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The project logistics market size is forecast to increase by USD 59.41 billion, at a CAGR of 4.3% between 2023 and 2028. Market expansion hinges on multiple factors, including the uptick in construction activities, the intricate nature of in-house logistics operations, and the escalating demand for project logistics within the automotive sector. The construction industry's growth trajectory, spurred by infrastructure development and urbanization projects, amplifies the need for efficient logistics solutions to manage material transportation and site coordination effectively. Concurrently, organization grapple with the challenges of optimizing their internal logistics processes, driving a heightened interest in outsourcing logistics functions to specialized service providers. Moreover, the automotive industry's dynamic landscape, marked by globalization and supply chain complexities, fuels the demand for specialized project logistics services to ensure seamless coordination and timely delivery of components across global manufacturing hubs. As these trends converge, the project logistics market experiences robust growth opportunities, driven by evolving industry dynamics and the imperative for streamlined supply chain management. Our report examines historical data from 2018 to 2022, besides analyzing the current market scenario.
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The market is undergoing a transformation with the adoption of modularization and offsite construction, leveraging ISO containers for efficient international trade. It addresses domestic logistics costs and overseas logistics costs while offering diverse service offerings across various industries served. Heavy cargo haulage companies play a vital role in managing, processing, and controlling the flow of goods through advanced technologies like driverless cars and blockchains within the logistics ecosystem. This market also caters to the needs of renewable energy projects and involves intermediate suppliers in its operations.
This market report extensively covers market segmentation by end-user (oil and gas/mining/and quarrying, construction, energy and power, and others), service (transportation, warehousing, and inventory management 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 2018 to 2022.
The market share growth by the oil and gas/mining/and quarrying segment will be significant during the forecast period. The oil and gas/mining/ and quarrying segment by end-user dominated the market in focus in 2022. It is expected to witness steady. This is primarily because of the rising demand for oil and gas exploration and production projects.
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The oil and gas/mining/ and quarrying segment was the largest and was valued at USD 111.62 billion in 2018. With densely populated countries such as India and China rapidly reaching this particular mark, the demand for metals and minerals is expected to grow consistently. Only a prolonged period of economic recession or a global environmental or social disaster can disrupt this growth. The demand for metals and minerals will lead to increased mining activities. This is expected to increase the demand for transportation and logistics services, thereby driving the growth of the oil and gas/ mining/ and quarrying segment of the global project logistics market during the forecast period.
Based on the service, the market has been segmented into transportation, warehousing, and inventory management and others. The transportation?segment will account for the largest share of this segment.?The major industries in which project logistics transportation services are offered include oil and gas, shipbuilding, refineries, power generation, mining, and transportation. Moreover, construction companies are progressively expanding their footprint across the globe. This will result in intra-regional trade and the relocation of production units from one region to another. The increasing construction activities across the globe because of the rising rate of industrialization and urbanization will trigger the demand for transportation services, which will propel the growth of the global project logistics market during the forecast period.
APAC is estimated to contribute 48% to the growth of the global 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. APAC is expected to be the most dominant geographical region in the global project logistics market during the forecast period, mainly due to the presence of numerous emerging economies such as India, China, Indonesia, and Malaysia. These countries witnessed an increase in the number of construction projects over the last few years, and the trend is expected to continue during the forecast period as well. The main end-user industries that are focusing on constructing production facilities in APAC include FMCG, consumer electronics, foods and beverages, fashion, and retail.
Consequently, these industries are exhibiting huge expansion potential in the region owing to the growing population of the region and the rising income levels of consumers. For instance, PepsiCo India Holdings Pvt. Ltd. announced its plans to deploy USD 23.84 million in its largest greenfield foods manufacturing factory, which produces the famous Lay's potato chips at Kosi Kalan, Mathura, Uttar Pradesh, in June 2022. Therefore, such expansion initiatives are estimated to fuel the demand for logistics and warehousing services, driving the growth of the project logistics market in APAC during the forecast period.
The market is evolving rapidly, integrating modularization and offsite construction techniques along with ISO containers to facilitate international trade while addressing domestic logistics costs and overseas logistics costs. Diverse service offerings cater to various sectors, with a focus on heavy cargo logistics. Heavy cargo haulage companies and transporter play crucial roles in managing and controlling logistics operations. The market aligns with the goals of organizations like the International Energy Agency, ensuring efficient and sustainable project execution. Our researchers analyzed the data with 2023 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 demand for project logistics from the automotive industry is notably driving the market growth. The automotive supply chain is spread across the globe. Logistics operations need to be seamless to deliver a wide range of pre-assembled products, which include the smallest components, such as screws and other spare parts. Therefore, logistics in the automotive industry are complex and can be highly challenging. Further, automotive manufacturers and suppliers are exposed to high costs because of the highly dynamic environment framed by the continuously varying customer requirements and the high pressure from competitors.
