Retail Logistics Market

Market Synopsis:

The Global Retail Logistics Market was valued at USD 244.62 Billion in the year 2022 and is forecast to reach a value of USD 592.81 Billion by the year 2030. The Global Market is anticipated to grow to exhibit a Compound Annual Growth Rate (CAGR) of 11.70% over the forecast period.

The structured process of managing the flow of items from the product's source of supply to its delivery to the client is known as Retail Logistics. The market's large retailers offer a wide range of products that necessitate methodical planning of multiple commodities' movement till they are delivered to the customer. Retail Logistics ensures that everything is in order and that better delivery services are available at a lesser cost through effective logistics services. The rising worldwide commerce activities, particularly in developing nations, are driving up demand for retail logistics.

The market's growth is projected to be aided by improvements in logistical infrastructure. The Retail Logistics system ensures that non-durable and durable goods are delivered to clients promptly and effectively from various well-known distributors and suppliers. In addition, the utilization of logistics in the retail business has resulted in quick product delivery at cheap fulfillment costs. The Retail Logistics sector is expected to rise during the projected period due to increased demand for retail e-commerce services.

Customers can more easily evaluate products from various online sources since an e-commerce platform allows them to compare products based on specs, prices, delivery time, features, and compatibility requirements. Moreover, Retail Logistics services assist businesses in efficiently delivering these products in the period allotted.

Market Segmentation:

The Retail Logistics market is segmented based on Type, Solution, Mode of Transport, and Region. The market is further fragmented based on the Type segment in sub-segments Conventional Retail Logistics and E-Commerce Retail Logistics. Based on the Solution segment, the market is sub-segmented as Commerce Enablement, Supply Chain Solutions, Reverse Logistics & Liquidation, Transportation Management, and Other Solutions. Finally based on the segment Mode of Transport, the market is further sub-segmented as Railways, Airways, Roadways, and Waterways.

Based on Type:

In 2021, the Conventional Retail Logistics sub-segment from the Type segment had the most revenue share. The high percentage is attributed to the increased use of traditional Retail Logistics services by consumers who have limited reliance on the internet and prefer to shop in physical stores. According to studies, around 36% of shoppers prefer to purchase items from traditional retail shops after researching online. In a retail store, buyers can pick up and inspect a product. It also provides instant pleasure because customers can buy anything without waiting for it to arrive.

Based on Mode of Transportation:

In 2021, the Roadways sub-segment of the segment Mode of Transportation had the most revenue share, and it is predicted to continue to do so throughout the forecast period. The Highways market has grown in response to rising demand for roadway vehicles to transport retail products over large distances, particularly in domestic regions. Trucks and cargos with colossal carrying capacity are superior for road transport for retail firms. In addition, several government initiatives promote growth. The Federal Motor Carrier Safety Administration, for example, has recently issued regulations encouraging the use of cameras to replace rear-view mirrors to improve truck driver safety.

Increased road connectivity in developing countries and excellent road connectivity in all industrialized countries is a crucial factors supporting the rise of the highway mode of transportation. Roadways will connect most tier 2 and tier 3 cities in many countries, allowing Retail Logistics businesses to deliver and pick up merchandise. This trend is expected to continue in the following years, thanks to advancements in road transportation systems and the expansion of motorways worldwide.

Asia Pacific is projected to Grow at the Highest CAGR During the Forecast Period

The region has a large client base and has seen individuals' widespread use of e-commerce channels. China, Japan, Australia, and India are the top item exporters, accounting for a significant portion of global retail e-commerce sales. As a result, the regional market expansion is primarily driven by the region's potential e-commerce growth prospects. An increasing focus on transportation methods and ongoing logistics infrastructure enhancements in emerging countries are also expected to promote regional market expansion. For example, as part of the Indian Government's Logistics Efficiency Enhancement Program, the Ministry of Road Transport & Highways (MoRTH) is establishing multimodal logistics parks to address inadequate road and material handling infrastructure (LEEP).

Competitive Landscape:

The key players in the Global Retail Logistics Market include- XPO Logistics Inc., DSV, Kuehne + Nagel International AG, C.H. Robinson Worldwide Inc., Nippon Express, and others.

Segmentation of the Global Retail Logistics Market: