Logistics Market by Model (1PL, 2PL, 3PL, 4PL), Transportation (Road, Rail, Sea, Air), End-Use Industry (Healthcare, Automotive, FMCG, Energy & Utilities, Industrial Machinery & Equipment), End-use (B2B, B2C) and Region - Global Forecast to 2027
Logistics refers to a robust network of roadways, railways, airways, and seaways engaged in storing, managing, transporting, and delivering products from their point of origin to their point of termination. Including GPS trackers, RFID sensors, and Bluetooth in cargo monitoring technologies augment the global logistics market. Advances in computing technologies, such as IoT, AI, ML, and Big Data, can also be attributed to the industry's growth.
The global logistics market is estimated to grow from USD 258.7 billion in 2022 to USD 445.8 billion by 2027, at a CAGR of 11.5%. Factors such as increasing fleet connectivity, infrastructure development and advancement of logistics management with technology integration are driving the global logistics market.
Market Dynamics
DRIVER: Increased demand in the e-commerce industry and integrated logistics management for operational excellence
Technologically enabled logistics platforms and the growing online shopping industry have strongly contributed to the growth of both the eCommerce and logistics sectors. The number of online shoppers has increased in recent years and is expected to increase by a factor of two in the coming years. According to the World E-Commerce Forum (WORLDEF), the global e-commerce volume is expected to reach USD 6.5 trillion by 2023, USD 5.5 trillion by the end of 2022, and up 14% from $4.9 trillion in 2021. The COVID-19 pandemic further triggered the spread of e-commerce. According to India Brand Equity Foundation (IBEF), the Indian eCommerce market will grow by 21.5% in 2022, reaching $74.8 billion. Adopting advanced technology based on data analytics drives the growth for global logistics sector by facilitating provisions for comparing shipping rates from multiple carriers on a single platform. It also facilitates cloud-calling for order confirmation, real-time tracking, and selecting the most cost-effective carrier partner based on various key metrics. Thus, developing and increasing the usage of integrated logistics management platforms and the growing e-commerce industry is expected to drive the global logistics market.
RESTRAINTS: Lack of uniform governance standards in the fragmented logistics industry
One of the major restraints to the widespread adoption of digital logistics is the lack of governance. High levels of fragmentation within the logistics industry need developing a standard IoT platform. Transportation and logistics businesses around the globe are focused on maximizing supply chain efficiency to sustain profitability and viability. Maintaining governance as standard as possible is necessary to avoid confusion. A common standardization in the logistics and supply chain system would make it easy and convenient for every service provider to offer a majority of solutions in one package.
OPPORTUNITIES: Emergence of various technologies such as 5G, Artificial Intelligence, Machine learning and integrated logistics
To improve the overall transportation businesses/logistics Industry, AI is actively contributing to improving safety environments for drivers and optimization of vehicle maintenance and performance. Furthermore, AI is putting in more effort and is actively involved in developing self-driving or driverless cars. AI also helps to advance other kinds of technologies in the logistics supply chain, like robotics. Around 60-65% of industry leaders believe that logistics, transportation, and supply chain will require profound transformation. This is because an AI-enabled supply chain helps to reduce operational costs significantly. AI-enabled supply chain management can help to reduce logistics costs by 15%, inventory levels by 35%, and service levels by 65%. According to various sources, 35-40% of large, mid-, and smaller organizations have successfully adopted AI capabilities for their logistics, increasing operational effectiveness and revenue. Thus, continuous developments of advanced computing technologies and integration in the supply chain are expected to drive the logistics market.
CHALLENGES: Higher upfront cost for technology adoption and regulatory checks
The varied regulatory norms accompanied by higher service delivery standards are one of the major challenges in the logistics industry. Also, the digitalization of logistics operations requires high capital investments, including installing automation equipment, software, and solutions, which incur high expenses. The initial upfront investments for newer technologies like drone delivery or establishing an integrated logistic model is one of the major challenges in the growth of the global logistic market.
