The Italy freight and logistics market is expected to grow at a CAGR of around 4% during the forecasted period. Italy’s freight and logistics markets ranks relatively highly on a global scale. After years of stagnation, the logistics sector is experiencing a trend of reversal and is picking up the signs of growth again, due to positive recovery in country’s exports. The country has a highly developed and efficient network, particularly in the Northern and Central regions and a large domestic market and international market due to its strategic position in the center of Europe. The market has great potential to grow further during forecasted period.

Key Market Trends

Motor Vehicle Sales driving the Logistics Market in Italy

The recovery of the Italian economy is happening at a modest pace, driven by the rising internal demand. After years of stagnation, the logistics and transport sector is experiencing a trend of reversal and is picking up the signs of growth, due to positive recovery of country’s exports. The major driving force in the Italian logistics market currently are the motor vehicle sales. They have been on upward growth trend since past few years. In 2019, around 2.1 million motor vehicles were sold in Italy. Italy is the currently the fourth largest car market in Europe. With improving exports and the manufacturing of automotive and the need for an efficient transport system has pushed the infrastructure investments to improve and maintain the already established network routes. With transportation of motor vehicles to countries like Germany, France, Spain, Poland and United Kingdom, the logistics market in Italy is starting to regain its pace.

Interconnected and Extensive Road Transportation Network

Road freight transport amounts to around 80% of total inland freight transport in Italy. Italy has a highly developed and efficient network of interconnected highways and lesser roads, particularly in northern regions. The main routes in the road system are Turin-Milan-VeniceTrieste, Milan-Bologna-Florence-Rome, Milan-Genoa, and Rome-Naples. There are 6,460 km of expressway, mostly in the northern and central regions, and the system overall is comprised of 654,676 km of paved roads. Since most goods in Italy are transported by road, the system is constantly upgraded and improved. A finance package worth ?600m from the European Investment Bank (EIB) and the Italian bank Cassa Depositi e Prestiti was raised in 2017 for the construction of third lanes for the A4 highway in either direction, to help boost travel capacity. The A4 route is amongst the most heavily used routes in the country and runs between Italy’s western and eastern borders in the north of the country and usually carries a high percentage of large trucks. Another project was announced for construction of a new 15 km road link in the northern Emilia Romagna region of the country. The project is expected to cost around ?506m, with around ?215m to be provided by public sources. Also, a new Col de Tende road tunnel with a cost of ?280m is due for completion in 2020.

Competitive Landscape

The competition in the freight forwarding industry in Italy is highly fragmented with the presence of both domestic as well as international logistics companies in the country. Some of the existing major players in the market include – UPS, Saima Avandero (DSV), TNT, Deutsche Post DHL, Kuehne + Nagel, DB Schenker, Poste Italiane, Fercam, BRT, DPDHL and Savino Del Bene. With booming e-commerce market alongside a growing express and parcels market the logistics companies have the opportunity to enter the industry.

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