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The warehousing and distribution logistics market size is forecast to increase by USD 85.4 billion at a CAGR of 6.78% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. The burgeoning e-commerce sector is a major catalyst, as businesses strive to meet the increasing demand for faster delivery times. Express delivery services are becoming increasingly popular, placing greater emphasis on efficient and agile logistics solutions. Additionally, the importance of data quality and extensive automation in optimizing warehouse operations cannot be overstated. By leveraging advanced technologies such as robotics, automation, and real-time data analytics, logistics providers can streamline their processes, reduce costs, and enhance customer satisfaction. In this dynamic market, staying ahead of the curve requires continuous innovation and investment in cutting-edge technologies.
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Warehousing and distribution logistics refer to the management of the storage and transportation of goods from the point of production or manufacturing to the final consumer. This market encompasses various services such as warehouse management, transportation, and stock control. Warehousing involves the use of warehouse campuses for storing goods, including refrigerated warehouses for perishable items. Distribution logistics covers last mile deliveries and the implementation of logistics automation to improve efficiency. The infrastructure required for warehousing and distribution logistics includes a multi-modal system that can handle various modes of transportation such as road, rail, air, and sea. The business type and mode of operation can influence the design and implementation of warehousing and distribution logistics solutions. Industries such as healthcare, manufacturing, aerospace, telecommunication, public utilities, banking, and entertainment rely heavily on efficient warehousing and distribution logistics to ensure the timely delivery of goods and services. Effective stock control and management services are essential to minimize wastage and optimize inventory levels. The use of technology and automation in warehousing and distribution logistics continues to evolve, providing new opportunities for innovation and growth in this market. Our researchers studied the market research and growth data for years, 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 most important factors boosting the growth of the market are the increase in demand in e-commerce, increased demand for cold storage, and the emergence of last-mile deliveries along with the automation of logistics.
The economies of countries such as China, India, Brazil, and South Africa are developing. As a result, these countries are witnessing significant growth in the logistics sector, which is expected to create lucrative opportunities for the market. Additionally, the global market is expected to grow as freight forwarding services become more common in some developing countries. These factors will drive the growth of the market during the forecast period.
The introduction of effective information technology has been an important trend in the warehouse and distribution logistics system. The industry was encouraged by the continuous decrease in technology prices and the increasing concentration of IT potential among transport and logistics stakeholders.
Companies have increased the use of IT to provide customers and businesses with real-time technology that updates the status of the warehouse and distribution logistics operations of the system. Therefore, trends in IT adoption can propel the focused market to positive growth during the forecast period.
A product is handled more than once owing to the nature of the storage process by the warehouse workers. Having warehouse workers pass the same ticket through multiple hands is a significantly wasteful process. Although sometimes necessary, such unnecessary procedures take time and increase labor costs.
Transportation costs make up a significant portion of all costs. Rising fuel prices, which account for most of the increase in transportation costs, are a major concern for companies around the world. In connection with the increase in the price of fuel, customers practically ask for an additional surcharge, which also affects turnover and profit when fuel prices fall. These factors will hinder the market during the forecast period.
The market share growth by the warehousing segment will be significant during the forecast period. Warehousing means storing tangible inventory for eventual sale or distribution.
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The warehousing segment was valued at USD 67.2 billion in 2018. For the majority of business types that deal in tangible goods, warehousing is a crucial link in the supply chain. It may be a consumer business holding a product before it is eventually sold to a retail customer, or it may be a B2B company holding a product before it is ultimately sold to a business customer. Service providers are focusing on capacity planning, receiving incoming shipments, tracking inventory better, developing new methods of storing goods, and managing the market environment by rearranging the current inventory. The growing involvement of warehousing with e-commerce is also pushing the growth of the market. Hence, the innovation and new initiatives being taken along with e-commerce coming into existence are the factors that are expected to drive the segment growth during the market growth analysis period.
