APAC ROAD FREIGHT TRANSPORT MARKET - GROWTH, TRENDS AND FORECASTS (2023-2028)

The APAC Road Freight Transport Market is estimated to grow with a compounded annual growth rate of about 6.2% during the forecasted period of 2023-2028.  

Before the COVID-19 epidemic, the APAC road freight transport market was already changing due to developments including urbanization, ageing populations, new working habits, climate change, shared economy, and digital transformation. A more sustainable and resilient future has also been outlined in international frameworks like the United Nations Sustainable Development Goals (UN SDGs). Some of these patterns have been stronger because of COVID-19.  

The APAC region exhibits some patterns. Among these are deteriorating infrastructure, a lack of institutional strength, sluggish integration of transportation networks, and problems with asset maintenance. Other patterns are more regionally focused, such as countries in Central and West Asia that are involved in conflict or small island developing states, particularly in the Pacific.  

Many other societal sectors are supported by and interact with transport, which is here defined as the transportation of things over land, water, and the air. As a result, it is influenced by a wide range of interrelated and occasionally conflicting elements, such as population density, environmental deterioration, changing user behavior, and the incorporation of new technologies.  

Topics include land use, supply chains, work habits, leisure preferences, societal well-being, energy, and resources.  The diversity of trends and forces is further impacted by global interconnection and cross-regional influences, making the future of transportation particularly challenging in the APAC region. 

In 2020, COVID-19 had a substantial effect on the Asia-Pacific infrastructural construction market. Construction is anticipated to increase even though COVID-19 is predicted to impede infrastructure development. Following the impact of COVID-19, the demand for transportation infrastructure development started to grow in 2021 and showing sign of recovery. 

The Pacific DMCs’ connectivity infrastructure is being planned, built, and maintained with help from the Asian Development Bank (ADB). Over 59% of the total value of the Pacific portfolio of the ADB comes from transportation projects. 

With the ADB’s support for the transportation industry, the Pacific region is experiencing more profitable, steady, and long-term growth. 

Moving forward, a thorough transformation of technology, development methods, and services will be used to create smart road infrastructure. It requires an integrated system with digital platforms, smart applications, ubiquitous connection, and digital perception. To do this, a range of stakeholders must collaborate to innovate and produce the best results.  

Additionally, motorways and highways have transitioned into the digital age and will soon become more intelligent. The goal of digitalization is to provide roadway networks cognitive and perceptual capacities. Coordination between commuters, automobiles, and roadways will be made possible by this.  

A positive outlook for the market is anticipated during the forecast period because of the expanding government regulations aimed at promoting the adoption of electric vehicles and the aggressive expansion strategies adopted by OEMs and suppliers in the area to meet rising demand from the APAC road freight transport market, especially the Chinese industry.  

The Chinese government is promoting the use of electric automobiles. To phase out diesel fuel, which powers the nation’s current generation of tractors and construction machinery, plans have already been developed.  

NUMBER OF COMMERCIAL VEHICLES SOLD IN THE ASIA-PACIFIC REGION IN 2021, BY COUNTRY 

The highly fragmented and competitive APAC road freight transportation market is undergoing technological changes with better connectivity. Companies are collaborating to contribute to the infrastructural development to ease the road transportation and aid fast and seamless delivery of goods. 

A Memorandum of Understanding (MOU) for the practical application and advancement of smart construction technologies was signed by Hyundai E&C and Korea Expressway Corporation (KEC) in March 2021. On the creation and use of smart construction technology, Hyundai E&C will collaborate closely with the Center for Smart Construction Technology.