PUBLISHER: Grand View Research | PRODUCT CODE: 1574862
PUBLISHER: Grand View Research | PRODUCT CODE: 1574862
The global Less-than-truckload market size was estimated at USD 216.68 billion in 2023 and is projected to grow at a CAGR of 6.9% from 2024 to 2030. The growth of regional distribution centers and micro-fulfillment hubs has led to higher demand for LTL services, which enable the movement of goods across shorter distances and in smaller quantities. The growth of e-commerce and digital marketplaces has fundamentally changed consumer expectations. Consumers now expect fast, flexible, and reliable delivery options. Less-than-truckload (LTL) carriers, due to their ability to consolidate smaller shipments, offer a cost-effective and efficient way to meet these demands, particularly for last-mile and regional deliveries.
Urbanization trends have significantly impacted the Less-than-truckload (LTL) market positively. As cities grow and expand, the demand for efficient intra-city and regional freight delivery is increasing. LTL carriers are positioned to handle deliveries in urban areas where full truckload services may not be cost-efficient or practical. Furthermore, with the rise of online shopping, there has been an increase in demand for smaller, more frequent shipments, which is perfectly suited for LTL services. Retailers and e-commerce companies such as Amazon.com, Inc. and Walmart Inc. are utilizing LTL to handle last-mile deliveries more efficiently.
With growing concerns about environmental impact, LTL carriers are prioritizing sustainability in their operations. Shippers are opting for LTL as a greener alternative to full truckload services since consolidating shipments reduces the number of trucks on the road, lowering carbon emissions. Furthermore, LTL companies are investing in electric vehicles (EVs), fuel-efficient fleets, and alternative fuel technologies to meet sustainable goals. Additionally, smart routing and optimization technologies are minimizing empty miles and reducing fuel consumptions.
The reliance on third-party logistics (3PL) providers has increased significantly within the LTL space. Many businesses outsource their logistics needs to 3PLs to streamline operations, optimize shipping costs, and gain access to broader carrier networks. This trend is driving the demand for LTL services, as 3PLs often utilize LTL to transport partial loads for multiple clients. Less-than-truckload (LTL) provides a cost-effective solution for companies that do not need to ship full truckloads. By sharing trailer space with other shippers, businesses can reduce freight costs significantly. This is particularly attractive to small and medium-sized enterprises (SMEs) looking to optimize their shipping expenses.
The emergence of digital freight matching platforms is transforming the way LTL careers to connect with shippers. These platforms allow shippers to find LTL carriers with available capacity in real-time, optimizing trailer utilization and reducing empty miles. Furthermore, automation in LTL warehouses is improving operational efficiency and reducing labor costs. Automated storage and retrieval systems, and sorting robots are streamlining the handling of LTL freight, further driving the growth of the market during the forecast period.
Global Less-than-Truckload (LTL) Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global Less-than-truckload market report based on type, capacity, destination, and region: