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The warehousing and storage market size is forecast to increase by USD 476.06 billion at a CAGR of 6.62% between 2023 and 2028. The global market is experiencing significant growth due to the increasing demand for refrigerated warehousing, particularly in the food and beverage industry. This trend is driven by the rising consumer preference for fresh and perishable goods, leading to an increased need for temperature-controlled storage facilities. Another trend transforming the market is the implementation of drone technology in warehouse management, enhancing operational efficiency and reducing manual labor. However, adhering to government regulations and policies poses a challenge to market growth, as these requirements can add complexity and cost to warehouse operations. Overall, the market is expected to continue expanding, driven by these trends and the evolving needs of various industries.
The market is witnessing significant growth due to the rise in e-commerce sales and the increasing importance of logistics and inventory management in supply chain operations. Third-party logistics (3PL) providers offer various warehousing solutions, including public, private, bonded, refrigerated, mini-storage, vehicle storage, and self-storage, to meet the diverse needs of businesses. Capacity and duration are crucial factors in warehousing, with businesses requiring flexibility to scale up or down based on demand. Cost management is another key consideration, with businesses seeking cost-effective solutions without compromising on services such as security, location, and accessibility. Bonded warehousing is essential for businesses dealing with international trade, providing tax and duty advantages.
Furthermore, refrigerated warehousing is critical for perishable goods, ensuring their preservation and quality. Self-storage and mini-storage cater to individual and small business needs, offering flexibility and convenience. However, warehousing also presents challenges, including accessibility issues, packing and transporting, and organization. Businesses must carefully evaluate their warehousing requirements to optimize their food supply chain, enhance business efficiency, and ensure order fulfillment.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The manufacturing segment is estimated to witness significant growth during the forecast period. Warehousing and storage play a crucial role in the logistics and inventory management of various industries, including e-commerce, manufacturing, construction, automotive, and agriculture. Warehouses serve as central hubs for collecting and storing goods before distribution, ensuring timely delivery and optimum distribution. Capacity and duration are essential factors in selecting the right warehouse, with cost being a significant consideration. Third-party logistics (3PL) providers offer flexible solutions through bonded, public, private, refrigerated, mini-storage, vehicle storage, and self-storage warehouses. Location and accessibility are vital for efficient business operations, with easy access to transportation networks and major markets. Security measures, such as temperature control, material handling equipment, and safety options, are essential for maintaining product quality and preventing damage.
Furthermore, inventory management systems help manage stock administration and product flow, reducing errors and optimizing supply chain efficiency. Services like request fulfillment and transportation cost management further enhance business operations. However, disadvantages include accessibility issues and the need for packing and transporting goods to and from the warehouse. Overall, warehousing and storage solutions are essential for effective organization, cost management, and supply chain optimization.
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The manufacturing segment was valued at USD 361.30 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in Asia Pacific is experiencing significant growth due to the increasing demand for efficient movement and timely delivery of goods. This trend is particularly prominent in countries like India and Japan, where the limited commercial space in industrial areas has led to a premium on cargo-handling systems and logistics services. The e-commerce sector's expansion is driving the need for multi-story warehouses and distribution centers near cities, despite the high rents. The regional market is expected to grow, with a focus on self-storage facilities in countries such as Australia, New Zealand, Japan, Hong Kong, and Singapore. Resource management and security are crucial considerations, with shelf monitoring software and surveillance systems essential for ensuring the secure accommodation of goods and reducing expenses.
Furthermore, the market caters to various stakeholders, including wholesalers, exporters, retailers, transporters, and shippers, requiring both short-term and long-term storage solutions. The warehousing and storage industry plays a vital role in supply chain management by providing goods accommodating space and optimizing storage time to meet the demands of the dynamic market.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for refrigerated warehousing is the key driver of the market. Warehousing and storage play a crucial role in the logistics sector, particularly in the context of e-commerce and inventory management. Third-party logistics (3PL) providers offer various types of warehousing solutions, including public, private, bonded, refrigerated, mini-storage, and vehicle storage, to cater to diverse business needs. Capacity and duration are essential factors in choosing the right warehousing solution, along with cost, services, security, location, and accessibility. Refrigerated warehouses are essential in the cold supply chain process for storing temperature-sensitive goods like perishable items. These warehouses provide value-added services beyond just storage, such as order fulfillment and product flow management. Meat, for instance, requires refrigeration or freezing to prevent the growth of pathogens and reduce spoilage.
