Logistics Market Size to Surpass Around USD 18,238.81 Bn by 2030
2023-07-12 00:00:00

Ottawa, July 12, 2023 (GLOBE NEWSWIRE) -- The logistics market refers to the industry that focuses on the planning, implementation, and management of the flow of goods, services, and information between the point of origin and the point of consumption. It encompasses a wide range of activities involved in the supply chain, including transportation, warehousing, inventory management, packaging, and distribution. Ask here for sample brochure@ https://www.precedenceresearch.com/sample/2630 The logistics market plays a crucial role in facilitating trade and commerce by ensuring the efficient movement of goods from manufacturers to consumers. It encompasses both domestic and international logistics operations, catering to various industries such as retail, manufacturing, e-commerce, healthcare, and more. The logistics market is driven by global trade and the need for businesses to effectively manage their supply chains. It is influenced by factors such as economic conditions, consumer demands, government regulations, and technological advancements. Key players in the logistics market include shipping companies, freight forwarders, logistics service providers, third-party logistics (3PL) companies, and e-commerce platforms. Market Drivers RISING E-COMMERCE INDUSTRY The logistics industry provides services and solutions for the transportation, distribution, and storage of goods from location of origin to location of consumption. Factors such as the growth of the e-commerce industry is driving the growth of the global logistics market. Moreover, the growth of e-commerce industry is raising due to factors such as increasing internet penetration, growing consumer preference for online shopping, and availability of affordable smartphone and other devices. E-commerce refers to the buying and selling of goods through the internet. Product distribution from supplier to customers is managed by third-party logistics service providers. Furthermore, the e-commerce industry employs logistics services to manage and oversee the supply chains of e-commerce allowing these businesses to focus on marketing and other commercial activities. For example, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD) released in April 2020, global e-commerce sales reached US$ 25.6 trillion in 2018, accounting for 30% of global GDP. INCREASING URBANIZATION AND GLOBALIZATION The expansion of global trade and increasing urbanization is driving the growth of global logistics market. Urbanization typically leads to population growth and economics activities in urban areas. Moreover in urban areas, the distance between distribution centers and customer is very short but complexity of last mail delivery is higher due to traffic problems, limited parking and delivery time restrictions. Hence due to the gowning urbanization, the need for logistics services is increasing and such a factors are driving the growth of the market. For instance, in 2021, according to UNCTAD Handbook of Statistics, 57% of world population lives in urban areas. You can further customize the report@ https://www.precedenceresearch.com/customization/2630 Market Restraints LACK OF CONTROL OF MANUFACTURERS ON LOGISTICS SERVICE A retailing company that uses logistics services must rely on the competency, dependability, and honesty of logistics service providers. Moreover retailers and manufacturers must rely on logistics service provider, which result in lack of direct control. Furthermore the manufacturer is not able to monitor the operations at warehouse, which is a major threat to the quality of products. Such factors are hampering the growth of global logistics market. Market Opportunities RISING ADOPTION OF VARIOUS TECHNOLOGIES SUCH AS 5G, ARTIFICIAL INTELLIGENCE In logistic industry, the adoption of various technologies has increased to improve overall transportation business. Moreover , AI plays important role for developing driverless cars. Furthermore, AI is aiding in improving other technologies in the logistics supply chain, such as robotics. IoT technology involves connecting physical objects such as vehicle containers and warehouse equipment to the internet. IoT sensors and devices enable real-time tracking and monitoring of assets throughout the supply chain. IoT technology provides enhanced visibility, predictive maintenance, and improvement in the overall supply chain efficiency. Moreover, artificial intelligence technology can also be applied in logistic operations. AI powered algorithms can analyze historical data, identify patterns, and make prediction for rout optimization and supply chain planning. Hence, increasing adoption of various advance technologies in logistic industry is driving the growth of global logistic market. INCREASING ADOPTION OF INORGANIC STRATEGIES SUCH AS PARTNERSHIPS BY KEY PLAYERS IN THE MARKET Key players operating in the global logistic market are adopting various organic and inorganic strategies such as product launch and collaborations For instance, in October 2022, DHL, a Germany-based logistic company, launched the GoGreen Plus service. GoGreen service helps to reduce CO2 emissions from road transportation. Also, GoGreen service reduces carbon dioxide and other greenhouse gas emissions through investments in green transportation technologies and fuels. Moreover, in March 2022, FedEx Express, a subsidiary of FedEx Corp., a U.S.-based transportation company, collaborated with Elroy Air, a U.S.-based robotics solution provider company. Through this collaboration, FedEx Express developed plans to test Elroy Air’s Chaparral autonomous air cargo system within FedEx Express’ middle-mile logistics operations and move shipments between sortation locations. COVID-19 Impact The COVID-19 impact across industries varies, as the outbreak has flipped the growth switch in every sector of the economy and the logistic market/sector is no exception. Owing to the slowdown in logistics and the lack of availability of labors globally, the manufacturing of various products was put on hold. A number of e-commerce businesses throughout the world stopped shipping non-essential items including the majority of infrastructure and automotive products, which had an impact on the global logistic market. The COVID-19 severely impacted the infrastructure and automotive industries. Due to the spread of the COVID-19 across the globe, lockdowns were imposed by many countries, and this impacted the movement of people and material. This had a direct impact on the global logistics market and hence exhibited slow growth during the pandemic. Transportation Type Insights Airways segment is expected to be valued at US$ 1,051.57 billion by 2030 from US$ 428.41 billion in 2022, witnessing a CAGR of 11.7% over the forecast period (2023-2030) Airway refers to the transportation of goods by aircraft such as airplanes and helicopters. Airway is among the fastest modes of transportation of goods. It is mostly preferred when faster transportation of products, such as perishable foods, pharmaceuticals products or human organs is required. The airways transport sector has contributed a large amount to the economy. Air transport also plays a major role in shipping of high value goods that need to come to market quickly. Air logistics provides a variety of outsource solutions to airlines, enabling them to achieve a cost-effective presence in the airfreight market. The growing demand from customers for logistics requirements is driving companies offering logistics services to emphasize on launch of airways logistics services. For instance, in April 2022, A.P. Moller – Maersk (Maersk), one of the prominent supply chain and logistics service providers, announced the launch of Maersk Air Cargo, an air-based freight services to cater growing demand for integrated logistics. The similar business expansion strategies from the companies operating in the logistics market and increasing demand for airway logistics services is expected to further fuel the market growth. Global Logistics Market Value (US$ Bn) Analysis and Forecast, By Transportation Type, 2017 – 2022 Transportation Type 2017 H 2018 H 2019 H 2020 H 2021 H 2022 A Airways 326.43 360.02 404.18 390.66 410.38 428.41 Waterways 1,945.54 2,141.46 2,399.48 2,311.03 2,422.81 2,524.17 Railways 1,470.06 1,610.50 1,796.07 1,721.34 1,796.11 1,862.44 Roadways 2,630.52 2,853.40 3,150.57 2,988.73 3,086.94 3,168.25 Logistics Type Insights Second party segment is expected to be valued at US$ 6,428.68 billion by 2030 from US$ 2,950.29 billion in 2022, witnessing a CAGR of 10.0% over the forecast period (2023-2030) In second party logistics, the companies outsource their logistics activities to partner with companies that provide specialized services to cater to specific supply chain needs. The second party logistics providers specialize in specific logistics functions such as warehousing, distribution, transportation, etc. in addition, these service providers feature an extensive geographic network and help mitigate the risks associated with the supply chain disruptions Few prominent companies such as DHL Supply Chain, C.H. Robinson, XPO Logistics, and Kuehne+Nagel offer a wide range of second party (2PL) services to companies across multiple industry verticals. Providers of second party logistics (2PL) offer services for storage, warehousing, infrastructure, and transport tools. Compared to first party logistics suppliers, second party logistics level of outsourcing requires additional activities. In essence, 2PL companies are transporters with warehouse and storage capabilities. Based on the price per pallet for storage and shipping, the compensation for 2PL services is determined. Global Logistics Market Value (US$ Bn) Analysis and Forecast, By Logistics Type, 2017 – 2022 Logistics Type 2017 H 2018 H 2019 H 2020 H 2021 H 2022 A First Party 954.88 1,036.56 1,145.47 1,088.67 1,125.66 1,156.68 Second Party 2,425.60 2,635.68 2,915.48 2,771.58 