The Trucking Industry set to become a trillion-dollar industry by 2024
According to the latest report from the American Trucking Association, the trucking industry is set to become a trillion-dollar industry by 2024. The industry revenue is expected to grow 5.4% annually between 2018 and 2023. Growth is expected to slow to 4.7% through 2028, with motor carrier revenue expected to rise to total $1.24 trillion by the end of that year.
Trucking, however, will remain the dominant freight mode. It is expected to move 10.73 billion tons of freight in 2017.
These predictions were published last week in the American Trucking Association’s 2017-2018 Freight Transportation Forecast report.
“As the U.S. population grows and the economy increases with it, we will see continued gains in demand for freight transportation,” said Bob Costello, chief economist for ATA.
ATA builds its freight and revenue forecast by using data from several sources, including proprietary data and data from the U.S. Army Corps of Engineers, Energy Information Administration, Bureau of Transportation Statistics Commodity Flow Survey, ENO Transportation, and IHS Energy, among others.
According to the report, manufacturing, consumer spending and international trade are among the key contributors to the rapid growth.
The revenue for the for-hire carriers fell 3.8% to $368 billion in 2016. However, it is expected to increase to 5.4% annually between 2018-2023. By 20128, for-hire revenue should be $679 billion.
Truckload carrier revenue is set to reach $454 billion by 2013 and $568 billion by 2028. That will be an annual increase of 5.4% in 2018-2023 and 4.7% in 2024-2028.
The US gross domestic product should remain stable over the forecast period with an annual growth rate of 2.3% in 2017 to 20123 and dipping to 1.9% in 2024-2028.
The prediction is that even more trucks will be on the road in the coming years. Sales of Class 8 vehicles are expected to reach 38% from 186,003 vehicles in 2017 to 257,567 in 2028. The number of Class 8 vehicles in operation is predicted to increase 19% from 3.43 million to 4.07 million by 2028.