Key Takeaways:
Report Metrics |
Details |
Base year for estimation | 2021 |
Forecast period | 2027 |
Market Growth and Revenue forecast | 6.8% |
Top Players | C.H. Robinson Worldwide Inc. (US), IJ.B. Hunt Transport Services (US), Ceva Holdings LLC (France), FedEx Corp (US), Expeditors International of Washington Inc. (US), XPO Logistics Inc. (US), United Parcel Service, Inc. (US), Deutsche Post (Germany), DHL Group (Germany), Americold Logistics (US), Kenco Group, LLC (US), and DSV Air & Sea Inc (UAE). |
Fastest Growing Market | Asia-Pacific |
Largest Market | Asia Pacific |
Segments covered | By Model-(1PL, 2PL, 3PL, 4PL) , By Transportation-(Roadways, Railways, Seaways, Airways) ,By End-Use Industry-(Healthcare, Automotive, FMCG, Energy & Utilities, Industrial Machinery & Equipment) ,By End use-(B2B, B2C), By Region-(Asia-Pacific, Europe, North America) |
By Model | 1PL, 2PL, 3PL, 4PL |
By Transportation | Roadways, Railways, Seaways, Airways |
By End-Use Industry | Healthcare, Automotive, FMCG, Energy & Utilities, Industrial Machinery & Equipment |
By End use | B2B, B2C |
By Region | Asia-Pacific, Europe, North America, ROW |
Key Market Players
The global logistics market is dominated by major players such as C.H. Robinson Worldwide Inc. (US), IJ.B. Hunt Transport Services (US), Ceva Holdings LLC (France), FedEx Corp (US), Expeditors International of Washington Inc. (US), XPO Logistics Inc. (US), United Parcel Service, Inc. (US), Deutsche Post (Germany), DHL Group (Germany), Americold Logistics (US), Kenco Group, LLC (US), and DSV Air & Sea Inc (UAE). These companies have strong distribution networks at a global level and offer an extensive product range. These companies adopt strategies such as new product developments, collaborations, and contracts & agreements to sustain their market position.
Recent Developments
- In October 2022, DHL compiled a list of 40 trends that will influence the direction of businesses, societies, and technologies in the global logistics community over the next decade. Decarbonization, robots, big data, supply chain diversification, and alternative energy solutions will most impact logistics transformation. Businesses are transforming logistics from a quiet, back-end operation to a strategic asset and value driver, according to DHL.
- In October 2022, DHL launched the GoGreen Plus service to help reduce CO2 emissions from road transportation. This is accomplished through carbon offsetting, which reduces carbon dioxide and other greenhouse gas emissions through investments in green transportation technologies and fuels. In contrast to offsetting, which aids in the compensation of carbon emissions through climate protection projects around the world, in setting focuses on decarbonizing road freight by investing in low- and zero-emission technologies and fuels such as electric vehicles, biogas (Bio-LNG or Bio-CNG), or hydrotreated vegetable oil (HVO).
- In August 2022, FedEx Corp., in collaboration with Ford Pro, announced that it will pilot ten Ford E-Transit vans across its FedEx SameDay City network as part of its goal to transition its entire pickup and delivery fleet to zero tailpipe emission vehicles by 2040, in line with FedEx's overall fleet electrification goal. FedEx SameDay City is the company's local shipping option, providing door-to-door delivery of time-critical parcels within hours with real-time notifications.
- In March 2022, FedEx Express, a subsidiary of FedEx Corp., collaborated with Elroy Air, a company based in the San Francisco Bay Area that is developing the world's first end-to-end autonomous vertical take-off and landing (VTOL) aerial cargo system. FedEx Express will develop plans to test Elroy Air's Chaparral autonomous air cargo system within the company's middle-mile logistics operations, moving shipments between sortation locations, in a first-of-its-kind agreement in the United States.
- In October 2019, Microsoft deployed blockchain, artificial intelligence, and the cloud for Maersk Line. The global logistics company will embrace IoT, developing a framework that will allow it to monitor every vessel in its fleet and the speed, course, and engine parameters. This system enables Maersk to optimize its routes across the 350 ports it serves in real-time.
Frequently Asked Questions (FAQ):
What is the estimated growth rate of the global logistics market?
The global logistics market is estimated to grow from USD 258.7 billion in 2022 to USD 445.8 billion by 2027, at a CAGR of 11.5%. .
Many companies operate in the global logistics market space across the globe. Do you know the key market players and what strategies have been adopted by them?
The Global logistics market is dominated by major players such as C.H. Robinson Worldwide Inc. (US), IJ.B. Hunt Transport Services (US), Ceva Holdings LLC (France), FedEx Corp (US), Expeditors International of Washington Inc. (US), XPO Logistics Inc. (US), United Parcel Service, Inc. (US), Deutsche Post (Germany), DHL Group (Germany), Americold Logistics (US), Kenco Group, LLC (US), and DSV Air & Sea Inc (UAE). These companies adopt strategies such as new product developments, collaborations, and contracts & agreements to sustain their market position.
How would the trend of the global logistics industry impact the market over the next five years?