Furthermore, with a high water content of 50%-75%, a protein content of around 18%, and a fat content of 5%-35%, meat is a significant commodity that demands specialized warehousing. Value-added services offered by warehouses include packing and transporting, supply chain optimization, business efficiency, and safety measures. Material handling equipment and temperature control are essential for effective stock administration. Security options and environmental control are crucial for maintaining product quality and safety. Accessibility issues can impact transportation cost and request fulfillment. Flexibility and cost management are essential considerations when choosing a warehousing solution. Despite their advantages, warehousing and storage solutions have disadvantages, such as high costs and potential accessibility issues.
The use of drones in warehouse management is the upcoming trend in the market. Warehousing and storage play a pivotal role in the success of various industries, particularly e-commerce, by ensuring efficient inventory management and timely order fulfillment. Logistics businesses provide essential services such as capacity utilization, duration management, and cost control through third-party logistics (3PL) solutions. Warehouse types include bonded, public, and private, catering to different requirements. Location and accessibility are critical factors, with refrigerated warehousing, mini-storage, vehicle storage, and self-storage each offering unique advantages. Flexibility, organization, and cost management are essential for business efficiency. However, disadvantages include accessibility issues and packing and transporting costs. Supply chain optimization relies on inventory management, distribution centers, and stock administration.
Furthermore, safety measures, material handling equipment, temperature control, and request fulfillment are essential services. Transportation cost, product flow, and security options are significant considerations. Environmental control is crucial for specific industries. UAVs (unmanned aerial vehicles) can enhance inventory checking and management, contributing to overall supply chain efficiency.
The need to comply with government regulations and policies hampers operational efficiency is a key challenge affecting the market growth. The market encompasses various types of warehouses, including public, private, bonded, refrigerated, mini-storage, vehicle storage, self-storage, and more. E-commerce and logistics industries heavily rely on these facilities for inventory management and order fulfillment. Third-party logistics (3PL) providers offer services such as capacity planning, duration management, cost control, and flexibility in response to business efficiency needs. Location and accessibility are crucial factors in warehousing and storage. Regulations, such as the European Regulation 1989/654/EC, German Regulations ArbStattV, and US Regulations 29CFR1910, impact the construction and operation of these facilities. Compliance with guidelines from regulatory bodies like OSHA, WDRA, and ISO is essential.
Furthermore, services offered include safety measures, material handling equipment, temperature control, and environmental control. Warehouses cater to different industries, each with unique requirements. For instance, refrigerated warehouses ensure temperature control for perishable goods, while self-storage facilities offer flexibility for individuals and businesses. Accessibility issues can arise due to transportation costs and product flow. Cost management and organization are essential for effective inventory administration. Security options, including security personnel and CCTV cameras, are necessary to protect stock. Overall, warehousing and storage play a vital role in the supply chain, enabling efficient distribution and ensuring product availability.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agility Public Warehousing Co. K.S.C.P: The company offers warehousing solutions such as agility logistics parks that eliminate hidden costs and reduce risk, helping businesses lower their operational and capital costs, boost quality control, and improve speed to market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the rise in e-commerce sales and the increasing importance of logistics and inventory management in supply chain efficiency. Third-party logistics (3PL) providers offer various warehousing solutions, including public, private, bonded, refrigerated, mini-storage, vehicle storage, and self-storage, to cater to different industry requirements. Capacity and duration are critical factors in warehousing, with businesses seeking flexibility in terms of storage space and accessibility. Cost management is another significant consideration, with 3PLs offering a range of services to help businesses optimize their storage costs. Location and accessibility are essential aspects of warehousing, with businesses requiring easy access to major transportation hubs and proximity to key markets.
Furthermore, security measures, including temperature control, safety options, and environmental control, are also crucial to ensure product integrity and minimize risk. Material handling equipment and organization are essential components of effective warehousing operations, with businesses requiring efficient product flow and request fulfillment to meet customer demands. However, there are also disadvantages to consider, such as transportation costs, accessibility issues, and packing and transporting challenges. In summary, the market plays a vital role in the supply chain, offering various solutions to help businesses manage inventory, optimize costs, and ensure product safety and security. With the increasing importance of e-commerce and logistics, the market is expected to continue growing in the coming years.
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Market Scope |
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Report Coverage |
Details |
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Page number |
187 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.62% |
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Market Growth 2024-2028 |
USD 476.06 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.34 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 50% |
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Key countries |
US, China, India, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, AP Moller Maersk AS, Aramex International LLC, C H Robinson Worldwide Inc., CJ CheilJedang Corp., CMA CGM SA Group, Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., Gati Ltd., Kerry Logistics Network Ltd., Kuehne Nagel Management AG, NFI Industries Inc., Nippon Express Holdings Inc., Omni Logistics LLC, Singapore Post Ltd., SNCF Group, United Parcel Service Inc., and XPO Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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