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The apparel logistics market size is forecast to increase by USD 40.17 billion, at a CAGR of 6.52% between 2022 and 2027.
The growth of the market depends on several factors such as the fast replenishment cycle in apparel industry, the growing adoption of omni channel retailing, and the growing automation in warehousing. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 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 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.
Moreover, the demand for LTL services has led providers such as FedEx and UPS to integrate last-mile delivery services, so shortening the supply chain and minimizing lead time are the main reasons for adopting the LTL model. 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 on a daily basis. For example, the average price of diesel in the US is USD 5.14 per gallon in 2022, but in 2017 it was USD 2.52 per gallon, which is very high and has a negative impact on players.
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 36.28 billion in 2017. 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, 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 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 report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Analyst Overview
The market is witnessing significant transformations driven by the integration of advanced technologies in the industry. Clothing manufacturers and retailers are adapting to meet evolving consumer expectations in the dynamic fashion industry. The sector has shown resilience, especially with the surge in demand for personal protective equipment (PPE) kits. The incorporation of RFID tags and the strategic use of artificial intelligence (AI) in the supply chain are revolutionizing how the market operates.
The market, characterized by fast replenishment cycles and the fast-fashion business model, is at the forefront of adopting new technologies. The industry is playing a crucial role in ensuring the efficient movement of nonessential goods and maintaining the flow of products in line with market demands. As the attire manufacturing industry navigates challenges, innovative solutions are proving instrumental in sustaining and enhancing the overall supply chain.
Apparel Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.52% |
Market growth 2023-2027 |
USD 40.17 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.32 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 33% |
Key countries |
US, China, India, 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, 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, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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