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The logistics market size is forecast to increase by USD 336.5 billion at a CAGR of 5.1% between 2023 and 2028. Supply chain disruptions and shortages in skilled labor pose challenges to the growth of the market, compounded by escalating competition. The industry's expansion relies on various factors, including the growing e-commerce sector, technological advancements within logistics, and the increasing industrialization in emerging economies. These dynamics drive the demand for efficient and resilient supply chain solutions, with logistics companies vying to innovate and adapt to evolving market demands. Overcoming supply chain disruptions requires agile strategies and investments in technologies such as SCM software and supply chain analytics to enhance visibility and resilience. Additionally, addressing the shortage of skilled labor necessitates initiatives for workforce development and training. Amidst intensifying competition, differentiation through service excellence and innovation becomes paramount for logistics firms seeking sustainable growth and market leadership.
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The logistics market encompasses the transportation, inventory, and flow of goods from the point of origin to the final destination. This includes inbound logistics, where raw materials and components are brought into a facility, and outbound logistics, where finished products are distributed to customers. Reverse logistics, the process of returning goods from customers to the supplier is also a critical component. Green logistics solutions, utilizing high-speed networks and advanced technologies such as artificial intelligence, machine learning, and the Internet of Things, are increasingly important in optimizing logistics operations. Blockchain technology is also being adopted to enhance transparency and security in the supply chain. B2B and B2C e-commerce, cross-border sales, and trading activities in overseas markets are driving the growth of the logistics market.
The digitization of supply chains, facilitated by advanced technologies, is enabling more efficient and effective logistics operations. Pharmaceuticals, fintech, and chemicals are among the key industries driving demand for logistics services. Free trade agreements are also playing a significant role in shaping the logistics landscape. The market trends and growth report forecast market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
The logistics 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 consumer goods segment is estimated to witness significant growth during the market forecast period. The logistics market encompasses the flow of food and liquids, as well as inventory management, in both inbound and outbound processes. This sector is crucial for various industries, including healthcare, manufacturing, aerospace, telecommunication, technology, and construction. Green logistics solutions are increasingly prioritized to minimize environmental impact, while digital logistics and IoT-enabled connected devices facilitate real-time tracking and automation. Logistics service providers employ multi-modal systems, utilizing railways, airways, roadways, and waterways, to ensure efficient and timely deliveries. Last mile logistics is a significant focus area, with logistics automation and high-speed networks streamlining the delivery process.
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The consumer goods segment accounted for USD 364 billion in 2018. Trade agreements and trade facilitation play a vital role in the global logistics landscape. Reverse logistics is essential for managing returns and waste disposal, while military logistics ensures the supply of essential goods to armed forces. The integration of advanced technologies, such as blockchain, artificial intelligence, and augmented reality, enhances logistics operations and improves overall supply chain efficiency. In the context of consumer goods, the logistics market caters to both fast-moving consumer goods (FMCGs) and slow-moving consumer goods (SMCGs). FMCGs require frequent and recurring deliveries, while SMCGs necessitate longer-term storage solutions. Warehousing space is a critical component of the logistics market, with providers offering 1 PL (third-party logistics) and 2 PL (second-party logistics) services to cater to diverse industry needs.
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APAC is estimated to contribute 66% to the growth of the global logistics market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The logistics market in APAC is experiencing significant growth, driven by the expanding consumer base in the food and beverage and healthcare sectors. Machine learning and predictive analysis are revolutionizing warehouse management systems, enabling efficient inventory management and reducing operational costs. Autonomous vehicles and sensor technologies are transforming road transportation, ensuring delivery performance and minimizing human error. Waterways transportation via rivers, canals, lakes, and coastal waters is gaining popularity due to its environmental sustainability and cost-effectiveness. B2B and B2C e-commerce, cross-border sales, and trading activity are surging, necessitating advanced logistics solutions. The implementation of free trade agreements and fintech innovations is streamlining international transactions. The automotive, construction, food and beverage, hospitality, retail sectors, medical devices, pharmaceuticals, and Internet industries are leveraging logistics 4.0 to optimize their supply chains and enhance customer satisfaction. Chemicals, defense manufacturing, and petroleum industries are also benefiting from advanced logistics solutions to ensure timely and secure transportation of their products.
The growth of e-commerce industry is notably driving logistics market growth. The logistics sector has experienced substantial growth due to the burgeoning e-commerce industry, with online retailers requiring swift and reliable inventory management and transportation services to deliver goods to consumers worldwide. The escalating trend of e-commerce has emerged as a primary market catalyst in the global logistics sector. To enhance the overall consumer experience, technology has been assimilated into logistics processes, including warehouse automation, route optimization, and real-time tracking of shipments. Logistics providers are expanding their offerings to cater to evolving customer demands as the e-commerce marketplace broadens. Food and liquids logistics ensure the safe and timely transportation of perishable items. Inbound logistics involves the procurement and movement of raw materials and components to manufacturing sites. Outbound logistics encompasses the distribution of finished products to customers. Reverse logistics deals with the return, repair, and disposal of goods. Green logistics prioritizes sustainable practices in the movement of goods. Construction logistics coordinates the delivery of materials to construction sites.
Moreover, digital logistics leverages technology to streamline operations. Military logistics supports the transportation of military supplies and personnel. Railways, airways, roadways, and waterways serve as essential modes of transportation for various industries, including healthcare, manufacturing, aerospace, telecommunication, and technology. Logistics service providers offer 1 PL (third-party logistics) and 2 PL (second-party logistics) solutions. IoT-enabled connected devices facilitate real-time monitoring and automation of logistics processes. Trade agreements and last mile logistics optimize the flow of goods between countries and to end consumers. Logistics automation, multi-modal systems, and trade facilitation enhance supply chain efficiency. Warehousing space is crucial for effective inventory management. Green logistics solutions prioritize sustainability, utilizing renewable energy and reducing carbon emissions. Blockchain technology ensures secure and transparent transactions. Artificial intelligence and machine learning optimize logistics operations. Augmented reality enhances warehouse picking and packing processes. Digitization streamlines logistics processes and improves communication between stakeholders. Thus, such factors are driving the growth of the market during the forecast period.
