The global Logistics Market was valued at USD 261.5 Billion in 2022 and is projected to reach a value of USD 570.9 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 11.8% in the forecast period from 2023 till 2030.
Arranging and transferring resources, including machinery, food, liquids, inventories, materials, and people, from one location to the storage of the desired location is sometimes referred to as Logistics. It controls the movement of commodities from one point of origin to the point of consumption to satisfy client demands. The global Logistics market is expected to grow with a significant CAGR during the forecast period. The market is anticipated to grow gradually due to rising international commercial activity, particularly in emerging nations, and worldwide mass transit expansion. The retail Logistics system ensures a seamless delivery of durable and non-durable goods to customers. Also, Logistics has shortened delivery times, reduced fulfillment costs, and given the retail sector a greater chance to concentrate on customer service rather than administrative tasks.
The level of international competition among retailers has increased due to growing globalization. Foreign merchants must contend with fierce rivalry when opening new locations in growing nations like Asia Pacific. As a result, economic activity is increasing, and traveling across places is becoming simpler. As a result, there is a greater need for retail and logistical services to expedite product delivery. By raising tax money through the import and export of goods, which stimulates market expansion, international retailing aids nations in enhancing their economies. Similar to how there are more trade and e-commerce options available to international retailers thanks to the expanding use of the internet. The popularity of multimodal transportation has grown significantly due to decreased vehicle prices, shorter cargo handling times, and looser customs regulations.
Logistics Market Size, 2022 To 2030 (USD Billion)
Inventory operators can reduce inventory costs and keep merchandise costs under control by integrating this multimodal transportation. During outbound Logistics, multimodal transportation aids merchants in the quick and inexpensive transfer of goods. Also, the retail Logistics industry is also anticipated to grow quickly due to the last-mile delivery method used in the retail e-commerce market. Distributors and brick-and-mortar businesses are disadvantaged since customers may compare products from different internet sources based on delivery times, prices, features, specifications, and compatibility requirements. The retail e-commerce business is growing due to these benefits over brick-and-mortar establishments, and this trend is expected to last for the foreseeable future.
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According to the findings of recently published research, the expansion of the world economy was greater than 2.9% during the third quarter of 2022. This growth points to the possibility of an increase from 2.6% as of the end of October. This may have a positive impact on the first half of 2022. The neighbors of Russia have given Russia a taste of its own medicine in response to its aggressive march into Ukraine. The European Government and the United Nations have begun taking direct action against Russia by imposing various sanctions on the country. It is expected that these sanctions will hurt the Russian economy. Despite this, the vast majority of the energy output worldwide is controlled by Russia.
Top Market Trends
1. The emergence of Fourth Party Logistics: Last-mile delivery is anticipated to be one of the main areas of concentration for Logistics organizations in the upcoming years. Fourth-Party Logistics (4PL) is a step up from traditional Logistics services in that it can handle infrastructure, technology, resources, and even external Third Party Logistics to offer a comprehensive supply chain solution. In addition to shipping operations, the 4PL firms provide extensive consultancy services. The service offers analytics, business planning, inventory planning, and management, inbound and outbound Logistics, and Logistics strategy. Among the businesses that provide 4PL services are Deloitte, Accenture Plc, BDP International, and DB Schenker Logistics. Although 4PL is still a relatively new idea, it is anticipated to grow in popularity in the years to come as medium- and large-scale companies look for a comprehensive logistical solution.
2. Expanding E-Commerce: E-commerce is the term used to describe buying and selling goods online. Shipping goods to customers is included in third-party Logistics services. The e-commerce sector also uses Logistics services to manage and watch over the supply chains of e-commerce businesses, allowing these businesses to concentrate on marketing and other company operations. The usage of Logistics services is increasing significantly, fuelling the expansion of the Logistics market due to the multiple advantages that Logistics offers to the e-commerce industry. For instance, the most recent study from the UN's Trade and Development Authority (UNCTAD), published on April 2020, estimates that worldwide e-commerce sales reached $25.6 trillion in 2018 or 30% of the world's gross domestic product (GDP).
3. Integration of Advanced Technologies: The addition of GPS trackers, RFID sensors, and Bluetooth technologies to cargo monitoring systems is boosting the global market for Logistics. The development of computing technologies, including IoT, AI, ML, and Big Data, among others, can also be credited with the expansion. The owners and recipients of goods can track their packages in real-time using smartphone applications thanks to the tracking technology used in shipping and warehouses. The increased transparency offered by Logistics services are boosting the market's expansion. In addition, it is projected that using Bluetooth technology for cargo tracking and monitoring, creating self-service kiosks for warehouses to eliminate manual paperwork, and promoting electronic data exchange technology would all contribute to growth.
The global Logistics market can be categorized into the segments Mode of Transport, End Use, and Region. Based on the Mode of Transport, the market can be categorized into Railways, Airways, Roadways, and Waterways. Additionally, based on End Use, the market can be split between Healthcare, Manufacturing, Aerospace, Telecommunication, Government & Public Utilities, Banking & Financial Services, Retail, Media & Entertainment, Technology, Trade & Transportation, and Other End Uses. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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Based on the Mode of Transport
Roadways to Account for the Largest Market Share Owing to Rising Demand for Roadway Vehicles
The global Logistics market will be dominated by the roadways segment during the forecast period. The highways market has expanded due to rising demand for roadway vehicles to move retail products over large distances, particularly in domestic regions. Retail businesses should use trucks and cargo with substantial carrying capabilities when choosing road transportation. Government policies in favor of growth are numerous. For instance, recent Federal Motor Carrier Safety Administration regulations encourage using cameras instead of rearview mirrors to improve truck drivers' safety. Furthermore, increased road connectivity in developing nations and excellent road connectivity across all developed countries is a vital features supporting the expansion of the highway mode of the transportation segment. Most Tier 2 and Tier 3 cities worldwide have good road connections, making goods delivery and pickup possible. The airways segment is expected to grow at a CAGR during the forecast period. The coronavirus outbreak has restricted international air freight trade, causing a sharp decline in air uplift capacity and raising carrier charges. Certain businesses, including CEVA Logistics, have offered medical relief cargo charters for emergency shipments of COVID-19 relief goods and equipment, including PPE kits, facial masks, gloves, hand sanitizers, disposable gowns, respirators, and ventilators.
