Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 30.04 Billion |
| Market Size (2030) | USD 48.45 Billion |
| Growth Rate (2025 - 2030) | 10.03% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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India Less Than-Truck-Load (LTL) Market Analysis by Mordor Intelligence
The India less than-truck-load (LTL) market size stands at USD 30.04 billion in 2025 and is forecast to reach USD 48.45 billion by 2030, expanding at a 10.03% CAGR over 2025-2030; these headline figures position the segment as one of the fastest-growing logistics domains in the country. Government spending under Bharatmala and Gati Shakti continues to slash transit times and reduce logistics costs toward the global 8-10% benchmark. E-commerce parcelization—propelled by a projected surge in domestic online retail—nudges operators to redesign hub-and-spoke networks and invest in real-time visibility solutions that meet consumer delivery expectations. Rapid formalization among small and medium enterprises (SMEs) is translating into multi-year 3PL contracts, giving organized carriers predictable freight flows and higher yield per kilometer. At the same time, digital load-pooling platforms that match trucks, lanes, and back-hauls in seconds are lifting average asset utilization and cutting empty miles by as much as 80%.
Key Report Takeaways
- By end user industry, wholesale and retail trade led with 38.77% revenue share of the India less than-truck-load (LTL) market in 2024, while its freight volumes are projected to grow at an 11.53% CAGR between 2025-2030.
- By destination, domestic routes accounted for 80.16% of the India less than-truck-load (LTL) market size in 2024; international LTL services record the highest forecast CAGR at 10.43% across 2025-2030.
India Less Than-Truck-Load (LTL) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rapid growth of e-commerce parcelization | +2.8% | National, expanding from tier-1 to tier-2/3 markets | Medium term (2-4 years) |
| Highway and multimodal infrastructure push | +2.1% | Golden Quadrilateral and coastal corridors | Long term (≥ 4 years) |
| SME formalization via organized 3PLs | +1.9% | Urban centers, industrial clusters, spreading to rural manufacturing hubs | Medium term (2-4 years) |
| GST e-way bill driven network consolidation | +1.4% | Interstate freight corridors | Short term (≤ 2 years) |
| API-driven digital load-pooling platforms | +1.2% | Metro and tier-1 centers, diffusing into tier-2 markets | Short term (≤ 2 years) |
| Temperature-controlled LTL for MSME exports | +0.9% | Export clusters in Maharashtra, Gujarat, Tamil Nadu, Karnataka | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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Rapid Growth of E-Commerce Parcelization
Smartphone-driven buying behavior now dominates online retail, prompting shippers to demand dense pickup schedules, barcode-centric traceability, and delivery windows measured in hours rather than days[1]FedEx, “Tapping into the Cross-Border E-Commerce in India,” fedex.com. Tier-2 and tier-3 cities already generate 55.7% of parcel volumes, forcing carriers to weave micro-fulfillment nodes into smaller urban fabrics so as to sustain on-time performance without ballooning costs. International online purchases, which account for roughly a quarter of total e-commerce sales, add customs brokerage, labeling, and duty-management layers to the India less than-truck-load (LTL) market, nudging operators to plug directly into cross-border digital gateways. As shipment sizes shrink and frequency spikes, carriers recalibrate cube-versus-weight algorithms to preserve yield while meeting stringent service-level agreements. Competitive pressure is also pushing firms to integrate real-time chatbots and proof-of-delivery images into customer portals, raising the minimum digital bar for participation in the India less than-truck-load (LTL) market.
