeholders are exploring eco-friendly transport options and technologies to minimize environmental impact. This trend reflects a broader commitment to reducing carbon emissions and promoting greener logistics practices.

India Road Freight Transport Market Drivers

Growth of the E-commerce Sector

The rapid expansion of the e-commerce sector is a pivotal driver for the India Road Freight Transport Market. With online shopping becoming a preferred choice for consumers, the demand for efficient and timely delivery services is escalating. In 2025, the e-commerce market in India is projected to reach USD 200 billion, necessitating a robust logistics framework to support this growth. This trend compels logistics providers to innovate and adapt their services to meet the specific needs of e-commerce businesses, such as last-mile delivery solutions. Consequently, the India Road Freight Transport Market is likely to evolve, focusing on enhancing delivery speed and reliability to cater to the dynamic requirements of the e-commerce landscape.

Rising Demand for Consumer Goods

The India Road Freight Transport Market is experiencing a notable surge in demand for consumer goods, driven by increasing disposable incomes and changing lifestyles. As urbanization accelerates, the need for efficient transportation of goods to meet consumer expectations becomes paramount. In 2025, the market is projected to witness a growth rate of approximately 8.5%, reflecting the rising consumption patterns across various sectors. This demand is further fueled by the expansion of retail chains and the proliferation of e-commerce platforms, which necessitate robust logistics solutions. Consequently, the India Road Freight Transport Market is likely to adapt by enhancing its service offerings and optimizing supply chain processes to cater to this burgeoning demand.

Increased Focus on Sustainability

Sustainability is emerging as a critical consideration within the India Road Freight Transport Market. As environmental concerns gain prominence, logistics companies are increasingly adopting eco-friendly practices to reduce their carbon footprint. This includes the use of electric vehicles, optimized routing to minimize fuel consumption, and sustainable packaging solutions. In 2025, it is anticipated that the demand for green logistics will grow, driven by both regulatory pressures and consumer preferences for environmentally responsible practices. This shift towards sustainability not only aligns with The India Road Freight Transport Industry as a forward-thinking sector, likely attracting investments and partnerships focused on sustainable development.

Technological Advancements in Logistics

Technological innovations are reshaping the India Road Freight Transport Market, enhancing operational efficiency and service delivery. The adoption of advanced technologies such as GPS tracking, route optimization software, and automated warehousing solutions is becoming increasingly prevalent. These technologies not only improve the accuracy of deliveries but also reduce operational costs. In 2025, it is estimated that the integration of technology in logistics could lead to a 15% increase in productivity within the sector. As companies strive to remain competitive, the emphasis on digital transformation is likely to drive further investments in the India Road Freight Transport Market, fostering a more agile and responsive logistics ecosystem.

Government Initiatives and Policy Support

The India Road Freight Transport Market benefits significantly from various government initiatives aimed at improving logistics efficiency. Policies such as the Goods and Services Tax (GST) have streamlined inter-state transportation, reducing transit times and costs. Furthermore, the government is investing in infrastructure projects, including highways and logistics parks, which are expected to enhance connectivity and facilitate smoother freight movement. In 2025, the government's focus on the National Logistics Policy is anticipated to further bolster the industry by promoting multimodal transport and reducing logistics costs to 8% of GDP. Such supportive measures indicate a favorable environment for the growth of the India Road Freight Transport Market.

Market Segment Insights

By Mode of Transportation: Road Freight (Largest) vs. Air Freight (Fastest-Growing)

In the India Road Freight Transport Market, Road Freight holds the largest share, primarily dominating the logistics landscape due to its extensive network of highways, flexibility, and cost-effectiveness. Compared to other modes, it efficiently caters to the diverse cargo needs across the vast geographical expanse of the country, serving as the backbone of local and regional trade activities. In contrast, Air Freight is emerging rapidly, capitalizing on its speed and the urgent demand for time-sensitive deliveries. Business requirements are shifting towards faster delivery times, which is propelling the growth of Air Freight even as it represents a smaller share of the total market.

Road Freight (Dominant) vs. Air Freight (Emerging)

Road Freight stands as the dominant mode of transportation within the India Road Freight Transport Market, characterized by a vast network of roadways capable of supporting various vehicle types, from small trucks to large freight carriers. It caters to a wide range of industries by providing reliable service for localized deliveries and long-haul transport. Conversely, Air Freight is recognized as an emerging player, appealing to businesses that necessitate rapid logistics solutions. While it is more expensive than road transport, its ability to deliver goods swiftly makes it indispensable for high-value or perishable products. The growing e-commerce sector further enhances Air Freight’s appeal, highlighting a clear market trend towards faster, more efficient logistics.