Based on End Use
Manufacturing to Accommodate Majority Share Owing to Viable Requirement of Operability
The manufacturing segment is expected to contribute the largest market share for the global Logistics market during the forecast period. Raw materials and other components are purchased from many suppliers worldwide in the manufacturing industry. The transportation activity is a laborious task due to the involvement of numerous suppliers and distributors. Due to the advantages of lower transportation costs, supply chain visibility, vendor management, business process development, and enhanced customer services, the manufacturing industry is outsourcing transportation activities. Transportation tasks are increasingly being outsourced in the U.S., Mexico, China, and India's industrial industries.
Based on Region
Asia Pacific to Lead Global Sales Owing to a Wider Consumer Base
The global Logistics market is expected to be dominated by the region of Asia Pacific during the forecast period. The area has a sizable client base and has seen a considerable increase in consumer use of e-commerce channels. Among the top exporters of goods, China, Japan, Australia, and India account for a sizeable portion of global retail e-commerce sales. The region's bright potential for e-commerce growth is the main force behind the regional market expansion. In addition, an increasing emphasis on transportation strategies and continuous Logistics infrastructure improvements in emerging nations are anticipated to boost regional market expansion. For instance, as part of the Indian Government's Logistics Efficiency Improvement Program, the Ministry of Road Transport & Highways (MoRTH) is creating multimodal Logistics parks to address the country's undeveloped road and material handling infrastructure (LEEP). A significant opportunity for 3PL providers is anticipated from the expanding trans-regional trade corridors and ports. Technology, pharmaceuticals, and the automobile industry have strategically shifted to other nations due to the concentration of manufacturing and sourcing in China. This change is anticipated to fuel market expansion in nations like Vietnam, South Korea, Japan, and India.
North America is expected to grow with the fastest-growing CAGR during the forecast period. The presence of numerous well-known rivals, including FedEx, Ryder System Inc., C.H. Robinson Worldwide, Inc., Expeditors International of Washington, Inc., as well as United Parcel Service of America, Inc., XPO Logistics, Inc., and United States Postal Service, Inc., is assisting in the expansion of the regional market. Shippers are turning to specialized contract-carrying services due to the limited truck capacity throughout the United States. Additionally, it is anticipated that the 3PL industry will grow over the next few years due to the region's increasing need for cold storage.
The market leaders in the global Logistics market place a strong emphasis on offering technology-driven services, like route optimization and in-the-moment package tracking. Also, businesses strive to keep total visibility over the entire supply chain without burdening the customers. To foster a positive business climate, shipper-carrier connections need to be strengthened. This will promote information exchange and transparency between the two parties. There have been significant M&A operations in the market over the past few years. To take advantage of the capabilities of small and medium-sized businesses in their region, important enterprises are also forming alliances, merging, and buying them.
The key players in the global Logistics market include - MOLLER – MAERSK (Denmark), H. Robinson Worldwide Inc. (U.S.), DB SCHENKER (Deutsche Bahn Group (DB Group)) (Germany), Deutsche Post AG (DHL Group) (Germany), DSV (DSV Panalpina) (Denmark), FEDEX (U.S.), GEODIS (France), Kuehne+Nagel International AG (Germany), Nippon Express (Japan), United Parcel Service Inc. (U.S.) among others.
Recent Market Developments
· November 2022: United Parcel Service Inc. bought the Bomi Group, which focuses on temperature-controlled shipping and warehousing in Europe.
· May 2022: Midair Aviation IFSC PVT LTD, a significant player in the Logistics sector, unveiled a cutting-edge courier platform. The intention was to concentrate on the areas that were densely populated. The invention of tech-enabled air cargo by ModAir is recognized as the largest achievement for the sector.
· April 2020: Small and medium-sized businesses may now sell products online and link to commerce and delivery thanks to an alliance between edEx and BigCommerce Pty. Ltd., an open SaaS e-commerce platform provider. Thanks to this partnership, BigCommerce Pty. Ltd. clients may now easily and affordably employ FedEx shipping services on the company's current platform.
· January 2020: H. Robinson invested $225 million in Prime Distribution Services. The acquisition gives the company retail consolidation services like distribution, fulfillment, and inventory control. It also includes 2.6 million square feet of warehouse space.
Segmentation of the Global Logistics Market
- Mode of Transport (Railways, Airways, Roadways, Waterways)
- End Use (Healthcare, Manufacturing, Aerospace, Telecommunication, Government & Public Utilities, Banking & Financial Services, Retail, Media & Entertainment, Technology, Trade & Transportation, Other End Uses)
- Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
|Regions & Countries Covered
- North America - (U.S., Canada, Mexico)
- Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
- Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
- Latin America - (Brazil, Argentina, Rest Of Latin America)
- Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
- MOLLER – MAERSK (Denmark)
- H. Robinson Worldwide Inc. (U.S.)
- DB SCHENKER (Deutsche Bahn Group (DB Group)) (Germany)
- Deutsche Post AG (DHL Group) (Germany)
- DSV (DSV Panalpina) (Denmark)
- FEDEX (U.S.)
- GEODIS (France)
- Kuehne+Nagel International AG (Germany)
- Nippon Express (Japan)
- United Parcel Service Inc. (U.S.)
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