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The e-commerce logistics market is estimated to grow at a CAGR of 20% between 2022 and 2027. The size of the market is forecast to increase by USD 404.84 billion. The growth of the market depends on several factors, including an increased surge in cross-border e-commerce transactions, an upswing in social commerce, and a proliferation of e-commerce startups.
This report extensively covers market segmentation by usage (domestic and international), service (transportation, warehousing, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). 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.
The increase in cross-border e-commerce activities is one of the key drivers supporting the global e-commerce logistics market growth. Cross-border e-commerce is significantly high in countries such as the US, China, Singapore, Indonesia, Australia, France, Mexico, and India. For instance, China, India, and the EU are the top exporters of clothing in the world. France and the US are the major exporters of beauty and personal care products. Customers' preference for cross-border e-commerce is increasing owing to the rise in per capita income and the growing accessibility to foreign brands. The increasing cross-border trade is also leading to a rise in the number of trade corridors.
Trade corridors are integrated transport networks between geographical regions to facilitate trading, and they promote economic development. These corridors comprise integrated infrastructure, such as railroads and highways, which link cities or countries. Moreover, In cross-border e-commerce, logistics plays a major role as the movement of goods depends on transportation and distribution networks. Hence, with the rise of cross-border e-commerce, a simultaneous increase in the demand for e-commerce logistics is expected during the forecast period.
The emergence of supermarket mini distribution centres is one of the key factors for the global e-commerce logistics market growth. The rise in demand for faster order fulfilment has resulted in shippers moving storage and manufacturing closer to consumers. Hence, many retailers and supermarkets are focusing on turning every store into a mini distribution centre. This approach helps in speeding up the delivery process. For instance, if somebody orders a product, it is picked up and delivered by his/her local store. This process is quicker than waiting for items to be delivered from a distribution centre.
However, some major e-commerce companies have been focusing on establishing supermarket mini-distribution centres for the faster delivery of products. For instance, in February 2018, Amazon.com, Inc, an e-commerce company, announced that people subscribing to its Prime service in four cities in the US, namely Austin, Cincinnati, Dallas, and Virginia, can get groceries from Whole Foods Market IP, L.P. delivered within just two hours of placing an order for free. As a greater number of supermarkets and stores have begun to act as mini distribution centres, e-commerce logistics are expected to become more efficient in the future.
The high logistics cost is one of the factors hindering the global e-commerce logistics market growth. The shortage of skilled labor and the rising fuel prices are increasing the overall shipping cost for e-commerce logistics. For instance, the e-commerce logistics cost in the US increased from around USD 117 billion in 2017 to approximately USD 196.2 billion in 2020. The volatility in crude oil prices is one of the major cost determinants for the increase in transportation costs, reducing the profitability of e-commerce logistics service providers. Moreover, the constant demand for lower rates from customers creates pricing pressure on e-commerce logistics service providers.
Further, there is an increase in reverse logistics. Reverse logistics refers to the cost-effective planning and management of the flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption of goods to the point of their origin. A high number of shipment returns due to product flaws and delivery failures also increases logistics costs. Such cost pressures are driving e-commerce logistics firms to switch to surface transit for deliveries, which, in turn, might affect market growth negatively.
The 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 E-Commerce Logistics Market Customer Landscape
Vendors 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.
Aramex.- The company offers to design online storefronts, update online catalogues, and manages orders and payments. After creating an online platform, customers can begin purchases that can be delivered both domestically and internationally.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the domestic segment will be significant during the forecast period. The domestic segment in the e-commerce logistics market holds the largest market share and is expected to witness significant growth in terms of market revenue when compared to the international segment during the forecast period.
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The domestic segment was valued at USD 83.22 billion in 2017 and continue to grow by 2021. Factors such as a significant movement toward digital transformation, cloud deployment and technical improvement among small and medium-sized enterprises (SMEs), and continual modernization in workforce management strategy across the globe contribute significantly to market growth. Furthermore, prominent vendors in e-commerce logistics are focusing on improving their operations and boosting overall efficiency to remain competitive in the market, which is likely to give attractive prospects for market growth during the forecast period.
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APAC is projected to contribute 57% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The e-commerce logistics market in APAC has been growing because of the growing e-commerce industry in countries such as China, India, and Japan. For instance, the e-commerce industry in China is expected to grow by more than 63% during 2018-2023. Some of the major e-commerce companies in China, such as Alibaba.com and JD.com. The market in China is quite competitive, with local and international e-commerce brands contesting for consumer attention and market share. The promising growth potential offered by the e-commerce logistics market in the region is likely to draw the interest of new vendors.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for APAC. However, in 2021, business and industrial activities resumed with the relaxation of stringent lockdown restrictions due to the availability of COVID-19 vaccines and the vaccination drives carried out by the governments of different countries such as China, India, Japan, and Singapore which increased the demand for e-commerce logistics as companies moved from physical shopping to online shopping. Moreover, many APAC countries have seen higher e-commerce adoption among internet users than the world average, as well as many mature markets. In addition, the rise in cross-border e-commerce activities, such as the sale of foreign goods, is fueling market growth in 2022, and the market is expected to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
E-Commerce Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20% |
Market growth 2023-2027 |
USD 404.84 billion |
Market structure |
Fragmented |
YoY growth (%) |
19.52 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 57% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Aramex International LLC, C H Robinson Worldwide Inc., CMA CGM SA, 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 & Co. KG, SF Express Co. Ltd., Sinotrans Ltd, United Parcel Service Inc., and XPO Logistics Inc. |
Market dynamics |
Parent market analysis, 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 report to meet your requirements. Get in touch
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 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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