Transportation and Distribution
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
Global market outlook of rolling stock
Technavio’s market research analyst predicts the global rolling stock market to grow at a CAGR of more than 3% by 2020. The growing rail supply market is creating huge investment opportunities in the rail infrastructure projects and its aftermarket capabilities. Governments in many developing countries are heavily investing in the rail infrastructure related projects like electrifying of tracks, signaling, and urban transit systems, which has propelled the growth of the rolling stock market. Factors such as enhancements to the existing rail management system, improvement of rail tracks and building new lanes, technological development of rail control and signaling services, and the manufacture of high-speed trains and wagons are expected to increase the demand for rolling stock over the next four years.
Owing to the increasing population and rapid urbanization, several countries are expanding their high-speed rail (HSR) networks. The market in developed nations is expected to witness rapid conversion of rail lines to high-speed train lines in the coming years, which will subsequently lead to the increased demand for traction transformers. Moreover, increased mobility has surged the need for efficient public transport systems, leading to more improvements in the rail transit systems and increase in demand for passenger rail vehicles.
Segmentation by type and analysis of the rolling stock market
- Rapid transit vehicles
- Railroad cars
The rapid transit vehicles segment will continue to dominate the market during the forecast period and is expected to occupy almost 38% of the overall market share. The rapid transit vehicles
Market outlook of the global secure logistics market
Technavio’s research analyst predicts the global secure logistics market to grow at a CAGR of 9% during the forecast period. One of the primary growth drivers is a rise in cash circulation. During 2015, cash demand increased by 5% in Europe and by more than 11% in the BRICS nations. The market is expected to grow at a steady pace in established markets such as Europe and the US. The markets in APAC, MEA, and Latin America are expected to grow at a rapid pace owing to the expansion of banking and financial institutions and also because of the threat to security in these regions.
The growing affinity toward outsourcing is also expected to fuel the demand for secure logistics between 2016 and 2020. The major factor contributing to the total outsourcing of cash management and security is the rise in the number of ATMs across the world, which is projected to be around 42% by the end of 2019.
Segmentation by service type and analysis of the global secure logistics market
- Cash services
- Security services
The security services segment accounted for more than 50% of the market share during 2015 and is expected to retain its market dominance until the end of 2020. Security services include manned guarding of important locations such as airports, embassies, and public premises. The growing geopolitical tensions, terrorism, and organized crimes will lead to more stringent monitoring of high-risk locations. Both electronic and manned guarding will be in huge demand during the forecast period and will drive the growth of the market.
Segmentation by geography and analysis of the global secure logistics market
- Latin America
Overview of the global intelligent transport system market
The intelligent transport system (ITS) is an application which is designed to provide customized solutions on issues related to transportation and traffic related issues. Some of the issues addressed by the system are optimizing quality and reducing costs of implementing traffic management systems. There are several solutions available to governments and city authorities to ease and smoothen traffic in multiple areas such as freight, commercial, and toll roads. Such a system can be deployed to help prevent accidents, vehicle location detection, easing congestion and also monitoring vehicle emissions. Technavio’s market research analyst predicts the global ITS market to grow at a moderate CAGR of just over 8% during the forecast period.
With more people migrating to urban areas, intelligent transport systems are a must along with more infrastructure like roads, highways, and public transport options. Governments around the world are trying to find ways to reduce not only traffic snarls but also accident rates. Congestion also leads to higher emissions and implementing systems which have proper signal timing can help with streamlined traffic. One more way to reduce congestion to set a road use charge which can be collected electronically.
Product based segmentation and analysis of the intelligent transport system market
- Network management
- Freight and commercial ITS
- Public transport its
- Security and crime reduction ITS
- Automotive and infotainment telematics
- Road safety systems
- ITS communications
The network management segment accounted for a market share of around 42% during 2015 and is expected to retain
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.