The emergence of omnichannel fulfillment in the global logistics market is the key trend in the logistics market. The logistics market has witnessed significant growth, particularly in sectors catering to food and liquids, driven by the increasing demand for inventory management and the seamless flow of goods. Inbound and outbound logistics have become essential components of businesses, with reverse logistics gaining importance in managing returns and waste reduction. The adoption of green logistics solutions has become a priority, integrating sustainability into various sectors such as construction, digital, military, and railways.
Additionally, airways, roadways, waterways, and healthcare industries have been transformed by logistics advancements, enabling efficient transportation and warehousing space utilization. Manufacturing, aerospace, telecommunication, technology, and various other industries have embraced logistics automation, high-speed networks, and multi-modal systems for trade facilitation and supply chain optimization. Logistics service providers have been instrumental in implementing IoT-enabled connected devices, trade agreements, and last-mile deliveries to enhance customer experience. Automation, blockchain, artificial intelligence, and digitization have revolutionized the logistics landscape, ensuring efficient and reliable services. The integration of these technologies has led to the emergence of 1 PL (Third-Party Logistics) and 2 PL (Fourth-Party Logistics) providers, offering comprehensive logistics solutions to businesses. Thus, such trends will shape the growth of the market during the forecast period.
Supply chain disruptions in the logistics market is the major challenge that affects logistics market growth. The logistics industry, a crucial component of global supply chains, has experienced significant disruptions due to the COVID-19 pandemic. Movement restrictions, factory closures, and transit delays have posed challenges in transporting food, liquids, and inventory, disrupting the flow of goods. Inbound and outbound logistics, reverse logistics, green logistics, construction logistics, and digital logistics have all been impacted. Food and liquid supply chains have faced unique challenges due to perishability and temperature sensitivity. Logistics for healthcare and pharmaceuticals have become increasingly complex due to the need for expedited and secure transportation. In the manufacturing sector, aerospace, telecommunication, technology, and other industries have experienced delays and increased costs due to supply chain disruptions. Logistics service providers have had to adapt to the changing landscape by implementing automation, high-speed networks, green logistics solutions, and IoT-enabled connected devices. Trade agreements and last mile deliveries have also become more complex, requiring increased coordination and collaboration between stakeholders. Railways, airways, roadways, and waterways have all been affected by the pandemic, leading to delays and increased costs. Military logistics and construction logistics have faced unique challenges due to the nature of their operations. Logistics automation, multi-modal systems, trade facilitation, and supply chain optimization have become essential to mitigating the impacts of disruptions. Blockchain, artificial intelligence, and augmented reality are being explored as potential solutions to improve efficiency and transparency in the logistics industry.
Warehousing space has become a critical issue as companies seek to store inventory and manage their supply chains more effectively. Last mile logistics, which involves the delivery of goods from a transportation hub to the final destination, has become increasingly complex due to the need for expedited and customized services. In conclusion, the logistics industry has faced significant disruptions due to the COVID-19 pandemic, leading to delays, higher costs, and less availability of goods and services. Logistics service providers have had to adapt to the changing landscape by implementing automation, green logistics solutions, and IoT-enabled connected devices, among other technologies. The industry is also exploring the use of blockchain, artificial intelligence, and augmented reality to improve efficiency and transparency. Hence, the above factors will impede the growth of the market during the forecast period.
The logistics 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 logistics market growth analysis 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.
AP Moller Maersk AS: The company offers logistics such as Maersk omnichannel fulfillment solutions and full truck loads.
C H Robinson Worldwide Inc.: The company offers logistics such as cross-border shipping and warehousing.
The logistics market research and growth report also 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.
Logistics marketing refers to the promotion and management of the transportation, storage, and distribution of goods and services from the producer to the consumer. This market is integral to the success of businesses in various industries, as efficient logistics enable timely delivery and customer satisfaction. The logistics market is driven by several factors, including the increasing globalization of trade, the rise of e-commerce, and the growing demand for just-in-time inventory management. Additionally, advancements in technology, such as automation and real-time tracking, are transforming the logistics industry. Logistics marketing strategies focus on optimizing supply chain operations, reducing transportation costs, and improving delivery times. Companies use various channels, such as social media, email marketing, and search engine optimization, to reach their target audience and promote their logistics services. Logistics providers also offer value-added services, such as warehousing, packaging, and reverse logistics, to differentiate themselves from competitors and meet the evolving needs of their customers. Overall, the logistics market is expected to grow significantly in the coming years, driven by the increasing demand for efficient and cost-effective logistics solutions.
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Market Scope |
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Report Coverage |
Details |
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Page number |
186 |
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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 5.1% |
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Market growth 2024-2028 |
USD 336.5 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.8 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 66% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AP Moller Maersk AS, C H Robinson Worldwide Inc., CMA CGM SA Group, Deutsche Bahn AG, Deutsche Post AG, DSV AS, Emirates Logistics LLC, FedEx Corp., J B Hunt Transport Services Inc., Jenae Logistics LLC, Kenco Group Inc., Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, Mac World Logistic LLC, NFI Industries Inc., Nippon Express Holdings Inc., Ryder System Inc., Schneider and Cie. AG, United Parcel Service Inc., and XPO Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our logistics market forecast 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 End-user
7 Market Segmentation by Mode of Transportation
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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