Logistics - Industry - Global Market, Share and Trends 2023-2028

Summary of Logistics

Logistics is indeed a complex network that coordinates the transportation, warehousing, distribution and delivery of goods from raw materials to the final end user or customer. Advanced technologies are playing an increasingly important role in optimizing operations across the supply chain. Based on our estimates, we can say that the global logistics industry is forecasted to be a $13,085.6 billion industry in 2029 from $10,120 billion in 2023 with a CAGR of 4.36%.

For example– RFID and other real-time tracking solutions provide visibility into inventory levels and asset locations to automate replenishment processes. Cloud-based warehouse management systems also help distribute workload more efficiently across distribution centers.

The rise of e-commerce and demand for faster delivery times is also driving innovation. Technologies like AI, IoT, predictive analytics and robotics are helping automate fulfillment center workflows to accurately pick and pack high volumes of individualized orders. For last-mile delivery– new mobility models using drones, autonomous vehicles or crowdsourced labor platforms aim to lower costs relative to traditional fleets.

This report examines the key technological, operational and business model trends impacting the global logistics landscape. From the rise of e-commerce and omnichannel fulfillment to advanced automation and analytics, the industry is undergoing rapid transformation. New entrants are challenging traditional players with innovative approaches to supply chain management and last-mile delivery.

Recent Trends and Insights

The logistics market size was valued at $9.19 trillion in 2022, with e-commerce driving significant growth. Some of the major trends shape this strategically important industry to grow at an unprecedented pace. E-commerce growth is driving significant demand for fulfillment and logistics capabilities globally. This presents opportunities for firms to optimize warehouse management systems using technologies like AI, IoT and robotics to automate workflows. Last-mile delivery also remains an area of focus and investment as expectations around speed and convenience increase.

New mobility models show promise to lower costs through approaches like crowdsourced and autonomous delivery. Integrating emerging technologies while maintaining high service standards and safety will require continued testing and refinement.

Cargo-Partner– an Austrian logistics firm– announced in May 2023 that Nippon Express Co., Ltd. will acquire it for a possible sum of up to $150 million. The purchase of Cargo-Partner enhances Nippon Express’s ability to offer a variety of logistics services between Asia and Europe.

DSV has into an agreement to purchase Global Diversity Logistics and Sand M Moving Systems West, two US-based shipping and logistics companies. The acquisitions bolster DSV’s position in the semiconductor industry, complement its new Phoenix-Mesa Gateway Airport operations and improve its cross-border services to Latin America.

Second-party logistics was the sector segment growing at the quickest rate in 2022. Second-party logistics is the movement of goods by– road, rail, sea or air between supply chain transit areas. Second-party logistics businesses are asset-based carriers that use their own ships and contracted planes. Consolidation within the industry through strategic acquisitions allows larger players to complement existing geographic and service coverage. This enhances their value proposition, though integrating new operations smoothly remains important.

Product Insights

Automation technologies like autonomous mobile robots (AMRs) and goods-to-person systems are helping automate warehouse operations to improve productivity and accuracy. These solutions allow facilities to scale more cost-effectively to meet demand surges. The global logistics market is anticipated to record massive growth over the forecast period owing to the acceptance of new technologies based on data analytics.

Advanced analytics platforms utilizing IoT sensor data, machine learning and predictive algorithms to optimize asset utilization, fuel efficiency, load/route optimization and demand forecasting. This enhances visibility, efficiency and customer experience. The 4PL segment is predicted to contribute majorly towards the global market share over the forecast timeline.              

The market for global e-commerce logistics is expected to grow rapidly between 2023 and 2030, which is the forecast timeframe. The market is anticipated to expand beyond the estimated horizon in 2022 due to the constant growth rate and increasing adoption of tactics by major players. The global logistics market size was valued at $316.6 billion in 2022 and is projected to reach $1,257.6 billion by 2029, growing at a CAGR of 21.78% from 2022 to 2029.

Innovation in last-mile delivery models through approaches like crowdsourcing, micro-fulfillment centers and autonomous vehicles aims to lower costs relative to traditional fleets.

Key Companies

Some major players within this vast domain of industry are

• DSV
• DB Schenker
• GEODIS
• Kuehne+Nagel Inc.
• FedEx Corporation
• P. Moller – Maersk
• Nippon Express Co., Ltd.
• United Parcel Service of America, Inc.
• Robinson Worldwide Inc.
• FEDEX

Regional Analysis

North America is anticipated to grow at a significant CAGR during the analysis period. The region’s growth can be attributed to the existence of a well-developed infrastructure in terms of road and rail connectivity. The US is the primary logistics market, with a highly combined supply chain network that connects consumers and producers through various modes of transportation such as– express and air delivery services, rail, truck transport and maritime transport.

With the APAC region– Owing to continuing development of roads in different regions primarily in Asia Pacific and RoW and the cost effectiveness of road transport, it expected to remain the most preferred transport medium for logistics in the coming years.

This is particularly true for this market, where every sign suggests that in the coming year, the continent’s recovery will surpass that of the rest of the globe. The continent is expected to account for 57 percent of the growth of the global e-commerce logistics market between 2020 and 2025.

Within this region– the single-most-important region for global trade and logistics activities going forward. Whatever their role in the logistics ecosystem—a global logistics operator, a local specialist, an e-commerce player, or a logistics real-estate player—companies could seize opportunities now and act quickly to capture value. Those that leverage this window of opportunity to create a lasting competitive advantage and a strengthened market position will emerge from the pandemic as leaders.

Market Segmentation

By Type:

• • Transportation management systems
  • Warehouse management systems
  • Fleet management solutions
  • Asset tracking technologies
  • Order management software

By End User:

• • Third-party logistics providers
  • Manufacturers
  • E-commerce retailers
  • Wholesalers

By Enterprise Size:

• • Large logistics companies
  • Small parcel and LTL carriers
  • Startups innovating new solutions

By Region:

• • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

Our Methodology

We have offered a well-founded review of the global agriculture industry along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.