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The oil and gas logistics market size is estimated to grow at a CAGR of 5.17% between 2023 and 2028. The market size is forecast to increase by USD 4.56 billion. The growth of the market depends on several factors such as the shifting of freight from over-the-road to intermodal, the surge in offshore oil and gas exploration and production activities, and the demand for contract logistics services.
The report includes a comprehensive outlook on the Oil And Gas Logistics Market, offering forecasts for the industry segmented by Application into onshore and offshore. Additionally, it categorizes Type into pipeline, railroads, and tanker and trucks and covers Geography regions, including North America, Middle East and Africa, Europe, APAC, and South America. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The demand for contract logistics services is the key factor driving market growth. Traditionally, businesses preferred to handle logistics functions in-house to exercise control and minimize risk. However, the business landscape is becoming more complex and competitive, and customers are now focusing on their core businesses. As a result, companies are investing all their resources and capital in improving the efficiency of their core businesses, leading to a shift towards third-party logistics providers. This shift is motivated by the fact that logistics can consume a significant amount of time and resources, which management wants to avoid.
Furthermore, information management has become easier, providing a clear picture of costs and transport status. Consequently, companies are focusing on their core business, leading to an increased demand for outsourcing and contributing significantly to the revenue of the global oil and gas logistics market during the forecast period.
Advances in technology to provide high-end logistics and supply chain solutions is the primary trend shaping market growth. Currently, there are only a few players in the market that offer one-stop solutions. Shippers are increasingly favoring contract logistics providers that provide a comprehensive solution and eliminate the hassle of outsourcing different tasks to multiple players. Companies outsource logistics services to contract logistics providers because they are more specialized in delivering these services. Moreover, outsourcing allows users of contract logistics to serve their customers more efficiently.
Furthermore, the use of advanced technologies in logistics services is expected to grow. Logistics service providers offer a range of IT-enabled services, such as global positioning system (GPS)-enabled transportation trucks for tracking, radio-frequency identification (RFID) for inventory tracking, bar coding, and information management system-related services. These services are more efficient in scheduling transportation, delivery, and inventory management. Thus, such factors are expected to drive the growth of the global oil and gas logistics market during the forecast period.
Varying transportation costs in various geographies is a challenge that affects market growth. Varied transportation costs pose a challenge to the APAC logistics market, as contract logistics providers face different costs of fuel, taxes, duties, fees, and government policies across countries. In the retail oil and gas market, rising costs of services have been observed due to the limited capacity of tanker trucks, which results in reduced supply and increased transportation costs.
Furthermore, transportation by rail is also challenging due to rising costs, railway congestion, and delivery time delays. This may make logistics costs unaffordable for shippers, who may prefer in-house services, thus hampering the growth of the global oil and gas logistics market.
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 Oil and Gas Logistics 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.
ACI Cargo - The company offers oil and gas logistics such as transportation distribution, customs and security, and integrated contract logistics.
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 oil and gas logistics market share growth by the onshore segment will be significant during the forecast period. This segment includes the facilities that own a large assortment of onshore crude oil and refined product infrastructure, including pipelines, terminals, trucks, railcars, and rail loading and unloading facilities. The onshore facilities and transportation assets are highly interconnected.
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The onshore segment showed a gradual increase in the market share of USD 9.43 billion in 2018. Onshore services include transporting and providing crude oil and gases to refineries and industrial users, as well as linking producers to massive interstate pipelines and refineries. Thus, such factors will drive the growth of the market segment during the forecast period.
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North America is estimated to contribute 37% 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. North America is one of the major markets for global natural gas production in terms of revenue generation, with the US being the major revenue contributor. The improvement of hydraulic fracturing and horizontal drilling and technologies has led to the exploration of a significant amount of unconventional hydrocarbon reserves in the US. The availability of large reserves, financial support, energy security concerns, and technological advancements in logistics services pertaining to gas storage and upstream logistics support are propelling the market growth.
The oil and gas logistics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
|Oil And Gas Logistics Market Scope
|Growth momentum & CAGR
|Accelerate at a CAGR of 5.17%
|Market growth 2024-2028
|USD 4.56 billion
|YoY growth 2023-2024(%)
|North America, Middle East and Africa, Europe, APAC, and South America
|Performing market contribution
|North America at 37%
|US, Canada, Saudi Arabia, China, and Russia
|Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
|Key companies profiled
|ACI Cargo, Agility Public Warehousing Co. K.S.C.P, Aramex International LLC, ASCO Group, AsstrA Associated Traffic AG, BDP International Inc., Berrio Logistics India Pvt. Ltd., Bollore SE, C H Robinson Worldwide Inc., CEVA Logistics S A, DB Schenker, DEHOCO License AG, Deutsche Post AG, Gulf Agency Co. Ltd., Halcon Primo Logistics Pte Ltd., Kuehne Nagel Management AG, NOATUM HOLDINGS SLU, Reliance Logistics Group Inc., Riada Shipping and Logistics, and Tudor International Freight Ltd.
|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 forecast period
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