Published on: May 14, 2024
The logistics market is estimated to grow by USD 125.65 billion between 2022 and 2027, accelerating at a CAGR of 2.12%. This growth is fueled by factors such as a globalization-driven increase in trading activity, the expansion of e-commerce industries worldwide, and the rising adoption of third-party logistics (3PL) and fourth-party logistics (4PL) services to streamline supply chain operations. Vendors in the market are implementing strategies such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches to enhance their presence in the market.
Logistics services include inbound logistics, outbound logistics, reverse logistics, and green logistics. The industry serves many sectors, including healthcare, manufacturing, aerospace, retail, and media and entertainment, and uses a variety of transportation methods such as railways, airways, roadways, and waterways. Logistics services can also be categorized into 1PL, 2PL, 3PL, and 4PL based on the level of involvement and control over supply chain activities.
Green logistics are all about minimizing environmental impact, whether through energy efficiency, sustainable packaging, a reduction in waste generation, or other methods of reducing an activity’s environmental footprint.
Environmental considerations are a growing priority for many governments and businesses. Stricter regulations combined with demand from consumers mean that an increasing number of companies are developing sustainability strategies and looking for green businesses to partner with. Green logistics companies minimize their environmental impact in many ways, including the use of EVs (Electric Vehicles), efficient transportation strategies, and other methods of reducing carbon emissions and energy consumption.
This report consists of a comprehensive analysis including market size, forecast, drivers, trends, competitive landscape, and other key industry dynamics.
Digital logistics solutions are using IoT-enabled connected devices for real-time tracking and monitoring, allowing for greater transparency and tracking. Businesses are also increasingly using automation technologies and urban warehouses in order to improve the efficiency of last-mile deliveries.
Many companies are adopting green logistics initiatives to reduce environmental impact, and multi-modal transportation systems are gaining traction as a way to optimize transportation costs and enhance supply chain efficiency.
The growth of e-commerce, both in the B2B and B2C sectors, is driving demand for logistics services, while the implementation of free trade agreements (FTAs) and advancements in technology are facilitating global trade and transportation activities.
Despite its growth potential, the logistics market faces challenges such as subpar infrastructure in certain regions, which can hinder efficient transportation and increase logistics costs. Additionally, the complexities associated with trade-related agreements and compliance requirements can cause difficulties for logistics companies operating in multiple jurisdictions. Ensuring the security and safety of hazardous materials during transportation and addressing issues related to last-mile deliveries in residential areas can also make logistics operations more complicated and costly.
APAC is projected to account for 45% of the global market by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The logistics market in APAC is expected to grow due to the presence of a large consumer base for both food and beverage and healthcare product suppliers. With the rise in disposable incomes and the growing aging population in countries such as Japan and China, the expenditure on healthcare in this region is witnessing strong growth rates. This is resulting in an increase in demand for temperature-controlled healthcare products such as biopharmaceuticals, vaccines, and clinical trial materials. Moreover, increased demand for organic food products due to the availability of certified organic dairy products and the rising health consciousness among consumers in countries such as China, Australia, and New Zealand are fueling the demand for cold chain logistics from the healthcare and food industries.
Technavio's logistics industry reports monitor the leading players in the global market along with their current and forecasted market share. Our analysis covers regional and global companies. Some of the top companies covered in our logistics market reports include:
In order to provide you with a comprehensive view of the logistics industry, our experts analyze the market from many different perspectives. Our reports help identify opportunities, risks, key competitors, and more, helping you make timely, informed decisions to optimize your position in the market.
Technavio reports insights include:
1.How do I identify key trends in the logistics market?
Technavio’s market research reports provide an analysis of current trends and how they are affecting the market. We also identify market drivers and challenges to help you discover opportunities and avoid pitfalls.
2.How do I decide which segments of the logistics market to focus on?
Every Technavio report includes detailed segmentation insights, breaking down the market in terms of product type, geography, sales channels, and more. And if you’re looking for something a little more specific, our Custom Research Solutions can tailor any report to meet your unique needs.
3.Who are the major players in the logistics market?
We provide detailed profiles on the biggest competitors in the market, including data such as business divisions, product offerings, and news. Our reports also include an overview of the competitive landscape as a whole, including the risks and opportunities that it presents.
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