The road freight industry has struggled since the global economy took a turn for the worse in 2008 and a new report suggests that logistics firms will continue to face many challenges in the next few years.

According to IBISWorld, around 60 per cent of all cargo is transported via the road network in the UK, although fuel price pressures and the urgent need to reduce carbon emissions could see this dwindle.

The organisation estimates that industry revenue will have contracted by 4.6 per cent annually in the five years to 2013-14, caused by lower demand for deliveries.

Interestingly, the firm noted that the three largest road freight companies have a market share of just 16.2 per cent, which suggests small enterprises are currently dominating the sector.

IBISWorld industry analyst Andrew Johnson thinks ongoing drives to slash pollution will lead to a "number of structural challenges" for road haulage businesses between now and 2018-19.

The government is particularly keen to promote rail freight services, as this will enable thousands of HGVs to be taken off the road, cutting carbon output in the process.