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Less Than Truckload Market

ID: MRFR/PCM/39986-HCR
200 Pages
Garvit Vyas
February 2026

Less Than Truckload Market Research Report: By Service Type (Standard Less Than Truckload, Expedited Less Than Truckload, Freight Forwarding), By End Use Industry (Retail, Manufacturing, Consumer Goods, Healthcare), By Weight Class (Less than 150 lbs, 150 lbs to 1,000 lbs, 1,000 lbs to 5,000 lbs), By Distribution Channel (Direct Shipping, Third Party Logistics, Freight Brokers) andBy Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2035.

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Summary Table of Contents Segmentation Download PDF

Less Than Truckload Market Summary

As per MRFR analysis, the Less Than Truckload Market Size was estimated at 90.82 USD Billion in 2024. The Less Than Truckload industry is projected to grow from 93.15 USD Billion in 2025 to 120.06 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 2.57 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Less Than Truckload Market is experiencing dynamic growth driven by technological advancements and evolving consumer demands.

  • Technological advancements are reshaping logistics operations, enhancing efficiency and service delivery.
  • Sustainability initiatives are increasingly influencing shipping practices, with companies adopting greener solutions.
  • E-commerce continues to dominate the market, significantly impacting logistics strategies in North America.
  • Rising demand for e-commerce logistics and increased focus on supply chain resilience are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 90.82 (USD Billion)
2035 Market Size 120.06 (USD Billion)
CAGR (2025 - 2035) 2.57%

Major Players

FedEx Freight (US), XPO Logistics (US), Old Dominion Freight Line (US), YRC Freight (US), Saia (US), Estes Express Lines (US), R+L Carriers (US), ABF Freight (US), TForce Freight (US)

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Less Than Truckload Market Trends

The Less Than Truckload Market is currently experiencing a dynamic evolution, driven by various factors that shape its landscape. The increasing demand for efficient logistics solutions, coupled with the rise of e-commerce, has led to a notable shift in how goods are transported. Companies are increasingly seeking cost-effective methods to manage their supply chains, which has resulted in a growing preference for less than truckload services. This trend appears to be fueled by the need for flexibility and speed in delivery, as businesses strive to meet customer expectations in a rapidly changing environment. Furthermore, advancements in technology, such as real-time tracking and automated systems, are enhancing operational efficiency and transparency within the market. In addition to technological innovations, sustainability concerns are becoming more prominent within the Less Than Truckload Market. Companies are increasingly focusing on reducing their carbon footprints and adopting greener practices. This shift may lead to the implementation of more eco-friendly transportation methods and optimized routing strategies. As businesses navigate these changes, they are likely to prioritize partnerships with carriers that demonstrate a commitment to sustainability. Overall, the Less Than Truckload Market is poised for continued growth, driven by evolving consumer demands and a heightened awareness of environmental impact.

Technological Advancements

The integration of advanced technologies is transforming the Less Than Truckload Market. Innovations such as real-time tracking systems and automated logistics solutions are enhancing operational efficiency. These technologies enable companies to optimize routes, reduce transit times, and improve overall service quality.

Sustainability Initiatives

There is a growing emphasis on sustainability within the Less Than Truckload Market. Companies are increasingly adopting eco-friendly practices to minimize their environmental impact. This trend may lead to the development of greener transportation methods and more efficient supply chain strategies.

E-commerce Growth

The rise of e-commerce is significantly influencing the Less Than Truckload Market. As online shopping continues to expand, businesses are seeking flexible and cost-effective shipping solutions. This shift is driving demand for less than truckload services, as companies aim to meet the expectations of their customers.

Market Segment Insights

By Application: E-commerce (Largest) vs. Food and Beverage (Fastest-Growing)

In the Less Than Truckload (LTL) market, the application segments exhibit a diverse distribution of market share. Retail holds a significant portion as it continuously relies on LTL services for efficient inventory management and timely deliveries. Manufacturing also encompasses a large share due to the necessity of transporting components and goods in smaller quantities. E-commerce leads as the largest segment, driven by the boom in online shopping and consumer demand for rapid delivery services. Meanwhile, Food and Beverage is gaining traction as companies strive to maintain freshness and comply with regulatory standards, showcasing a growing reliance on specialized LTL transport.

E-commerce (Dominant) vs. Food and Beverage (Emerging)

E-commerce has solidified its position as the dominant force in the Less Than Truckload market, capitalizing on the digital retail boom. This segment thrives on advanced logistics solutions, providing customers with personalized and efficient shipping options. With the rising trend of online shopping, companies are investing heavily in their supply chain efficiencies. Conversely, the Food and Beverage sector is emerging as a key player, driven by heightened consumer focus on freshness and quality. This segment leverages LTL services to balance inventory needs while minimizing waste. Companies are increasingly adopting temperature-controlled solutions, emphasizing compliance with health regulations and enhancing service reliability, which fuels growth in this segment.

By End Use: Consumer Goods (Largest) vs. Electronics (Fastest-Growing)

In the Less Than Truckload (LTL) market, the end use segment is dominated by Consumer Goods, which accounts for a significant share of shipments. Key drivers for this portion of the market include the increasing demand from retail businesses and the growth of e-commerce, which necessitates efficient logistics solutions. Other segments like Industrial Goods, Automotive Parts, Construction Materials, and Electronics follow, showcasing a diverse distribution of end use across various industries.

Consumer Goods (Dominant) vs. Electronics (Emerging)

The Consumer Goods segment remains the dominant player in the Less Than Truckload market, as it caters to everyday items that consumers need regularly. This segment benefits from stable demand and a complex distribution network, facilitating timely deliveries. Meanwhile, the Electronics segment is emerging rapidly due to the rise of technology products and their associated supply chain needs. As consumer preferences shift towards smarter devices and online shopping, the LTL market must adapt to the speedy delivery requirements inherent to this sector, positioning it as a significant growth area.

By Service Type: Standard Service (Largest) vs. Expedited Service (Fastest-Growing)

In the Less Than Truckload (LTL) market, the Standard Service segment holds the largest share due to its cost-effectiveness and reliability for regular shipments. Businesses continue to favor this option for everyday shipments, leading to its stability in the market. Following closely is Expedited Service, which, although smaller in overall market share, is experiencing rapid growth as customers increasingly demand faster delivery options to meet nimble supply chain requirements. This segment is being significantly driven by e-commerce and increased urgency for product delivery.

Freight Consolidation (Dominant) vs. Guaranteed Service (Emerging)

Freight Consolidation remains a dominant player in the LTL market, as it allows shippers to combine multiple smaller shipments into one, significantly reducing transportation costs and improving efficiency. Its widespread acceptance among businesses seeking budget-friendly logistics solutions bolsters its market position. On the other hand, Guaranteed Service is an emerging choice for customers who prioritize reliability and are willing to pay a premium for assured delivery times. This segment is gaining traction, especially among sectors where timeliness is critical, like healthcare and perishable goods, as businesses adapt to heightened expectations for punctuality.

By Cargo Type: Dry Freight (Largest) vs. Refrigerated Freight (Fastest-Growing)

In the Less Than Truckload (LTL) market, Dry Freight occupies the largest market share, making it the most utilized cargo type due to its versatility and lower costs compared to other freight types. It caters to various industries, including consumer goods and retail, which contributes significantly to its dominance in the market. On the other hand, Refrigerated Freight has emerged as the fastest-growing segment driven by increasing demand for perishable goods and pharmaceuticals requiring temperature-controlled transportation. The need for freshness and safety in delivery continues to push the growth of this segment.

Dry Freight: Dominant vs. Refrigerated Freight: Emerging

Dry Freight is characterized by its ability to transport a wide array of non-perishable goods, making it the backbone of the LTL market. It benefits from lower freight costs and high availability, allowing freight providers to optimize their capacity efficiently. In contrast, Refrigerated Freight, although smaller in market share, is rapidly gaining attention with rising consumer preferences for fresh and frozen products. The segment faces unique challenges related to temperature controls and compliance standards but is bolstered by innovations in refrigeration technology and increasing logistics capabilities. Both segments are crucial to the overall dynamics of the LTL market, catering to distinct customer needs.