Government Highway and Multimodal Infrastructure Push (Bharatmala, Gati Shakti)
More than 83,000 km of highway upgrades under Bharatmala Phase I are shortening line-haul legs, enabling 20-30% higher average speeds and trimming fuel burn in the India less than-truck-load (LTL) market[2]SPARX Logistics, “India Logistics Industry 2025,” sparxlogistics.com. Freight-only corridors, most notably the 1,506 km Western Dedicated Freight Corridor, are serving as gravitational hubs for consolidation yards that support same-day intra-state deliveries while feeding next-morning inter-state services. Port-led initiatives such as the Vizhinjam transshipment terminal extend these land-side efficiencies to ocean gateways, allowing exporters to synchronize factory dispatch and vessel cut-off times with minimal slack[3]SupplyChainBrain, “Adani to Double Investment in Transshipment Port,” supplychainbrain.com. The National Logistics Portal wraps a digital layer around these physical assets, standardizing single-window clearances and reducing document touchpoints. Taken together, these developments build irreversible momentum behind double-digit expansion in the India less than-truck-load (LTL) market.
GST E-Way Bill Enabling Long-haul Network Consolidation
With state check-posts a relic of the past, hub-to-hub transits on 1,000 km corridors routinely close in 24 hours, letting carriers redesign their line-haul grids around fewer, larger mega-hubs strategically located near city rings. Automated handshakes between e-way bill portals and tolling systems have lopped off cash-handling delays while shining a compliance spotlight on every consignment, thereby rewarding operators that invest in API connectivity. The streamlined regulatory flow unnerves informal fleets that lack audit-ready records, accelerating their migration into digital brokerages or organized 3PL alliances. Consequently, the India less than-truck-load (LTL) market is evolving toward a smaller number of tech-savvy networks capable of converting predictable traffic density into superior cost-to-serve economics.
API-driven Digital Load-Pooling Platforms
Real-time matching engines now calculate lane-pair profitability in milliseconds, often lining up a back-haul before the outbound load is even tendered. Machine-learning algorithms that ingest historical demand, road events, and weather feeds are driving 15-20% improvements in fleet utilization, in turn lowering delivered cost per kilogram for shippers in the India less than-truck-load (LTL) market. IoT cages track temperature, vibration, and door swings, letting dispatchers trigger proactive interventions instead of reactive claims processing. Predictive maintenance models find patterns in engine telemetry, scheduling shop time during low-demand windows, and pushing mechanical availability above 96%, a crucial metric in a market where punctuality underwrites contract renewals. Operators that integrate these toolsets with customer ERPs win a disproportionate share of enterprise spend, creating a virtuous loop of scale and data.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Fragmented owner-driver truck base | −1.8% | Rural and semi-urban corridors | Long term (≥ 4 years) |
| Truck-driver shortage and high attrition | −1.5% | Northern and western industrial belts | Medium term (2-4 years) |
| Delay in vehicle scrappage policy | −1.1% | National, especially fleets operating vehicles older than 15 yrs | Medium term (2-4 years) |
| FASTag weigh-in-motion overloading penalties | −0.8% | High-density highway segments | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Truck-Driver Shortage and High Attrition
Active driver strength hovers around 3.6 million against a truck population nearing 6 million, leaving one in three vehicles under-utilized during peak season. Rising urban employment opportunities, unfavorable work-life balance, and sub-optimal roadside amenities deter new entrants, compelling fleets to raise compensation by as much as 20% to maintain route schedules. Certification mandates introduced under the Motor Vehicle Act complicate onboarding of inexperienced drivers, while seasoned personnel often lack formal training in cold-chain or hazardous cargo protocols. Prolonged billets away from home on trunk routes trigger attrition, forcing dispatchers to juggle schedules and impacting the service reliability that underpins the India less than-truck-load (LTL) market.
Delay in Vehicle Scrappage Policy Inflating Maintenance Downtime
Vehicles past the 15-year mark spend roughly 18-22 days a year in unplanned repairs compared with 8-10 days for newer rigs, eroding capacity buffers during high-volume cycles. Legacy fleets lack factory-fitted GPS, advanced braking systems, and Euro-VI compliant engines, making them expensive to insure and harder to integrate into digital visibility ecosystems. Capital expenditure on new trucks stalls when operators defer replacement, slowing technology penetration rates in the India less than-truck-load (LTL) market and muting potential productivity gains. Financing institutions apply steeper risk premiums to such fleets, inflating the cost of debt and tightening cash flows for owner-drivers already grappling with volatile diesel prices.
