United Kingdom Road Freight Transport - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

UK’s Smart Manufacturing Data Hub (SMDH) initiative aims to boost SME productivity, fueling the road freight market

• In 2022, the manufacturing sector played a significant role in the United Kingdom's economy, contributing over 8% to the GDP, equivalent to around USD 270 billion. The dominant subset within manufacturing was consumer goods, commanding a substantial 72% share of market revenue. Some of the major players in road transportation are Deutsche Post DHL Group, FedEx, Turners (Soham) Limited, United Parcel Service (UPS), and Wincanton PLC.
• In 2022, the retail and wholesale trade in the UK accounted for over 6% of the nation's GDP. Offline retail encompasses shops, department stores, supermarkets, market stalls, and even door-to-door sales. In the UK, offline retail sales make up more than 68% of the total retail market. This significant share of offline retail drives the demand for road freight services, as goods need to be transported efficiently to various retail outlets. Tesco stands as the UK's largest grocery retailer, boasting 4,169 stores nationwide. Another major player, Sainsbury PLC, operates as a multi-channel retailer, offering groceries, household goods, and clothing, with a footprint of 1,400 stores across the UK.

United Kingdom Road Freight Transport Market Trends

The UK's warehouse count is expected to reach 214,000 by 2027 due to a rise in demand for consumer fulfillment centers

• In May 2024, DP World opened its largest warehouse yet, a 598,000 sq ft facility in Coventry, as part of a GBP 50 million (USD 60.92 million) investment to boost customer competitiveness. This follows the September 2023 opening of a 270,000 sq ft music and video distribution warehouse in Bicester, handling 70% of the UK's physical music and 35% of home entertainment products. Previously, DP World opened a 75,000 sq ft site in Burton upon Trent and a 230,000 sq ft multi-user warehouse at London Gateway's logistics hub. Alongside its hubs at Southampton and London Gateway, operating in 78 countries, DP World manages 10% of global trade. Such initiaves are expected to boost the GDP contribution from the sector.
• The number of large warehouses in the United Kingdom is rapidly increasing. By 2027, there are expected to be around 214,000 warehouses larger than 50,000 square feet globally. Many of these warehouses are to serve as e-commerce fulfillment centers, and approximately 18% of all warehouses will be for consumer fulfillment by 2027. This increase suggests the global expansion of e-commerce as the proportion of warehouses operating as trade distribution hubs begins to shift in favor of consumer fulfillment centers.

UK government has a major influence on fuel prices, and both fuel duty and VAT (standard 20% rate) make up majority of the petrol and diesel prices

• In August 2022, the oil price dropped under USD 100 and finished the month at USD 90.63 a barrel. Prices dropped further in 2023, and by May, a barrel of oil was down to USD 72.50. In March 2024, petrol prices in the UK averaged 150.1p per litre, the highest since November 2023. This is due to rising oil prices due to Middle East tensions and a weaker pound against the dollar. Although overall inflation has eased, petrol and diesel prices increased in March. Oil prices have since dropped after spiking following Israel's retaliatory attack on Iran in April 2024.
• In June 2024, the UK government confirmed it plans to require at least 10% sustainable aviation fuel (SAF) in jet fuel by 2030. Currently, SAF is scarce and more expensive than traditional fuels, making it challenging to increase its use in aviation. SAF represents less than 0.1% of jet fuel globally. The government's SAF mandate, pending legislative approval, is set to start in January 2025. This follows the 2022 "Jet Zero"strategy aiming for net-zero emissions in aviation by 2050.

United Kingdom Road Freight Transport Industry Overview

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