India Less than-Truck-Load (LTL) Market Size
Icons | Lable | Value |
---|---|---|
Study Period | 2017 - 2030 | |
Market Size (2024) | USD 27.09 Billion | |
Market Size (2030) | USD 48.45 Billion | |
Largest Share by End User Industry | Wholesale and Retail Trade | |
CAGR (2024 - 2030) | 10.17 % | |
Fastest Growing by End User Industry | Wholesale and Retail Trade | |
Market Concentration | Low | |
Major Players |
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*Disclaimer: Major Players sorted in alphabetical order. |
India Less than-Truck-Load (LTL) Market Analysis
The India Less than-Truck-Load (LTL) Market size is estimated at 27.09 billion USD in 2024, and is expected to reach 48.45 billion USD by 2030, growing at a CAGR of 10.17% during the forecast period (2024-2030).
27.09 Billion
Market Size in 2024 (USD)
48.45 Billion
Market Size in 2030 (USD)
8.43 %
CAGR (2017-2023)
10.17 %
CAGR (2024-2030)
Largest Market by Destination
80.24 %
value share, Domestic, 2023
In 2022, small fleet operators, which dominate the domestic LTL market and own about 5-20 five trucks, drove 85% of India’s logistics needs.
Largest Market by End User Industry
39.64 %
value share, Wholesale and Retail Trade, 2023
The rise of e-commerce is driving the demand for road freight services. In 2022, the e-commerce sector in India experienced a YoY growth of 4.3% and reached USD 57.45 billion.
Fastest Growing Market by End User Industry
12.81 %
Projected CAGR, Wholesale and Retail Trade, 2024-2030
The end-user industry is expected to grow significantly as the e-commerce market is projected to record a CAGR of 14.11% during 2023-2027.
Fastest Growing Market by Destination
10.58 %
Projected CAGR, International, 2024-2030
The international segment is expected to grow in the future, as cross-border e-commerce is anticipated to play a crucial role in helping achieve India's USD 1 trillion export vision by 2028.
First Leading Market Player
1.27 %
market share, VRL Logistics Ltd., 2022
VRL provides LTL godown-to-godown services across the country. Also, it provides goods transport services with a fleet size of more than 4,800 trucks.
The e-commerce industry is expected to grow at a CAGR of 14.11% during 2023-27, driving the growth of the market
- In 2022, the manufacturing segment experienced growth boosted by the manufacturing sector's output. With various programs and policies in place, the government aims to ensure that 25% of the total economy's production comes from manufacturing by 2025. As the Indian economy grows, there is an increase in the demand for manufactured goods, leading to a higher need for LTL services. The Indian government is taking several initiatives to promote the growth of the manufacturing industry in the country. As part of the efforts, in the Union Budget 2022-23, the MSME sector received a boost with the extension of the Emergency Credit Line Guarantee Scheme (ECLGS).
- The expanding middle-class population in India led to increased consumption of retail products, necessitating more road freight services. Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. The rise of e-commerce is also driving the demand for road freight services in the country. In addition, the Indian e-commerce industry is projected to record a CAGR of 14.11% during 2023-2027.
- The future of the wholesale and retail trade segment is expected to be outstanding as India's retail industry is projected to grow at a pace of 9% over 2019-2030, from USD 779 billion in 2019 to USD 1,407 billion by 2026 and more than USD 1.8 trillion by 2030. The long-term future for the industry looks positive, supported by rising income, favorable demographics, entry of foreign players, and increasing urbanization. Moreover, rising production and exports are expected to support the manufacturing end-user segment.
India Less than-Truck-Load (LTL) Market Trends
The road sector dominates India's transportation industry, contributing around 3.75% to GDP
- India's road transportation services led the pack in 2021, contributing the most substantial gross value added (GVA) at over INR 3 trillion (USD 36.3 billion). This marked a decrease from the preceding fiscal year. Communication and broadcast services secured the second position, with a GVA of around INR 2.2 trillion (USD 26.62 billion) during the same period. The logistics sector is pivotal in facilitating the seamless flow of goods and services within the country and internationally. This diverse array encompasses prominent domestic entities, global industry frontrunners, the postal service's express division, and emerging startups specifically aiming to facilitate e-commerce deliveries.
- The transportation industry contributed around 3.75% of the GDP, and the road sector dominates. More than 50% of freight and 90% of passenger traffic are handled by road. Government and private investments, rising exports, the increasing interstate movement of goods and passengers, the growing FMCG sector, and rising disposable incomes are the major drivers of the transportation industry in India. To boost connectivity across the country, 100% FDI has been allowed in the roads and highway sector via automatic routes.
