The recent study by IMARC Group, entitled “Logistics Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, estimates that the global logistics market reached a value of US$ 4,730 Billion in 2018. Logistics is the process of planning, coordinating, implementing and managing the flow of resources from the point of origin to the point of consumption. It assists in the efficient and effective transportation and storage of goods as well as services. In recent years, the logistics industry has undergone rapid transformation due to changing customer demands, behaviors, and expectations which have translated into customized orders, shorter delivery time and stringent compliance standards. On the other hand, the increasing use of RFID (Radio Frequency Identification), Bluetooth, and newly introduced technologies such as Drone Delivery and Driverless Vehicle, has helped in enhancing the efficiency of logistics services.
Global Logistics Market Trends:
One of the major factors driving the global logistics market is the rapidly expanding e-commerce industry. Online retailing has provided consumers with the convenience of shopping from the comfort of their homes. It also offers the option of returning unwanted products without going to the retailer. As logistics form a major part of the storing, transporting and delivery of the goods purchased online, this has provided a positive thrust to the market growth. Another major market trend is the growing focus on sustainability and compliance, especially environmental issues and corporate social responsibility (CSR). This has led to the growing popularity of green logistics that offer sustainable transport solutions and companies with good working conditions. Other major growth-inducing factors include a rise in inter- and intra-regional trade agreements coupled with increasing demand for reverse logistics services. On account of these factors, the logistics market is projected to register a CAGR of 4.9% during 2019-2024, reaching a value of US$ 6,300 Billion by 2024.
Global Logistics Market Summary:
- Based on model type, 3PL represents the most popular segment in the global logistics market, followed by 2PL, 4PL and others. 3PL companies work as an intermediate between the manufacturer and the supplier, and help in optimizing the customer’s supply chain in order to make it faster and/or achieve cost savings.
- On the basis of transportation mode, roadways are the leading transportation mode in the global logistics market, accounting for the nearly two-thirds of the overall market share. Other major transportation modes include railways, seaways and airways.
- Based on end-use, manufacturing dominates the market, holding around a fifth of the global share. Manufacturing is followed by consumer goods and retail, healthcare, food and beverage, IT hardware and telecom, automotive, oil and gas, constructions and others.
- Region-wise, Asia Pacific enjoys the leading position in the global logistics market, accounting for a third of the total market share. Other regional markets include Europe, North America, Latin America, and Middle East and Africa.
- The competitive landscape of the market is fragmented in nature with some of the key players being C.H. Robinson Worldwide, Inc., J. B. Hunt Transport Services, FedEx Corp., Ceva Holdings LLC, Expeditors International of Washington Inc., United Parcel Service, Inc., Kenco Group, XPO Logistics Inc., Americold Logistics, LLC, Deutsche Post DHL Group, and DSV Air & Sea Inc.
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