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The intermodal freight transportation market size is forecast to increase by USD 62 billion at a CAGR of 6.88% between 2023 and 2028. Intermodal freight transportation is witnessing significant growth due to several key trends and factors. One of the primary drivers is the reduced freight transportation costs associated with intermodal services, which offer a more cost-effective alternative to traditional trucking methods. Another trend is the growing popularity of multimodal transportation, which allows for seamless transfer of cargo between different modes of transport, increasing efficiency and reducing transit times. However, the high infrastructure costs required for intermodal terminals and specialized equipment pose a challenge to market growth. Despite these challenges, the market is expected to continue expanding, driven by the cost savings and efficiency gains offered by intermodal services.
Intermodal freight transportation involves the movement of domestic products using multiple modes of transport, including trucks, rail, and ships, to minimize freight costs and reduce carbon footprint. Cargo handling at terminals is a critical aspect of intermodal freight transportation, with proper stacking order of boxes and efficient trucker check-in and check-out processes essential for minimizing damage and loss during the transfer of cargo. The aggregate cost of intermodal freight transportation is influenced by various factors, including trucking issues, emissions, and logistics expenses. Trucking issues such as driver shortages and fuel prices can impact the availability and reliability of trucking services, leading to increased transportation costs.
Moreover, intermodal freight transportation management involves managing billable processes, events, and service requests at unit locations, borders, and for noncitizens and nonresidents. Proper planning and coordination between transportation modes and terminal operations are crucial to ensure timely delivery and minimize cargo damage and loss. Despite the benefits of intermodal freight transportation, challenges such as cargo handling inefficiencies, emissions, and border clearance processes can impact the overall efficiency and cost-effectiveness of the transport method. Effective management of these challenges is essential for optimizing intermodal freight transportation and reducing logistics expenses.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Rail transport segment is estimated to witness significant growth during the forecast period.
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The Rail transport segment accounted for USD 53.10 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Intermodal freight transportation involves the transfer of goods from boxes to trucks, trains, and back, optimizing the use of various modes of transport to ensure dependable freight shipment. At terminals, billable processes such as check-in and check-out, service requests, and unit locations are managed efficiently. Intermodal freight transportation has been significantly impacted by events like borders closures, self-isolation, virus outbreaks, and lockdowns, necessitating social distancing, contact tracing, and economic and social impacts. Road transport continues to dominate the freight transportation landscape, but the rail industry is gaining traction, with intermodal trains, trucks, and railroad conversions playing a pivotal role. Precision-planned railroading, including the use of intermodal railcars, locomotives, and faster speeds, is revolutionizing rail operations.
The PSR approach streamlines the freight transportation process, ensuring efficient goods movement while adhering to safety protocols. Despite challenges, the market remains a vital component of global supply chains, with shipping equipment and load prices influenced by market dynamics and geopolitical events. Truck drivers continue to play a crucial role, ensuring the seamless transfer of goods between modes of transport.
Our intermodal freight transportation market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The reduced freight transportation costs with intermodal services is the key driver of the market. Intermodal freight transportation has gained popularity among shippers due to its cost advantages over single modes of transportation, such as trucks. This transportation method involves moving goods via longer trains along shipping lanes, with the transfer of cargo between modes occurring at key intermodal terminals. The combination of sea or river transportation for the initial leg, followed by rail transportation from ports to delivery locations, and finally road transportation for last-mile delivery, results in substantial cost savings compared to using only sea and road transportation. Railway operators, such as CN and CPR, are investing in improved transportation management systems to enhance intermodal efficiency and reduce costs.
Decreased equipment and staff requirements, as well as increased rail access to industrial clusters like Duisburg, further contribute to the cost reductions in intermodal freight transportation. The transportation environment is witnessing an increase in intermodal volume, with new players entering the market to capitalize on the cost savings and efficiency benefits. The cost of intermodal freight transportation is primarily comprised of fuel, labor, and equipment expenses. Any fluctuations in these categories can significantly impact the bottom line of road freight carriers, making intermodal freight transportation an attractive alternative. Domestic container volume and domestic equipment availability are also crucial factors influencing the market.
