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The Logistics Market size is estimated to grow by USD 125.65 billion between 2022 and 2027 accelerating at a CAGR of 2.12% during the forecast period. Supply chain disruptions and shortages in skilled labor pose challenges to the growth of the market, compounded by escalating competition. The industry's expansion relies on various factors, including the burgeoning e-commerce sector, technological advancements within logistics, and the increasing industrialization in emerging economies. These dynamics drive the demand for efficient and resilient supply chain solutions, with logistics companies vying to innovate and adapt to evolving market demands. Overcoming supply chain disruptions requires agile strategies and investments in technology to enhance visibility and resilience. Additionally, addressing the shortage of skilled labor necessitates initiatives for workforce development and training. Amidst intensifying competition, differentiation through service excellence and innovation becomes paramount for logistics firms seeking sustainable growth and market leadership.
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This market research report extensively covers market segmentation by end-user (consumer goods, automotive, food and beverage, heathcare, and manufacturing and others), mode of transportation (roadways, waterways, railways, and airways), 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.
The consumer goods segment will account for a major share of the market's growth during the forecast period. In the dynamic consumer goods industry, last mile logistics has emerged as a critical factor for delivery performance and customer satisfaction. Automation, multi-modal transportation, and high-speed networks are key trends shaping the market. Green logistics solutions, blockchain, artificial intelligence, the Internet of Things, augmented reality, and digitization are transforming the sector through improved efficiency, predictive analysis, and cost savings. Machine learning, robotics, and warehouse automation are revolutionizing inventory management and order fulfillment. Autonomous vehicles, sensor technologies, and telecommunications are optimizing road transportation. Such factors will increase segment growth during the forecast period.
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The consumer goods segment was valued at USD 362.95 billion in 2017 and continued to grow until 2021. Waterways transportation, including inland waterways, rivers, canals, lakes, and coastal waters, offer eco-friendly alternatives for crossborder sales and multinational corporations. Third-party service providers, B2B and B2C ecommerce, and crossborder sales are driving the need for advanced logistics solutions in sectors such as automotive, construction, food and beverage, hospitality, retail, and healthcare, including medical devices. Operational costs remain a significant concern, with Warehouse Management Systems and predictive analysis tools helping to streamline operations. Hence, the growth of the personal care segment of the consumer goods industry will concurrently propel the growth of the global market during the forecast period.
Based on mode of transportation, the market has been segmented into roadways, waterways, railways, and airways. The market plays a significant role in the transportation of various goods, including pharmaceuticals and innovative medical devices, in both domestic and overseas markets. With the advent of the Internet, B2B and B2C e-commerce have surged, leading to increased cross-border sales and trading activity. Free trade agreements facilitate the smooth flow of goods between countries, particularly in sectors such as fintech, chemicals, defense manufacturing, petroleum, and food products. Such factors will increase segment growth during the forecast period.
APAC is estimated to contribute 45% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The market in APAC is expected to grow due to the presence of a large consumer base for both food and beverage and healthcare product suppliers. The market in APAC is experiencing significant growth due to the expanding consumer base in the food and beverage and healthcare sectors. With rising disposable incomes and an aging population in countries like Japan and China, healthcare expenditure is surging, leading to increased demand for temperature-controlled healthcare products such as biopharmaceuticals, vaccines, and clinical trial materials. Additionally, the increasing preference for organic food products in countries like China, Australia, and New Zealand due to health consciousness is driving the need for cold chain logistics from the healthcare and food industries.
Moreover, last mile logistics is a key focus area with the rise of automation, multi-modal transportation, high-speed networks, and green logistics solutions. Technologies like blockchain, artificial intelligence, the Internet of Things, augmented reality, digitization, machine learning, robotics, and warehouse automation are transforming the industry. Autonomous vehicles, predictive analysis, and sensor technologies are optimizing delivery performance and reducing operational costs. Waterways transportation, including inland waterways, rivers, canals, lakes, and coastal waters, is gaining popularity as an eco-friendly and cost-effective alternative to road transportation Such benefits of cold chain logistics will increase its demand, which, in turn, will lead to the growth of the market in this region during the forecast period.
Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Market Customer Landscape
In the logistics sector, inbound logistics, high-speed networks, and the Internet of Things (IoT) play pivotal roles in facilitating efficient operations. With the proliferation of internet usage, B2B and B2C e-commerce channels have expanded, enabling cross-border sales and access to overseas markets. Trading activity is further catalyzed by free trade agreements, fostering global commerce across various industries including pharmaceuticals, fintech, and chemicals. Food, liquids, and other goods flow seamlessly through supply chains, managed meticulously through supply chain management systems, including Third-Party Logistics (3PL) and Fourth-Party Logistics (4PL). Green logistics initiatives are gaining traction, promoting sustainability through eco-friendly practices and technologies such as blockchain, artificial intelligence, and robotics. Digitization, machine learning, and warehouse automation optimize supply chain processes, while green logistics solutions prioritize environmental conservation. As the industry continues to evolve, innovations like augmented reality and advanced logistics technologies drive efficiency and competitiveness in supply chain management. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The growth of e-commerce industry is one of the key drivers supporting the market share.The logistics sector has experienced significant growth due to the surge in e-commerce trading activity, particularly in B2B and B2C markets, driven by cross-border sales and the overseas expansion of businesses. The Internet has revolutionized the way goods are transported, with pharmaceuticals, innovative medical devices, chemicals, defense manufacturing, petroleum, food products, and other industries relying on logistics services to deliver their products efficiently.
