Transportation and Logistics
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 warehouse and storage market in China
Market research analysts at Technavio have predicted that the warehouse and storage market in China will grow steadily during the next four years and post a CAGR of almost 8% by 2020. This market research analysis identifies the emergence of new segments such as reverse logistics as one of the primary factors that will have a positive impact on the growth of the market in the coming years. The country’s logistics segment is becoming more mature, which resulted in the emergence of specialized segments such as reverse logistics. The introduction of consumer protection laws in the country that enable consumers to return most commodities purchased via online platforms within seven days upon receipt of the goods without giving any reason will spur the demand for reverse logistics services, in turn, resulting in the emergence of additional warehouse storage spaces.
One of the major trends that will gain traction in the coming years is the growing use of robotic operations in warehouse and storage facilities. China is currently witnessing a major rise in labor costs and suffers a shortage of skilled labor, which will induce companies to use robots for packaging operations in warehouses and storage facilities. Major e-commerce vendors such as JD.com and Alibaba Group have already started using robotic systems for various applications such as picking up, packaging, and sending goods to distribution points.
Competitive landscape and key vendors
Overview of the global polyethylene packaging market
Technavio’s market research analyst predicts that the global polyethylene packaging market will grow at a CAGR of around 5% between 2016 and 2020. The high demand for HDPE bottles is the main growth driver for the polyethylene packaging market. The increasing demand for packaged bottled products such as milk, juices, and water will predominantly drive the market during the forecast period. HDPE packaging products are more attractive as they provide more printing options over substitutes such as PET. HDPE packaging is available in various colors and helps in product differentiation. The different colors of the packaging products increase their aesthetic value and attract more consumer attention, which helps in driving more sales. Moreover, the requirement for polyethylene plastic packaging, especially for liquid drugs, will boost the growth prospects of the overall market. The properties of plastic including inertness, versatility, cleanliness, durability, sterility, transparency, and light weight make it the perfect choice for bottling complex medical products. The introduction of innovative polyethylene film options like blown films and cast films will accelerate growth prospects for the polyethylene packaging market in the coming years.
One of the major trends gaining the traction in the polyethylene packaging market is the emergence of biodegradable plastics. Biodegradable plastics can be easily decomposed by microorganisms, and reduce the toxic effect on the environment. They are made from petrochemicals with biodegradable additives. Several plastic packaging manufacturers are adopting these biomaterials, such as
Global market outlook for chemical warehousing and storage
Extensive market research carried out by the analysts has shown that the global chemical warehousing and storage market will grow at a CAGR of almost 11% by 2020. The recent increase in the demand for specialty chemicals will help in the strong growth of this market over the forecast period. The demand for specialty chemicals is increasing because these chemicals have various applications in the food, cosmetics, agricultural, and textiles industries. Some examples of specialty chemicals are adhesives, cosmetic additives, food additives, agrochemicals, polymers, and construction chemicals. Since the growth prospects for the chemical warehousing and storage market is heavily dependent on the global consumption of specialty chemicals, an increase in its global consumption will result in the strong growth of this market during the estimated period.
According to the market research analysts, eminent trends, such as increasing concerns regarding health, safety, and environment, will result in the impressive growth of this market over the next four years. Safe handling of products is one of the major concerns for the warehousing and storage providers. The safety of products plays a significant role, especially in the chemical industry. As a result, most governments require every logistics and warehouse provider in the industry to have a license. Additionally, many warehouses and storage houses also take certain measures to ensure safety. These measures
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
Overview of the global oil and gas storage service market
Market research analysts at Technavio predict that the global oil and gas storage service market will grow steadily during the next four years and post an impressive revenue of more than USD 13 billion by 2020. This market research analysis identifies the delay in oil and gas pipeline projects as one of the primary growth factors for the oil and gas storage service market. Due to the low prices, the current crude oil market appears to be significantly dormant. This has resulted in a decrease in production and delayed crude oil pipeline projects. For instance, citing low crude oil productions, Enbridge Energy Partners (EEP) put the Sandpiper crude oil pipeline project that connects North Dakota to Wisconsin in the US on hold in September 2016 and the Knight Warrior oil pipeline project in Texas was also put on hold by BlueKnight, which also cited low-production to be the major reason. This will create the need for storing oil and gas products, in turn, driving the demand for storage services in the next few years.
One of the major trends that will gain traction in the forecast period is the shift in focus toward independent oil and gas storage service companies. This will mainly attribute to the high profit margin. Independent storage companies do not store oil only for customers but also store oil for trading as well. With the expected increase in crude oil prices in the coming years, this will help independent storage companies significantly increase their profit margins. Moreover, the focus of oil companies to increase investments towards their core business will also create the need for independent oil storage
The logistics and transportation industry is a dynamic sector that has changed significantly with global economic conditions and international trade flows. The industry is broadly segmented into logistics, packaging, transportation, and warehousing.
New developments in logistics and transportation have enabled companies to work on a global scale, procure resources and materials from distant locations, and augment their distribution channels in order to cater to faraway clients.
Technavio’s logistics and transportation domain incorporates the use of extensive primary and secondary research to provide actionable insights to help our clients identify emerging markets and capitalize on key trends.
We provide extensive market data and comprehensive qualitative and quantitative analyses on essential market divisions, such as distribution, labeling, packaging, reverse logistics, service parts logistics, and warehousing.
Companies such as DB Schenker, DHL, CEVA, Hitachi Transport, Kerry Logistics, Kuehne + Nagel, Mitsubishi Logistics, and UPS are some of the key participants at the forefront of the logistics and transportation industry.