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The cross-border e-commerce logistics market size is forecast to increase by USD 80.1 billion at a CAGR of 13.29% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends. Firstly, the increasing penetration of mobile computing devices is enabling more consumers to shop online from anywhere, leading to an increase in cross-border e-commerce sales. Secondly, the adoption of blockchain technology in the logistics market is enhancing transparency, security, and efficiency in the supply chain. However, the high costs of air freight and logistics continue to pose a challenge for market growth. To mitigate these costs, players in the market are exploring alternative logistics solutions such as sea freight, rail freight, and parcel delivery services. Additionally, the use of advanced technologies like automation and robotics is helping to streamline operations and reduce costs. Overall, the market is expected to witness strong growth in the coming years, driven by these trends and the continued expansion of the global e-commerce industry.
Cross-border e-commerce, fueled by the increase in online trading, has experienced significant growth in recent years. Businesses, retailers, brands, wholesalers, B2B , and individuals increasingly rely on cross-border transportation to facilitate transactions with consumers in different countries. The international border, once a barrier, is now a facilitator of commerce, enabling the exchange of goods between populations with increasing spending power. However, the COVID-19 outbreak and subsequent lockdowns, travel bans, business shutdowns, flight cancellations, and quarantines have disrupted traditional supply chains. Freight carriers have had to adapt to border controls, health checks, and mobile computing to ensure the smooth flow of goods.
Moreover, air freight has become a preferred mode of transportation due to its speed and reliability. Moreover, blockchain technology is revolutionizing cross-border logistics by enhancing transparency, security, and traceability. The future of cross-border e-commerce logistics lies in the integration of technology and the ability to navigate the complexities of international trade regulations. The population's growing preference for online shopping and the increasing number of transactions are expected to drive the market's growth.
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 transportation segment is estimated to witness significant growth during the forecast period. The market encompasses the transportation of goods for online trading activities between international borders. This segment is driven by the burgeoning e-commerce industry and escalating government investments in logistics infrastructure. Cross-border transportation, including rail, air, water, and road freight, is crucial for businesses, retailers, brands, wholesalers, B2B and individual consumers in facilitating online shopping transactions across borders. However, trade barriers, regulations, and the outbreak of pandemics, including lockdowns, travel bans, business shutdowns, flight cancellations, quarantines, movement restrictions, border controls, and health checks, pose challenges to cross-border e-commerce logistics. Mobile computing and blockchain technology are potential solutions to streamline customs clearance and enhance security and transparency in cross-border e-commerce logistics.
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The transportation segment accounted for USD 24.60 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is experiencing significant growth due to various factors, including the increasing global population and urbanization. The middleclass population's spending power on consumer goods has increased, leading to a substantial flow of goods across borders. This trend is further fueled by the rise in digital transactions, which have become the new norm for cross-border commerce. However, ensuring security and accuracy in data and freight is crucial to prevent fraudulent activities. Logistics enterprises are investing heavily to provide versatility in data handling and real-time tracking to meet the evolving demands of the market. Future estimations indicate that investment pockets lie in advanced technologies such as automation, artificial intelligence, and blockchain to streamline cross-border logistics operations.
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.
Increasing penetration of mobile computing devices is the key driver of the market. The cross-border e-commerce market has experienced substantial growth due to the increasing trend of online trading among businesses, retailers, brands, wholesalers, and individuals. Cross-border transportation of freights has become a crucial aspect of this market, especially in developed regions where infrastructure and regulations facilitate seamless international transactions. However, trade barriers such as customs clearance, travel bans, lockdowns, business shutdowns, flight cancellations, quarantines, movement restrictions, border controls, and health checks pose challenges to the smooth flow of goods. In response, freight carriers have adopted technologies like mobile computing and blockchain to streamline processes and ensure efficient cross-border logistics. The outbreak of COVID-19 has further accelerated the adoption of these technologies, with e-commerce companies increasingly relying on air freight to meet the surging demand for online shopping. Despite these challenges, the market is expected to continue growing, driven by the convenience and accessibility of online shopping on mobile devices.
