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The cross-border e-commerce logistics market size is estimated to grow by USD 80.1 billion, at a CAGR of 13.29% between 2023 and 2028. The growth of the market hinges on several key factors. Firstly, the increasing penetration of mobile computing devices has expanded access to online platforms, driving consumer engagement and transaction volumes. Secondly, the rise of cross-border e-commerce activities has broadened market reach and facilitated global trade, fostering opportunities for business expansion and revenue growth. Lastly, the proliferation of e-commerce startups has injected dynamism into the market, promoting innovation and competitive pricing strategies. These factors collectively contribute to a vibrant marketplace characterized by evolving consumer behaviors and heightened demand for seamless digital experiences, propelling the overall growth trajectory of the e-commerce sector.
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The market is pivotal amidst global dynamics like lockdowns, travel bans, and business shutdowns due to the outbreak. It facilitates seamless transportation of goods across international borders, benefiting retailers, brands, wholesalers, B2B transactions, and individuals online shoppers. Amid challenges such as flight cancellations, quarantines, and stringent border controls, logistics providers and freight carriers navigate complex regulatory environments and implement health checks to ensure safe delivery. E-commerce vendors leverage air freight and blockchain technology to enhance efficiency and transparency in supply chain management. The market's resilience is underscored by innovative solutions that enable uninterrupted online trading despite disruptions, driving spending in cross-border transactions. As the landscape evolves, logistics networks continue to adapt, supporting the growth of global e-commerce and meeting evolving consumer demands for reliable and secure international delivery services. 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.
The growth of e-commerce startups is notably driving market growth. Due to the expansion in digital payment modes, low-cost and faster mobile Internet connections, and growing comfort with shopping online among people, the e-commerce industry is expanding significantly. The thriving e-commerce industry is encouraging the growth of e-commerce startups. A large number of e-commerce startups are emerging in developing economies such as India, Brazil, and Mexico. However, more venture capitalists (VCs) are investing in e-commerce startups, and enterprises are adopting digital technologies for business expansion.
For instance, in March 2021, GoPuff, a delivery channel, and Klarna, a buy-now-pay-later service, raised over USD 1 billion in funding to boost their existing operations and expansion plans. Similarly, in June 2020, a startup in Indonesia, Ula, raised USD 10.5 million as financing for business expansion in the region. Therefore, with the growth in the number of e-commerce startups, the requirement for these services will grow, thereby driving market growth and trends during the forecast period.
Growing demand for logistics fulfilment centres is an emerging trend shaping the market growth. The rapid growth is driving both the global market and increasing the complexities in handling supply chain operations as well. Customers are looking for highly customized products, which results in the expansion of stock-keeping units (SKUs) and other data-handling intricacies in inventory management. A fulfilment centre is a location where manufacturers send products, where they are stored by third-party logistics companies, which later export them to customers after processing. As fulfilment centres are largely associated with the e-commerce industry, they provide affordable and scalable solutions for storage and other operations.
For instance, 3PL companies such as Deutsche Post, FedEx, and UPS are growing their footprint by establishing fulfilment centres. Consequently, the conventional warehouse and distribution centres are changing into mega fulfilment centres. For instance, in July 2021, Amazon India had over 60 fulfilment hubs and over 25 speciality sites devoted to Amazon Fresh products, which include groceries, everyday necessities, and consumables. These factors are anticipated to drive market growth during the forecast period.
A growing number of cargo thefts is a significant challenge hindering the market growth. Globally, cargo theft is a rising problem and impacts businesses and consumers badly. The emergence of globalization has facilitated businesses to expand their reach and deliver their products in different parts of the world. Nevertheless, this may lead to the cargo being stolen at any point between its dispatch after manufacturing and its delivery to the customer, consequently compromising its integrity and availability. Also, cargo theft can be the result of corrupt employees removing goods during transport or while receiving shipments. The most stolen commodities are food and beverage shipments, followed by manufacturing materials and consumer goods.
However, most of the cargo thefts in Europe happen owing to the lack of secure parking space for cargo trucks. Countries such as the UK and Germany lack a sufficient number of secure parking locations, which leads to an increase in cargo thefts. Hence, the growing number of cargo thefts will impact the profitability and brand image of companies, which will subsequently affect the growth of the global 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 growth 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.
Agility Public Warehousing Co. K.S.C.P - The company offers Cross-Border E-Commerce Logistics services.
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. The transportation segment of the global market covers the movement of e-commerce retail products using different modes of transport, such as rail, air, water, and roadways. The segment is expected to grow substantially during the forecast period owing to the growth of the e-commerce industry and increased government expenditure on logistics infrastructure.
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The transportation segment was the largest and was valued at USD 24.60 billion in 2018. The transportation services for cross-border e-commerce logistics are outsourced because these are highly capital-intensive and need a high level of expertise. Additionally, logistics service providers deliver different value-added transportation solutions, such as contract logistics, freight forwarding, cargo insurance, network planning, and network optimizing services. Another major part of the e-commerce industry is reverse logistics which involves the return management of the goods delivered, including inventory management and route planning. This leads to high logistics costs. The return rate is more than one-third of the total cross-border e-commerce logistics transactions in the market. Therefore, the transportation segment of the global market is expected to grow during the forecast period.
The manufacturing industry contains a variety of activities and production techniques, varying from small-scale businesses that use conventional production techniques to large-scale enterprises that manufacture intricate products. Establishments in this industry are depicted as factories, plants, and mills. The industry is growing with innovations in technologies and significant support from the governments of different countries globally. Companies deliver flexibility and efficiency by streamlining the supply chain in different ways, such as in-plant logistics, to replenish the line side on a pull basis to increase efficiency, assembly, and configuration. This provides value-added services to consumers, effective sourcing and procurement to manage to source, and purchase order management to lower component and administration costs. These innovative solutions will drive the growth of the manufacturing segment of the market in focus during the forecast period.
APAC is estimated to contribute 50% 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. Due to the presence of a large consumer base for e-commerce product suppliers in the region, the cross-border e-commerce logistics market in APAC is expected to grow. The penetration of smartphones in countries such as India and China is increasing with a rise in the disposable income of people and urbanization. The growing usage of smartphones and Internet penetration rates in these countries are supporting companies to leverage the emerging online infrastructure by employing aggressive promotional and branding strategies. This will help in targeting the untapped population in the region and influencing the existing users.
Also, the rising number of cross-border e-commerce logistics transactions is leading to a rise in the number of warehouses in APAC. This is because e-commerce generally requires warehousing facilities, such as distribution centres near cities, to facilitate faster delivery. All such factors are likely to augment the growth of the cross-border e-commerce logistics market in the region 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 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is pivotal in facilitating global trade despite challenges like trade barriers and movement restrictions triggered by outbreaks such as the Wuhan pandemic. It supports seamless transportation of goods across international border, ensuring customs clearance and compliance with regulations. With the middle-class population driving online shopping in developed regions, logistics enterprises leverage digital transactions and advanced security measures to enhance the flow of goods. Versatility in data management aids in accurate tracking and monitoring, mitigating risks like fraudulent freights. Future estimations indicate investment pockets in enhancing logistics efficiency and resilience to disruptions. As e-commerce continues to expand globally, the market evolves to meet the dynamic demands of cross-border transportation, fostering growth and innovation in logistics solutions tailored for B2B2C transactions and individual consumers alike. The confirmed cases and reported deaths data are critical for assessing accuracy and the versatility of data, while fraudulent freight poses additional challenges in logistics and transportation.
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 growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market 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. |
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
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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