- India's road transport sector registered an improvement in prices in December 2021 due to higher industrial activity, even as demand for transportation from the consumer goods sector declined. In 2022, India was a major manufacturing hub in Asia, and infrastructure advancements made it easier for manufacturers to import goods and guarantee a higher export level. Due to the significant advancement in rail transportation that ensures faster transit times, it cannot operate on a low inventory model.
Owing to numerous tax hikes in the country, fuel prices are expected to increase
- Fuel costs in India have sky-rocketed to current levels due to the combined effects of rising benchmark Brent prices and numerous tax hikes over the past few years. According to the All-India Motor Transport Congress, which represents more than 14 million truckers and bus and tourist vehicle operators, the soaring fuel prices are impacting India's truckers significantly as they have limited ability to pass on the rising prices, which account for 70% of the cost of operating a truck. Moreover, India's oil demand is expected to grow by about 11% in 2024.
- As per the official data by Petroleum Planning and Analyses Cell, petrol prices rose by a whopping USD 0.28 per liter between April 1, 2020, and March 31, 2021, the highest ever levels to be recorded so far. India's petrol demand rebounded above pre-COVID-19 levels in 2021.
- The diesel price increase in the country was less sharp than the increase in petrol prices due to VAT cuts offered by several state governments to keep the price rise of diesel under manageable levels. Oil marketing companies have been lenient on diesel price rises lately, reducing the quantum of a hike compared to petrol. In 2022, global crude oil prices reached an all-time high as Russia's invasion of Ukraine threatened to curtail supply, whereas the impact on fuel in India has been minimal. Moreover, domestic gasoline demand, used mainly in passenger vehicles, is expected to rise in the coming years. However, fuel prices were hiked, and the consumption demand decreased due to high inflation, which impacted the economic recovery of India.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Agriculture Infrastructure Fund (2020-2032) worth USD 12.08 billion to provide a major boost to Indian agriculture sector
- The Indian e-commerce market is expected to become the second-largest worldwide by 2034
- India's rank rose six places to 38 in LPI 2023, fueled by strategic policies and infrastructure advancements
- India announced Foreign Trade Policy 2023, and exports are anticipated to reach USD 2 trillion by 2023
- Increased fuel costs and toll charges by NHAI led to an increase in overall truck operational costs in India
- The Indian government’s budget allocation worth USD 631 million is driving initiatives to subsidize and promote the adoption of electric vehicles
- Inflation coupled with increasing fuel and input costs driving road freight rate increases
- Economic and supply shocks from the Ukraine-Russia War disrupted supply chains, leading to an increase in costs
- Growing construction and agricultural goods demand supported by growing population and investments
- The manufacturing industry of India is expected to reach USD 1 trillion by 2025
- India emerged as the second-largest global road network holder, surpassing China, and it achieved 1.45-lakh km expansion over 8 years
- Natural gas imports in India might double by 2030 amid rising domestic demand
- Rising product launches owing to BS-VI emission standards are increasing the sales of commercial vehicles
- Road freight volume in India to grow with the upcoming High-Speed Corridor Network by 2047
- Land transportation contributed more than 90% of freight transportation in 2022, supported by increased government investment and foreign FDI
India Less than-Truck-Load (LTL) Industry Overview
The India Less than-Truck-Load (LTL) Market is fragmented, with the top five companies occupying 3.11%. The major players in this market are Delhivery Limited, Gati Express & Supply Chain Private Limited, Mahindra Logistics Ltd., V-Trans and VRL Logistics Ltd. (sorted alphabetically).
India Less than-Truck-Load (LTL) Market Leaders
Delhivery Limited
Gati Express & Supply Chain Private Limited
Mahindra Logistics Ltd.
V-Trans
VRL Logistics Ltd.
Other important companies include ABC India Limited, BLR Logistiks (I) Ltd, DHL Group, Transport Corporation of India Limited (TCI).
*Disclaimer: Major Players sorted in alphabetical order.
India Less than-Truck-Load (LTL) Market News
- September 2023: Shreeji Translogistics Limited (STL) one of the large integrated national logistical solution providers in India, has entered into contract with DHL Express (India) Pvt. Ltd. for providing courier cargo under bonded trucking services.
- August 2023: Transport Corporation of India (TCI) has committed to deploy zero-emission trucks over the next 18-24 months to run on India’s first zero-emission road freight cluster as announced by NITI Aayog in collaboration with WRI India and the World Economic Forum.
- August 2023: Delhivery Ltd had entered into a contract to build and operate the factory-to-customer supply chain for Havells India Ltd. in western India.
Free with this Report
We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various regions pertaining to e-commerce industry trends, economic contribution of the transportation & storage sector, export and import trends among other key indicators.
