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The Sector of Road Transportation: Latest Industry Trends and Statistics

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Major sectors under Road Transport

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Global Road Transport Industry

The road transport industry plays a vital role in the automotive industry as well as in the transportation industry and in the wider economy, providing for the transport of goods and passengers. Road infrastructure is vital to the smooth running of the global road transport industry, which is also reliant on high-technology vehicles. The road transport industry analysis shows that players are increasingly focused on using energy-friendly vehicles to comply with changing requirements linked to environmental concerns.

The health of the world economy dictates growth in the road freight transport sector, rising and falling in tandem with demand for goods and services. Road passenger transport involves buses, taxis and car rentals, providing efficient ways to get passengers to their destinations. Demand for environmentally friendly vehicles continues to rise as passengers become more aware of the need to protect the environment. Hybrid or electric buses and taxis, in particular, continue to witness rising demand.

Key Market Segments

Public transportation continues to become more important as cities across the world encounter traffic-related problems due to the fast pace of globalization. Urban transport developers worldwide are choosing bus rapid transport (BRT) for advantages such as speed and affordability. Apart from a high level of efficiency, BRT systems also offer sustainable results with minimal operational subsidy, reports Frost & Sullivan. As budgets remain tight following the economic recession, BRT is becoming an increasingly attractive option for city developers eager to combat urban congestion and offer city dwellers a cheap, reliable way to travel.

Regional Market Share

China’s road passenger vehicle sector dominates the global market and holds strong growth potential, according to research from RNCOS. Growing transport infrastructure, a significant production base and economic growth are all factors fuelling industry performance. State initiatives have also been responsible for driving market growth. Mini buses and mid-heavy buses are two segments expected to boost China’s passenger vehicle market in coming years. Dongfeng Motor Group is one leading player currently operating in the passenger vehicle market in China.

India’s taxi service market has witnessed a growing number of small and large radio taxi operators, according to TechSci Research. The Indian radio taxi market has recorded almost 42% yearly growth since 2009 based on market revenue. Factors fuelling industry performance include rising levels of disposable income and a poor existing public transport system.

Brazil’s economy ranks sixth in the world, forecast to climb to fifth place before 2013, with a vast automobile manufacturing market. Bus production in Brazil is benefiting from rising demand in other countries. RNCOS predicts Brazil’s bus production will witness yearly growth in excess of 15% between 2012 and 2015. Buses are the top long-distance transportation method for most Brazilians and tourists, apart from in the Amazon Basin. The country’s bus services are mostly of very high quality. Municipal buses remain the principle mode of transport for people making the daily trip to work. Buses run frequently, and follow an extensive network of routes to cater to Brazilian passengers going to work and foreign travelers visiting the country. There is a high number of new vehicle registrations in the southeast of Brazil. The flex-fuel vehicle market segment is most popular among Brazilians according to current trends. This is thanks to its multi-choice refueling system. Flex-fuel vehicle sales have been soaring over recent years in Brazil, mainly due to favorable state regulations regarding biofuel usage.

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Parent industry: Transportation
Related industries: Passenger Transportation, Air Transport, Logistics and Freight, Rail Transportation, Maritime Transport, Pipeline Transportation

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