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The LTL Market size is estimated to grow at a CAGR of 7.3% between 2023 and 2028. The market size is forecast to increase by USD 120.31 billion. The growth of the market depends on several factors such as advances in e-commerce in the retail sector, increased outsourcing of logistics services and growing focus on environmental sustainability. The report includes a comprehensive outlook on the less-than-truckload market offering forecasts for the industry segmented by Type, which comprises long-haul carriers, superregional carriers, and regional carriers. Additionally, it categorizes Capacity into light LTL volume and heavy LTL volume and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 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.
Advances in e-commerce in the retail sector are notably driving the market growth. Improving economic conditions and growth in the manufacturing sector have helped increase the demand for LTL shipments. Globally, domestic consumption is on the rise due to the growth of the middle-class population. This reflects the advancements in the retail sector, which is witnessing an expansion of well-organized retail spaces. The e-commerce sector is also witnessing tremendous expansion due to the increased adoption of the Internet and mobile services. Consumer spending on e-commerce retailing has increased significantly over the past few years.
Moreover, due to limited supply and the increase in demand, the acquisition of the right distribution channel, which has its reach to the maximum population, is also an increasingly challenging task. Therefore, several retailers opt to partner with LTL shipping firms that can provide the necessary distribution services. As the e-commerce market continues to expand, the demand for the market is also expected to increase. This is expected to lead to the growth of the market during the forecast period.
The rise in demand for last-mile logistics is an emerging trend shaping the market growth. Last-mile logistics refers to the last step of the delivery process from a distribution center or facility to the end customer. The focus of last-mile logistics is to deliver items to the end customer as fast as possible. The last-mile delivery market is expected to grow steadily during the forecast period, primarily because of the growth of e-retailing, the adoption of premium delivery services, and the focus on segment-specific service offerings. Customers are ready to pay premium delivery charges for the same-day or instant delivery of ordered goods and merchandise.
For instance, Amazon offers Amazon Prime, which is a premium last-mile delivery service, to deliver goods faster than standard service. This will provide an opportunity for LTL carriers to penetrate the market further by delivering a variety of goods to different destinations. Thus, a rise in last-mile logistics will propel the global market during the forecast period.
Implementation of the electronic logging devices mandate is a significant challenge hindering the market growth. The LTL market is subjected to government regulations, which are increasing the operational costs for LTL carriers. Most truckers in the less-than-truckload market in the US are impacted by the ELD mandate. This law makes it compulsory for interstate motor carriers to equip their trucks with electronic logging devices, also known as ELDs. This device records the total driving hours of the vehicle. The ELD mandate was introduced to standardize the hours of service (HOS). The mandate to track HOS using an electronic device instead of a paper logbook is leading to a change in the attitude of truck drivers toward HOS. According to truckers, digital monitoring of drivers is an invasion of their privacy. With paper logs, drivers could drive more hours than legally allowed and move more loads in the same timeframe.
As a result, drivers have started protesting against this law. This mandate is thus reducing the capacity hours in the market in the US. While ELDs enhance safety and compliance, their integration can increase operational costs for smaller carriers. Compliance with ELD regulations may require additional investments in technology and training, potentially affecting smaller LTL operators. The transition to ELDs may result in initial disruptions and cost burdens, negatively impacting the growth trajectory of the global less-than-truckload market, particularly for smaller players during the forecast period.
The market research 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 Less-than-truckload Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Allcargo Logistics Ltd. - The company offers less-than-truckload services such as less-than-container load consolidation.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The long-haul carriers segment is estimated to witness significant growth during the forecast period. Long-haul LTL carriers are usually referred to as national LTL carriers. These LTL carriers transport shipments within 3 to 5 days. The average length of a single haul in this segment is close to 1,200 miles. Long-haul LTL carriers face intense competition from other modes of transportation, such as railways, airways, and seaways.
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The long-haul carriers segment was the largest and was valued at USD 84.98 billion in 2018. Often, manufacturers and e-retailers outsource their freight and transportation needs, as maintaining in-house transportation requires high investment and expertise, which significantly adds to the company's costs. Due to the presence of several contractual logistics providers offering this service, businesses are able to provide efficient and timely transportation of goods. The market provides other services, too, such as project logistics, network planning, cargo insurance, value-chain optimization, and customs brokerage. With the increase in industrial activities across the globe, the long-haul LTL carriers segment of the less-than-truckload market is expected to witness robust growth during the forecast period.
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APAC is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is expected to lead the less-than-truckload market during the forecast period. Regional market growth is attributed to the high population in the region, which has led to an increase in the overall demand for goods through both online and offline channels. For instance, according to The World Bank Group, the total population in China increased from 1.39 billion in 2018 to 1.40 billion in 2020. Similarly, the total population in India increased from 1.35 billion in 2018 to 1.38 billion in 2020. The market in APAC has been growing because of the growing e-commerce industry in countries such as China, India, and Japan.
Further, India is also among the fastest-growing countries for e-commerce in APAC due to its huge consumer base, the growing number of Internet and smartphone users, and the rising trend of shopping online. In addition, Japan and Australia have developed markets with a large number of people purchasing products online. The logistics industry is also growing in countries such as Vietnam, the Philippines, and Thailand. The growth in logistics is likely to increase the demand for it services in these countries, which will boost the regional market growth during the forecast period.
The less-than-truckload market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Less-than-truckload Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.3% |
Market Growth 2024-2028 |
USD 120.31 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.0 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 61% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allcargo Logistics Ltd., ArcBest Corp., Averitt Express Inc., Challenger Motor Freight Inc., CMA CGM SA Group, Debon Logistics Co. Ltd., Deutsche Post AG, Estes Express Lines, FedEx Corp., J B Hunt Transport Services Inc., JRC Dedicated Services Co., Knight Swift Transportation Holdings Inc., Kuehne Nagel Management AG, Nippon Express Holdings Inc., Old Dominion Freight Line Inc., R L Carriers Inc., SouthEastern Freight Lines, United Parcel Service Inc., XPO 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, 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 market research report to meet your requirements.
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