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APAC is estimated to contribute 51% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The demand is growing in countries such as India and China. However, land availability is limited near cities with increasing land costs. To tackle the challenge of land supply, developers are building multi-story warehouses. The growing regional e-commerce industry will increase the demand for multi-story warehouses. This is because e-commerce generally requires warehousing facilities such as distribution centers near cities to facilitate faster delivery. This will boost the regional market growth during the forecast period.
The introduction of Goods and Service Tax (GST) in India in 2017 has boosted the growth of the market. Furthermore, the growth of the pharmaceutical market in APAC is expected to increase the demand for warehouses and distribution logistics. India is one of the largest generic drug suppliers across the globe. Hence, the growing manufacturing and export of medicine and drugs from APAC will increase the need for warehouses and distribution logistics.
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.
CWT - The key offerings of the company include solutions for warehousing and distribution logistics for multiple industries.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
Agility Public Warehousing Co. K.S.C.P, Americold Realty Trust Inc., CEVA Logistics, CWT Pte. Ltd., DB Schenker, Deutsche Post AG, Expeditors International of Washington Inc., Gemadept Corp., GEODIS, Kerry Logistics Network Ltd., Kuehne Nagel Management AG, NFI Industries Inc., Nippon Express Holdings Inc., Penske Truck Leasing Co. L.P., Ryder System Inc., Singapore Post Ltd., Tiong Nam Logistics Holdings Berhad, WHA Corp. PCL, XPO Inc., and YCH Group
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
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.
Warehousing and distribution logistics play a crucial role in the efficient movement and storage of goods from manufacturers to end consumers. This essential aspect of supply chain management involves the use of infrastructure, transportation, and management services to ensure stock control and timely deliveries. Two significant components of warehousing and distribution logistics are storage and distribution. Storage includes the use of warehouse campuses, refrigerated warehouses, and mega warehouses for storing various products, including perishable items like fresh produce, pharmaceuticals, and vaccines. Distribution logistics encompasses last-mile deliveries, logistics automation, and the implementation of a multi-modal system. This includes freight forwarding, direct-to-consumer logistics, and digital freight forwarding. The use of technology such as the Internet of Things and Artificial Intelligence is also becoming increasingly prevalent in warehousing and distribution logistics. Different industries, such as healthcare, manufacturing, aerospace, telecommunication, public utilities, banking, entertainment, trade, and e-commerce, have unique warehousing and distribution logistics requirements. For instance, French fashion e-commerce and online shopping platforms rely on efficient logistics to ensure timely delivery of ready-to-eat meals, frozen food products, and other perishable items. The emergence of emerging economies and urbanization have led to an increased demand for warehousing and distribution logistics services. As businesses continue to expand and grow, the need for advanced automation solutions to streamline operations and improve efficiency becomes increasingly important.
Moreover, the market is evolving rapidly with advancements in automation solutions and IoT supply chain monitoring. Warehouse campuses are integrating smart technologies like RFID, Bluetooth, and machine learning to optimize storage, transportation, and distribution logistics. This transformation benefits sectors dealing with perishable products, enhancing health and wellness by ensuring efficient storage and timely delivery. The SmartDisposition platform exemplifies modern approaches to managing warehouse operations, improving inventory management and order fulfillment. As demand for efficient logistics grows, these innovations streamline processes, reducing costs and minimizing errors in handling goods. The convergence of technology and logistics expertise marks a significant shift towards more agile and responsive supply chains, catering to diverse industries' needs for reliable and scalable distribution solutions.
Industry Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 85.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 51% |
Key countries |
US, China, India, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Americold Realty Trust Inc., CEVA Logistics, CWT Pte. Ltd., DB Schenker, Deutsche Post AG, Expeditors International of Washington Inc., Gemadept Corp., GEODIS, Kerry Logistics Network Ltd., Kuehne Nagel Management AG, NFI Industries Inc., Nippon Express Holdings Inc., Penske Truck Leasing Co. L.P., Ryder System Inc., Singapore Post Ltd., Tiong Nam Logistics Holdings Berhad, WHA Corp. PCL, XPO Inc., and YCH Group |
Market dynamics |
Parent market analysis, 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 forecast period |
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 Business Segment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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