Australia Freight and Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Rising sector volumes due to increased infrastructure investment (USD 80 billion) by the Australian government

• The e-commerce market in Australia is booming. As a result, there is an increase in demand for warehousing facilities. The Australian e-commerce market is predicted to reach USD 42.7 billion by 2024 year end. As a result, many new warehousing centers are being built with the latest technology. For instance, DHL Supply Chain plans to invest USD 101.86 million over the next two years in automation and robotics in its Australian warehouses, including commissioning 1,000 new assisted picking robots by 2025.
• As a part of Australia's commitment to net zero emissions by 2050, the government has taken initiatives to reduce emissions generated from trucks in the road freight industry. For instance, a USD 20 million Hume Hydrogen Highway joint initiative with Victoria was made in the first half of 2023 to establish at least four hydrogen refueling stations between Sydney and Melbourne to support a minimum of 25 hydrogen-powered trucks. This corridor will be operational by 2025. The Australian Renewable Energy Agency (ARENA) has awarded Team Global Express a USD 20 million grant in support of a USD 44 million 'Depot of the Future' project. The aim is to make metropolitan deliveries via 60 new small electric trucks.

Australia Freight and Logistics Market Trends

Australia invested USD 120 billion in infrastructure projects, focusing on nation-building and land transport projects

• The Australian Government remains resolutely dedicated to a 10-year infrastructure pipeline (till 2032) valued at USD 120 billion, focusing on delivering land transport projects that hold national significance and contribute to shaping the nation's future. The 2023-24 budget represented a stride forward in establishing an infrastructure investment pipeline integral to nation-building endeavors. This initiative formed the bedrock for constructing a sustainable and credible lineup of projects, selected based on diverse economic and societal goals, encompassing regional connectivity, quality of life enhancement, and safety enhancement.
• Till 2028, USD 11.8 billion will be spent on new rail and transport projects in Western Australia, as part of the state’s USD 42.4 billion infrastructure investment. The 2024-25 State Budget includes USD 4.8 billion for the METRONET program, with USD 2.9 billion from the Commonwealth Government. This budget adds USD 254 million for METRONET, with the Morley-Ellenbrook Line set to finish by the end of 2024, and three more major rail projects the Victoria Park-Canning Level Crossing Removal, Byford Rail Extension, and Thornlie-Cockburn Link expected in 2025.

Tightening global oil markets and the weakening Australian dollar led to an increase in fuel prices in Australia

• In March of 2024, retail petrol prices in Australia’s five largest cities were lower, averaging 193.2 cents per litre (USD 1.93), down from 194.9 cpl (USD 1.94) in Q4 of 2023. However, daily average prices hit a new high in April. Among the cities, Perth saw the biggest drop (4.1 cpl), while Brisbane's prices increased by 1.4 cpl, making Brisbane the highest at 200 cpl (USD 2). In April 2024, although average retail petrol prices in Australia were not at their all-time highest when adjusted for inflation, recent international and geopolitical events have kept petrol prices relatively high.
• Australia's federal government will introduce a new fuel efficiency standard for passenger and light commercial vehicles starting January 1, 2025. This follows a one-month consultation period before drafting the new laws. Announced as part of the 2023 budget and linked to the EV strategy released in April 2023, the standard sets average CO2 targets for vehicle manufacturers. These targets will gradually decrease, requiring the production of more fuel-efficient and low or zero-emissions vehicles.

Australia Freight and Logistics Industry Overview

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