Transportation and Distribution
Overview of the express delivery market in Europe
Technavio’s market research analyst predicts the express delivery market in Europe to grow steadily at a CAGR of around 4% by 2021. One of the primary drivers for this market is the growing demand for express delivery services in medical and emergency healthcare sectors. Express delivery services for medical emergencies and urgent transportation of samples and specimens are vital for any hospital, medical clinics, or testing labs. Vendors in the European market are focusing on improving the delivery time of medical emergency products and samples by implementing route optimization tools to keep track of the delivery and to ensure timely delivery of the products. These vendors focus on time-definite delivery of the products as well as appropriate packaging of the healthcare products, primarily to prevent the products from getting damaged during transportation and storage. For instance, FedEx offers a wide range of specialty packaging for healthcare products during transportation, which includes safe compressor containers, thermal blankets, dry ice containers, and deep frozen solutions.
One of the latest trends gaining traction in this market is the implementation of IT-enabled technology in express delivery services. An increasing number of express delivery service providers are implementing IT-enabled services, such as GPS tracking, online tracking, communication services, automatic updating of records, 2-D barcoding, and real-time tracking to provide hassle-free services to the customers. The adoption of these IT-enable services has made business processes faster and more accurate than
Overview of the global refrigerated road transportation market
Technavio’s market research analyst predicts the global refrigerated road transportation market to grow at a CAGR of more than 26% between 2017 and 2021. The demand for refrigerated road transportation across the globe is increasing due to the rising e-commerce grocery deliveries and growing awareness among farmers and harvesters about the benefits of cold chain logistics. The growing demand for online grocery shopping has driven the market for multi-temperature refrigerated trucks and trailers. Manufacturers are increasingly integrating refrigerated trucks and trailers with multi-temperature systems to increase the operational efficiency of the delivery process and offer high-quality products. Also, the growing demand for frozen foods has propelled suppliers to equip their refrigerated units with thermal liners, computer controls, and multi-temperature systems to keep the food at the adequate temperature during transportation. One of the latest developments in the market is the rapid move towards sustainable refrigeration units to reduce environmental impact and carbon footprint refrigeration, which will be another major growth driver for the overall market in the coming years.
Owing to the growing equipment failure, the manufacturers have started installing temperature monitoring systems in the refrigerated units. Such systems enable monitoring through a fleet management software or intelligent alarm units and send messages to the drivers in case of any equipment failure. They also minimize the response time to refrigeration equipment failures by almost 70%, as the
Overview of the barge transportation market in the US
The barge transportation market in the US is anticipated to grow at a steady rate and will post a CAGR of more than 1% during the forecast period. The growth in the US petrochemical industry will drive the growth prospects for the barge transportation market in the US until the end of 2020. One of the major factors responsible for the market’s growth is the incremental demand for petrochemical shipments in the domestic market. Also, the US-refineries and petrochemical facilities were established along the navigable inland waterways because the petroleum and petrochemical industry heavily depends on the marine transportation system. In addition, many US farm belts use inland waterway system such as barges for the transportation of farm products and agricultural chemicals. Another major factor that drives the market’s growth is the development of various end-use industries such as the construction, automobile, and packaging since the petrochemicals are widely used in these industries. Moreover, petrochemical companies have increased the capacity of the plants over the US Gulf Coast, which will become operational during the forecast period. As a result, the demand for barges to transport petrochemicals will further increase.
The increasing number of construction of new tank barges and tugboats will drive the growth prospects for the market in the forthcoming years. One of the major factors responsible for the increasing usage of tank barges through inland waterway transportation is the rising demand for crude oil in the US. Also, with the increasing demand for shipping services to transport the liquid bulk cargo, the adoption of tank barges is expected to increase during the forecast period.