Segment Analysis
By End User Industry: Manufacturing Surge Drives Diversification
Manufacturers accelerating domestic value-addition, from mobile phones to farm machinery, are feeding dependable LTL demand corridors that support time-bound in-plant delivery windows. Automotive, engineering, and FMCG cargo collectively pushed manufacturing-linked revenues at TCI up during the nine-month FY2025 cycle, validating the sector’s resilience. Consumer-oriented wholesale and retail trade retained 38.77% of the India less than-truck-load (LTL) market share in 2024, and its 11.53% CAGR between 2025-2030 outlook points to sustained lane density for north-south and west-east axis carriers. Specialized lanes handling electronics components for an expanding USD 14 billion iPhone assembly footprint require temperature-controlled vaulting and high-value escorts, raising yield potential. Construction-linked freight, buoyed by public spending, is revitalizing flatbed and palletized volumes for cement, steel, and project machinery, while agriculture exporters embrace palletized cold-chain services for perishables bound for the Middle East and Southeast Asia.
The India less than-truck-load (LTL) market size attributed to wholesale and retail trade is projected to expand at a compounded 11.53% each year between 2025-2030, underscoring the evolution of omnichannel logistics in both metro and tier-2 catchments. Manufacturing maintains its status as the bulk volume anchor, but segments such as renewable energy components and specialty chemicals are climbing the mix ladder, stimulating investments in ISO-tanked, ADR-compliant rolling stock. Oil & Gas and Mining continue to rely on project-linked spot contracts; however, organized carriers with in-house engineering support are now bidding multi-year integrated hauling agreements, bolstering revenue visibility.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: International Growth Accelerates Export Logistics
Even as domestic lanes reflect 80.16% of freight activity, cross-border shipments are posting a 10.43% CAGR between 2025-2030 on the back of MSME export momentum and import-backhaul consolidation. Customs-bonded trucking, temperature-controlled containers, and airline-integrated road feeders are becoming staples for pharmaceutical and processed-food exporters. India less than-truck-load (LTL) market size serving international lanes is forecast to expand faster than its home-market counterpart over the next five years, supported by port-side warehousing tax incentives and simplified export documentation workflows. U.S. shoppers command 21% of India’s cross-border parcel purchases, while Australia and China capture 14% and 11%, respectively, guiding carriers to refine service bundles that synchronize with airline networks and ocean feeder timetables.
Integrated service providers that can handle in-factory pickup, bonded consolidation, and destination-country last-mile delivery enjoy a margin premium over pure trucking counterparts. Export-oriented industrial parks in Gujarat, Maharashtra, and Tamil Nadu contribute predictable weekly volume blocks that justify dedicated scheduled departures. Complementary import flows—electronics, lifestyle goods, and medical devices—fill back-haul legs, lifting mean asset utilization and creating economies of density unique to the India less than-truck-load (LTL) market.
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Geography Analysis
India’s western logistics arc, stretching from Mumbai through Pune to Gujarat’s industrial belts, anchors more than one-third of national LTL tonnage, thanks to proximity to Nhava Sheva port and a dense lattice of supplier parks feeding automotive and pharmaceutical majors. The northern cluster, primarily the Delhi-NCR basin, leverages ring-road expansions and Bharatmala linkages to distribute inbound raw materials deep into Punjab, Haryana, and Uttar Pradesh manufacturing clusters. Rising omni-channel retail footprints in Chandigarh-Mohali and Jaipur funnel value-added retail LTL flows back into metro warehouses for onward distribution.
Southern India commands a fast-growing slice of the India less than-truck-load (LTL) market due to the electronics and automotive triad of Bangalore, Chennai, and Hyderabad. Dedicated freight corridors connecting Bengaluru to Chennai port have trimmed transit hours, allowing same-night dispatch for high-value electronics bound for Middle-East air gateways. Eastern corridors remain relatively under-weighted but record double-digit growth rates as national highways open up Bihar and West Bengal to organized retail and cement projects. DFC Logistics’ expansion across Patna, Ranchi, and Bhubaneswar exemplifies targeted investment into what was once thin-route territory, a pattern likely to repeat as infrastructure gaps close.
