In 2022, the global road logistics industry was valued at $4.8 trillion, about 3.59% higher than in 2021. The industry’s growth can be attributed to increased e-commerce adoption as well as the increased demand for more efficient and cost-effective logistics solutions. In terms of market share, Asia-Pacific accounts for c.45% of the global road logistics industry, while North America and Europe account for 24% and 19%, respectively. The African road logistics market is also rapidly expanding, owing to a rapidly rising population, fast-growing growing consumer markets and expanding manufacturing industries.
In 2022, the Nigerian road logistics industry (“the Industry”) was valued at ₦285 billion. The Industry is characterised by its comparatively low contribution to GDP, which has consistently remained below 1% over the years. We note that the underperformance of the road logistics industry is attributable to poor road infrastructure, insufficient regulatory oversight and the adverse effects of the weakening macroeconomic environment on the Industry, among many other factors.
Despite the significant challenges confronting the Industry, we expect to see continued Industry revenue growth with a compound annual growth rate of 7.5% over the next three years. Our projections are based on the growing demand for logistics services, rising adoption of e-commerce, population growth, urbanisation and anticipated price adjustments by Industry operators to minimise the impact of the macroeconomic challenges faced in the road logistics industry.
We also expect to see many more Industry players increase their range of services to customers in a bid to increase market share and penetrate new markets.
The Agusto & Co. 2023 Road Logistics Industry Report captures the following:
We believe the information, analyses and opinions contained in this report will prove indispensable to: