ID: MRFR/PNT/3640-HCR | February 2021 | Region: Global | 188 pages
Logistics market 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 global logistics market is highly influenced by the amalgamation of the supply and demand ratio where the manufacturers could potentially track the customer behavior and decide the product improvement according to the demand and requirements. The increasing trend of e-commerce also plays a crucial role in the growth of the logistics industry. The utilization of third-party logistics in providing the shipment of the products available from the varied sellers enables faster delivery and allows the companies to increase their ability in marketing and other strategies.
A recent report from the UN trade and development body has stated that the sales in the e-commerce sector have hit USD 25.6 trillion in the year 2018 and continue to grow year over year. The advancements in digital marketing and other benefits associated with the e-commerce sector are propelling the overall growth of the logistics industry.
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.
In the year 2021, one of the leading market players, Midair Aviation IFSC PVT LTD has introduced a tech-enabled courier platform that was primarily to focus on densely populated areas. The ModAir is considered the biggest leap forward in the air cargo industry as it has pioneered the tech-enabled air cargo industry.
In the year 2020, one of the leading market players, Expeditors International has joined with Portland-based Fleet logistics that have already entered digital forwarding.
In the year 2020, a free trade agreement was established between India and UK, that has been planned to cater the manufacturing areas such as Fintech, Food products, defense, and significant others.
This report has covered:
Based on Type:
Based on Logistic Type:
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|Market Size||2030: USD 15,806.75 Billion|
|CAGR||6.8% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|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||
Frequently Asked Questions (FAQ) :
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
The market value of the logistics industry was at USD 9525.1 billion in the year 2021 and it is expected to surpass the market value of over USD 13,326.3 billion by the year 2027 while registering a CAGR of 5.7% during the forecast period.
• Rising landscapes of the international trades • Advancements • Efficient Security management • Warehousing