Tier-2 and tier-3 cities now anchor 55.7% of national e-commerce parcel volume and are expected to host 88% of India’s online shoppers by 2030. These cities’ warehouse clusters typically lie on the urban periphery, prompting carriers to deploy smaller 19-ft trucks and urban LCVs for final-stage route density. Rural connectivity investments under the Gati Shakti umbrella enhance first-mile pickup for agri-exports and facilitate reverse logistics loops, although bridge load restrictions and seasonal road closures still challenge perfect network symmetry. International gateway activity is dominated by Nhava Sheva, Mundra, and Chennai, but Vizhinjam’s new capacity promises to redistribute outbound flows along the south-west coast, potentially reducing dwell time for time-sensitive refrigerated cargo.
Competitive Landscape
More than 67% of Indian trucking companies own fewer than five vehicles, yet they collectively control over half of the national fleet, making the India less than-truck-load (LTL) market intrinsically fragmented. Technology-first enterprises, therefore, pursue a federated model where independent owner-drivers plug into shared visibility, compliance, and route-planning suites in exchange for guaranteed load access. Global players are entering via strategic buy-outs: CEVA’s recent purchase of Stellar Value Chain Solutions handed the French major 7 million ft² of domestic warehousing and a ready-made LTL customer roster[4]Seatrade Maritime, “CEVA Acquires Stellar Value Chain Solutions,” seatrade-maritime.com. On the domestic front, VRL Logistics’ takeover of a Karnataka regional operator added 500 vehicles and strengthened south-India reach, underlining consolidation momentum.
IoT and predictive analytics investments are defining a new performance frontier. Operators like Delhivery utilize machine-vision sorting and AI dispatch engines to safely promise next-morning delivery across 20,000 pin codes. White-space competition is fiercest in temperature-controlled LTL, where carriers integrating reefer telemetry and GDP-compliant handling are courting pharmaceutical exporters facing narrow excursion windows. Same-day quick-commerce lanes represent another battleground; fleet electrification pilots such as BLR Logistiks’ heavy-duty EV running IKEA routes demonstrate carbon-curbing pathways that may soon become table stakes in corporate procurement scorecards.
Competitive advantage is tilting toward firms fluent in multimodal orchestration—road, rail, and coastal shipping—supported by automated documentation that syncs with customs and port community systems. Mid-tier regional specialists wield deep customer intimacy and localized route knowledge but must either embrace platform alliances or risk being marginalized by fleets wielding scale economies and nationwide brand recall. The broader narrative therefore centers on whether technology alliances or outright acquisitions will stitch together enough density to push the India less than-truck-load (LTL) market toward moderate concentration.
India Less Than-Truck-Load (LTL) Industry Leaders
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Delhivery Ltd.
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Mahindra Logistics Ltd.
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Transport Corporation of India Ltd. (TCI)
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VRL Logistics Ltd.
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Allcargo Logistics Ltd. (including Gati Express)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- April 2025: Delhivery signed a definitive agreement to acquire a controlling stake in Ecom Express, bolstering e-commerce parcel capabilities across tier-2 and tier-3 cities.
- April 2025: BLR Logistiks and IKEA Supply deployed India’s first public-road heavy-duty electric truck, completing 100 routes while cutting emissions and total cost of ownership.
- January 2025: VRL Logistics completed the acquisition of a Karnataka-based regional freight operator, expanding its south-India network by 25% and adding 500 vehicles.
- September 2024: DHL eCommerce pledged a EUR 250 million (USD 275.91 million) investment to open two hubs, add fleet capacity, and pursue strategic acquisitions in India by 2030.
India Less Than-Truck-Load (LTL) Market Report Scope
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic, International are covered as segments by Destination.
End User Industry
| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
Destination
| Domestic |
| International |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Destination | Domestic |
| International |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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