FTL and LTL shipping services provide logistics solutions for transporting goods in full truckload or less-than-truckload quantities. FTL services deliver an entire trailer while LTL services consolidate multiple shipments from various customers onto one trailer. They offer cost-effective and timely delivery of goods for various industries including e-commerce, manufacturing, and retail.
The global FTL and LTL shipping services Market is estimated to be valued at US$ 16.1 Bn in 2023 and is expected to exhibit a CAGR of 9.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The demand for FTL and LTL shipping services has been growing significantly due to the expansion of the e-commerce industry globally. E-commerce retailers and third-party logistics companies heavily rely on FTL and LTL shipping services for delivery of goods to customers within the committed timeframe. It is estimated that around 60% of the shipments handled by FTL and LTL carriers in 2023 were attributed to the e-commerce industry. The rapid growth of online shopping and popularity of omni-channel retailing are compelling e-commerce companies to outsource their logistics and transportation needs to specialized FTL and LTL service providers to ensure hassle-free delivery. This rising dependence on FTL and LTL carriers is a major trend augmenting market growth over the forecast period.
Segment Analysis
The Global FTL and LTL shipping market size is divided into two key segments - full truckload (FTL) and less-than-truckload (LTL). The FTL segment currently dominates the market, accounting for around 60% share. This is because FTL shipping offers lower costs per shipment for larger and heavier items that shippers want delivered in full trailer loads. Common goods transported via FTL include furniture, appliances, machinery equipment etc. The LTL segment is expected to witness higher growth in the coming years on account of rising small business activities and increasing demand for split shipments. LTL carriers allow consolidation of shipments from multiple customers in one trailer.
Key Takeaways
The global FTL and LTL shipping services market is expected to witness high growth over the forecast period of 2023 to 2030. The global FTL and LTL shipping services Market is estimated to be valued at US$ 16.1 Bn in 2023 and is expected to exhibit a CAGR of 9.8% over the forecast period 2023 to 2030.
Regional analysis: North America currently dominates the global market with over 35% share backed by strong infrastructure and presence of major shipping carriers in the region. However, Asia Pacific is anticipated to register fastest growth owing to rapid industrialization and expanding retail sector in countries such as China and India.
Key players: Key players operating in the FTL and LTL shipping services market are Keyence Corporation, Pepperl+Fuchs, Honeywell International Inc., Baumer Ltd., Rockwell Automation, Murata Manufacturing Co. Ltd., Omron Corporation, Sick AG, Banner Engineering, Baluff Inc., Robert Bosch GmbH, Qualcomm Incorporated, TDK Corporation, Sensata Technologies, and Denso Corporation. The market is quite competitive with major players focusing on developing innovative tracking solutions and automated processes to enhance operational efficiency.
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