Overview of the 3PL market in Japan
Technavio’s market research analyst predicts the3PL market in Japan to grow at a CAGR of more than 3% between 2017 and 2021. The logistics market in Japan is all set to grow during the forecast period due to growth in the e-commerce industry and increased manufacturing and exports from the automotive industry. The growing e-commerce industry will require the development of large warehouse and modernized logistics facilities to meet the demand of the consumers. Construction of logistics facilities is a capital-intensive process, which requires a huge amount of funding to build large infrastructure. Such restrictions have propelled most of the companies to outsource their logistics and supply chain operations to 3PL players. Around 90% of the businesses in Japan outsource operations to 3PL players owing to the lack of enough capital to invest in huge warehouse facilities. Moreover, with the increasing growth in cross-border e-commerce trade, several 3PL providers are extending their services to Japan, which will also be a major contributing factor to the growth of the overall market.
3PL players are increasingly making investments in IT and mobile solutions and applying cutting-edge technologies to their processes. For instance, Yamato integrates IT and logistics technologies in its supply chain. It is also involved with is the value networking design, and the whole range of new IT and LT functions to its entire operation. Many players in the market are using cloud-based solution Software-as-a-Service (SaaS) to provide strong, real-time access to data and enable timely updates on the status of logistics processes for customers. Also, the growing
Overview of the global 3PL market
The global 3PL market is anticipated to grow at a steady rate and will post a CAGR of close to 6% during the forecast period. Increasing advancements in e-commerce across the retail sector will drive the growth prospects for the global 3PL market in the forthcoming years. Some of the major factors responsible for the expansion of the e-commerce sector includes the increased adoption of the Internet and mobile services. Also, it has been observed that elements such as efficient inventory management and quick delivery are important for the operational success of this sector. As a result, the demand for efficient delivery systems, inventory management, small package deliveries, individualized shipping time, and freight forwarding are increasing.
In terms of geography, APAC accounts for the maximum market share in 2016 and will continue to dominate the market for the next few years. Some of the major factors responsible for the market’s growth in the region is the increasing outsourcing of logistics services and an increase in imports and exports across key countries. Also, the strong demand for 3PL services in APAC is due to factors like economic growth and globalization that requires manufacturers to import and export raw materials and finished goods on a global level.
Competitive landscape and key vendors
The global 3PL market is highly diversified and competitive due to the presence of a large number of regional and international vendors. The logistics market is witnessing the entry of new players due to the increasing demand for contract logistics. Though the market comprises of big and small players, it is largely dominated by small and medium enterprises. Also, since the competitive environment of the market is intensifying, vendors are increasingly focusing on gaining an edge by adapting to the changing marketplace. Furthermore,
Outlook of the global rail logistics market
According to Technavio’s market research analyst, the global rail logistics market will grow at a CAGR of nearly 4% by 2021. The recent reduction in traffic and road congestion in highways is a noteworthy factor responsible for the strong growth of this market during the forecast period. Though road freight accounts for approximately 55% of the freight transportation market in a majority of the countries, an increase in traffic congestion in highways will compel shippers to transport goods through rail, as it takes less time to carry more amount of goods in a single trip. Additionally, shipping goods through the rail network reduce the number of trucks on the road, which, in turn, leads to lesser congestion and lowers carbon emissions by almost 30%.
Eminent trends such as the integration of intelligent systems in freight cars are also expected to spur market growth until the end of 2021. Intelligent rail freight cars have integrated intelligent systems such as telematics and advanced IT and monitoring systems that help store and process data and record the status and conditions of the freight car. Furthermore, with the help of such intelligent systems, sensors and connectivity hardware installed in freight cars can help operators track the location of each freight car.
Competitive landscape and key vendors
The global rail logistics market is highly consolidated and dominated by a few global vendors due to their vast geographical presence. The market is also competitive and mostly dominated by leasing companies. Consequently, the rail logistics suppliers in this market have been compelled to develop new products that are energy and carbon
Overview of the third-party logistics market in Europe
The third-party logistics market in Europe is anticipated to grow at a steady rate and will post a CAGR of more than 3% during the forecast period. According to the market research analyst, the growing complexity of in-house logistics operations will drive the growth prospects for the third-party logistics market in Europe until the end of 2021. As per the market study report, some of the challenges encountered by shippers during the management of in-house logistics include difficulties in fleet management, a shortage of skilled drivers, a lack of IT infrastructure such as track management systems and operational issues, which eventually reduces their focus on core business areas. Moreover, the competitive analysis states that the number of manufacturers that are outsourcing their supply chain management (SCM) functions partially or completely to 3PL providers is increasing due to the increasing complexity of SCM. In addition, with the increasing benefits of outsourcing such as the increased operational efficiency and cost saving, the trend of outsourcing the logistics to 3PL players will also increase.