By Road Transportation: Less than Truck Load (Largest) vs. Full Truck Load (Fastest-Growing)

In the India Road Freight Transport Market, the Less than Truck Load (LTL) segment holds the largest market share, attributed to the rising demand for efficient shipping solutions among small to medium-sized enterprises. Companies prefer LTL as it allows them to transport smaller quantities of goods without the need for a full truck, significantly lowering transportation costs and improving supply chain efficiencies. Conversely, the Full Truck Load (FTL) segment, while smaller in share, is experiencing rapid growth as businesses increasingly recognize the advantages of bulk shipping and dedicated logistics services.

Road Transportation: Less than Truck Load (Dominant) vs. Full Truck Load (Emerging)

The Less than Truck Load (LTL) segment is characterized by its flexibility and cost-effectiveness, making it highly appealing to smaller businesses that require freight solutions without full truck capacity. It allows for shared truck space and the transportation of diverse goods, helping to optimize logistics costs. Meanwhile, the Full Truck Load (FTL) segment is considered an emerging powerhouse due to its ability to facilitate large shipments that reach their destination without stops. This segment is gaining traction as logistics companies upgrade their infrastructure and integrate technology, ensuring quicker turnaround times and enhanced service delivery for bulk freight.

By Type of Fleets: Less Goods Carrier Vehicles (Largest) vs. High Goods Carrier Vehicles (Fastest-Growing)

In the India Road Freight Transport Market, the fleet composition is significantly tilted towards Less Goods Carrier Vehicles, which constitute the largest share of the total vehicle population. These vehicles are preferred for local and regional deliveries due to their cost-effectiveness and lighter loads. On the other hand, High Goods Carrier Vehicles have been gaining traction, driven by the rising demand for heavy cargo transportation across longer distances.

Less Goods Carrier Vehicles (Dominant) vs. High Goods Carrier Vehicles (Emerging)

Less Goods Carrier Vehicles have established themselves as the dominant force in the Indian road freight sector, mainly owing to their efficiency in urban transportation and their ability to navigate congested routes. Conversely, High Goods Carrier Vehicles are becoming an emerging segment, propelled by the expansion of e-commerce and industrial activities that require the movement of bulk goods. As a result, the demand for these larger vehicles is on the rise, prompting logistics firms to adapt their fleets to accommodate heavier payloads and greater distances.

Get more detailed insights about India Road Freight Transport Market

Regional Insights

North America : Logistics Innovation Hub

The North American road freight transport market is characterized by advanced logistics technologies and a robust infrastructure. The region is driven by increasing e-commerce demand and regulatory support for sustainable transport solutions. The U.S. holds the largest market share at approximately 70%, followed by Canada at 15%. Regulatory initiatives aimed at reducing emissions are further catalyzing growth in this sector. Leading players in this market include major logistics firms and automotive manufacturers, with companies like FedEx and UPS dominating the landscape. The competitive environment is marked by innovation in last-mile delivery solutions and the adoption of electric vehicles. The presence of key players such as Tesla and Amazon Logistics is reshaping the market dynamics, ensuring a focus on efficiency and sustainability.

Europe : Sustainable Transport Initiatives

Europe's road freight transport market is witnessing a significant shift towards sustainability, driven by stringent regulations and a growing emphasis on reducing carbon footprints. The European Union's Green Deal aims to cut transport emissions by at least 90% by 2050, making it a key regulatory catalyst. Germany and France are the largest markets, holding approximately 30% and 20% shares, respectively, as they lead in adopting green technologies and practices. The competitive landscape is characterized by a mix of traditional logistics companies and innovative startups focusing on eco-friendly solutions. Key players such as DHL and DB Schenker are investing heavily in electric and hybrid fleets. The presence of advanced logistics networks and a strong regulatory framework supports the growth of the sector, making Europe a leader in sustainable road freight transport.

Asia-Pacific : Emerging Market Dynamics

The Asia-Pacific road freight transport market is experiencing rapid growth, driven by urbanization, increasing consumer demand, and government investments in infrastructure. India and China are the largest markets, with India holding approximately 25% and China around 30% of the market share. Regulatory support for logistics efficiency and infrastructure development is further propelling this growth, making the region a focal point for investment. The competitive landscape is marked by a mix of established players and new entrants, with companies like Tata Motors and Mahindra Logistics leading the charge in India. The presence of diverse logistics solutions, including last-mile delivery services, is enhancing market dynamics. The region's growth is also supported by technological advancements in logistics management and supply chain optimization, positioning it as a key player in the global market.

