In terms of revenue, the Global Retail Logistics Market is expected to reach USD 430.9 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 11.9% from 2022 to 2028.
With an increase in the use of smartphones and e-commerce services across the globe and quick delivery facilities provided by Retail Logistics, there is an increase in the integration of drones & smart glasses in vehicles which is likely to fuel the growth of the market in the years to come. Further, the continuous increase in the advanced technology used by the market leaders is also expected to be the primary factor driving the market's growth.
Key Highlights from Report:
- The conventional Retail Logistics segment held significant shares in 2021. This can be ascribed to consumers' ongoing usage of traditional Retail Logistics in developing countries with limited internet access. Further, the e-commerce segment is expected to grow at a considerable Compound Annual Growth Rate (CAGR) due to the ever-increasing number of smartphone users and the expansion of internet services in remote areas.
- The supply chain solutions segment held the largest share in 2021. The use of fast direct-to-consumer and direct-to-store shipping services reduces the time of delivery of products which is one of the major factors driving the segment's growth. The Roadways sub-segment, from the Mode of Transport segment, is expected to grow at a considerable Compound Annual Growth Rate (CAGR) during the forecast period. This is attributable to the rapid demand for roadways for long-distance transportation of retail products, particularly in rural areas.
- Asia Pacific is anticipated to register the fastest growth during the forecast period. This is owing to the significant adoption of E-Commerce channels by individuals. China, Japan, Australia, and India are the top exporters, accounting for a substantial 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.
The increasing integration of drones and smart glasses into the logistics industry has increased flexibility and delivery speed, impacting the market's growth during the forecast period. Self-driving cars and trucks can maintain high relevance and same-day delivery in urban and rural areas. In addition, augmented reality-backed integration with smart glasses makes delivery in the transportation and logistics industry much easier with hands-free route search, error-free facial recognition, and personalized delivery. With the introduction of Al integrated intelligent glasses, which can improve the operational efficiency of the first mile and last-mile logistics, flexibility, and delivery speed. Overall, the market will grow globally in the forecast period.
Artificial intelligence, blockchain, machine learning, and other state-of-the-art technologies are expected to be widely used in the retail industry. Improved data management, tuned experience, predictive analytics, and real-time support are all benefits of AI. Other AI applications such as chatbots and virtual assistants help retailers stay in touch with their customers. This improves the company's profitability by informing the customers about promotions and sales. Additionally, with the proliferation of e-commerce businesses, providing efficient last mileage delivery is becoming one of the most critical aspects to stand out from the competition.
Asia Pacific held the largest market share in 2021. This is due to numerous key players such as XPO Logistics, Inc., United Parcel Service of America, Ryder System Inc., FedEx, C.H. Robinson Worldwide, Inc., and Expeditors International of Washington, Inc. in the region.