North America Freight And Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The North America Freight And Logistics Market size is estimated at 1.64 trillion USD in 2025, and is expected to reach 2 trillion USD by 2030, growing at a CAGR of 4.02% during the forecast period (2025-2030).

Rising demand for foreign goods in Indonesia, Thailand, and India imported from North America is driving the growth of the transport sector

• Starting October 01, 2024, Canada will impose a 100% tariff on electric vehicles manufactured in China, citing unfair trade practices detrimental to the global EV market. Also, a 25% tariff on imports of Chinese steel and aluminum was set to take effect on October 15, 2024. These tariffs encompass hybrid vehicles, trucks, and buses produced in China. The Canadian government argues that China's overproduction and weak labor and environmental standards harm global EV workers and threaten Canada's future prosperity. The government sees these measures as crucial to protecting domestic industries and ensuring fair competition. Canada's decision mirrors the Biden administration's May announcement of a 100% tariff on Chinese EVs, part of a broader Western push against unfair trade practices.
• In 2022, the US committed to achieving 30% nationwide sales of zero-emission trucks by 2030, with a further goal of 100% by 2040. In line with this, in 2023, Republic Services, a leading waste disposal and environmental services firm, unveiled its first fully integrated electric recycling and waste collection truck. The company had plans to introduce two more fully integrated electric recycling and garbage truck prototypes in 2023.

Enhancing the North American freight & logistics industry through government investments from the United States (USD 31 million), Canada (USD 2.3 billion), and Mexico (USD 44 billion)

• By December 2023, the transborder freight value in North America, across all transportation modes, reached USD 121.6 billion, marking a marginal 0.1% YoY decline. Freight between the US and Canada amounted to USD 61.1 billion, showing a 0.7% YoY increase, while freight between the US and Mexico totaled USD 60.4 billion, experiencing a 0.9% YoY dip. Of the overall freight, trucks accounted for USD 73.2 billion, railways moved USD 16.4 billion, vessels transported USD 11 billion, pipelines carried USD 9.1 billion, and air freight amounted to USD 4.6 billion.
• In October 2022, the US Department of Transportation allocated about USD 31 million to bolster cargo infrastructure and fortify the supply chain. In a bid to modernize rail infrastructure, the US government pledged USD 1.4 billion in 2022. Mexico's government unveiled a USD 44 billion plan for 2020-2024, with a key focus on transportation infrastructure, as part of the National Private Sector Infrastructure Investment Agreement. Canada's government channeled over USD 2.3 billion into the National Trade Corridors Fund to bolster freight transportation.

North America Freight And Logistics Market Trends

The US dominates with maximum regional GDP contribution, fueled by an infrastructure program that boosts ports and supply chains

• An efficient and reliable transportation system is crucial for the economy. Through the National Trade Corridors Fund, the Government of Canada invests in improving supply chains, reducing trade barriers, and fostering business growth for future economic opportunities. In May 2024, the Minister of Transport announced up to USD 51.2 million for 19 digital infrastructure projects under this fund. The Canadian government aims to enhance supply chains with innovative technologies to expedite and reduce costs for Canadians. This initiative will drive collaboration with stakeholders nationwide on digital projects to address transportation bottlenecks, vulnerabilities, and port congestion effectively.
• In United States, infrastructure development and the rise of e-commerce are anticipated to boost employment in the transportation and storage sector. According to the Bureau of Labor Statistics (BLS), this sector is projected to grow at a rate of 0.8% annually from 2022 to 2032, resulting in the addition of nearly 570,000 jobs during that timeframe. The couriers and messengers industry, along with warehousing and storage, are expected to contribute significantly to about 80% of the sector's projected job growth.

Rising tensions in the Middle East are expected to affect crude oil supplies and lead to sudden price hikes in the region

• By October 2024, just ahead of the presidential election, gasoline prices in the US were projected to dip below USD 3 a gallon for the first time in over 3 years. This decline in fuel prices, primarily driven by waning demand and decreasing oil prices, offered a reprieve to consumers who had been grappling with elevated costs contributing to inflation. Such a development could have bolstered Vice President Kamala Harris and other Democrats in addressing Republican critiques regarding soaring gas prices. As of September 2024, regular gas averaged USD 3.25 a gallon, marking a 19-cent drop from the previous month and a 58-cent YoY decrease.
• Annual maintenance on Canada's oil sands plants in 2024 is expected to proceed normally. However, trade union officials warn of a labor shortage in Alberta's 2025 turnaround season due to two new industrial projects. Alberta producers annually hire thousands of skilled workers for essential maintenance on oil sands upgraders, thermal projects, and refineries. As the world's fourth-largest oil producer, Canada gets about two-thirds of its 4.9 million barrels per day of crude from the northern Alberta oil sands. This shortage might raise fuel prices in 2025.

North America Freight And Logistics Industry Overview

The North America Freight And Logistics Market is fragmented, with the major five players in this market being Berkshire Hathaway Inc. (including BNSF Railway Company), DHL Group, FedEx, Union Pacific Railroad and United Parcel Service of America, Inc. (UPS) (sorted alphabetically).

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