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The e-commerce logistics market size is valued to increase by USD 802.3 billion, at a CAGR of 28.2% from 2023 to 2028. Increase in cross-border e-commerce activities will drive the e-commerce logistics market.
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In the dynamic the market, businesses prioritize route optimization algorithms and freight cost optimization to streamline their supply chain operations. By implementing these strategies, companies can reduce transportation expenses by up to 15%, ensuring a significant return on investment (ROI). Furthermore, efficient returns processing reduces the cost of reverse logistics by an average of 30%, aligning with compliance requirements and enhancing customer satisfaction. Delivery time windows and predictive analytics play a crucial role in enhancing the customer delivery experience. Last-mile delivery optimization, achieved through automated guided vehicles and real-time tracking, reduces delivery times by up to 20%, leading to increased customer loyalty and repeat business. Third-party logistics providers offer benefits such as order management system integration, shipping label generation, and carrier selection process optimization, enabling businesses to focus on their core competencies while ensuring order accuracy metrics and inventory management. Warehouse automation, including robotics in logistics and warehouse management systems, optimizes warehouse space and improves overall supply chain efficiency. International logistics, including cross-border shipping, requires a transportation management system to navigate complex regulations and customs processes, ensuring compliance and reducing potential delays. E-commerce shipping and order fulfillment processes are further optimized through demand forecasting models and fulfillment center design, ensuring timely and accurate delivery to customers.
Cross-border e-commerce activities have seen significant growth and serve as the primary catalyst for market expansion.
The emergence of supermarket mini distribution centers represents a significant market trend. This trend signifies a shift towards more efficient and agile supply chain management in the retail industry.
The escalating logistics costs represent a significant challenge that hinders industry growth.
The e-commerce logistics industry 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 domestic segment is estimated to witness significant growth during the forecast period.
The market is a dynamic and evolving sector, witnessing substantial growth due to the increasing focus on enhancing the customer delivery experience. The domestic segment dominates the market, accounting for a significant market share, driven by robust economic growth and advancements in e-commerce logistics, inventory management, and order fulfillment processes. Factors such as the adoption of route optimization algorithms, freight cost optimization, and real-time tracking contribute to improved efficiency and productivity. Additionally, the integration of predictive analytics, reverse logistics, and e-commerce returns management facilitates better inventory management and order accuracy. The implementation of advanced technologies, including robotics in logistics, automated guided vehicles, and warehouse management systems, further streamlines operations and optimizes warehouse space.
The market is also witnessing a shift towards international logistics and cross-border shipping, driven by globalization and the increasing popularity of e-commerce platforms. Overall, the market is poised for continuous growth, with a focus on enhancing supply chain visibility, optimizing carrier selection processes, and improving last-mile delivery.
The Domestic segment was valued at USD 98.50 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 61% 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 in the Asia Pacific (APAC) region is experiencing significant growth, driven by the burgeoning population and surging e-commerce industry. According to The World Bank Group, the population in China and India, two major players in the APAC e-commerce market, increased to 1.41 billion and 1.42 billion, respectively, between 2023. This demographic shift has fueled the demand for goods through online channels, leading to the expansion of the e-commerce logistics sector. Major e-commerce companies in China, such as Alibaba, have capitalized on this trend, driving the market's growth in APAC.
Operational efficiency gains and cost reductions have been key factors in the market's evolution, with companies adopting advanced technologies like automation and robotics to streamline their operations. The market in APAC is poised to continue its upward trajectory, driven by the region's dynamic e-commerce landscape.
Customer Landscape of E-Commerce Logistics Industry
Companies are implementing various strategies, such as strategic alliances, e-commerce logistics market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Agility Public Warehousing Co. K.S.C.P - This company specializes in designing and implementing customizable online storefronts, updating digital catalogs, and managing orders and payments for businesses. Once the online platform is established, customers can initiate purchases, with options for both domestic and international shipping.
The industry 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 industry 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.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled E-Commerce Logistics Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 28.2% |
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Market growth 2024-2028 |
USD 802.3 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
21.6 |
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Key countries |
China, Japan, US, Germany, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
"Leverage Technavio's unparalleled research methodology and expert analysis for accurate, actionable market intelligence."
The market is experiencing significant growth as businesses strive to meet increasing consumer expectations for faster delivery times and seamless order fulfillment. One key factor driving this growth is the efficient design of warehouse layouts, which allows for faster picking and packing processes and reduces the distance traveled by workers, resulting in a 10% increase in productivity compared to traditional warehouse designs. Another critical element is the impact of route optimization software, which helps logistics providers determine the most efficient delivery routes, reducing transportation costs by up to 15% and improving delivery times. Real-time order tracking enables businesses to provide accurate and transparent delivery estimates, enhancing the customer experience. Advanced warehouse management systems, automation, and predictive maintenance tools further streamline operations, reducing order fulfillment times by up to 25% and increasing inventory accuracy by 30%. An effective returns process is also essential, with automated systems reducing processing times by 50% and improving customer satisfaction. Last-mile delivery strategies, such as same-day and two-day shipping, require efficient warehouse space optimization and the use of automated guided vehicles to ensure timely delivery. Supply chain visibility tools provide real-time information on inventory levels, transportation status, and order status, enabling better operational planning and compliance with cross-border shipping regulations. Effective package handling equipment and order management system integration are crucial for ensuring accurate and timely order fulfillment. Inventory control systems and demand forecasting models help businesses maintain optimal stock levels and reduce stockouts, while efficient picking and packing processes further enhance order accuracy and speed. Carrier selection processes are essential for ensuring on-time delivery and compliance with shipping regulations, with transportation management systems providing a centralized platform for managing carrier relationships and freight costs. The impact of these technologies on the market is significant, with market growth projected to reach 18% annually compared to traditional logistics methods.
What is the expected growth of the E-Commerce Logistics Market between 2024 and 2028?
USD 802.3 billion, at a CAGR of 28.2%
What segmentation does the market report cover?
The report is segmented by Usage (Domestic and International), Service (Transportation, Warehousing, and Others), Geography (APAC, North America, Europe, Middle East and Africa, and South America), Type (Forward logistics, Reverse logistics, Forward logistics, and Reverse logistics), Model (3PL, 4PL, Others, 3PL, 4PL, and Others), and End User (Apparel, Consumer Electronics, Automotive, Healthcare, Food and Beverage, Others, Apparel, Consumer Electronics, Automotive, Healthcare, Food and Beverage, and Others)
Which regions are analyzed in the report?
APAC, North America, Europe, Middle East and Africa, and South America
What are the key growth drivers and market challenges?
Increase in cross-border e-commerce activities, High logistics cost
Who are the major players in the E-Commerce Logistics Market?
Agility Public Warehousing Co. K.S.C.P, Aramex International LLC, C H Robinson Worldwide Inc., CMA CGM SA Group, DB Schenker, Deutsche Post AG, dotdigital Group Plc, DSV AS, eStore Logistics, FedEx Corp., Gati Ltd, GXO Logistics Inc., Kenco Group Inc., Kuehne Nagel Management AG, Nippon Express Holdings Inc., Rhenus SE and Co. KG, SF Express Co. Ltd., Sinotrans Ltd, United Parcel Service Inc., and XPO Inc.
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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 Usage
7 Market Segmentation by Service
8 Market Segmentation by Type
9 Market Segmentation by Model
10 Market Segmentation by End User
11 Customer Landscape
12 Geographic Landscape
13 Drivers, Challenges, and Opportunity/Restraints
14 Competitive Landscape
15 Competitive Analysis
16 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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