2,868.47 2,950.29 Third Party 1,639.16 1,808.56 2,031.00 1,958.09 2,056.62 2,146.28 Contract Logistics 1,352.93 1,484.57 1,658.35 1,593.42 1,665.48 1,730.02 End User Insights Industrial & manufacturing segment is expected to be valued at US$ 5,579.77 billion by 2030 from US$ 2,570.59 billion in 2022, witnessing a CAGR of 10.0% over the forecast period (2023-2030) Material receiving & material distribution is an important aspect of the manufacturing industry in the logistics market. In addition, increase in demand for procuring raw materials and handing them over to manufacturers for production is a growth factor for the logistics market in the manufacturing industry. Moreover, the manufacturing industry has helped the logistics market grow & supported the industry with industrial production and efficient flow of material. Thus, increasing of competition in the global market has increased the demand for efficiency in industrial manufacturing logistics services, which is anticipated to fuel the growth of the logistics market. The companies engaged in the manufacturing processes are also focusing on strategic partnership with logistics solution providers to enhance their supply chain operations. For instance, in August 2021, Chr. Mayr GmbH + CO KG, a manufacturer of safety clutches, brakes, etc. launched an automated warehouse powered by PROLAG World, a CIM GmbH’s warehouse management software. The company leveraged CIM’s warehouse management software to enhance its efficiency. Similarly, other companies operating in the manufacturing & industrial sectors are expected to leverage advanced logistics solutions and services to strengthen their supply chain infrastructure. This is further anticipated to fuel the global logistics market growth. Global Logistics Market Value (US$ Bn) Analysis and Forecast, By End User, 2017 – 2030 End User 2017 H 2018 H 2019 H 2020 H 2021 H 2022 A Industrial & Manufacturing 2,120.72 2,302.64 2,545.25 2,418.05 2,500.89 2,570.59 Retail & E-Commerce 1,177.94 1,281.09 1,418.34 1,349.62 1,398.06 1,439.24 Healthcare 643.59 719.05 817.81 799.32 850.60 899.54 Oil & Gas 452.10 499.83 562.55 544.54 573.43 600.09 Others 1,978.21 2,162.76 2,406.36 2,300.24 2,393.25 2,473.81 Regional Insights Asia Pacific logistics market is expected to be valued at US$ 8,684.20 Billion by 2030 from US$ 3,480.71 Billion in 2022, exhibiting a CAGR of 11.9% over the forecast period. Asia Pacific logistics market is expected to witness growth, owing to growing e-commerce industry. Increasing adoption of outsourced logistics services in the region is expected to drive the market growth. Increasing maritime transportation, growing logistics & supply chain innovation, rapid modernization of warehouse facilities, and rising consumer demand for e-commerce expected to drive the market growth in Asia Pacific region. In April 2020, Yamato Holdings, a Japan-based logistics company, along with Global Brain, a Tokyo-based company, raised US$ 46.5 million funding to promote digital transformation in the logistics industry in Japan. North America logistics market is expected to be valued at US$ 4,167.76 billion by 2030 from US$ 1,971.87 Billion in 2022, exhibiting a CAGR of 9.6% over the forecast period. Rising demand for foreign goods in developing economies such as Thailand, India, and others that are imported from North American countries is expected to drive the market growth in the region. Moreover, increasing e-commerce activities is also expected to drive the market growth in the region. For instance, according to a report by Transaction Agency, an e-commerce agency, the U.S. e-commerce industry was valued at US$ 504.6 billion in 2018 and is projected to surpass US$ 735 billion in 2023. By 2023, the industry is expected to account for 7% of all the U.S. retail sales. Global Logistics Market Value (US$ Mn) Analysis and Forecast, By Region, 2017-2022 Region 2017 H 2018 H 2019 H 2020 H 2021 H 2022 A North America 1,626.67 1,759.20 1,936.02 1,869.04 1,925.86 1,971.87 Europe 1,414.10 1,539.30 1,705.28 1,636.81 1,697.05 1,748.34 Asia Pacific 2,659.42 2,949.45 3,330.20 3,145.16 3,319.43 3,480.71 Middle East & Africa 387.76 414.87 451.60 440.22 448.98 455.05 Latin America 284.60 302.56 327.21 320.53 324.91 327.31 Market Segmentation By Transportation Type Airways Waterways Railways Roadways By Logistics Type First Party Second Party Third Party Contract Logistics Freight Forwarders Asset-based logistics provider Contract Warehousing Providers Others By End User Industrial and Manufacturing Retail Healthcare Oil & Gas Others By Geography North America Europe Asia-Pacific Latin America Middle East and Africa Immediate Delivery Available | Buy This Premium Research Report@ https://www.precedenceresearch.com/checkout/2630 You can place an order or ask any questions, please feel free to contact at [email protected] | +1 9197 992 333 About Us Precedence Research is a worldwide market research and consulting organization. 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