The adoption of technologies related to advanced logistic management has been increasing among key players. Leading markets for logistics, such as China, the US, and Germany, are investing heavily in R&D infrastructure for the integrated logistics development. Heavy investments from private players are expected to cater to the growing demand for advanced logistics management. These investments would help drive the global logistics market in the next 4–5 years.
Which is the fastest-growing region for the logistics market?
Asia Oceania is estimated to register the fastest growth by 2027 due to greater investments and connectivity between the countries.
What is the key segment of logistics based on the transportation modes?
The global logistics market is divided into roadways, seaways, railways, and airways based on mode of transportation. Among these, roadways currently have a clear market dominance. .
TABLE OF CONTENT
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 RESEARCH DATA
1.4 SECONDARY DATA
1.5 PRIMARY DATA
1.6 MARKET SIZE ESTIMATION
1.6.1 BOTTOM UP APPROACH
1.6.2 TOP DOWN APPROACH
1.7 ASSUMPTIONS
1.8 LIMITATIONS
2 RESEARCH METHODOLOGY
2.1 RESEARCH DATA
2.2 SECONDARY DATA
2.2.1 KEY SECONDARY SOURCES
2.2.2 KEY DATA FROM SECONDARY SOURCES
2.3 PRIMARY DATA
2.3.1 SAMPLING TECHNIQUES & DATA COLLECTION METHODS
2.3.2 PRIMARY PARTICIPANTS
2.4 MARKET ESTIMATION
2.4.1 BOTTOM-UP APPROACH
2.4.2 TOP-DOWN APPROACH
2.5 MARKET BREAKDOWN AND DATA TRIANGULATION
2.6 FACTOR ANALYSIS
2.7 ASSUMPTIONS
2.8 LIMITATIONS
3 EXECUTIVE SUMMARY
3.1 REPORT SUMMARY
4 PREMIUM INSIGHTS
5 MARKET OVERVIEW
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.2 RESTRAINTS
5.2.3 OPPORTUNITIES
5.2.4 CHALLENGES
5.3 TRENDS/DISRUPTIONS IMPACTING LOGISTICS MARKET
5.4 SCENARIO ANALYSIS: LOGISTICS MARKET
5.4.1 REALISTIC SCENARIO
5.4.2 HIGH IMPACT SCENARIO
5.4.3 LOW IMPACT SCENARIO
5.5 PATENT ANALYSIS
5.6 SUPPLY CHAIN ANALYSIS
5.6.1 PLANNING & STRATEGY
5.6.2 SOURCING
5.6.3 MANUFACTURING/PRODUCTION
5.6.4 DELIVERY/LOGISTICS
5.6.5 RETURN SYSTEM
5.7 CASE STUDY ANALYSIS
5.8 TECHNOLOGICAL ANALYSIS
5.9 MARKET ECOSYSTEM
5.10 PORTER’S FIVE FORCES ANALYSIS
5.10.1 INTENSITY OF COMPETITIVE RIVALRY
5.10.2 THREAT OF NEW ENTRANTS
5.10.3 THREAT OF SUBSTITUTES
5.10.4 BARGAINING POWER OF SUPPLIERS
5.10.5 BARGAINING POWER OF BUYERS
5.11 REGULATORY LANDSCAPE
5.12 REGULATORY BODIES, GOVERNMENT AGENCIES & OTHER ORGANIZATIONS
5.13 KEY CONFERENCES & EVENTS IN 2022-2023
6 GLOBAL LOGISTICS MARKET, BY MODEL TYPE
6.1 INTRODUCTION
6.1.1 RESEARCH METHODOLOGY
6.1.2 ASSUMPTIONS/LIMITATIONS
6.1.3 INDUSTRY INSIGHTS
6.2 1 PL
6.3 2 PL
6.4 3 PL
6.5 4 PL
The Chapter would further be segmented at Regional Level in terms of volume & value, and considered Regions are Asia Pacific, Europe, and Americas
7 GLOBAL LOGISTICS MARKET, BY TRANSPORTATION
7.1 INTRODUCTION
7.1.1 RESEARCH METHODOLOGY
7.1.2 ASSUMPTIONS/LIMITATIONS
7.1.3 INDUSTRY INSIGHTS
7.2 ROADWAYS
7.3 SEAWAYS
7.4 RAILWAYS
7.5 AIRWAYS