By Customer Type: Small and Medium Enterprises (Largest) vs. Government Agencies (Fastest-Growing)

The 'Customer Type' segment in the Less Than Truckload Market is characterized by diverse players, including Small and Medium Enterprises (SMEs), Large Enterprises, E-commerce Businesses, Third Party Logistics Providers, and Government Agencies. SMEs hold the largest market share due to their high demand for flexible shipping solutions, while Government Agencies are quickly becoming significant players. Their increasing reliance on logistics outsourcing for various projects and initiatives demonstrates the evolving landscape of this market.

SMEs (Dominant) vs. Government Agencies (Emerging)

Small and Medium Enterprises (SMEs) have solidified their position as the dominant force in the Less Than Truckload Market, primarily due to their need for cost-effective shipping solutions and personalized service. These businesses often opt for LTL services because they cannot afford the expenses associated with full truckloads. On the other hand, Government Agencies are considered an emerging segment within this market, driven by their increasing adoption of logistics services for efficient resource management and project execution. This shift is fueled by a growing recognition of the advantages of outsourcing, allowing agencies to focus on their core functions while leveraging the logistics expertise of third-party providers.

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Regional Insights

North America : Market Leader in LTL Services

North America continues to lead the Less Than Truckload (LTL) market, holding a significant share of 50.0% as of December 2025. The growth is driven by increasing e-commerce activities, demand for efficient logistics solutions, and favorable regulatory frameworks. The region's robust infrastructure and technological advancements further enhance operational efficiencies, making it a prime market for LTL services. The competitive landscape is characterized by major players such as FedEx Freight, XPO Logistics, and Old Dominion Freight Line, which dominate the market. These companies leverage advanced logistics technologies and extensive networks to meet the growing demand. The U.S. remains the largest contributor, with a strong focus on innovation and customer service, ensuring sustained growth in the LTL sector.

Europe : Emerging Market with Growth Potential

Europe's Less Than Truckload (LTL) market is poised for growth, currently holding a market size of 25.0%. The region benefits from increasing cross-border trade, regulatory support for logistics efficiency, and a shift towards sustainable transport solutions. The European Union's initiatives to enhance transport infrastructure and reduce emissions are key drivers of this market expansion. Leading countries such as Germany, France, and the UK are at the forefront of this growth, with a competitive landscape featuring companies like DB Schenker and DPD. The presence of established logistics networks and a focus on digital transformation are enhancing service offerings. As the market evolves, regulatory frameworks will continue to play a crucial role in shaping the future of LTL services in Europe.

Asia-Pacific : Rapidly Growing Logistics Hub

The Asia-Pacific region is witnessing rapid growth in the Less Than Truckload (LTL) market, with a market size of 12.0%. This growth is fueled by increasing urbanization, rising e-commerce demand, and improvements in logistics infrastructure. Governments are investing in transport networks and regulatory reforms to enhance efficiency and reduce costs, which are critical for the LTL sector's expansion. Countries like China, Japan, and India are leading the charge, with a competitive landscape that includes both local and international players. Companies are focusing on technology adoption and service diversification to meet the evolving needs of customers. The region's dynamic market conditions present significant opportunities for growth in the LTL space, driven by innovation and customer-centric strategies.

Middle East and Africa : Emerging Market with Challenges

The Middle East and Africa (MEA) region, with a market size of 3.82%, is an emerging player in the Less Than Truckload (LTL) market. Growth is driven by increasing trade activities, urbanization, and investments in logistics infrastructure. However, challenges such as regulatory hurdles and varying levels of infrastructure development can impact market dynamics. Governments are working to improve logistics frameworks to support growth in this sector. Countries like South Africa and the UAE are leading the market, with a mix of local and international logistics providers. The competitive landscape is evolving, with companies focusing on enhancing service quality and operational efficiency. As the region continues to develop, the LTL market is expected to grow, driven by strategic investments and partnerships.

Less Than Truckload Market Regional Image

Key Players and Competitive Insights

The Less Than Truckload Market is currently characterized by a dynamic competitive landscape, driven by factors such as increasing e-commerce demand, the need for efficient supply chain solutions, and a growing emphasis on sustainability. Major players like FedEx Freight (US), XPO Logistics (US), and Old Dominion Freight Line (US) are strategically positioning themselves to capitalize on these trends. FedEx Freight (US) has focused on enhancing its service offerings through technological advancements, while XPO Logistics (US) has pursued aggressive regional expansions and partnerships to bolster its market presence. Old Dominion Freight Line (US) emphasizes operational efficiency and customer service, which collectively shapes a competitive environment that is increasingly reliant on innovation and responsiveness to market demands.Key business tactics within the Less Than Truckload Market include supply chain optimization and localized service offerings. The market structure appears moderately fragmented, with several key players exerting significant influence. This fragmentation allows for a variety of service options, catering to diverse customer needs. The collective strategies of these companies indicate a trend towards consolidation, as firms seek to enhance their operational capabilities and market reach through mergers and acquisitions.

In November FedEx Freight (US) announced a partnership with a leading technology firm to develop AI-driven logistics solutions aimed at improving delivery efficiency. This strategic move is likely to enhance FedEx's operational capabilities, allowing for more precise tracking and routing of shipments, which could lead to reduced delivery times and increased customer satisfaction. Such innovations may position FedEx Freight as a leader in the digital transformation of logistics.

In October XPO Logistics (US) completed the acquisition of a regional carrier, which is expected to expand its service network and enhance its last-mile delivery capabilities. This acquisition is strategically significant as it allows XPO to tap into new markets and improve its service offerings, thereby increasing its competitive edge in the Less Than Truckload sector. The integration of this regional carrier could also streamline operations and reduce costs, further solidifying XPO's market position.

In September Old Dominion Freight Line (US) launched a sustainability initiative aimed at reducing its carbon footprint by 25% by 2030. This initiative reflects a growing trend among logistics companies to prioritize environmental responsibility. By investing in greener technologies and practices, Old Dominion not only enhances its brand image but also aligns with the increasing consumer demand for sustainable practices in supply chain operations.

As of December the competitive trends in the Less Than Truckload Market are increasingly defined by digitalization, sustainability, and the integration of advanced technologies such as AI. Strategic alliances are becoming more prevalent, as companies recognize the need to collaborate to enhance service offerings and operational efficiencies. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology integration, and supply chain reliability, suggesting a transformative shift in how companies compete in this sector.

Key Companies in the Less Than Truckload Market include

Industry Developments

  • Q2 2025: FedEx Corp. intends to spin off that LTL division as a stand-alone, publicly traded company FedEx announced plans to spin off its FedEx Freight less-than-truckload (LTL) division into a separate, publicly traded company by mid-2026, marking a major structural change in the LTL sector.
  • Q1 2025: Saia (which opened 21 terminals and relocated 9 more in 2024), are seeing tonnage increases of 12.2% year-over-year in February 2025 Saia expanded its LTL network by opening 21 new terminals and relocating 9 more in 2024, resulting in a 12.2% year-over-year increase in tonnage as of February 2025.
  • Q1 2025: ABF Freight and FedEx Freight announced 5.9% increases, while Saia implemented a more aggressive 7.9% and Old Dominion a more modest 4.9% Major LTL carriers including ABF Freight, FedEx Freight, Saia, and Old Dominion implemented general rate increases ranging from 4.9% to 7.9% in early 2025.
  • Q4 2024: TFI International described Q4 2024 as “a disaster” for the company’s LTL division TFI International reported significant operational and financial challenges in its LTL division during the fourth quarter of 2024.
  • Q2 2024: Saia (which opened 21 terminals and relocated 9 more in 2024), are seeing tonnage increases of 12.2% year-over-year in February 2025 Saia completed the opening of 21 new LTL terminals and the relocation of 9 others in 2024, significantly expanding its operational footprint.
  • Q2 2024: Estes Express Lines... generated just under $5 billion in LTL revenue, an increase of more than 18% from the prior year Estes Express Lines reported LTL revenue growth of over 18% in 2024, reaching nearly $5 billion, the strongest growth among major LTL carriers.
  • Q2 2024: XPO ranked No. 4 on this year's Top Less-Than-Truckload Carriers list XPO achieved nearly 5% year-over-year growth in its LTL operations in 2024, with revenue approaching $4.9 billion.

Future Outlook

Less Than Truckload Market Future Outlook

The Less Than Truckload Market is projected to grow at a 2.57% CAGR from 2025 to 2035, driven by e-commerce expansion, technological advancements, and increased demand for efficient logistics solutions.

New opportunities lie in:

  • Integration of AI-driven route optimization software
  • Expansion of cross-border LTL services
  • Development of sustainable packaging solutions for LTL shipments

By 2035, the market is expected to be robust, reflecting steady growth and innovation.

Market Segmentation

Less Than Truckload Market End Use Outlook

  • Consumer Goods
  • Industrial Goods
  • Automotive Parts
  • Construction Materials
  • Electronics

Less Than Truckload Market Cargo Type Outlook

  • Dry Freight
  • Refrigerated Freight
  • Hazardous Materials
  • Oversized Freight
  • Specialized Freight

Less Than Truckload Market Application Outlook

  • Retail
  • Manufacturing
  • E-commerce
  • Food and Beverage
  • Pharmaceutical

Less Than Truckload Market Service Type Outlook

  • Standard Service
  • Expedited Service
  • Guaranteed Service
  • Freight Consolidation
  • Temperature Controlled Service

Less Than Truckload Market Customer Type Outlook

  • Small and Medium Enterprises
  • Large Enterprises
  • E-commerce Businesses
  • Third Party Logistics Providers
  • Government Agencies

Report Scope

MARKET SIZE 202490.82(USD Billion)
MARKET SIZE 202593.15(USD Billion)
MARKET SIZE 2035120.06(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)2.57% (2025 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledFedEx Freight (US), XPO Logistics (US), Old Dominion Freight Line (US), YRC Freight (US), Saia (US), Estes Express Lines (US), R+L Carriers (US), ABF Freight (US), TForce Freight (US)
Segments CoveredApplication, End Use, Service Type, Cargo Type, Customer Type
Key Market OpportunitiesIntegration of advanced tracking technologies enhances efficiency in the Less Than Truckload Market.
Key Market DynamicsRising demand for efficient logistics solutions drives innovation and competition in the Less Than Truckload Market.
Countries CoveredNorth America, Europe, APAC, South America, MEA
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FAQs

What is the expected market size of the Global Less Than Truckload Market in 2024?

The Global Less Than Truckload Market is expected to be valued at 90.82 USD Billion in 2024.

What is the projected market size for the Global Less Than Truckload Market by 2035?

By 2035, the Global Less Than Truckload Market is projected to reach a value of 120.0 USD Billion.

What is the expected compound annual growth rate (CAGR) for the Global Less Than Truckload Market from 2025 to 2035?

The expected CAGR for the Global Less Than Truckload Market from 2025 to 2035 is 2.57%.

Which region holds the largest market share in the Global Less Than Truckload Market in 2024?

North America holds the largest market share in the Global Less Than Truckload Market, valued at 45.5 USD Billion in 2024.

What will be the market size of the Less Than Truckload segment in Europe by 2035?

The market size for the Less Than Truckload segment in Europe is expected to reach 30.0 USD Billion by 2035.

Who are the key players in the Global Less Than Truckload Market?

Major players include Estes Express Lines, R+L Carriers, and FedEx Freight among others.

What segment of the Global Less Than Truckload Market is expected to have the highest value in 2024?

The Standard Less Than Truckload segment is expected to have the highest value, projected at 40.0 USD Billion in 2024.

What is the expected market value of Expedited Less Than Truckload by 2035?

The Expedited Less Than Truckload market is expected to be valued at 40.0 USD Billion by 2035.

What are the projected growth rates for the Less Than Truckload Market in the APAC region?

The Less Than Truckload Market in the APAC region is anticipated to grow from 15.0 USD Billion in 2024 to 20.0 USD Billion by 2035.

What key trends are expected to influence the Global Less Than Truckload Market by 2035?

Emerging trends include increased demand for logistics efficiency and technological innovations in freight forwarding.

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