Moreover, Logistics 4.0, which incorporates technology such as warehouse automation, route optimization, and real-time tracking, is essential for meeting the evolving demands of e-commerce and free trade agreements. Fintech solutions have also emerged to facilitate secure and seamless financial transactions in this digital age. Thus, the increase in the e-commerce industry is expected to drive the growth of the global market during the forecast period.
Sustainability and green logistics are the key market trends fueling market growth. The market has experienced significant growth, particularly in sectors such as pharmaceuticals and innovative medical devices, driven by the increasing prevalence of B2B and B2C e-commerce on the Internet. Cross-border sales and trading activity in the overseas market have become commonplace, facilitated by free trade agreements and fintech solutions.
Moreover, the logistics industry has responded by providing advanced solutions like omnichannel fulfillment and logistics 4.0 to meet the demands of e-commerce businesses. Other sectors, including chemicals, defense manufacturing, petroleum, and food products, also rely on logistics services to facilitate their trading activities. Innovations in technology, such as the Internet of Things and automation, continue to shape the logistics sector. Thus, sustainability and green logistics are expected to drive the growth of the global market during the forecast period.
Increasing competition in the logistics market is one of the factors hindering the market growth. The market has been significantly impacted by the COVID-19 pandemic, particularly in the transportation of pharmaceuticals, innovative medical devices, and other essential commodities. Disruptions in logistics have led to delays, increased costs, and decreased availability of goods and services in the global market. The Internet has become a crucial platform for B2B and B2C e-commerce, enabling cross-border sales and overseas market expansion.
Moreover, free trade agreements and fintech solutions have facilitated trading activity, but logistical challenges persist in sectors such as chemicals, defense manufacturing, petroleum, and food products. The implementation of logistics 4.0 technologies aims to enhance efficiency and resilience in the face of disruptions. Keywords: market, pharmaceuticals, medical devices, Internet, e-commerce, cross-border sales, overseas market, trading activity, free trade agreement, fintech, chemicals, defense manufacturing, petroleum, food products, logistics 4.0. Hence, such factors are expected to hamper the growth of the global market during the forecast period.
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.
AP Moller Maersk AS: The company offers logistics such as Maersk omnichannel fulfillment solutions and full truck loads.
C H Robinson Worldwide Inc.: The company offers logistics such as cross-border shipping and warehousing.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
Logistics marketing refers to the promotion and management of supply chain management and freight forwarding services. It involves the implementation of marketing strategies to attract and retain customers in the logistics industry. This can include targeted digital marketing efforts, such as search engine optimization (SEO) and social media advertising, as well as traditional marketing methods like print and television ads. Logistics companies often use technology, like Transportation Management Systems (TMS) and Warehouse Management Systems (WMS), to streamline operations and improve efficiency. These technologies can be marketed to potential clients as solutions to their logistics needs. Additionally, it may involve creating content, such as blog articles and whitepapers, to educate clients about industry trends and best practices.It also includes managing customer relationships and providing excellent customer service. This can involve implementing a customer relationship management (CRM) system, offering 24/7 support, and providing regular updates on shipments.
Moreover, it is a crucial aspect of the logistics industry, as it helps companies differentiate themselves from competitors and attract new business. It requires a deep understanding of logistics operations and the ability to effectively communicate the value of these services to potential clients. Some logistics marketing efforts may focus on specific niches, such as perishable goods or hazardous materials, while others may target broader markets. Regardless of the focus, effective logistics marketing requires a strategic approach and a deep understanding of the logistics industry. It is a complex and multifaceted field, involving a range of strategies and technologies. It requires a deep understanding of logistics operations and the ability to effectively communicate the value of these services to potential clients. Keywords: logistics marketing, supply chain management, freight forwarding, marketing strategies, digital marketing, SEO, social media advertising, Transportation Management Systems (TMS), Warehouse Management Systems (WMS), customer relationship management (CRM), customer service, logistics operations, industry trends, best practices, perishable goods, hazardous materials.
Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.12% |
Market growth 2023-2027 |
USD 125.65 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
1.1 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AP Moller Maersk AS, C H Robinson Worldwide Inc., CMA CGM SA, Deutsche Bahn AG, Deutsche Post AG, DSV AS, Emirates Logistics LLC, FedEx Corp., J B Hunt Transport Services Inc., Jenae Logistics LLC, Kenco Group Inc., Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, Mac World Logistic LLC, NFI Industries Inc., Ryder System Inc., Schneider and Cie. AG, United Parcel Service Inc., XPO Inc., and Nippon Express Holdings Inc. |
Market dynamics |
Parent market analysis, market forecast, 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 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. |
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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 End-user
7 Market Segmentation by Mode of Transportation
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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