Australia Freight Transportation Market

Australia Freight Transportation Market Insights Forecasts to 2035

• The Australia Freight Transportation Market Size Was Estimated at USD 981.3 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 17.39% from 2025 to 2035
• The Australia Freight Transportation Market Size is Expected to Reach USD 5723.1 Million by 2035

According to a research report published by Decisions Advisors, The Australia Freight Transportation Market Size is Anticipated to Reach USD 5723.1 Million by 2035, growing at a CAGR of 17.39% from 2025 to 2035. The freight transportation market in Australia is driven by advanced technologies that improve operational performance and reduce costs, such as artificial intelligence (AI), automation, and real-time monitoring.

Market Overview

The freight transportation market is the segment of the industry engaged in the transfer of goods and commodities from place to place using various modes of transportation, including road, rail, air, and sea. This sector also includes logistics, warehousing, cargo handling, and supply chain management. This market is important for enabling trade, manufacturing, and e-commerce through the effective and timely delivery of goods. The Australian freight transportation market is experiencing increasing expansion, driven by growing demand for e-commerce, the increase in mining exports, and infrastructure investment. The Australia Government’s National freight and supply chain strategy aims to improve connectivity, safety, and efficiency for road, rail, air, and sea networks. As stated by the Department of Infrastructure, by 2040, the freight task in Australia is expected to grow by over 35%. Initiatives such as the Inland Rail Project and Freight Productivity Program are assisting in the modal shift and sustainability. Fuel tax credits and infrastructure subsidies are reinforcing logistics operations. Technology such as the Internet of Things to monitor fleets, digital freight platforms, and electric truck trials is transforming the sector.

Report Coverage

This research report categorizes the market for the Australia freight transportation market based on various segments and regions, and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Australia freight transportation market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Australia freight transportation market.

Driving Factors

The freight transportation market in Australia is driven by fast-growing e-commerce, a growing export-oriented sector, and large-scale infrastructure investments. The Australian Government's National Freight and Supply Chain Strategy and the Inland Rail Project provide enhanced multimodal connectivity and logistics efficiency on a national scale. To grow the economy, the Department of Infrastructure and Transport, Environment, Energy and Climate Change has projected Australia's freight task will grow by over 35% by 2040. The implementation of telematics, an Internet of Things trust-based tracking and automation technologies, provides the benefits of faster delivery, cost savings, and improvements in overall supply chain productivity.

Restraining Factors

The freight transportation market in Australia is mostly constrained by increasing fuel and operating costs, challenges in retaining driver labour, and limited rail and port capacity in some regional locations. Aging transport infrastructure and supply chain disruptions associated with extreme weather events decrease efficiency. Additionally, new regulations limiting emissions and the slow adoption of new sustainable technologies increase complications to operations. Increasing insurance related to operational risks and a complex interstate regulatory environment further hamper logistics providers and freight service providers from growing and maximizing profitability.

Market Segmentation

The Australia freight transportation market share is classified into transport and end use.

• The roadways segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The Australia freight transportation market is segmented by transport into roadways, railways, waterways, and airways. Among these, the roadways segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The nation's vast road network, which permits adaptable, door-to-door delivery in both urban and rural areas, is the reason for its dominance. The main means of moving domestic commodities is via road, especially for short- and medium-distance transportation that serves the manufacturing, retail, and agricultural industries.

• The retail and e-commerce segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The Australia freight transportation market is segmented by end use into retail and e-commerce, automotive, aerospace and defense, pharmaceuticals, energy, and others. Among these, the retail and e-commerce segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is mostly because of the sharp development in online shopping and the nationwide demand from customers for quick, dependable delivery services. Higher freight volumes are a result of the expansion of logistics networks by major e-commerce platforms and merchants, including Woolworths, Coles, and Amazon Australia.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Australia freight transportation market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Toll Group
• Linfox
• SCT Logistics
• LINX Cargo Care Group
• Sea Road Holdings
• Aurizon Holdings
• Qube Holdings
• Northline Freight Services
• K&S Corporation
• Mainfreight Australia Pty Ltd
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments:

• In October 2025, A plan for an AUD 20 billion intermodal & rail infrastructure project at Port of Gladstone plans to build a deep-water terminal and a converging 580 km standard-gauge rail link (Greenlink) to the Inland Rail network.
• In January 2025, the federal government launched an AUD 50 million loan-incentive program for electric vehicles for farmers, truck operators, and SMEs, representing an effort to decarbonise freight transport.
• In September 2024, Adelaide Airport released 27 hectares of land for integrated logistics and air freight (AUD 250 million), supporting direct freight and major road network access.

Market Segment

This study forecasts revenue at the Australia, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the Australia freight transportation market based on the below-mentioned segments:

Australia Freight Transportation Market, By Transport

• Roadways
• Railways
• Waterways
• Airways

Australia Freight Transportation Market, By End Use

• Retail and E-commerce
• Automotive
• Aerospace and Defense
• Pharmaceuticals
• Energy
• Others