The logistics market is an essential part of moving raw materials, parts, and finished products between vendors, manufacturers, warehouses, and customers. From transportation and warehousing to packaging and distribution, an efficient logistics system ensures seamless movement of goods. As the e-commerce industry expands globally, demand is growing for modernized logistics services that can accommodate increasingly complex supply chains and delivery timelines.
The global logistics market is estimated to be valued at US$ 12.35 Mn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024 to 2031
Growth is fueled by the need for improved inventory management and efficient distribution networks that can keep pace with today's highly dynamic retail environment. Logistics solutions handle various fulfilment tasks from order taking and inventory allocation to packing and shipping. Their role has become even more vital for omnichannel retailers and third-party sellers on e-commerce platforms.
Key Takeaways
Key players operating in the logistics market are Kogel Trailer GmbH & Co. KG, Wabash National Commercial Trailer Products, Randon Implementos, Great Dane Trailers, Inc., Gray & Adams Ltd., Utility Trailer Manufacturing Company, Hyundai Translead, Montracon Ltd., Schmitz Cargobull AG, Lamberet Refrigerated SAAS, and Fahrzeugwerk Bernard KRONE GmbH. These companies provide a wide range of logistics equipment like trucks, trailers, containers, and warehousing systems.
There is enormous potential for Logistics Market Growth providers to develop customized solutions catering to different industry verticals like manufacturing, retail, healthcare, telecom, and oil & gas. Emerging technologies also offer new opportunities through applications of robotics, Internet of Things, automation, and analytics. This allows real-time tracking, predictive modelling, and optimization of supply chain processes.
As logistics networks expand globally, companies are enhancing their international presence. Cross-border partnerships and acquisitions allow multi-national support across diverse geographic locations. Outsourcing of non-core logistics functions to specialized third-party logistics providers is also a growing trend. This enables businesses to focus on their core competencies while outsourcing logistics requirements.
Market Drivers
One of the key drivers for the Logistics Market Challenges And Opportunitiesis the boom in the e-commerce industry. Online retail has seen exponential growth over the past decade with the rise of smartphones and internet penetration. This has increased demand for logistics from warehouses to last-mile delivery.
Another major driver is the changing consumer expectations of faster deliveries. Customers now demand lightning-quick & hassle-free shipping. This is prompting logistics networks and supply chains to modernize with technologies for real-time tracking and improved fulfilment speed.
Market Restraints
High capital expenditure is one challenge for the logistics market as operators invest heavily in machinery, vehicles, automation systems and warehouse infrastructure. Significant initial sunk costs are involved.
Stringent emission norms and fuel efficiency regulations also affect the trucking and transportation segment. Logistics companies must upgrade fleets with greener vehicles meeting regulatory guidelines which impacts costs.
Segment Analysis
The logistics market can be broadly segmented into transportation and warehousing. Transportation sub segment currently dominates the logistics market, accounting for over 60% market share. This is because transportation forms the core of logistics operations by enabling movement of raw materials to factories and finished goods to customers. Within transportation, road transportation is the largest sub segment owing to widespread road infrastructure in most countries and flexible operations of trucks. Sea freight sub-segment is the second largest owing to large trade volumes moved over long distances via sea routes.
Global Analysis
North America currently accounts for the largest share in the global logistics market due to large manufacturing and consumption base in countries like United States. Asia Pacific is the fastest growing region on account of rising manufacturing in countries like China and India coupled with growing domestic consumption.
China dominates Asia Pacific logistics market owing to large manufacturing hub and domestic logistics requirements. Europe is another major region for logistics market driven by strong trade between European countries and presence of global logistics companies. In future, Asia Pacific region is expected to overtake North America owing to continued strong economic growth, rising manufacturing and increasing consumption in emerging Asian countries.
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