India Less than-Truck-Load (LTL) Market Report - Table of Contents
EXECUTIVE SUMMARY & KEY FINDINGS
REPORT OFFERS
1. INTRODUCTION
1.1. Study Assumptions & Market Definition
1.2. Scope of the Study
1.3. Research Methodology
2. KEY INDUSTRY TRENDS
2.1. GDP Distribution By Economic Activity
2.2. GDP Growth By Economic Activity
2.3. Economic Performance And Profile
2.3.1. Trends in E-Commerce Industry
2.3.2. Trends in Manufacturing Industry
2.4. Transport And Storage Sector GDP
2.5. Logistics Performance
2.6. Length Of Roads
2.7. Export Trends
2.8. Import Trends
2.9. Fuel Pricing Trends
2.10. Trucking Operational Costs
2.11. Trucking Fleet Size By Type
2.12. Major Truck Suppliers
2.13. Road Freight Tonnage Trends
2.14. Road Freight Pricing Trends
2.15. Modal Share
2.16. Inflation
2.17. Regulatory Framework
2.18. Value Chain & Distribution Channel Analysis
3. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2030 and analysis of growth prospects)
3.1. End User Industry
3.1.1. Agriculture, Fishing, and Forestry
3.1.2. Construction
3.1.3. Manufacturing
3.1.4. Oil and Gas, Mining and Quarrying
3.1.5. Wholesale and Retail Trade
3.1.6. Others
3.2. Destination
3.2.1. Domestic
3.2.2. International
4. COMPETITIVE LANDSCAPE
4.1. Key Strategic Moves
4.2. Market Share Analysis
4.3. Company Landscape
4.4. Company Profiles
4.4.1. ABC India Limited
4.4.2. BLR Logistiks (I) Ltd
4.4.3. Delhivery Limited
4.4.4. DHL Group
4.4.5. Gati Express & Supply Chain Private Limited
4.4.6. Mahindra Logistics Ltd.
4.4.7. Transport Corporation of India Limited (TCI)
4.4.8. V-Trans
4.4.9. VRL Logistics Ltd.
5. KEY STRATEGIC QUESTIONS FOR ROAD FREIGHT CEOS
6. APPENDIX
6.1. Global Logistics Market Overview
6.1.1. Overview
6.1.2. Porter’s Five Forces Framework
6.1.3. Global Value Chain Analysis
6.1.4. Market Dynamics (Market Drivers, Restraints & Opportunities)
6.2. Sources & References
6.3. List of Tables & Figures
6.4. Primary Insights
6.5. Data Pack
6.6. Glossary of Terms
6.7. Currency Exchange Rate
List of Tables & Figures
- Figure 1:
- DISTRIBUTION OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, SHARE %, INDIA, 2022
- Figure 2:
- GROWTH OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, CAGR %, INDIA, 2017 – 2022
- Figure 3:
- GROSS MERCHANDISE VALUE (GMV) OF E-COMMERCE INDUSTRY, USD, INDIA, 2017 - 2027
- Figure 4:
- SECTORAL SHARE IN E-COMMERCE INDUSTRY GROSS MERCHANDISE VALUE (GMV), SHARE %, INDIA, 2022
- Figure 5:
- GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY (IN CURRENT PRICES), USD, INDIA, 2017 - 2022
- Figure 6:
- SECTORAL SHARE IN GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY, SHARE %, INDIA, 2022
- Figure 7:
- VALUE OF TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), USD, INDIA, 2017 – 2022
- Figure 8:
- TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), SHARE % OF GDP, INDIA, 2017-2022
- Figure 9:
- RANK OF LOGISTICS PERFORMANCE, RANK, INDIA, 2010 - 2023
- Figure 10:
- SHARE OF ROAD LENGTH BY SURFACE CATEGORY, %, INDIA, 2022
- Figure 11:
- SHARE OF ROAD LENGTH BY SURFACE CLASSIFICATION, %, INDIA, 2022
- Figure 12:
- VALUE OF EXPORTS, USD, INDIA, 2017 - 2022
- Figure 13:
- VALUE OF IMPORTS, USD, INDIA, 2017 - 2022
- Figure 14:
- FUEL PRICE BY TYPE OF FUEL, USD/LITER, INDIA, 2017 - 2022
- Figure 15:
- OPERATIONAL COSTS OF TRUCKING - BREAKDOWN BY OPERATING COST ELEMENT, %, INDIA, 2022
- Figure 16:
- TRUCKING FLEET SIZE BY TYPE, SHARE %, INDIA, 2022
- Figure 17:
- MARKET SHARE OF MAJOR TRUCK SUPPLIER BRANDS, SHARE %, INDIA, 2022
- Figure 18:
- FREIGHT HANDLED BY ROAD TRANSPORT, TONS, INDIA, 2017 - 2030
- Figure 19:
- PRICE TREND OF ROAD FREIGHT TRANSPORT SERVICE, USD/TON-KM, INDIA, 2017 - 2022
- Figure 20:
- MODAL SHARE OF FREIGHT TRANSPORTATION SECTOR, SHARE % BY TON-KM, INDIA, 2022
- Figure 21:
- MODAL SHARE OF FREIGHT TRANSPORT SECTOR, SHARE % BY TONS, INDIA, 2022
- Figure 22:
- WHOLESALE PRICE INFLATION RATE, %, INDIA, 2017 - 2022
- Figure 23:
- CONSUMER PRICE INFLATION RATE, %, INDIA, 2017 - 2022
- Figure 24:
- VOLUME OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, INDIA, 2017 - 2030
- Figure 25:
- VALUE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, INDIA, 2017 - 2030
- Figure 26:
- VOLUME OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, TON-KM, INDIA, 2017 - 2030
- Figure 27:
- VALUE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, USD, INDIA, 2017 - 2030
- Figure 28:
