Less-Than-Truckload (LTL) Market to Grow by USD 110.7 Billion from 2025-2029, Driven by E-commerce Growth, with AI Redefining the Market Landscape - Technavio

NEW YORK, Feb. 10, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global less-than-truckload (LTL) market  size is estimated to grow by USD 110.7 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  6.8%  during the forecast period.  Advances in E-commerce in retail sector is driving market growth, with a trend towards emergence of big data in global less-than-truckload (LTL) market  However, rising prices of ltl carriers  poses a challenge.Key market players include Addmotor Tech, Autonix Auto Industries Pvt. Ltd., Benelli Biciclette, Brompton Bicycle Retail Ltd., Dahon North America Inc., e JOE Bike, Dahon, A-bike, Giant Bicycles, Helix, Bike Friday, Montague Bike, Brompton Bicycle, GOGOBIKE, Birdy Bike, FOREVER Bicycle, ENZO eBike, Kalkhoff Werke GmbH, Karbon Kinetics Ltd., Mighty Velo, Ming Cycle Industrial Co. Ltd.

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Key Market Trends Fueling Growth

The Less-Than-Truckload (LTL) market is witnessing significant growth in various sectors like Agriculture, Fishing, Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, and E-commerce. Freight transport volume is increasing due to rising demand for retail products and MSME sector goods. Freight pricing trends are influenced by fuel prices, with petrol and diesel affecting truckers' costs. Oil demand and crude oil prices impact oil marketing companies and freight carriers. LTL services cater to small and medium shipments, offering scalability, affordability, and flexibility for shippers. Specialized carriers serve niche industries like retail and industrial shipping, providing operational efficiency and density-based pricing. Ground shipping is popular for its affordability, while air, rail, and full truckload services offer faster delivery. Economic conditions, trailer capacity, and cargo density also impact LTL market trends. Startups are entering the LTL sector, offering innovative solutions to meet the growing demand for freight transportation. 

LTL logistics companies and shippers are leveraging big data to transform vast amounts of information into a competitive edge. Big data advantages include customized services, identifying market trends, and agile business models. In the European logistics sector, big data analytics implementation is not yet widespread, due to IT disparities. Big data can offer a significant competitive advantage in LTL logistics through operational efficiency, enhanced customer experience, and innovative business models. By optimizing core activities such as resource utilization, delivery time, and geographical coverage, LTL logistics firms can improve their overall performance and better serve their clients. 

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Market Challenges

• The Less-Than-Truckload (LTL) market faces unique challenges in various industries like Agriculture, Fishing, Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying. Freight volume from MSMEs in Retail products and E-commerce sectors is increasing, requiring more LTL services. Freight pricing trends are influenced by fuel costs, with oil demand affecting petrol and diesel prices. Truckers face challenges with scalability and affordability, while operational efficiency is crucial for freight carriers. Density-based pricing and economic conditions impact the LTL market. Full Truckload carriers and specialized carriers cater to different shipping needs - industrial and retail. Ground, air, rail, and shipping modes offer various solutions for small to medium shipments. Cargo density and trailer capacity are key factors in LTL services. Flexibility is essential for startups and businesses in volatile economic conditions.
• The Less-Than-Truckload (LTL) market is currently facing several challenges that are driving up prices. Rising costs, increased demand, and in e-commerce deliveries are putting pressure on LTL carriers. Additionally, there's a shortage of qualified drivers and tightening Truckload (TL) capacity, further complicating matters. LTL carriers are investing heavily in their trucks, drivers, and facilities, all while dealing with fuel price volatility. Fuel expenses are a significant cost for LTL carriers, and fluctuations in fuel prices can significantly impact their profitability. Last-mile delivery operations present another challenge for LTL carriers, requiring them to maintain profitability while ensuring transparency and improving delivery efficiency.

