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The apparel logistics market size is forecast to increase by USD 38 billion, at a CAGR of 5.9% between 2023 and 2028. The market is experiencing significant growth due to several key factors. Firstly, the fast replenishment cycle in the apparel industry necessitates efficient and agile logistics solutions. Secondly, the increasing adoption of omni-channel retailing is driving the need for seamless and integrated supply chain management. Lastly, automation in warehousing is gaining traction as a means to enhance efficiency and reduce costs. These trends are shaping the apparel logistics landscape and are expected to continue fueling market growth in the coming years. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
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In the fast-paced world of the market, a skilled labor force is essential to meet the demands of fashion retailers and their millennial customers. With multi-channel distribution and the power of data analytics, companies like DHL and FASBEE ensure the effective flow of goods from producers to final customers. The purchase of raw materials and the movement of samples are crucial steps in meeting the demanded patterns of the industry. Innovative software solutions like Fishbowl and Netsuit help streamline operations and manage associated goods. The primary goal in this market is to maintain a rapid pace while ensuring an efficient supply chain for the movement of raw materials and finished products. The Apparel Logistics Market continues to evolve, driven by the need for effective logistics solutions in the dynamic world of fashion retail. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing adoption of omni channel retailing is the key factor driving the market. The various channels include mobile devices, PCs, fixed channels, television, radio, and more. Make marketing more efficient through customized customer solutions based on purchasing patterns, website visits, loyalty programs, and other data mining techniques. The increase in internet users has led to an increase in online shopping for clothing, especially in emerging markets such as Asia.
Furthermore, players also play an important role, such as managing inventory, shipping products from manufacturers to warehouses and warehouses to stores in offline (B2B) channels, and home-delivering products in online (B2C) channels. Therefore, the global market is expected to grow significantly during the forecast period.
Increasing demand for less-than-truckload transportation in the industry is the primary trend shaping the market. The rising trend of fast fashion in the industry has significantly increased the demand for less than truckload (LTL) compared to full truckload (FTL). With the increase in sales through e-commerce platforms, the main goal is to ship products to customers as quickly as possible. Additionally, market players like XPO Logistics are planning to expand their last-mile hubs to more than 80 locations, which will drive the market during the forecast period.
Fluctuations in fuel prices is a challenge that affects the market. Transportation costs, which are one of the essential activities in services, are directly proportional to fuel prices, which fluctuate daily.
Additionally, fluctuations in fuel prices are also putting pressure on service providers. Since most logistics contracts are long-term, fluctuations in fuel prices during this period will impact the service provider's profit margins. This may impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their expansion strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The transportation segment is estimated to witness significant growth during the forecast period. Due to market trends, transportation plays an important role in apparel. The highly seasonal nature of the industry requires highly efficient transportation of products from manufacturers to distribution centers or warehouses. Because the market is so dynamic, industry players are primarily focused on reducing lead times as much as possible so that products can be on store shelves within the expected time frame.
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The transportation segment was the largest segment and was valued at USD 37.10 billion in 2018. The need to reduce overall internal costs and overall product prices has led most companies to outsource clothing manufacturing to low-cost countries in Asia, North Africa, and Latin America. Offshore clothing manufacturing opens up more opportunities for companies to transport goods across regions. Additionally, the growth of e-commerce in the industry will significantly drive the demand for transportation services. Therefore, these factors are expected to drive the market during the forecast period.
Based on the product, the market has been segmented into pre-production and trade. The pre-production?segment will account for the largest share of this segment.?Pre-production is a critical process in the global market, ensuring seamless transfer of materials and information before production begins. Due to the complexity and fragmentation of the market involved, it places special emphasis on pre-production activities. Key components include raw material sourcing, quality control, Artificial Intelligence, design prototyping, and demand forecasting. This period has been revolutionized by technological advances such as 3D modeling and AI-based design software, which help to reduce delivery times and waste. Therefore, these factors will drive the market during the forecast period.
Europe is estimated to contribute 33% to the growth of the global market during the forecast period.
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Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The top countries in the European clothing industry include the UK, France, Italy, Germany, and Spain. Because labor wages in European countries are much higher than in other developing countries, clothing manufacturers outsource their manufacturing processes to less developed countries in Asia such as Cambodia, Myanmar, and Vietnam.
Furthermore, growth in the e-commerce sector complements growth in the European market. Some well-known market players are opening new centers to enhance their infrastructure and further promote the growth of the European market. Therefore, development facilities are expected to drive the European market during the forecast period
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The Apparel Logistics Market operates in a complex web of procedures to ensure efficient inventory control and timely delivery of finished goods and personal protective equipment (PPE) Kits. As market participants adapt to evolving customer tastes and embrace technology breakthroughs, digitalization and optimization have become crucial in this revolutionary phase. Real-time data analytics, robotics, and sustainable initiatives are transforming warehouse operations, aiming to minimize the environmental impact of the garment industry. Supply chain security and transparency are paramount, with businesses seeking efficient solutions and faster delivery methods.
Furthermore, streamlining processes through innovative technologies like predictive analytics and cloud computing, apparel logistics providers cater to changing lifestyles and rising disposable income. Online apparel retailers, fueled by B2C orders, rely on artificial intelligence (AI), efficient logistics solutions, and RFID tagging for sustainability and green logistics practices. As fashion e-commerce expands, competitive intelligence, including product benchmarking and financial statements, aids companies like PVS Fulfillment-Service in staying ahead of leading competitors.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.9% |
Market growth 2024-2028 |
USD 38 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.5 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 33% |
Key countries |
US, Germany, China, UK, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Apparel Logistics Group Inc, Bollore SE, Burris Logistics Co., CMA CGM SA Group, Delhivery Ltd., Deutsche Bahn AG, Deutsche Post AG, DSV AS, Expeditors International of Washington Inc., Genex Logistics, Gulf Agency Co. Ltd., Hellmann Worldwide Logistics SE and Co KG, Kintetsu Group Holdings Co. Ltd., Kuehne Nagel Management AG, Logwin AG, NFI Industries Inc., Nippon Express Holdings Inc., PVS Fulfillment Service GmbH, and Shipbob Inc. |
Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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