Road Freight Forwarding in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC I5292aRevenue
$4.1bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
8,252
Businesses
626
Wages
$XXX.Xm
Road Freight Forwarding in Australia industry analysis
The value of the Road Freight Forwarding industry's consolidation service has diminished in recent years, putting downwards pressure on road freight forwarders' revenue and profitability. Industry revenue has been declining at an average annualised 0.4% over the past five years and is expected to total $4.1 billion in 2022-23, when revenue falls by an estimated 1.3%. Rising international trade volumes have lifted the domestic freight task and bolstered demand for road freight forwarding services, limiting the decline in industry revenue.The logistics sector has become increasingly sophisticated as Australia's freight volumes have grown. Integrated logistics operators have moved away from providing forwarding services, instead simply consolidating freight loads in their own vehicles and vessels. This trend has put pressure on smaller road freight forwarders to engage in intense price competition to protect their market shares. Growing competition has forced firms to limit passing on rising road freight costs to clients, driving profit margins lower as a share of revenue in recent years. Profitability pressures have intensified over the past two years because of high world crude oil prices, which have pushed up forwarders' purchase costs.Industry revenue is forecast to grow at an annualised 1.1% through the end of 2027-28 to total $4.3 billion, as demand conditions improve. Freight volumes are on track to grow over the coming years, providing opportunities for road freight forwarders to expand their market size, as much of the cargo is consumer goods. Nevertheless, the Road Freight Forwarding industry is set to continue underperforming the Road Freight Transport industry, as prospective clients bypass forwarders to engage directly with road freight transport providers. World crude oil prices are poised to decline over the coming years, supporting a recovery in industry profit margins.
Trends and Insights
- Road freight forwarders are experiencing strong external competition from integrated logistics companies. That’s why the industry is underperforming the Road Freight Transport industry.
- The Road Freight Forwarding industry primarily provides general and express freight forwarding services. Warehousing and distribution services generate a smaller amount of revenue.
- Demand for road freight forwarding stems primarily from downstream retail, wholesaling and manufacturing businesses. Road freight forwarding enterprises therefore tend to follow a similar geographic distribution to these industries.
- The Road Freight Forwarding industry exhibits a high level of competition. Competition internally among rival freight forwarders is intense and largely focused on price.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 0.4 % over the past five years, to reach an estimated $4.1bn in 2023.
Trends and Insights
Rising competition from vertically integrated logistics firms has negatively affected industry revenue
- The rise of vertically integrated transport companies and third-party logistics services has decreased road freight forwarders' role in the economy. Customer demand has shifted to focus on end-to-end logistical requirements, with road freight being only one aspect of a wider range of service offerings.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Demand from key markets is poised to grow
- Demand conditions in the Road Freight Forwarding industry are set to improve over the coming years, in line with the Australian economy's growth.
Biggest companies in the Road Freight Forwarding in Australia
| Company | Market Share (%)
2023 | Revenue ($m)
2023 |
|---|---|---|
Kuehne & Nagel | 40.6 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including General freight services, Express freight forwarding services and Warehousing and distribution services. General freight services is the largest segment of the Road Freight Forwarding in Australia.
Trends and Insights
Express freight forwarding services attract premium prices
- Express freight forwarding services deal with time-sensitive deliveries.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Road Freight Transport in Australia
- Rail, Air and Sea Freight Forwarding in Australia
- Courier Pick-up and Delivery Services in Australia
Complementors
- Customs Agency Services in Australia
International industries
- Freight Forwarding Brokerages & Agencies in the US
- Third-Party Logistics in the US
- Freight Forwarding Brokerages & Agencies in Canada
- Customs Agency and Freight Forwarding Services in New Zealand
- Freight Forwarding & Customs Agents in the UK
Table of Contents
About this industry
Industry definition
Road freight forwarders primarily organise transport services and consolidate goods for transport. Consolidating loads allows road freight forwarders to achieve and pass on rates otherwise unachievable for their customers. Road freight forwarders do not provide underlying transport services.
What's included in this industry?
General freight servicesExpress freight forwarding servicesWarehousing and distribution servicesCompanies
Kuehne & NagelPurchase this report to view all 1 major companies in this industry.
Related Terms
CONSOLIDATIONTONNE-KILOMETRERADIOFREQUENCY IDENTIFICATION (RFID)Industry Code
ANZSIC 5292 - Road Freight Forwarding in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Road freight forwarders are experiencing strong external competition from integrated logistics companies. That’s why the industry is underperforming the Road Freight Transpor...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The Road Freight Forwarding industry primarily provides general and express freight forwarding services. Warehousing and distribution services generate a smaller amount of re...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Demand for road freight forwarding stems primarily from downstream retail, wholesaling and manufacturing businesses. Road freight forwarding enterprises therefore tend to fol...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The Road Freight Forwarding industry exhibits a high level of competition. Competition internally among rival freight forwarders is intense and largely focused on price.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No companies in the Road Freight Forwarding industry account for over 5.0% market share. The industry does not include large vertically integrated road freight transporters.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Kuehne & Nagel's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Kuehne & Nagel, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Road Freight Forwarding industry is subject to a moderate level of regulation. The rules and regulations governing road freight in Australia are increasingly affecting ro...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Road freight forwarders derive profit from consolidating loads to achieve economies of scale on their customers’ behalf. The ability to maximise capacity utilisation is vital...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Road Freight Forwarding industry in Australia in 2024?
The market size of the Road Freight Forwarding industry in Australia is $4.1bn in 2024.
How many businesses are there in the Road Freight Forwarding in Australia industry in 2023?
There are 626 businesses in the Road Freight Forwarding industry in Australia, which has grown at a CAGR of 0.7 % between 2018 and 2023.
Has the Road Freight Forwarding industry in Australia grown or declined over the past 5 years?
The market size of the Road Freight Forwarding industry in Australia has been declining at a CAGR of 0.4 % between 2018 and 2023.
What is the forecast growth of the Road Freight Forwarding industry in Australia over the next 5 years?
Over the next five years, the Road Freight Forwarding industry in Australia is expected to grow.
What are the biggest companies in the Road Freight Forwarding market in Australia?
The biggest company operating in the Road Freight Forwarding market in Australia is Kuehne & Nagel
What does the Road Freight Forwarding in Australia include?
General freight services and Express freight forwarding services are part of the Road Freight Forwarding industry.
Which companies have the highest market share in the Road Freight Forwarding in Australia?
The company holding the most market share in Australia is Kuehne & Nagel.
How competitive is the Road Freight Forwarding industry in Australia?
The level of competition is high and increasing in the Road Freight Forwarding industry in Australia.
