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The Full Truck Load (FTL) market is estimated to grow at a CAGR of 5.3% between 2022 and 2027. The size of the market is forecast to increase by USD 794.08 billion. The growth of the market depends on several factors, including the increased outsourcing of logistics services, the tightening truckload market, and the growing automation in warehousing.
This report extensively covers market segmentation by end-user (agriculture, fishing and forestry, manufacturing, wholesale and retail trade, and others), mobility type (domestic and international), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increased outsourcing of logistics services is notably driving the market growth, although factors such as the pricing of LTL carriers may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased outsourcing of logistics services is a major factor driving the growth of the global full truckload (FLT) market. Building logistics infrastructure is a capital-intensive process, and the investment is blocked for a long time. Therefore, many companies outsource their logistics services to reduce operating costs and maintain cash flow within the company. Third-party logistics providers also add value to the supply chain management (SCM) needs of shippers by customizing services to meet their needs. Thus, the shipper can partially outsource the logistics needs and perform the rest of the operations themselves.
Worldwide, manufacturing companies are expanding their production capacities and operations. This increases their logistics requirements in terms of transporting raw materials to factories and finished goods to retailers and distributors. Moreover, this makes the supply chain process efficient with minimum blocked capital for the company hiring third-party logistics providers. Therefore, the faster replenishment trend in retail is driving the demand for FTL services, which will foster the growth of the global FTL market during the forecast period.
The emergence of big data is a major growth trend in the global full truckload (FLT) market. FTL logistics companies and shippers are using big data to turn vast amounts of data into a competitive advantage. Some of the benefits of using big data are experienced through service customization, market demand, and a new flexible business model. However, the implementation of big data analytics in the European logistics market is not yet in full swing, as there are significant IT gaps in the sector.
Big data enables the optimization of core activities such as resource utilization, delivery time, and geographical coverage. Advanced real-time processing and predictive techniques promise to provide a new quality in the capacity forecast and resource control. The delivery of tangible goods requires direct customer interaction at pickup and delivery locations. As consumers' buying pattern has changed drastically due to the penetration of the Internet, millions of customer touch points create an opportunity for market intelligence and product feedback. Big data helps in generating valuable insights into consumer sentiments and product quality.
LTL carrier pricing is a major challenge for the growth of the global full truckload (FLT) market. A combination of rising costs, high demands, increased e-commerce shipments, a shortage of qualified drivers, reduced TL capacity and increased government regulations are driving up FTL rates. FTL carriers make large investments in their trucks, drivers, and facilities and are exposed to fuel price risks. Fuel costs are a significant expense for FTL airlines that can negatively impact their fuel surcharges. Therefore, fuel price volatility is a major concern for FTL airlines because their profitability depends on it.
The combination of rising costs, high demands, surging e-commerce deliveries, shortage of qualified drivers, tightening TL capacity, and increased government regulations are leading to an increase in FTL prices. FTL carriers are making huge investments in their trucks, drivers, and facilities and are subject to risks associated with fuel pricing. Fuel expenses are a major cost for FTL carriers, which can negatively impact their fuel surcharge revenues. Therefore, volatility in fuel prices is an important concern for FTL carriers, as their profitability depends on the same. Such factors will hinder full truckload (FLT) market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global FTL Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the full truckload (FLT) market.
Arcb- The company offers Ftl services with whatever one needs such as a dry van, refrigerated, or flatbed.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Thefull truckload (FLT) market share growth by the agriculture, fishing and forestry segment will be significant during the forecast period. FTL is great for large-volume orders such as agriculture, fishing, and other services, but it is also ideal for high-risk or time-sensitive orders that need prompt delivery.
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The agriculture, fishing, and forestry segment were valued at USD 833.63 billion in 2017 and continue to grow by 2021. Sometimes businesses with smaller, fragile orders such as agriculture, fishing, and other services, will choose FTL shipping just for the reduced damage risk, even if they cannot fill the whole truck. Growing agriculture, fishing, and other industry will increase the demand for FTL. All these factors are expected to fuel the growth of the during the forecast period.
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North America is estimated to contribute 33% to the growth of the global full truckload (FLT) market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US has the maximum penetration of FTL services, mainly due to the lack of entry barriers, which has helped FTL service providers to gain higher market shares. FTL service providers also allow customers to track their package status in real-time through an online platform, add specific delivery instructions, and reschedule the package delivery time. With more operators introducing last-mile delivery services, the market is likely to have a high growth rate. This will make the market more competitive during the forecast period.
The COVID-19 outbreak adversely affected the full truckload market at the beginning of 2020, as logistics companies, as well as other companies, were forced to halt their operations to contain the spread of the disease. Despite the economic slowdown caused by the pandemic, US industrial markets continued to grow in 2020, benefitting from increased online shopping. E-commerce continues to redefine retail, with online sales expected to increase by over 30% by the end of 2021. This is driving intense demand for last-mile deliveries, in-fill spaces, multi-story warehouses, and the setting up of e-commerce logistics facilities near densely populated areas. However, most major metropolitan areas pose growing challenges in finding locations for last-mile delivery facilities. Canada continues to be a growing market for warehousing and logistics, which is driving the growth of the full truckload market in the country during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
FTL Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.3% |
Market growth 2023-2027 |
USD 794.08 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.02 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ArcBest Corp, C H Robinson Worldwide Inc., DB Schenker, Deutsche Post AG, Estes Express Lines, FedEx Corp., GEODIS SA, J & J Logistics, J.B. Hunt Transport Services Inc., Old Dominion Freight Line Inc., R L Carriers Inc., Saia Inc., SouthEastern Freight Lines, Swift Transportation Co., TRANS TECH LOGISTICS PTY Ltd., Transportation Management Solutions, United Parcel Service Inc., Werner Enterprises Inc., XPO Logistics Inc., and Yellow Corp |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and the market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Mobility Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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