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Segment Overview

This less-than-truckload (ltl) market report extensively covers market segmentation by

• Type
• Long-haul Carriers
• Superregional Carriers
• Regional Carriers
• Capacity
• Light LTL Volume
• Heavy LTL Volume
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America
• End-User
• Agriculture, Fishing, And Forestry
• Construction
• Manufacturing
• Oil And Gas, Mining And Quarrying
• Wholesale And Retail Trade
• Others

1.1 Long-haul carriers-  The long-haul carriers segment is the largest revenue generator in the global Less-Than-Truckload (LTL) market. Long-haul LTL carriers, also known as national LTL carriers, transport shipments within 3 to 5 days, with an average haul length of approximately 1,200 miles. These carriers typically operate through a hub-and-spoke network and have labor unions. The long-haul LTL market is expected to grow steadily due to economic activity. Shipments are collected from one point, transported to a centralized distribution center, and then dispatched to the destination. Long-haul LTL carriers offer value-added services, such as packing, unpacking, and door-to-door freight collection. Competition comes from other transportation modes, but outsourcing freight needs to logistics providers allows businesses to offer efficient transportation. Additional services include project logistics, network planning, cargo insurance, value-chain optimization, and customs brokerage. With industrial activities increasing worldwide, the long-haul LTL carriers segment will experience significant growth during the forecast period.

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Research Analysis

The Less-Than-Truckload (LTL) market plays a vital role in transporting various goods, including those from sectors like Agriculture, Fishing, Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, and Retail. LTL freight services offer scalability and affordability, making them an attractive option for shippers with smaller freight volumes. In the context of the LTL market, freight volume is a significant factor. E-commerce growth and the MSME sector's expansion contribute to increased demand. Freight pricing trends are influenced by factors such as fuel prices, trailer capacity, and cargo weight. Road freight services dominate the LTL market due to their flexibility and extensive reach. The logistics sector plays a crucial role in ensuring efficient LTL operations. Passenger traffic and crude oil prices can also impact LTL freight rates. Full Truckload shipments and LTL shipments serve different needs. While Full Truckload shipments are ideal for large volumes, LTL shipments cater to smaller quantities. Freight carriers must balance their trailer capacity to meet the demands of various shippers. Cargo types in the LTL market range from raw materials and industrial goods to finished products. The affordability and flexibility of LTL services make them a popular choice for various industries.

Market Research Overview

The Less-Than-Truckload (LTL) market caters to the freight transportation needs of various industries such as Agriculture, Fishing, Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, and others. Freight volume in the LTL market is driven by sectors like E-commerce, MSMEs, and Retail, which require frequent and flexible shipping solutions for their products. Freight pricing trends in the LTL market are influenced by factors like fuel prices, operational efficiency, and economic conditions. LTL services offer scalability and affordability, making them a popular choice for small and medium-sized shipments. Density-based pricing is a common pricing model in the LTL market, where the freight rate is determined by the density of the cargo. The LTL market comprises various stakeholders, including freight carriers, shippers, and truckers. The logistics sector plays a crucial role in ensuring the smooth transportation of goods through various modes like road freight services, rail shipping, air shipping, and ground shipping. The market is also witnessing the emergence of specialized carriers and startups offering volume LTL services to cater to specific industry needs. Fuel prices, particularly for petrol and diesel, significantly impact the LTL market, with oil marketing companies playing a vital role in the supply chain. The demand for crude oil and its derivatives in the oil and gas industry also influences the market dynamics. The flexibility and affordability of LTL services make them an attractive option for industries requiring frequent and small shipments, despite the challenges posed by economic conditions and full truckload carrier competition.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Long-haul Carriers
• Superregional Carriers
• Regional Carriers
• Capacity
• Light LTL Volume
• Heavy LTL Volume
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America
• End-User
• Agriculture, Fishing, And Forestry
• Construction
• Manufacturing
• Oil And Gas, Mining And Quarrying
• Wholesale And Retail Trade
• Others

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio