India Less than-Truck-Load (LTL) Market Size

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).

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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

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.