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The oil and gas logistics market size is estimated to grow by USD 4.56 billion at a CAGR of 5.17% between 2023 and 2028. The market is experiencing significant expansion driven by key factors. These include the transition of freight from traditional over-the-road methods to more efficient intermodal transportation. Additionally, the surge in offshore oil and gas exploration and production activities necessitates advanced logistics solutions for the transportation of equipment and supplies. Furthermore, the increasing demand for contract logistics services from oil and gas companies to manage their supply chains and optimize operations contributes to market growth. These factors collectively shape the dynamic landscape of the market.
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The market plays a vital role in the efficient functioning of the industry, managing contract logistic services for exploration and production sites, processing plants, and distribution centers. Given the challenges of remote locations and large equipment, logistics providers ensure timely delivery of modular refinery materials and drilling equipment to oil and gas fields. With a focus on safety, they address spill and leakage issues during oil and gas transportation from extraction sites to refineries and gas stations. Furthermore, advancements like blockchain technology enhance transparency in oilfield discoveries and gas shale gas production, ensuring efficient management of petrochemical products and refined products from production to end-users, including homes and transportation vehicles. In the oil and gas industry, contract logistic services are crucial, especially in remote locations such as offshore segments, ensuring efficient operations from extraction sites to Distribution centres, even in the face of global monopolies dominating midstream and downstream sectors.
The demand for contract logistics services is the key factor driving market growth. Traditionally, businesses preferred to handle logistics functions in-house to exercise control and minimize risk. However, the business landscape is becoming more complex and competitive, and customers are now focusing on their core businesses. As a result, companies are investing all their resources and capital in improving the efficiency of their core businesses, leading to a shift towards third-party logistics providers. This shift is motivated by the fact that logistics can consume a significant amount of time and resources, which management wants to avoid.
Furthermore, information management has become easier, providing a clear picture of costs and transport status. Consequently, companies are focusing on their core business, leading to an increased demand for outsourcing and contributing significantly to the revenue of the market during the forecast period.
Advances in technology to provide high-end logistics and supply chain solutions is the primary trend shaping market growth. Currently, there are only a few players in the market that offer one-stop solutions. Shippers are increasingly favoring contract logistics providers that provide a comprehensive solution and eliminate the hassle of outsourcing different tasks to multiple players. Companies outsource logistics services to contract logistics providers because they are more specialized in delivering these services. Moreover, outsourcing allows users of contract logistics to serve their customers more efficiently.
Furthermore, the use of advanced technologies in project logistics services is expected to grow. Logistics service providers offer a range of IT-enabled services, such as global positioning system (GPS)-enabled transportation trucks for tracking, radio-frequency identification (RFID) for inventory tracking, bar coding, and information management system-related services. These services are more efficient in scheduling transportation, delivery, and inventory management for complex projects. Thus, such factors, coupled with the increasing demand for streamlined and technologically advanced project logistics solutions, are expected to drive the growth of the project logistics market during the forecast period. As industries worldwide adopt these technologies to enhance operational efficiency and reduce costs, project logistics providers are poised to play a crucial role in facilitating large-scale infrastructure and industrial projects across various sectors.
Varying transportation costs in various geographies is a challenge that affects market growth. Varied transportation costs pose a challenge to the APAC logistics market, as contract logistics providers face different costs of fuel, taxes, duties, fees, and government policies across countries. In the retail oil and gas market, rising costs of services have been observed due to the limited capacity of tanker trucks, which results in reduced supply and increased transportation costs.
Furthermore, transportation by rail is also challenging due to rising costs, railway congestion, and delivery time delays. This may make logistics costs unaffordable for shippers, who may prefer in-house services, thus hampering the growth of the market.
The market research 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 growth strategies.
Global Market 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.
ACI Cargo - The company offers oil and gas logistics such as transportation distribution, customs and security, and integrated contract logistics.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 share growth by the onshore segment will be significant during the forecast period. This segment includes the facilities that own a large assortment of onshore crude oil and refined product infrastructure, including pipelines, terminals, trucks, railcars, and rail loading and unloading facilities. The onshore facilities and transportation assets are highly interconnected.
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The onshore segment showed a gradual increase in the market share of USD 9.43 billion in 2018. Onshore services include transporting and providing crude oil and gases to refineries and industrial users, as well as linking producers to massive interstate pipelines and refineries. Thus, such factors will drive the growth of the market segment during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period. North America is one of the major markets for global natural gas production in terms of revenue generation, with the US being the major revenue contributor. The improvement of hydraulic fracturing and horizontal drilling and technologies has led to the exploration of a significant amount of unconventional hydrocarbon reserves in the US. The availability of large reserves, financial support, energy security concerns, and technological advancements in logistics services about gas storage and upstream logistics support are propelling the market growth.
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.
In the market, contract logistic services are essential for managing operations in remote locations and ensuring the smooth flow of petroleum products. Offshore segments require meticulous planning for crude oil production and transportation, involving oil and gas production companies and crude oil suppliers. From extraction sites to distribution centers and storage facilities, logistics play a crucial role in moving personnel and materials efficiently. However, challenges like environmental impact, emissions, and safety risks necessitate supply chain visibility and the adoption of tracking and monitoring technologies. With the integration of automation, artificial intelligence, and the Internet of Things, logistics operations are becoming more streamlined, paving the way for international expansion and enhanced supply chain efficiency in the oil and gas industry.
| Market Scope | |
| Report Coverage | Details |
| Page number | 168 |
| Base year | 2023 |
| Historic period | 2018-2022 |
| Forecast period | 2024-2028 |
| Growth momentum & CAGR | Accelerate at a CAGR of 5.17% |
| Market growth 2024-2028 | USD 4.56 billion |
| Market structure | Fragmented |
| YoY growth 2023-2024(%) | 4.88 |
| Regional analysis | North America, Middle East and Africa, Europe, APAC, and South America |
| Performing market contribution | North America at 37% |
| Key countries | US, Canada, Saudi Arabia, China, and Russia |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
| Key companies profiled | ACI Cargo, Agility Public Warehousing Co. K.S.C.P, Aramex International LLC, ASCO Group, AsstrA Associated Traffic AG, BDP International Inc., Berrio Logistics India Pvt. Ltd., Bollore SE, C H Robinson Worldwide Inc., CEVA Logistics S A, DB Schenker, DEHOCO License AG, Deutsche Post AG, Gulf Agency Co. Ltd., Halcon Primo Logistics Pte Ltd., Kuehne Nagel Management AG, NOATUM HOLDINGS SLU, Reliance Logistics Group Inc., Riada Shipping and Logistics, and Tudor International Freight Ltd. |
| Market dynamics | Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
| Customization purview | If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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