Intermodal Freight Transportation Market Size
Global Intermodal Freight Transportation Market reached US$ 51.56 billion in 2023 and is expected to reach US$ 155.89 billion by 2031, growing with a CAGR of 15.09% during the forecast period 2024-2031.
Technology’s essential role in driving efficiency, visibility, and optimization within transportation networks acts as a key trend for intermodal freight transportation market growth. Innovations such as Internet of Things (IoT) sensors, real-time tracking systems, predictive analytics, and digital platforms are enabling higher asset utilization, route optimization, and supply chain visibility, leading to progressed service stages and cost savings.
In November 2023, RACO Investment, a player in the transportation industry, introduced a tech-driven intermodal freight initiative for sustainable transport. By combining superior technologies, efficient logistics, and sustainable practices, this initiative mounted a new well-known multimodal freight service with the aid of imparting smooth, powerful, and eco-friendly transportation solutions.
North America dominates the intermodal freight transportation market, capturing the largest market share. The region’s rapid infrastructural development led to the intermodal freight transportation market growth. In May 2023, Canadian Pacific Kansas City (CPKC), a freight transportation services provider introduced the Mexico Midwest Express (MMX) Series premium intermodal service offering customers the only truck-competitive, single-line rail service alternative between the Midwest and Mexico.
Market Scope
| Metrics | Details |
| CAGR | 15.09% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Component, Transportation Mode, Solution, End-User Industry and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Need for Reliable and Safe Transportation Systems
As businesses are seeking to optimize their delivery chains and meet purchaser needs for timely and regular delivery of products, intermodal transportation gives a compelling solution. Through seamlessly integrating multiple modes of transportation, including rail, truck, and sea, intermodal systems enhance reliability by mitigating risks associated with single-mode transportation systems, inclusive of climate-associated disruptions or capacity constraints.
In November 2023, from Song Than railway station, Binh Duong Province and Vietnam Railways opened an international multimodal transport route to China. After it is finished, Song Than station is expected to increase its yearly capacity for goods transit to 3.5 million tonnes, making it one of the important stations in Vietnam's railway network. These types of developments underscore the need for more reliable, safe, and efficient transportation systems, driving the growth of the global intermodal freight transportation market.
Rapid Globalization and International Trade
Rapid globalization and the enlargement of international trade are substantial drivers at the back of the increase of the worldwide intermodal freight transportation market. As per the United Nations Conference on Trade and Development, the value of international commerce in goods was around 33% larger in mid-2022 than it was in 2019. The trade in services increased by almost 15% from its 2019 level. As companies are increasingly looking to access global markets and supply materials from various regions, the demand for efficient and interconnected transportation networks has surged.
Intermodal freight transportation offers a complete solution by seamlessly integrating a couple of modes of transport, inclusive of rail, road, sea, and air, to optimize supply chain logistics. This method permits companies to overcome geographical barriers, reduce transit instances, and improve operational performance, thereby facilitating smoother international trade flows.
Infrastructure Limitations Hindering the Adoption of Intermodal Freight Transportation
Infrastructure boundaries serve as a great restraint for the intermodal freight transportation market. Insufficient infrastructure, such as outdated rail networks, congested ports, and inadequate intermodal terminals, restraints the seamless motion of products across different modes of transportation. The lack of integration between modern technology solutions and existing infrastructure limits the optimization of freight movements and the implementation of efficient intermodal transportation systems.
These limitations bring about inefficiencies, increased transit instances, and higher transportation expenses, in the end deterring businesses from completely leveraging intermodal transportation systems. For instance, IANA reported that the overall intermodal volume for 2022 was 17,716,445, which was 3.9% less than in 2021. Trailers fell by 23.8% to 924,259, while domestic containers increased by 1.6% to 8,147,044. At 9,071,303, all domestic equipment decreased 1.8%. At 8,645,142, ISO containers had a 6.0% decrease.
Market Segment Analysis
The global intermodal freight transportation market is segmented based on component, transportation mode, solution, end-user industry and region.
Rising Demand for Rail and Road Transport for Providing Efficient, Flexible, and Cost-Effective Logistics Solutions
Rail and road transportation mode gives various advantages, their integration within intermodal transportation networks permits seamless and efficient movement of products across numerous distances and terrains. By leveraging the strengths of each rail and road delivery, intermodal freight transportation operators can optimize supply chain performance, minimize transit instances, and enhance overall performance.