Utilizing logistics services software helps automotive companies manage these complexities efficiently. This software integrates functionalities such as supply chain visibility, inventory management, route optimization, and real-time tracking, crucial for handling the intricacies of automotive logistics. With the rise in the number of automobiles, there will be an increase in the number of production units requiring streamlined logistics operations. The adoption of advanced logistics services software enables automotive businesses to optimize their supply chains, reduce costs, improve delivery times, and enhance overall operational efficiency amidst the demanding market conditions and competitive pressures.
For instance, Toyota Motor Corp. (Toyota) and Mazda Motor Corp. (Mazda) are expected to open a new automotive plant in Alabama, US, by the end of 2022. The new plant is expected to produce over 300,000 cars per year, employing over 4,000 people. The construction of new automobile production plants is expected to propel the demand for project logistics services, which are required to transport machinery, equipment, and raw materials. This, in turn, will drive the growth of the global project logistics market during the forecast period. Additionally, the APAC logistics market, encompassing countries like China, Japan, and India, plays a pivotal role in global supply chains, particularly in manufacturing and automotive sectors.
Digitization of logistics is an emerging trend shaping the market growth. Logistics is the most imperative part of a supply chain. Integrating supply chain activities with digital practices can enhance logistics operations. The Internet of Things (IoT) holds a significant place as an extremely transformative technological solution in the logistics domain. It is a system of interconnected computing devices that permits data transfer over several networks without any human involvement. It helps the project logistics companies manage their warehouse stock, monitor resources, optimize fleet routes, and reduce costs.
Moreover, the rising acceptance of digitization in project logistics can deliver the market players several benefits such as connected warehouses, enhanced process efficiencies, and improved customer interaction. It can also drive intelligent logistics solutions. Therefore, the digitization of logistics, including oil and gas logistics, is expected to positively influence the growth of the global project logistics market during the forecast period. Companies in the oil and gas industry are increasingly leveraging digital technologies to optimize supply chain operations, manage complex project logistics, and ensure timely delivery of equipment and materials to remote and challenging locations.
Stringent regulations for project logistics service providers are a significant challenge hindering market growth. The logistics service providers require a significant amount of time and money to familiarize their staff with the varying rules and policies of different countries. The transactions, particularly international transactions, have to comply with the continuously changing and evolving international laws. For instance, in Germany, logistics operations need to be in line with numerous laws and regulations.
In addition, the German Freight Forwarders Standard Terms and Conditions is one such important regulation in place in Germany, which must be followed by logistics operators. There are also varying rules and regulations on logistics within a country. Therefore, the increasing number of stringent rules and regulations globally, including those affecting the APAC electronics parts forward logistics market, is expected to hinder the growth of the market during the forecast period. As logistics operators in the APAC region navigate through regulations specific to electronics parts forward logistics, compliance with these stringent rules becomes crucial. The need to adapt to and comply with such regulations may pose challenges and potentially slow down the market growth as companies strive to ensure adherence while maintaining operational efficiency and competitiveness.
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.
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 market forecast 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 market forecasting report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments
In the dynamic landscape of project logistics, companies are investing in upgraded fleets and adopting industry solutions to ensure efficiency and reliability in delivering goods. Timeliness is crucial, with scheduled time being a key factor in meeting client expectations. Trained personnel manage the entire logistics chain, coordinating with shippers and utilizing modular packages for streamlined movement and storage. Competitiveness drives innovation, fostering job creation and necessitating impact analysis for sustainable growth. Various mode of transportation services, including sea and road freights, cater to diverse needs, while driverless vehicles and e-commerce shape future estimations. Investment pockets emerge amidst challenges like border restrictions and changes in human mobility patterns, highlighting the resilience and adaptability of the project logistics sector.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.3% |
Market Growth 2024-2028 |
USD 59.41 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.2 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Balmer Lawrie and Co. Ltd., C H Robinson Worldwide Inc., CEVA Logistics S A, CJ Darcl Logistics Ltd., CJ Logistics Corp., Crowley Maritime Corp., Deutsche Bahn AG, Deutsche Post AG, DSV AS, EMO Trans Inc., FedEx Corp., Hellmann Worldwide Logistics SE and Co KG, Kerry Logistics Network Ltd., Kintetsu World Express Inc., Kuehne Nagel Management AG, Nippon Express Holdings Inc., United Parcel Service Inc., XPO Inc., Mainfreight Ltd., and Fracht AG |
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, 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. |
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 End-user
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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