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TEXAS FREIGHT AND LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 150 Pages
  • February 2022
  • Region: United States
  • Mordor Intelligence
  • ID: 5552610

Texas freight and logistics market is expected to grow at a CAGR of 4% during the forecast period. The market is driven by the strong logistics infrastructure, the increasing population, and increasing demand for logistics in Texas.

COVID-19 has negatively impacted the Texas freight and logistics market. The road freight transport segment is one of the major segments in Texas which is driven due to the robust highway network in the state. International freight transportation is dominated by ports. Texas has some of the major ports in the country like Houston, Beaumont, and Corpus Christi among others. Texas’ population may double by 2050, to more than 54 million. Such growth implies the need for significant expansion and improvement of the state’s transportation infrastructure, its roads, rail lines, airports, marine ports, and waterways.

Texas runs along the border with Mexico, America’s 2nd top trade partner. It has gas and oil, and unlike other states, is actually willing to extract it. It has a flat, open prairie, making infrastructure building easier. After the Panama Canal expansion, Texas is better positioned for Asian trade, especially given the bottlenecks on West Coast ports.

In addition to being a sizeable industry itself, the multimodal freight transportation network also supports other key industries throughout Texas including agriculture, energy, manufacturing, defense, construction and distribution. The multimodal network provides Texas businesses with access to domestic and global supplies, facilities and markets. In the year 2022, the Texas freight and logistics industry is predicted a bright outlook, and several new trends are expected to dominate the industry.

Key Market Trends

Growth in Population Drives Demand for Logistics

Texas is growing, and the demographics of the state’s population are changing at an accelerating rate. Texas has added 4 million people during the past 10 years, more than any other state. As urban areas grow, rural East and West Texas have lost population. Some rural South Texas parts have also become less populated in the past ten years. Texas’ population growth has been substantial, and, assuming this growth continues into the future, Texas will see increasing demands on logistics services. At the same time, this growth is well for continued economic development within the state as an increasing population creates more opportunities for businesses and a growing labor force to meet that demand.

Due to the increasing population in the urban region of the state, consumption and related freight movement within the state by truck has grown significantly. Additionally, the growing population has also contributed to the freight and logistics sector through high employment in Texas. Population growth is a significant factor that is affecting freight growth in Texas because residents consume commodities that must be transported throughout the state and beyond. Texas’ population is also expected to concentrate in urban areas and existing population centers.

Increasing Investments in Transport Infrastructure

A big component of Texas logistics is road buildout. It is first among the 50 states in total lane miles again, by far, and has 4 of the top 8 cities for lane mileage per capita. There is a great deal of innovation in Texas road policy, from well-designed private toll roads to state researchers who are experimenting with a “freight shuttle” system where trucks are moved along conveyor-type medians separated from standard traffic. Texas’ transportation and logistics system are of course more complex.

It is the top state for international trade, and because of this has supported a vast network of warehouses, manufacturing plants, roads, rail, ports, and other infrastructure. As long as Texas remains an open economy and continues to grow and as long as the United States commits to free trade the state will be ground zero for advanced logistics.

Competitive Landscape

The Texas freight and logistics market is expected to be fragmented with the presence of a large number of local players. The market has a large number of players in the trucking industry. Major international players(like Ceva, XPO, and UPS) present in the region are expected to try and consolidate the market. With the market expected to see growth in the forecasted period, the competitive rivalry within the industry will further intensify.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Market
2.1 Analysis Methodology
2.2 Research Phases
4.1 Current Market Scenario
4.2 Drivers
4.3 Restraints
4.4 Opportunities
4.5 Technological Trends
4.6 Government Regulations and Initiatives
4.7 Insights on Freight Rates
4.8 Insights on Impact of Ecommerce
4.9 Insights on Major Ports
4.10 Insights on Multimodal Freight Network
4.11 Impact of COVID-19 on the Market
5.1.1 Freight Transport Road Rail Sea and Inland Air
5.1.2 Freight Forwarding
5.1.3 Warehousing
5.1.4 Value-added Services
5.2.1 Construction
5.2.2 Oil & Gas and Quarrying
5.2.3 Agriculture, Fishing, and Forestry
5.2.4 Manufacturing & Automotive
5.2.5 Distributive Trade
5.2.6 Others
6.1 Overview
6.2 Company Profiles
6.2.1 Ceva Logistics
6.2.2 Kintetsu World Express
6.2.3 DSV Air & Sea, Inc.
6.2.4 Bollore Logistics
6.2.5 XPO Logistics Inc
6.2.6 CH Robinson Worldwide
6.2.7 DHL Global Forwarding
6.2.8 FedEx Corporation
6.2.9 Americold Logistics
6.2.10 Expeditors International of Washington*

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Ceva Logistics
  • Kintetsu World Express
  • DSV Air & Sea, Inc.
  • Bollore Logistics
  • XPO Logistics Inc
  • CH Robinson Worldwide
  • DHL Global Forwarding
  • FedEx Corporation
  • Americold Logistics
  • Expeditors International of Washington*