Middle East and Africa : Logistics Growth Potential

The Middle East and Africa road freight transport market is poised for growth, driven by increasing trade activities and investments in logistics infrastructure. The region is characterized by a diverse market landscape, with South Africa and the UAE being the largest markets, holding approximately 20% and 15% shares, respectively. Regulatory frameworks are evolving to support logistics efficiency and cross-border trade, enhancing market potential. The competitive environment features a mix of local and international players, with companies like Allcargo Logistics and Gati Limited making significant strides. The region's strategic location as a trade hub between continents further boosts its logistics capabilities. Investments in technology and infrastructure are expected to drive future growth, making the Middle East and Africa an emerging player in The India Road Freight Transport.

India Road Freight Transport Market
 Regional Image

Key Players and Competitive Insights

Leading market players are putting a lot of money into R&D to increase the range of products they sell. Additionally, market players are engaging in a range of calculated actions to increase their presence, with important market developments including releases of new products, contracts, acquisitions and mergers, increased investments, and cooperation with other enterprises. To grow and endure in a market that is becoming more and more competitive, India Road Freight Transport industry must provide reasonably priced goods.

Major players in the India Road Freight Transport market are making investments in R&D operations in an effort to boost market demand, including GATI-KWE, VRL Logistics, TCI, OM Logistics, DGFC, Varuna, Express Logistics, Aggarwal Packers and Movers, NTC Logistics.

Key Companies in the India Road Freight Transport Market market include

Industry Developments

In  July 2024, Globalizing logistic services in India came of age after leading logistics player Delhivery determined to grab a larger pie of the playing service providers in the very Indian Road Freight sector. This prudent decision places Delhivery in a broad service theatre, including last-mile delivery and warehousing, all of which are essential if the company is to survive the rising competition from the e-commerce and retail industry. With its management offices situated in Gurgaon, most of the operational aspects of the company make it more aggressive in the Indian Road Freight services.

In July 2023, Blue Dart, hazarding yet still making bold commitments towards maintaining and upgrading the fleet and technology, has similarly responded. Deliveries can also become more efficient, leading to a lowering of carbon emission levels. Even the company has also launched its green initiatives, including the deployment of EVs and decreasing its total carbon emissions by thirty percent by the year 2025. Blue Dart's initiatives are in line with the rising trend of the industry, which embraces green practices.

In April 2023, the National Logistics Policy was launched by the Indian government for the purpose of establishing a single widow clearance system for all logistics operations. This particular policy has been well received by many industry associations and stakeholders which would prefer such a development as it has more chances of enhancing transparency while cutting down on red tape. The initiative encourages the use of digital technologies and the reduction of logistics expenditures which are estimated currently at about to GDP percentage of 13-15 percent.

Future Outlook

India Road Freight Transport Market Future Outlook

The India Road Freight Transport Market is projected to grow at a 3.5% CAGR from 2024 to 2035, driven by urbanization, e-commerce expansion, and infrastructure development.

New opportunities lie in:

  • Investment in electric vehicle fleets for sustainable logistics solutions.
  • Development of integrated logistics platforms for real-time tracking and efficiency.
  • Expansion of cold chain logistics to support perishable goods transport.

By 2035, the market is expected to be robust, driven by innovation and strategic investments.

Market Segmentation

India Road Freight Transport Market Type of Fleets Outlook

  • Less Goods Carrier Vehicles
  • High Goods Carrier Vehicles

India Road Freight Transport Market Road Transportation Outlook

  • Less than truck load
  • Full truck load

India Road Freight Transport Market Mode of Transportation Outlook

  • Road Freight
  • Sea Freight
  • Air Freight

Report Scope

MARKET SIZE 2024157.45(USD Billion)
MARKET SIZE 2025162.96(USD Billion)
MARKET SIZE 2035229.92(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)3.5% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesAdoption of electric vehicles and smart logistics solutions in the India Road Freight Transport Market.
Key Market DynamicsRising demand for efficient logistics solutions drives innovation and competition in India's road freight transport sector.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Snehal Singh
Assistant Manager - Research

High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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FAQs

What is the current valuation of the India Road Freight Transport Market?

As of 2024, the market valuation was 157.45 USD Billion.

What is the projected market size for the India Road Freight Transport Market by 2035?

The market is expected to reach a valuation of 229.92 USD Billion by 2035.

What is the expected CAGR for the India Road Freight Transport Market during the forecast period?

The anticipated CAGR for the market from 2025 to 2035 is 3.5%.

Which companies are considered key players in the India Road Freight Transport Market?

Key players include Tata Motors, Mahindra Logistics, Gati Limited, and Blue Dart Express, among others.

What are the main segments of the India Road Freight Transport Market?

The primary segments include Mode of Transportation, Road Transportation, and Type of Fleets.

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