The adoption of blockchain technology in logistics market is the upcoming trend in the market. Cross-border e-commerce has experienced significant growth, with retailers, brands, wholesalers, B2B and individual consumers increasingly engaging in online trading across international borders. However, the logistics challenges associated with cross-border transportation are substantial. Freights face numerous hurdles at international borders, including trade barriers, customs clearance, and regulations. The ongoing outbreak of the novel coronavirus has added additional complexities, such as lockdowns, travel bans, business shutdowns, flight cancellations, quarantines, and movement restrictions. These factors have disrupted traditional logistics networks, leading to delays and increased costs. To address these challenges, logistics providers are turning to innovative technologies, such as blockchain. Blockchain technology offers enhanced security, visibility, and accuracy in recording digital transactions, including logistics data.
Moreover, it can help forecast and predict asset volumes more accurately, ensuring better asset utilization. Furthermore, it can prevent fraudulent activities in freight management and manage elements such as freight contracts and parts management. With the potential to revolutionize the logistics industry, leading providers are expected to adopt this technology in the coming years. This includes tracking products effectively across the logistics process, improving supply chain transparency, and ensuring compliance with regulations. For instance, Wuhan, the epicenter of the outbreak, has seen the implementation of health checks, border controls, and mobile computing to facilitate cross-border e-commerce and maintain business continuity. Air freight, in particular, is expected to benefit significantly from the adoption of blockchain technology.
The high cost of air freight and logistics is a key challenge affecting the market growth. The market is experiencing significant growth due to the increasing trend of online trading among businesses, retailers, brands, wholesalers, B2B, individuals, and consumers. However, the high costs associated with cross-border transportation, particularly air freight, pose a challenge to market expansion. Freight carriers face numerous obstacles, including international borders, trade barriers, customs clearance, movement restrictions, border controls, health checks, and quarantines, which add to the overall logistics cost. The outbreak of COVID-19 has further complicated matters with lockdowns, travel bans, business shutdowns, and flight cancellations. Mobile computing and blockchain technology are being explored to streamline processes and reduce costs. Despite these challenges, the market is expected to grow, driven by the increasing number of confirmed cases and reported deaths, which have accelerated the shift towards e-commerce and online shopping. Developed regions with strong infrastructure and favorable regulations are expected to lead the market's growth.
The market forecasting 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 market growth analysis strategies.
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.
Agility Public Warehousing Co. K.S.C.P - The offers seamless cross-border e-commerce transactions for online sellers through its efficient global trade solutions.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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.
Cross-border e-commerce, facilitated by online trading, has experienced significant growth in recent years. Businesses, retailers, brands, wholesalers, and individuals engage in B2B and B2C transactions across international borders, leading to an increase in cross-border transportation of goods. Freights, a crucial aspect of this market, face challenges due to trade barriers, infrastructure limitations, and regulations in developed regions. Travel bans, business shutdowns, lockdowns, and flight cancellations have disrupted traditional supply chains. Freight carriers have had to adapt to movement restrictions, border controls, health checks, and quarantines. The e-commerce industry's rapid expansion has led to the adoption of mobile computing and blockchain technology for customs clearance and secure transactions.
Moreover, air freight remains a popular choice for quick delivery, but its high costs limit its use for certain goods. Despite these challenges, the market continues to grow, driven by the consumer's increasing preference for online shopping and the Internet's role in global trade. The market's future growth is expected to be influenced by infrastructure development, regulatory frameworks, and technological advancements in various economies.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.29% |
Market growth 2024-2028 |
USD 80.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.46 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Alibaba Group Holding Ltd., Amazon.com Inc., AP Moller Maersk AS, Aramex International LLC, C H Robinson Worldwide Inc., CMA CGM SA Group, ContextLogic Inc., Deutsche Post AG, DSV AS, eBay Inc., FedEx Corp., GXO Logistics Inc., JD.com Inc., Kuehne Nagel Management AG, Newegg Commerce Inc., SF Express Co. Ltd., Singapore Post Ltd., United Parcel Service Inc., and XPO Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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