The Chapter would further be segmented at Regional Level in terms of volume & value, and considered Regions are Asia Pacific, Europe, and Americas
8 GLOBAL LOGISTICS MARKET, BY END-USE INDUSTRY
8.1 INTRODUCTION
8.1.1 RESEARCH METHODOLOGY
8.1.2 ASSUMPTIONS/LIMITATIONS
8.1.3 INDUSTRY INSIGHTS
8.2 HEALTHCARE
8.3 AUTOMTOIVE
8.4 FMCG
8.5 ENERGY & UTILITIES
8.6 INDUSTRIAL MACHINERY & EQUIPMENT
The Chapter would further be segmented at Regional Level in terms of volume & value, and considered Regions are Asia Pacific, Europe, and Americas
9 GLOBAL LOGISTICS MARKET, BY END USE
9.1 INTRODUCTION
9.1.1 RESEARCH METHODOLOGY
9.1.2 ASSUMPTIONS/LIMITATIONS
9.1.3 INDUSTRY INSIGHTS
9.2 B2B
9.3 B2C
The Chapter would further be segmented at Regional Level in terms of volume & value, and considered Regions are Asia Pacific, Europe, and Americas
10 GLOBAL LOGISTICS MARKET, BY REGION
Note: The Chapter is Further Segmented by End-User and country level. The Chapter will be provided in units and USD million
10.1 INTRODUCTION
10.1.1 RESEARCH METHODOLOGY
10.1.2 ASSUMPTIONS/LIMITATIONS
10.1.3 INDUSTRY INSIGHTS
10.2 ASIA PACIFIC
10.2.1 CHINA
10.2.2 INDIA
10.2.3 JAPAN
10.2.4 SOUTH KOREA
10.2.5 REST OF ASIA PACIFIC
10.3 EUROPE
10.3.1 GERMANY
10.3.2 FRANCE
10.3.3 SPAIN
10.3.4 ITALY
10.3.5 UK
10.3.6 RUSSIA
10.3.7 REST OF EUROPE
10.4 AMERICAS
10.4.1 US
10.4.2 CANADA
10.4.3 MEXICO
10.4.4 BRAZIL
11 COMPETITIVE LANDSCAPE
11.1 OVERVIEW
11.2 GLOBAL LOGISTICS MARKET SHARE ANALYSIS, 2021
11.4 REVENUE ANALYSIS OF TOP 5 PLAYERS
11.5 COMPETITIVE EVALUATION QUADRANT: GLOBAL LOGISTICS MANUFACTURERS
11.5.1 STARS
11.5.2 EMERGING LEADERS
11.5.3 PERVASIVE PLAYERS
11.5.4 PARTICIPANTS
11.7 GLOBAL LOGISTICS MARKET: COMPANY PRODUCT FOOTPRINT
11.8 GLOBAL LOGISTICS MARKET: COMPANY APPLICATION FOOTPRINT
11.9 GLOBAL LOGISTICS MARKET: COMPETITIVE BENCHMARKING
11.10 COMPETITIVE SCENARIO
11.10.1 NEW PRODUCT LAUNCHES
11.10.2 DEALS
11.10.3 EXPANSIONS
12 COMPANY PROFILES
12.1 A.P. MOLLER – MAERSK
12.2 C.H. ROBINSON WORLDWIDE, INC.
12.3 DB SCHENKER (DEUTSCHE BAHN GROUP (DB GROUP))
12.4 DEUTSCHE POST AG (DHL GROUP)
12.5 DSV (DSV PANALPINA)
12.6 FEDEX
12.7 GEODIS
12.8 KUEHNE+NAGEL
12.9 NIPPON EXPRESS
12.10 UNITED PARCEL SERVICE, INC. (UPS)
12.11 ADDITIONAL COMPANIES
12.11.1 J.B. HUNT TRANSPORT, INC.
12.11.2 CEVA LOGISTICS
12.11.3 XPO LOGISTICS, INC.
12.11.4 KENCO
Note: Indicative list of companies and may get updated during course of the study.
Note – Each company profile will include Business Overview, Products Offered, Financial information, and Recent Developments for listed companies only
Profiles of ‘Additional players’ cover Business Overview, Products Offered, and Company’s Regional Presence
13 RECOMMENDATIONS BY MARKETSANDMARKETS
14 APPENDIX
14.1 CURRENCY & PRICING
14.2 KEY INSIGHTS OF INDUSTRY EXPERTS
14.3 DISCUSSION GUIDE
14.4 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL
14.5 AVAILABLE CUSTOMIZATIONS
14.6 RELATED REPORTS
14.7 AUTHOR DETAILS
14.8 ADDITIONAL CUSTOMIZATIONS
Growth opportunities and latent adjacency in Logistics Market