Logistics Market Overview
In 2021, the global market for Logistics was projected to generate a market size of USD 9,941.38 billion. The global Logistics market is anticipated to expand to nearly USD 15,806.75 Billion by the end of the year 2030. Further, this global market for logistics is estimated to register the market value at a CAGR of 6.8% between the review period of 2022 to 2030.
The growing need for logistics operations in collaboration is one of the major growth driving factors for the growth of the global Logistics market during the forecast period. Also, the rising e-commerce industry worldwide is projected to enhance the global market growth. Moreover, the rising research and developmental activities, as well as the new product launches among the market players, are estimated to bring significant opportunities for the global market for logistics.
According to the global Logistics market analysis report, the current market has been segmented into the three major terms, i.e., end-use industries, types, and logistics. Further, the type segment has been classified into three transportation ways, i.e., railways, airways, waterways, and roadways. The end-use industries have been categorised into these major factors, i.e., manufacturing, healthcare, telecommunication, aerospace, banking & financial services, government & public utilities, retail, technology, media & entertainment, trade & transportation, and others. The logistic type segment is divided into third-party, second-party, and first-party.
COVID 19 Analysis:
COVID 19 pandemic has created a significant shock in several industrial verticals and manufacturing industries. Therefore the production rates and the manufacturing processes were reduced and several plants were shut down. Such factors have reduced the demand for logistics services. Also, the demand for non-essential goods has fallen, which has negatively affected the logistics market demand. The factors such as lockdown, travel restrictions have affected the growth of the logistics industry as well. On the other hand, the demand for the food and beverage industry and the e-commerce sector have been facing tremendous growth during the pandemic, which has supported the growth of logistics market growth during the pandemic.
The increasing demand for consumer goods, pharmaceuticals, beverages, and other products and services is driving the overall growth of the logistics industry. The intense effort of the logistics market players in providing efficient last-mile deliveries is also propelling the overall growth of the logistics industry.
The increasing trends of the e-commerce sector and the convenience they provide have attracted a vast population in purchasing a vast variety of goods. Such factors are considered as the major driver of logistics market growth.
The increasing adoption of IoT-enabled connected devices in the logistics industry and the adoption of reverse logistics operations is presenting a lucrative opportunity for the overall growth of the logistics industry. Moreover, logistics 4.0 and the other logistics trends in the industry are propelling the industries to utilize logistics effectively. Also, the established market players are bringing in novel innovations in the industries and expanding the key operations, warehousing, and other facilities that are presenting opportunities for the overall growth of the logistics industry.
The internet-based retailing and the advancements in the retail sector and the e-commerce sector, combined with the growing digital marketing are presenting lucrative opportunities for the overall growth of the logistics industry.
The lack of control over the logistic service provider from the retail sector and manufacturers has limited their access to the logistics services and is considered as the major restraint of logistics market growth. The manufacturer was not allowed to monitor the operations carried out inside the warehouse and affected the product quality.
The issues such as breaching the confidentiality that is the exposure to the personal data of the end-consumers are handled by the manufacturers can be leaked, which is considered as the major restraint of logistics market growth.
The issues such as improper infrastructure, lack of control for the manufacturer over the logistics, or access to potential logistics are considered as the major challenge for the overall growth of the logistics industry.
Other factors such as increasing costs for efficient logistic operations, substantial rise in the costs related to handling the logistics are some of the major challenges present in the logistics industry. The increasing inventory prices, lack of warehousing facilities, and other capital costs issues are some of the major challenges for the logistics market growth.
Cumulative growth analysis:
The Logistics industry plays a key role in coordinating and moving the resources or services utilizing efficient equipment, and other functionalities from one location to the desired destination. The management of the flow of these goods till the end consumers are crucial to retain the consumers and run the business processes efficiently. Therefore the market value is projected to be worth USD 15,806.75 Billion by 2030, registering a CAGR of 6.8% during the forecast period (2022 - 2030), The market was valued at USD 9,941.38 billion in 2021.
The increasing trend of the e-commerce sector in recent years is further propelling the logistics market growth. Some of the offers and faster delivery, same-day delivery, and significant subscription services offered by the established e-commerce sector are increasing the overall growth of the logistics industry. Additionally, the automation processes of logistics and the advent of logistics 4.0 are presenting lucrative opportunities for the logistics market growth.
Value chain analysis:
The growth of the logistics market is persistent owing to the factors such as the increasing landscape of international trades and favorable economic conditions. On the other hand, the increasing development in integrated solutions likes, security management, warehousing, information and inventory management, material handling, and other significant sectors are boosting the overall growth of the logistics industry. Rapid urbanization and changing lifestyles of the consumers are further propelling the logistics market growth in recent years, moreover, the support from the government organizations is also increasing the logistics market value.
The supply chain of the logistics department involves a series of processes such as transportation of goods, information integration, inventory, warehousing services, transportation of goods, and material handling. Such processes are carried out effectively with the help of the integration of advanced technologies. Moreover, the government of several countries is rapidly involved in strengthening the manufacturers and reducing the pollution generated during the process of transportation.
Based on Type:
Based on Logistic Type:
Based on End-Use industries:
The American and European countries are presenting opportunities for the overall growth of the logistics industry, this is due to the increasing business activities between the American and European countries. Also, the increasing utilization of the e-commerce sector across North America is aiding the overall growth of the logistics industry.
Moreover, the European countries are investing in research and development in the logistics industry. Also, the availability of the potential infrastructure and labor force across the region are presenting European countries with a lucrative opportunity for the overall growth of the logistics industry. The increasing trends towards the e-commerce sector and the increasing reliance on the e-commerce sector across the region are fuelling the logistics market growth.
Asia-pacific region, especially India is showcasing a higher growth rate in the logistics industry as the logistic sector market value accounts for about USD 160 billion and they have over 22 million employees under the sector, therefore the market value is expected to grow with a healthy CAGR of 10% by the year 2023. Moreover, India is considered as the infrastructure building boom and focusing on development projects in recent years. Also, the country is getting digitally transformed which is expected to redefine the Indian logistics market outlook.
The countries like the UK and India have established a free trade agreement, which has aimed to cater the manufacturing areas like defence, Food products, Fintech, and significant others.
The prominent market player Midair Aviation IFSC PVT LTD introduced a tech-enabled courier platform. This has aimed to focus on the densely populated areas. As ModAir has pioneered the industry of tech-enabled air cargo, it is considered the biggest achievement for the industry.
This report has covered:
Based on Type:
Based on Logistic Type:
Based on End-Use industries:
|Market Size||2030: USD 15,806.75 Billion|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Transportation Type, Logistic Type, and End User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||DTDC Express Limited (India), H. Robinson Worldwide, Inc. (U.S.), Schenker AG (Germany), GEODIS (France), XPO Logistics Inc. (U.S.), Ceva Holdings LLC (U.K.), DHL International GmbH (Germany), FedEx Corp. (U.S.), P. Moller – Maersk (Denmark), DSV Global Transports and Logistics (Denmark), Expeditors International of Washington, Inc. (U.S.)|
|Key Market Opportunities||New product launches and R&D amongst major key players|
|Key Market Drivers||
o Healthcare o Manufacturing o Aerospace o Telecommunication o Government & Public Utilities o Banking & Financial Services o Retail o Media & Entertainment o Technology
• MOLLER – MAERSK • H. Robinson Worldwide, Inc. • DSV (DSV Panalpina) • FEDEX • GEODIS
In 2021, the global market for Logistics was projected to generate a market size of USD 9,941.38 billion. The global Logistics market is anticipated to expand to nearly USD 15,806.75 Billion by the end of the year 2030.
• Rising landscapes of the international trades • Advancements • Efficient Security management • Warehousing