Competitive landscape and key vendors
The barge transportation market in the US is highly consolidated due to the presence of few
Overview of the 3PL market in Brazil
According to Technavio’s market research analysis, the 3PL market in Brazil will grow at a CAGR of close to 3% during the forecast period. The vendor’s focus on improving their businesses and operational efficiencies will compel several Brazilian companies to outsource their logistics services to the specialized 3PL players. The 3PL providers in Brazil have proficiency in handling and customizing their supply chain as per the requirements of the customers, including logistics, warehousing, cross-docking, packaging, and freight forwarding. Outsourcing logistics and other SCM-related services to 3PL providers enable companies to reduce costs by eliminating expenses related to warehousing, vehicles, and machinery. With the growing advancements of e-commerce in the retail sector, the demand for logistics facilities will also increase, thus, aiding in the overall growth of the 3PL market in Brazil.
Vendors in the market are increasingly using multimodal transportation to reduce their logistics expenses. Using a combination of several modes to transport goods, both internationally and domestically, has proved to be more convenient and economical for players. With several clients demanding shorter delivery times, logistics companies are compelled to invest in and implement multimodal transportation in the coming years owing to its massive growth potential. Also, several 3PL service providers are using upgraded technologies such as GPS-enabled transportation
Overview of the global courier, express, and parcel (CEP) market
Technavio’s market research analyst predicts the global courier, express, and parcel (CEP) market to grow steadily at a CAGR of around 6% between 2016 and 2020. The growth of the CEP market is directly proportional to the growth of the e-commerce industry. Vendors in the market are providing express and same-day delivery services by improving their logistics efficiency. They are focusing on offering several value-added services such as the assortment and grading of products, packaging, management information system (MIS) services in the logistics supply chain, mobile tracking applications, online tracking of parcels, SMS and e-mail alerts, and hub-to-spoke collection centers. Vendors in the market are also deploying global positioning system (GPS)-enabled transportation trucks for tracking, radio-frequency identification (RFID) for inventory tracking, bar coding, and management information system (MIS)-related services. The growing focus on timely transportation and delivery and efficient inventory management will augment the growth prospects for the CEP market over the forecast period.
According to this market analysis, the market will witness the dominance of integrated service providers in the coming years. At present, the market comprises vendors who either provide asset-type or non-asset-type services. However, there are growing incidences of integration among these service providers. Integrators provide all types of logistics services and have the potential to achieve economies of scale and enhanced efficiency because of reduced expenses as they handle the entire logistics processes. These vendors possess a strong IT
Overview of the global car rental market
Technavio’s market research analyst predicts the global car rental market to grow at a CAGR of around 16% by 2020. Car rental has become one of the most prominent services in the urban transport industry and is expected to witness huge growth during the forecast period owing to the increase in business travelers, rising demand for car-sharing, and the growth of megacities. Technology solution providers and automobile manufacturers are offering several innovative web-based solutions to facilitate the integration of devices such as smartphones with cars. The car rental companies are increasingly adding cars to their fleet that have advanced telematics solutions and navigation functionalities. The market is also witnessing the emergence of online mobility booking agencies and payment engines for hassle-free booking and car hiring. For instance, Audi is planning to offer high-speed wireless data connection in cars to provide access to services such as communication with parking garages to find open spaces with other connected cars. Additionally, the car rental companies are also introducing several innovative services to increase penetration in semi-urban and rural areas, which, in turn, is expected to boost the growth of the car rental market during the forecast period.
North America dominated the car rental market in 2015 and occupied around 39% of the total market revenue. Much of this region’s growth comes from the rise in accessibility and affordability of insurance and the growing popularity of car-sharing services. The increasing number of global tourists visiting Canada has also contributed to the rapid growth of the market. Factors such as an increase in business activities and growing awareness about
Technavio’s market research into the transportation and distribution industry incorporates multiple segments, including air and express delivery services, freight rail services, maritime services, seaports, terminals, and labor involved in the movement of cargo and passengers by water, pipeline services, trucking and taxi services, and barge services.
This sector is increasingly making use of advanced information systems and strategies such as intermodal containers.
Technavio’s transportation and distribution portfolio includes market reports on TMS, contract logistics, freight forwarding, refrigerated transportation, and intermodal transportation.