Press Release

Market Overview

– Sweden is among the most robust logistics markets globally, due to its strong infrastructure and backing from the government. This is evident from the LPI scores of the country in recent years. In 2018, Sweden ranked second in the World Bank’s Logistics Performance Index, only next to Germany.
– The Swedish-registered heavy trucks carried a total of just over 45 million freight transport during 2018, inside and outside Sweden. It was an increase of 9% in 2017. The volume of goods transported by these trucks stood at 481 million tons, in 2018.
– The warehousing segment of the market studied is of great significance. The central location of the country in the region makes it a preferred choice for the companies that are aiming to consolidate the distribution and warehousing activities in Northern Europe at one central location.
– Sweden observes strong growth in the industrial sectors, like retail, and manufacturing. A stronger export and manufacturing sector and the focus on inbound logistics are expected to see the market grow, during the forecasted period.
– The market is expected to see high investment in the warehousing segment, due to companies, like Logicenters, building warehouse space to improve distribution across the country. Sweden is considered the region’s logistics hub, and this leads to the country is a major freight connector for north and south Europe.
– The country is also the most common choice for regional headquarters. Two-thirds of the Fortune 100 companies that operate regional headquarters do so from a base in Sweden. As a result, several players (DHL, Dascher, and DB Schenker among others) are present in the country that take advantage of the strong logistics system and operations.

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The report covers major international players operating in the Sweden Freight and Logistics Market. The market is dominated by players such as Deutsche Post DHL Group, Deutsche Bahn Group, DSV, SNCF Mobilités Group, and others. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

Scope of the Report

A complete background analysis of the Market, which includes an assessment of the parental market, emerging trends by segments and regional markets, Significant changes in market dynamics and market overview is covered in the report. The report also features the qualitative and quantitative assessment by analyzing data gathered from industry analysts and market participants across key points in the industry’s value chain.

Key Market Trends

Road Freight Transport is Dominating Mode of Transport for Freight Transportation in Sweden

– Sweden has a road network of more than half-million kilometers and around 2,000 km of expressways. The road network in the country is well-developed around population centers in the southern region of the country, while it is sparse in the north.
– The country is connected to other EU states by the Öresund Bridge, a combined two-track rail and four-lane road bridge-tunnel that provide the land connection between Malmö and Copenhagen, Denmark.
– Road transport is a major mode of freight transportation in the country, especially for domestic freight transportation. More than 95% of the road freight volume is transported domestically.
– The driver shortage is one of the significant challenges for the trucking sector, across the world. Sweden has a shortage of approximately 5,000 drivers. According to an industrial source, it was estimated that 50,000 new truck drivers will be needed by 2027.

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– The road freight transport sector is expected to be driven by an increase in domestic consumption, driving the domestic distribution activities, as well as an increase in trade flows.
– Autonomous technology is widely being tested in Sweden. However, it is expected that the adoption of these technologies at a large scale is not possible in the short-term.
– The Swedish Transport Agency approved autonomous truck trials on a public road in March 2019 for a partnership between German logistics giant DB Schenker and autonomous truck developer Einride.
– The Swedish Government is prioritizing sustaining the functionality of roads, such as coping with the greater volume of traffic, primarily in the cities, through maintenance works; funds for road operation and maintenance are, thus, projected to increase.
– Also, emissions from road freight transport have been a challenge, across the world. By transporting freight in larger but fewer lorries could reduce the problem to some extent.
– Longer and heavier vehicles increase the possibilities of transporting larger amounts of freight per shipment and produce lower emissions and costs per ton kilometer.
– Sweden and Finland are the leading countries in Europe for heavy vehicles. These countries have considerably heavier lorries when compared to the rest of the European countries. The heavier lorries represent a competitive advantage for road haulage.
– In Sweden, the lorries can weigh a maximum of 74 tons, while it stands at around 40 tons in the rest of the European Union and in Finland, it totals 76 tons.

Country is Investing Heavily Both in Critical Infrastructure and Construction of Dwellings and Offices

– In Jan 2019, a new Ministry of Infrastructure was formed to increase the strategic focus on developing Sweden’s infrastructure for future demands.
– The Swedish National Transport plan 2018–2029 contains approximately EUR 70 billion of financed infrastructure projects. The investments include infrastructure projects, including operation, maintenance, and reinvestment in state railways.
– Further, the country is planning high-speed railway projects to connect the three largest cities: Stockholm, Gothenburg, and Malmö, the construction of which are planned after 2025.
– In addition, there are many major projects on a regional and local level. At the regional level, another EUR 70 billion worth of investment is expected by 2029.
– On the other hand, the housing sector in the country is facing crisis. The rate of construction of new homes in Sweden is expected to fall significantly in the coming years.
– The growing population in the country is expected to be a driver of housing construction in the country. According to calculations by the Swedish National Board of Housing, Sweden needs to build 600,000 new dwellings by 2025. Although residential housing construction levels are currently at a high, there is still a substantial need for more.

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This post was originally published on The Picayune Current