In terms of geography, Germany accounts for the largest share of the 3PL market in Europe in 2016 and will continue to dominate the market during the forecast period. In terms of geographic segmentation, some of the factors responsible for the market’s growth in the region includes the increased outsourcing of transportation and warehousing services and the demand for professional logistics and SCM solutions.
Competitive landscape and key vendors
The 3PL market in Europe is highly disorganized and fragmented due to new players entering the market such as local trucks and warehouse
Overview of the third-party logistics market in China
The third-party logistics market in China is anticipated to grow at a steady rate and will post a CAGR of close to 9% during the forecast period. According to the market research analyst, growing challenges such as inventory reduction and risk mitigation will drive the growth prospects for the third-party logistics market in China until the end of 2021. As per the market study report, some of the challenges a company encounters are the cost of storing the inventory, the risk of a shortage of inventory, and inefficient delivery of goods to the customers. Eventually, when these companies hire 3PL services, they transfer their inventory-related risks to the 3PL service provider to save on their inventory management costs. Moreover, the industry analyst states that the professional 3PL providers are increasingly focusing on efficient inventory flow and the timely delivery of goods to offer additional services like packaging, identifying sales trends for various type of products. In addition, some of the major reasons for outsourcing logistics include improved company focus, reduction in operating costs, more resource for other purposes, access to world-class logistics systems, and a lack of internal resources.
The market forecast shows that the increasing trend of overseas shopping will drive the growth prospects for the 3PL market in China during the forecast period. One of the major factors responsible for the increasing preference for overseas shopping is the increased internet penetration.
Competitive landscape and key vendors
The 3PL market in China is highly fragmented due to the presence of several small and medium-sized players. In this market, these vendors have to develop new technologies and stay abreast of emerging technologies to remain competitive in the market. Furthermore, it has been observed that the
Overview of the global connected logistics market
The global connected logistics market is anticipated to grow rapidly and will post a CAGR of close to 30% during the forecast period. The increasing need for the effective management of temperature-sensitive products will drive the growth prospects for the global connected logistics market during the forecast period. It has been noted that a majority of storage networks lack adequate temperature management systems that do not follow the desired temperature levels prescribed by regulatory guidelines. The lack of adequate cold chain storage systems results in the high wastage of temperature-sensitive products creates a scarcity of drugs and hampers the treatment process in the healthcare service and delivery centers. Also, the food industry is suffering from a high rate of food wastage that causes critical damage to the natural environment by disposing the food wastage using inappropriate methods. To avoid these issues, organizations are spending on technologies such as connected logistics systems that would manage these products even under fluctuating climatic conditions. These technologies include smart refrigerator systems powered by IoT, analytics, and cloud computing solutions.
The increasing innovations in mobile technology will fuel the growth prospects for the global connected logistics market until the end of 2020. Enterprises in the domestic and international markets are increasingly using mobile technologies to manage their supply chain management (SCM) and distribution systems. One of the major factors that fuel the demand for mobility trends in SCM systems is the wireless connectivity, advancements in M2M communication systems, application development, and platform integration that offers a convenient and easy access to supply chain related data. Another major factor responsible for the increase in connected logistics trend is the common platform
Logistics is a business process that involves the management and movement of goods and services from the point of origin to the point of consumption. It is a core part of supply chain management (SMC) and includes services such as freight forwarding and multimodal transport via air, ship, truck, and rail.
Technavio examines the overall logistics market scenario and market participants in detail and provides actionable information. Our logistics market research incorporates the following segments: information flow, production, inventory control, material handling, order processing, inbound and outbound logistics, contract logistics, and secure logistics. Key market participants include suppliers and vendors, manufacturers, wholesalers and retailers, and customers.
As part of this portfolio we cover industries such as pharmaceuticals, food and beverage, retail, and chemical. Technavio’s logistics portfolio includes market reports on logistics, reverse logistics, cold chain logistics, green logistics, procurement logistics, distribution logistics, after-sales logistics, and disposal.