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Road Freight Transport in Australia - Market Research Report (2015-2030)

Michael Doyle Michael Doyle Melbourne, Australia Last Updated: April 2025 ANZSIC I4610

Revenue

$73.0bn

2025-26

$73.8bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

188k

Businesses

62,651

Wages

$XX.Xbn

Road Freight Transport in Australia industry analysis

Australia's domestic freight task has steadily grown over the five years through 2024-25, supported by sustained population growth, increased consumer spending and strong growth in ecommerce, despite facing headwinds in areas like construction. Since 2020-21, significant weakness in construction activity, including a slump in dwelling commencements, has hampered construction-related freight segments, like steel transportation, leading to revenue declines for operators heavily exposed to these segments. Nonetheless, road freight transport has expanded overall because infrastructure investments have enhanced road freight's competitiveness against substitutes. Sharp fuel price rises have increased selling prices, supporting growth in revenue, which is expected to have climbed at an annualised 0.3% over the five years through 2024-25 to $73.0 billion. This includes an anticipated 0.6% dip in 2024-25.

Trends and Insights

  • Australia's road freight volumes have steadily expanded thanks to a growing population, rising online shopping and robust downstream demand from sectors like mining. However, declining activity in the construction sector, specifically steel transport, has weighed on construction-related freight transport.
  • Interstate services have risen as a share of total road freight revenue. A sharp increase in international trade has boosted the volume of goods transported from major ports to interstate markets.
  • Most of the industry's activity is concentrated on the eastern seaboard. Eastern seaboard states contain a high proportion of the industry’s major markets, Australia’s population and freight infrastructure.
  • Industry fragmentation is high, but integrated logistics providers are increasingly dominating major contracts through scale advantages and sustainability investments. Leading firms, like Toll Group and Linfox, leverage greater capital to modernise their vehicle fleets, gaining competitive advantages over smaller operators.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 0.3 % over the past five years, to reach an estimated $73.0bn in 2025.

Trends and Insights

The domestic freight task has climbed despite a mixed downstream demand environment

  • Australia's domestic freight task has grown over the five years through 2024-25, driven by sustained population growth, increased consumer activity and strong demand from primary sectors. Overall, according to the Bureau of Infrastructure and Transport Research Economics, the total distance covered by road freight has increased at an average of 2.6% over the five years through 2024-25. Ongoing growth in online shopping activity has particularly boosted parcel freight volumes, lifting demand for road transport operators delivering imports from ports and airports to distribution hubs and end consumers.
  • Additional trends and insights available with purchase
Road Freight Transport in Australia
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Australia's growing domestic freight task will support robust road freight demand

  • Australia's domestic freight task will continue trending upwards, underpinning revenue growth through 2029-30. Rapid population growth will drive higher consumer demand for groceries, household goods and general merchandise, which require ongoing transportation and logistics services. Establishment and employment numbers are set to climb as businesses enter the industry to meet growing demand.

Biggest companies in the Road Freight Transport in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
Toll Holdings
3,360.9
Linfox
675.6
K&S
264.3

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Road Freight Transport in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Interstate services, Intrastate services and Urban services. Interstate services is the largest segment of the Road Freight Transport in Australia.

Trends and Insights

Revenue from intrastate services has grown, albeit slower than other segments

  • Intrastate transport involves road freight services within a specific state or territory, excluding transport within capital cities. This segment relies on larger articulated and rigid trucks because of the significant distances covered.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry operators primarily transport freight by road. The industry also includes towing services and road delivery services, excluding couriers.

What's included in this industry?

Interstate servicesIntrastate servicesUrban services

Companies

Toll HoldingsLinfoxK&S

Purchase this report to view all 3 major companies in this industry.

Related Terms

ARTICULATED TRUCKB-TRIPLEB-DOUBLE

Industry Code

ANZSIC 2006

ANZSIC 4610 - Road Freight Transport in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Australia's road freight volumes have steadily expanded thanks to a growing population, rising online shopping and robust downstream demand from sectors like mining. However,...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Interstate services have risen as a share of total road freight revenue. A sharp increase in international trade has boosted the volume of goods transported from major ports ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Most of the industry's activity is concentrated on the eastern seaboard. Eastern seaboard states contain a high proportion of the industry’s major markets, Australia’s popula...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Industry fragmentation is high, but integrated logistics providers are increasingly dominating major contracts through scale advantages and sustainability investments. Leadin...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

No companies command a market share of more than 5.0% in the Road Freight Transport industry. Nonetheless, the industry’s largest players, including Toll Group, Linfox and K&...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Toll Holdings's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Linfox's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of K&S's performance by revenue, market share and profit margin from 2019 through 2025

Detailed analysis

  • Description and key data for Toll Holdings, and factors influencing its performance in the industry
  • Description and key data for Linfox, and factors influencing its performance in the industry
  • Description and key data for K&S, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The National Heavy Vehicle Regulator is the leading industry regulatory body. The regulator oversees the Heavy Vehicle National Law, in addition to other regulatory framework...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Steady increases in demand have allowed transporters to raise selling prices, boosting their profit margins. Fuel surcharges have helped to boost revenue while shielding prof...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Road Freight Transport industry in Australia in 2025?

The market size of the Road Freight Transport industry in Australia is $73.0bn in 2025.

How many businesses are there in the Road Freight Transport industry in Australia in 2025?

There are 62,651 businesses in the Road Freight Transport industry in Australia, which has grown at a CAGR of 3.1 % between 2020 and 2025.

How may import tariffs affect the Road Freight Transport industry in Australia?

The Road Freight Transport industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Road Freight Transport industry in Australia?

The Road Freight Transport industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Road Freight Transport industry in Australia grown or declined over the past 5 years?

The market size of the Road Freight Transport industry in Australia has been growing at a CAGR of 0.3 % between 2020 and 2025.

What is the forecast growth of the Road Freight Transport industry in Australia over the next 5 years?

Over the next five years, the Road Freight Transport industry in Australia is expected to grow.

What are the biggest companies in the Road Freight Transport industry in Australia?

The biggest companies operating in the Road Freight Transport industry in Australia are Toll Holdings, Linfox and K&S

What does the Road Freight Transport industry in Australia include?

Interstate services and Intrastate services are part of the Road Freight Transport industry in Australia.

Which companies have the highest market share in the Road Freight Transport industry in Australia?

The company holding the most market share in the Road Freight Transport industry in Australia is Toll Holdings.

How competitive is the Road Freight Transport industry in Australia?

The level of competition is high and increasing in the Road Freight Transport industry in Australia.

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.