Global Transportation Industry Report

The global transportation market was valued at $7.90 trillion in 2023 and is forecast to expand at a compound annual growth rate (CAGR) of 8.10% to reach $15.90 trillion by 2032.

The global transportation services market is worth $8.54 trillion and is on pace to grow to reach more than $18.63 trillion by 2034, expanding at a CAGR of 8.11%.

The global transportation analytics market expanded at a CAGR of 21.4% from $16.75 billion in 2023 to $20.33 billion in 2024.

Market Segmentation

By type, the transportation market is segmented into Road, Rail, Air, Maritime, Pipeline, Intermodal, Courier & Parcel, E-Commerce, and Specialized.

By application, the market is segmented by Passenger Transport, Freight Transport, Last-Mile Delivery, Ride Hailing Services, and Public Transport.

By service, the market is segmented into Third-Party Logistics, Fourth-Party Logistics, Warehousing, and Express Delivery.

By infrastructure, the market is broken down by High-Speed Rail, Light Rail, Ports, Airports, Highways, and Pipelines.

By technology, the market includes Telematics, Ticketing Management Systems, Route Optimization, and Freight Information Systems.

By fuel type, it is broken out by Diesel, Gasoline, Electric, Hybrid, and Hydrogen.

By vehicle type, the segments include Cars, Trucks, Buses, Vans, Rail Cars, Ships, and

Aircraft.

Key Market Trends & Drivers

Transportation Management Systems (TMS) are being widely adopted in order to automate workflows and optimize assets in freight management. These systems allow for the real-time tracking of drivers, goods, and inventory.

Companies are investing more in research & development of products that offer:

• Video analytics
• Fleet analytics
• Advanced travelers information
• Parking management solutions
• Transportation management systems
• Ticketing platforms
• Traffic analytics
• Predictive analytics
• GIS analytics

These services are designed to offer more efficient traffic management and travel convenience.

Fleet Management Systems (FMS) are becoming more popular for remote monitoring and control of fleet vehicles, which improves delivery results.

More companies are looking toward last-mile delivery, encompassing all operations needed to transport goods to customers in the fastest way possible using real-time shipment tracking, advanced analytics and GPS, autonomous drones, and robots.

Smart shipping is being used to mitigate risks through automated operations that protect workers and improve fuel efficiency through shipping performance analytics.

There is an advent of disruptive technologies, including advanced traveler systems, advanced vehicle control systems, and analytics, which drive product demand across railways, roadways, and other verticals. Embedded sensors are used to collect data from transport vehicles, tracking their condition and performance.

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Artificial Intelligence (AI) is used to predict traffic flow delays, detect objects for driverless vehicles, and improve safety via machine learning that monitors driver behavior.

Mobility-as-a-Service (MaaS) is becoming more popular as consumers want flexible, on-demand transportation options. These platforms combine different forms of transportation services into a single accessible platform. This trend is supported by advancements in digital payment systems and increasing smartphone penetration.

Firms are adopting new solutions for enterprise rail analytics, using advanced data analysis and business intelligence techniques for rail transportation systems to improve decision-making, use of resources, and overall productivity.

Autonomous vehicles and driverless trucks are becoming more commonly used in various capacities, in concert with a surge in smart city initiatives, providing attractive investment opportunities in infrastructure development.

M&A

Improving market conditions are driving buyers and sellers to make moves in the transportation industry as interest rates continue to drop, giving buyers more purchasing power as they expand geographically and add more services and new customers.

The ongoing growth of e-commerce is driving M&A activity as companies aim to enhance their last-mile delivery capabilities.

The freight-forwarding space is seeing more cross-border mergers as businesses look to capitalize on global trade growth.

In the United States, many companies that provide transportation systems and services are seeing the impacts of the hundreds of billions of dollars in federal funding by the government being allocated to improve transit, airports, and passenger rail infrastructure

Digital transformation continues to provide new M&A opportunities in the transportation industry as new platforms are being developed and existing ones are being consolidated. The growing need for artificial intelligence (AI) solutions and autonomous technology is also providing opportunities for M&A strategies around the world.

Private equity firms are playing active roles in transportation M&A, specifically targeting businesses that offer tech-driven solutions designed for improved efficiency and lower costs and integrating digital platforms to streamline operations.

Sustainable transportation is also gaining more traction, opening up more opportunities for M&A deals as there is a growing need for investment into areas such as electric vehicle infrastructure and battery technology.

Our Recent Success Stories in the Sector

Some of Benchmark International’s more recent successful deals in the transportation space include:

• The sale of Colombus-based Morgan Wood Products to EP Group, nominated for M&A DEAL OF THE YEAR ($50MM TO $75MM) and MATERIALS DEAL OF THE YEAR by the M&A Advisor
• The acquisition of Tennessee-based Nationwide Express by Jones Logistics, a portfolio company of Jones Capital
• The acquisition of FullfillPlus, Inc. to a private group of buyers
• The sale of MT Global Freight Solutions to HBX Capital Management, nominated for PRIVATE EQUITY DEAL OF THE YEAR ($10MM TO $25MM) by the M&A Advisor
• The sale of North Carolina-based Movin’ On Movers to Piece by Piece Movers
• The acquisition of Houston Crating, Inc., a provider of crating and export packing services to the energy and logistics industries, by MEI Rigging & Crating, a leading provider of rigging, machinery moving, millwrighting, mechanical installation, commercial storage, crating, and export packing services
• The sale of Texas-based MTS Transportation, Inc. to High Desert Management Group, LLC, a Texas holding company

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