In April 2022, LTG Cargo, the freight branch of the Lietuvos geležinkeliai (LTG) group launched intermodal freight transport to Duisburg to to further accomplish its objectives of diversification. Customers will have rail access to the largest inland waterway port in the world as well as one of Europe's most significant industrial clusters thanks to the new goods route. This type of initiative underscores the importance of combining rail and road transport to provide comprehensive logistics solutions that cater to diverse customer needs and market demands.
Market Geographical Share
North America’s Growing Infrastructure
North America has been a dominant force in the global intermodal freight transportation market due to its well-evolved transportation infrastructure, which consists of an extensive network of highways, railways, ports, and airports. This infrastructure offers a smooth flow of goods between unique modes of transportation, making intermodal freight transportation an appealing alternative for businesses looking to move items.
In November 2023, J.B. Hunt Transport Services Inc. a supply chain solutions provider in North America, and BNSF Railway (BNSF), North America’s largest intermodal rail provider, announced the launch of Quantum, Quantum, a ground-breaking intermodal service that meets the service-sensitive highway freight needs of client supply chains. These sorts of trends underscore the significance of North America inside the intermodal freight transportation market.
COVID-19 Impact Analysis On Market
The pandemic brought disruptions in global supply chains, impacting the flow of goods and necessitating changes in transportation routes and modes. Intermodal transportation, which is based on seamless coordination between distinctive modes (together with rail, trucking, and maritime), faced challenges due to disruptions at ports, terminals, and distribution centers.
The pandemic introduced operational challenges for intermodal transportation companies, consisting of labor shortages, health and safety protocols, and regulations on cross-border moves. These challenges impacted operational performance, transit instances, and carrier reliability. Also, the economic downturn resulting from the pandemic affected the financial performance of intermodal transportation companies.
Russia-Ukraine War Impact Analysis
The Russia-Ukraine war disrupted trade routes among Russia, Ukraine, and other countries in the area. This disruption affected the flow of goods transported through intermodal transportation networks, main to delays, rerouting of shipments, and extended transportation charges. The geopolitical uncertainty resulting from the war led to concerns among groups and investors approximately the stableness of the region.
The Russia-Ukraine war disrupted supply chains, affecting manufacturing schedules and inventory levels globally. This instability led to higher transportation costs as carriers adjust routes and utilize more expensive modes. Additionally, increased security expenses are incurred to ensure the safety of shipments. Interruptions in the flow of goods impacted intermodal freight transportation demand, necessitating adaptations in trade patterns and regulations. Overall, the conflict altered the dynamics of the global intermodal freight transportation market.
Key Developments
- In November 2023, together, the National Railway of Italy and the Mediterranean Shipping Company (MSC) established a new company. The company will expand Italy's port infrastructure for intermodal rail and maritime transportation. This project will link the nation to the European train system.
- In October 2023, the Intermodal Association of North America (IANA) created an online intermodal course for its members. This educational resource was created in collaboration with Delft University of Technology and the University of Maryland Smith School of Business to offer an overview of intermodal freight transportation.
- In October 2023, CSX, a freight railroad company unveiled www.intermodal.com, a new website that uses interactive tools and movies to highlight the importance of intermodal rail in modern supply chains. Numerous new features are available on intermodal.com, such as an interactive 'build a shipment' map that lets users personalize a potential route for intermodal freight movement.
Market Competitive Landscape
The major global players in the market include Oracle, Körber AG, Transplace, Inc., Alexander Group, General Electric, Envase Technologies, Trimble, CLX Logistics, LLC, LOGISTEED, Ltd., Hub Group, Inc.
YUSEN LOGISTICS CO., LTD. – OVERVIEW
- Yusen Logistics, founded in 1955, is a global supply chain logistics company that offers ocean and air freight forwarding, warehousing, distribution services and supply chain management - a fully integrated suite of supply chain solutions that provides superior value, dependability and expertise.
- It operates 650 distribution centers/offices in 375 locations throughout 46 nations and regions. The corporation has strategically positioned approximately 3.4 million square meters of warehousing space.
- The company's one-stop-solution strategy enables it to work with a wide range of sectors, eventually obtaining vertical specialties in E-commerce, Retail/Fashion, Healthcare, Automotive, Aerospace, Technology, Energy and Chemical Verticals.
Why Purchase the Report?
- To visualize the global intermodal freight transportation market segmentation based on component, transportation mode, solution, end-user industry and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of intermodal freight transportation market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global intermodal freight transportation market report would provide approximately 70 tables, 69 figures and 200 pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
