by The FTL and LTL Shipping Services Market is estimated to be valued at US$ 15.47 Billion in 2022 and is expected to exhibit a CAGR of 4.10% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
FTL (Full Truckload) and LTL (Less than Truckload) shipping refers to the transportation of freight by road. FTL involves the shipment of freight that fills an entire truck, whereas LTL refers to shipments that are too small to warrant an entire truck. These services are widely used for transportation of goods across various industries such as retail, manufacturing, agriculture and food processing. Growing e-commerce sector has significantly increased the demand for FTL and LTL shipping as e-retailers need to ship large volumes of orders across different locations efficiently.
Market Dynamics:
The FTL and LTL shipping services market is expected to grow at a significant rate over the forecast period. One of the key drivers for market growth is the growing cross-border trade activities. According to the World Trade Organization (WTO), global trade is projected to increase by 4.7% in 2023. Increasing globalization has amplified cross-border trade which necessitates transportation of goods across borders, thereby augmenting the demand for shipping services.
Another major driver is the rising e-commerce industry. Over the past few years, there has been a steep increase in the number of people shopping online due to convenience and availability of a wide variety of products. Shipping companies play a vital role in delivering products from sellers to customers located in different geographical areas. Furthermore, increasing competitiveness in the market has forced e-retailers and third-party logistics (3PL)
Segment Analysis:
The FTL And LTL Shipping Services Market is dominated by Less-than-Truckload (LTL) segment which accounts for over 60% of the market share. The LTL segment is dominating as it provides flexibility to shipments requiring part-truckload quantities and enables supply of raw materials or components to businesses. Parts and accessories are the dominating sub-segment in the LTL segment due to high demand from automotive and manufacturing industries.
PEST Analysis:
Political: Regulations regarding emission standards and fuel efficiency are favouring shift towards eco-friendly transportation mode which is driving market growth.
Economic: Growth in global trade and e-commerce sector is propelling demand for shipping services.
Social: Changes in lifestyle and increasing disposable income are augmenting demand for consumer goods driving need for logistics services.
Technological: Adoption of advanced technologies like IoT, telematics, truck platooning and autonomous vehicles is helping improve operational efficiency of logistics players.
Key Takeaways:
The global FTL and LTL Shipping Services market is expected to witness high growth, exhibiting CAGR of 4.10% over the forecast period, due to increasing international trade. The market was valued at US$ 15.47 Billion in 2022.
Regional analysis: North America is the largest and fastest growing regional market. Strict mandate of on-time deliveries along with presence of major logistics companies is driving growth of FTL and LTL shipping sector in the region.
Key players analysis: Key players operating in the FTL and LTL Shipping Services market are YRC Freight, XPO Logistics, Old Dominion, UPS Freight, Estes Express Lines, ABF Freight, R+L Carriers, Saia Motor Freight Line, Southeastern Freight Lines, Holland Regional, J.B. Hunt, Schneider, Swift Transportation, Werner Enterprises. J.B. Hunt and Schneider are the market leaders due to large fleet size and nationwide coverage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