Growing popularity of multimodal transportation is the upcoming trend in the market. Intermodal freight transportation, characterized by the use of multiple modes of transportation under separate contracts, is gaining traction in the transportation environment due to several advantages over traditional modal options. Longer trains and optimized shipping lanes are enabling railways, such as CN and CPR, to offer cost reductions and increased efficiency. Decreased equipment and staff requirements at delivery locations contribute to these savings. Coast-to-coast railroads in North America are expanding their rail access to industrial clusters, such as Duisburg in Europe, to cater to the growing intermodal volume. New players are entering the market, further increasing competition and driving innovation.
The single contract nature of intermodal transportation offers benefits like decreased risk or loss or damage, ease of tracking goods at a single point, and reduction in the number of documents handled. These advantages are expected to fuel the growth of the market during the forecast period, with domestic container volume and domestic equipment playing a significant role.
High infrastructure costs is a key challenge affecting the market growth. High investments in infrastructure are required to ship goods through intermodal transportation. Investments include the installation of gantry cranes and other heavy-duty cranes necessary to lift the cranes at different ports while changing the mode of transport. For example, whenever the container arrives at a seaport, it needs to be transferred either on a flatbed, rail, or truck. Cranes are used to transfer containers from one mode of transportation to the other.
In addition, necessary investments for rail and road access are also required. For example, a seaport should have a rail line so that railways can transport goods to and from the seaport. Similarly, roads are necessary so that trucks can easily access these ports. For example, a modern crane requires around USD 5 million or more than USD 5 million, depending upon the size and needs. These high investments are slow to come and often require time, thus having a negative impact on the demand for intermodal freight transportation. Hence, these high infrastructure cost requirements are expected to impede the growth of the global intermodal freight transportation market during the forecast period.
The intermodal freight transportation market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AP Moller Maersk AS: The company provides a comprehensive range of intermodal freight transportation solutions, encompassing Ocean Transport, Inland Services, Cross Border Rail Transportation, Maersk Air Freight, and Less than Container Load (LCL) services.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Intermodal freight transportation involves moving domestic products using multiple transport methods, including trucking and intermodal rail, to minimize freight costs and reduce carbon footprint. The aggregate cost of intermodal freight transportation is influenced by various factors, such as cargo handling, damage, and loss during the transfer between transport methods. The reliance on trucking for the first and last mile of transportation can lead to trucking issues, including driver shortages and productivity-stifling capacity constraints. These issues can result in supply chain interruption and supply risk, leading to increased transportation expenses. In the short term, intermodal freight transportation offers cost savings through the efficient use of rail capacity and the ability to transport larger volumes in a single move.
In the long term, multimodal transportation capabilities, such as the use of cranes, containers, and stacking order at rail facilities, can reduce fuel use and greenhouse gas emissions per ton-mile. Intermodal rail transport also offers a more stable and predictable truck volume, reducing the need for trucking companies to carry excess capacity. Supply chain leaders are increasingly turning to multimodal freight moves to optimize their logistics management and mitigate transportation expenses.
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Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.88% |
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Market growth 2024-2028 |
USD 62 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.3 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 33% |
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Key countries |
US, Germany, China, Canada, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AP Moller Maersk AS, BDP International Inc., C H Robinson Worldwide Inc., Convoy Inc., CSX Corp., Deutsche Bahn AG, Deutsche Post AG, Elemica Inc., Hapag Lloyd AG, J B Hunt Transport Services Inc., Koerber AG, Kuehne Nagel Management AG, Lynden Inc., MARTEN TRANSPORT LTD., Trimble Inc., Uber Technologies Inc., United Parcel Service Inc., WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP., WiseTech Global Ltd., and XPO Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Transportation
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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