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:
The FTL and LTL shipping services market provides full truckload (FTL) and less-than-truckload (LTL) transportation services for various industries. FTL shipping involves the use of an entire commercial truck to ship commodities from one place to another, while LTL shipping utilizes shared space on a truck to ship goods.
Market Dynamics:
The growth of the e-commerce industry has significantly increased the demand for logistics services over the past few years. According to recent statistics, the global e-commerce sales are expected to grow to $5.4 trillion by 2022. This growing volume of online ordering has amplified the need for transportation of consumer goods from warehouses to customers. Furthermore, next-day delivery expectations have made just-in-time logistics and transportation highly critical. As a result, logistics service providers are focusing on expanding their network coverage as well as delivery capabilities to cater to the growing customer demands. Additionally, implementation of advanced technologies such as IoT, AI and predictive analytics by logistics players is allowing for improved demand forecasting as well as optimized delivery routes, which is fueling the market growth.
Market key trends:
The FTL And LTL Shipping Services Market has been witnessing increased customization of services as per customer demand. Service providers are offering value-added services like customizable pricing, seamless digital experience, flexible delivery options, and real-time tracking of shipments. They are leveraging emerging technologies like AI, IoT, blockchain to gain efficiency and provide enhanced customer experience. Automation of processes, asset tracking through IoT, and predictive analytics through AI are being increasingly adopted.
SWOT Analysis
Strengths: Value-added services and customizable options increase customer stickiness. Transition to digital platforms enhance visibility and operational efficiency.
Weaknesses: Rising operational costs due to technology integration and workforce expenses. Dependency on economic activities increases vulnerability to downturns.
Opportunities: Growth in e-commerce sector drives demand. Adoption of sustainability practices present an opportunity to capture environment-conscious customers.
Threats: Intense competition from global and regional players. Disruptions from emerging business models like crowdsourced delivery.
Key Takeaways
The global FTL and LTL Shipping Services market size is expected to reach US$ 24.15 Billion by 2030, growing at a CAGR of 4.10% over the forecast period. Growing e-commerce sales and increasing preference for faster deliveries is a key driver of market growth.
Regional analysis: North America dominates the market currently due to high demand from retail and industrial sectors in the US and Canada. Asia Pacific is expected to witness highest growth driven by rapid growth of e-commerce, manufacturing, and international trade in countries like China and India.
Key players: 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. The market is consolidated in nature with top players accounting for majority market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
