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Logistics Market Information Report: By Transportation Type (Airways, Waterways, Railways, Roadways), Logistic Type (First Party, Second Party, Third Party) End User (Industrial and Manufacturing, Retail, Healthcare, Oil & Gas) - Forecast 2023
Market Synopsis of Global Logistics Market
The global supply chain is growing and changing continuously, and advances in technology are helping to streamline operations in the long run. The growth of the global logistics market is directly related to the development of international trade flow and the current economic environment. It involves the integration of information, transportation, inventory, warehousing, material handling, packaging, and security. Favorable government trade policies have resulted in an increased demand for logistics services which also provides an opportunity for expansion to the existing vendors.
Logistics can be described as having the right type of product or service at the right place, at the right time, and in the right condition. The global logistics industry has grown significantly while logistics have become an important part of the business economic system and major global economic activity in the recent years. Logistic activities accelerate economic growth and productivity growth. Efficient logistics is an important determinant of a country’s competitiveness and source of employment. It is regarded as the backbone of the economy, providing an efficient and cost-effective flow of goods on which other commercial sectors depend. This comprises shipping, port-services, warehousing, transportation, and other value-added services. The boom in the e-commerce sector and expansionary policies of the FMCG firms have increased the service geography of the logistics firms. The industry has moved from being just a service provider to provider of end-to-end supply chain solutions to their customers.
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Transportation and logistics infrastructure is a constantly recurring priority in every new government policies. Economic reforms and government initiatives in terms of strengthening the manufacturing sector are expected to attract private investment. The development of transportation and logistics-related infrastructures, such as dedicated freight corridors, logistics parks, free trade warehousing zones, and container freight stations will help to improve efficiency. The government’s plan is likely to make the economy competitive by reducing logistics costs, bring down pollution levels by reducing congestion on roads, give a boost to the industry and create employment.
Geographically, the global logistics market has been divided into four major regions: North America, Europe, Asia Pacific, and Rest of the World. The Asia Pacific is accounted for the largest share of the global market in 2016, followed by North America and Europe. Asia Pacific is expected to grow at the highest CAGR during the forecast period. Increased adoption of outsourced logistics services in the region is driving the growth of the market. Increasing imports and exports along with a huge demand for logistics services due to the economic growth and urbanization are driving the manufacturers to trade across the globe. China, Japan, India, Australia, and Indonesia are the major markets in Asia Pacific region. China is the largest logistics market in the region due to a huge population in the country and the presence of a large manufacturing base.
North America is the second largest region in the market. Increasing trade activities between the Americas and Europe are driving the growth of the market in this region. Rising demand for foreign goods in Indonesia, Thailand, and India has strengthened the trade relations with the U.S. Europe is another major region in the market. Germany, the U.K., and France are the major logistics markets.
Market segmentation
The transportation and logistics industry is confronting immense changes such as digital transformation, new market entrants, changing customer expectations, and new evolving business models. For the purpose of this study, the global logistics market has been divided into three segments: transportation type, logistic type, and end-user industry. On the basis of the transportation type, the market is segmented into airways, waterways, railways, and roadways. On the basis of logistic type, the market has been segmented into first party, the second party, and third party. The second-party logistics segment accounted for the largest market share. By End-user, the market has been segmented into industrial and manufacturing, retail, healthcare, oil & gas, and others. The Manufacturing segment accounted for the largest market share. Factors such as the policy reforms that have improved the ease of doing business along with the easy availability of cheap labor contribute to the growth of the market. Moreover, globalization coupled with population growth and consumption behavior has seen ever-increasing demand for products from all corners of the world. The rise of e-commerce has added to the transport boom, and over the past decade, a considerable growth has been seen across the industry’s value chain as a whole. In terms of growth of the wider industry, logistics infrastructure will see almost across the board real growth in the years between 2017 and 2023. Global Logistics market is expected to grow at a CAGR of 7.2% during the forecast period.
Key Players
The prominent players in the global Logistics market include C.H. Robinson Worldwide, Inc. (U.S.), Ceva Holdings LLC (U.K.), FedEx Corp. (U.S.), XPO Logistics Inc. (U.S.), Expeditors International of Washington, Inc. (U.S.), DHL International GmbH (Germany), DSV Global Transports and Logistics (Denmark), A.P. Moller – Maersk (Denmark), Schenker AG (Germany), GEODIS (France), DTDC Express Limited (India) and other.
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