- VALUE SHARE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, %, INDIA, 2017 - 2030
- Figure 29:
- VOLUME OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, INDIA, 2017 - 2030
- Figure 30:
- VALUE OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, INDIA, 2017 - 2030
- Figure 31:
- VOLUME OF CONSTRUCTION INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, INDIA, 2017 - 2030
- Figure 32:
- VALUE OF CONSTRUCTION INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, INDIA, 2017 - 2030
- Figure 33:
- VOLUME OF MANUFACTURING INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, INDIA, 2017 - 2030
- Figure 34:
- VALUE OF MANUFACTURING INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, INDIA, 2017 - 2030
- Figure 35:
- VOLUME OF OIL AND GAS, MINING AND QUARRYING INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, INDIA, 2017 - 2030
- Figure 36:
- VALUE OF OIL AND GAS, MINING AND QUARRYING INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, INDIA, 2017 - 2030
- Figure 37:
- VOLUME OF WHOLESALE AND RETAIL TRADE INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, INDIA, 2017 - 2030
- Figure 38:
- VALUE OF WHOLESALE AND RETAIL TRADE INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, INDIA, 2017 - 2030
- Figure 39:
- VOLUME OF OTHERS INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, INDIA, 2017 - 2030
- Figure 40:
- VALUE OF OTHERS INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, INDIA, 2017 - 2030
- Figure 41:
- VOLUME OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, TON-KM, INDIA, 2017 - 2030
- Figure 42:
- VALUE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, USD, INDIA, 2017 - 2030
- Figure 43:
- VALUE SHARE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, %, INDIA, 2017 - 2030
- Figure 44:
- VOLUME OF DOMESTIC LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, INDIA, 2017 - 2030
- Figure 45:
- VALUE OF DOMESTIC LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, INDIA, 2017 - 2030
- Figure 46:
- VOLUME OF INTERNATIONAL LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, INDIA, 2017 - 2030
- Figure 47:
- VALUE OF INTERNATIONAL LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, INDIA, 2017 - 2030
- Figure 48:
- MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, INDIA, 2017 - 2023
- Figure 49:
- MOST ADOPTED STRATEGIES, COUNT, INDIA, 2017 - 2023
- Figure 50:
- VALUE SHARE OF MAJOR PLAYERS, %, INDIA 2022
India Less than-Truck-Load (LTL) Industry Segmentation
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.
- In 2022, the manufacturing segment experienced growth boosted by the manufacturing sector's output. With various programs and policies in place, the government aims to ensure that 25% of the total economy's production comes from manufacturing by 2025. As the Indian economy grows, there is an increase in the demand for manufactured goods, leading to a higher need for LTL services. The Indian government is taking several initiatives to promote the growth of the manufacturing industry in the country. As part of the efforts, in the Union Budget 2022-23, the MSME sector received a boost with the extension of the Emergency Credit Line Guarantee Scheme (ECLGS).
- The expanding middle-class population in India led to increased consumption of retail products, necessitating more road freight services. Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. The rise of e-commerce is also driving the demand for road freight services in the country. In addition, the Indian e-commerce industry is projected to record a CAGR of 14.11% during 2023-2027.
- The future of the wholesale and retail trade segment is expected to be outstanding as India's retail industry is projected to grow at a pace of 9% over 2019-2030, from USD 779 billion in 2019 to USD 1,407 billion by 2026 and more than USD 1.8 trillion by 2030. The long-term future for the industry looks positive, supported by rising income, favorable demographics, entry of foreign players, and increasing urbanization. Moreover, rising production and exports are expected to support the manufacturing end-user segment.
End User Industry | |
Agriculture, Fishing, and Forestry | |
Construction | |
Manufacturing | |
Oil and Gas, Mining and Quarrying | |
Wholesale and Retail Trade | |
Others |
Destination | |
Domestic | |
International |
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. |
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