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The public warehousing market size is forecast to increase by USD 59.14 billion, at a CAGR of 5.6% between 2023 and 2028. The market's growth trajectory hinges on myriad factors, including the burgeoning presence of small and medium enterprises (SMEs), heightened emphasis on reducing logistics expenses, and a pronounced shift towards optimizing last-mile delivery solutions. These dynamics collectively fuel the market's expansion, driving innovation and fostering efficiency across supply chain networks. SMEs, with their agile operations and adaptability, contribute significantly to market growth, injecting dynamism and diversity into the ecosystem. Moreover, the intensified scrutiny on curtailing logistics costs underscores the industry's concerted efforts toward operational streamlining and resource optimization. Concurrently, the escalating emphasis on enhancing last-mile delivery capabilities reflects a strategic response to evolving consumer demands for swift and seamless order fulfillment. By addressing these multifaceted factors, market players can navigate complexities, capitalize on emerging opportunities, and sustainably propel growth in the competitive landscape. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.
Market Forecast 2024-2028
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In the dynamic landscape of supply chain management, public warehousing emerges as a pivotal player. Offering flexible solutions for businesses, it caters to diverse needs, from general merchandise storage to specialized handling services. Bonded warehousing ensures seamless international trade compliance, while contract storage provides cost-effective options. Leveraging data analytics tools and cloud computing, public warehouses optimize operations, enhancing efficiency and transparency. Automation, powered by artificial intelligence and robotics, streamlines processes, reducing errors and increasing throughput. In the era of omnichannel retailing, these warehouses facilitate smooth distribution across multiple platforms. As third-party logistics services, they offer comprehensive services, including transportation and packing, meeting every aspect of the supply chain industry. The future of public warehousing lies in innovation, embracing technologies to meet evolving demands. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2028 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Globally, the number of SMEs operating in the market is increasing. As SMEs are typically limited in terms of their financial capabilities and infrastructure, they generally opt for public warehouses to fulfill their warehousing and storage needs. Thus, as the number of SMEs increases, the demand for public warehouses is also likely to increase. As per the World Bank Group, SMEs represent about 90% of the businesses and more than half of the employment across the world. Formal SMEs account for two-fifths of the GDP of emerging economies. Due to government initiatives, such as exclusive economic zones for SMEs providing better credit facilities and reduced tax rates, SMEs have been able to flourish and have been growing even in volatile markets.
As a result of these activities, the number of SMEs has increased, resulting in the creation of numerous jobs and helping the global economy. Because these SMEs typically operate on a small scale and lack a well-established infrastructure, they rely on third parties to meet their transportation and logistics needs. Thus, these businesses frequently use public warehouses to keep costs low and avoid large capital expenditures that could negatively impact their cash flow. Public warehouses allow these SMEs to use as much space as and when required without investing in workforce and technology. Thus, the growth of SMEs across the world will continue to boost the growth of the global public warehousing market during the forecast period.
Multilevel warehouses are common in densely populated Asian cities such as Tokyo, Singapore, and Hong Kong, where dense populations and limited availability of land have made it a necessity. In the more developed countries such as the US, multistory warehouses are a nascent concept. This is largely due to the difficulty of providing industrial real estate in some of the country's most populous consumer regions. Developers have to deal simultaneously with chronic land scarcity as well as city development limitations imposed to alleviate traffic congestion in the country's major cities. For instance, in the coming years, the US will witness an increase in the number of multistory warehouses. Many of these warehouses will be in major urban areas, where there is a great demand for speedy delivery and convenience. Most construction activity is now taking place in New York, Seattle, San Francisco, and Washington, DC.
Moreover, the increasing use of e-commerce by retailers has also provided momentum to overall warehousing demand, thus making multistory warehousing a greater need. As the concept of multistory warehouses gains popularity, public warehousing vendors will have to leverage this new concept to increase their capacity and attract more companies to use public warehouses. Thus, the growing popularity of multistory warehousing will boost the growth of the global public warehousing market during the forecast period.
On-demand space availability is one of the major benefits of public warehousing. However, the limited space availability, especially during peak time in the sales cycle, has become a major challenge for companies in the global public warehousing market. During peak seasons, such as festivals or sale seasons, companies require additional space to store the excess volume of goods. This requirement for additional space may not be fulfilled due to limited space available in public warehouses, thus forcing companies to find alternatives. Moreover, finding additional space for warehousing is not only a time-consuming task but also increases the overall warehousing cost. This rise in cost is attributed to the increase in transportation costs as well as the amount spent on finding a warehouse that may be priced higher.
Hence, during peak seasons, companies compete for space, especially if the private and public warehouses have reached their maximum capacity. This becomes a challenge due to the short time frame that several companies, especially retailers, deal with during their seasonal sales cycles. This challenge of limited space availability is expected to hamper the growth of the global public warehousing market during the forecast period.
The general segment will account for a major share of the market's growth during the forecast period.? The general warehousing segment includes warehouses that are used to stockpile products and do not require any special handling equipment or temperature control. Apparel, manufacturing raw materials, industrial products, various non-perishable intermediate products, automobile components, and consumer staples are stored in these warehouses. These products do not require the temperature to be adjusted to lower levels; hence, no cold storage devices are required.
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The general segment was valued at USD 102.89 billion in 2018. Furthermore, companies that export goods to other countries may not have warehousing facilities in other countries, so they rely on third-party warehouses to avoid investing in their warehouse. Furthermore, as e-commerce sales have expanded, demand for consumer goods and products such as household goods, clothes, and utility products has increased, which requires general warehousing. Thus, these factors will drive the growth of the general segment and boost the global public warehousing market during the forecast period.
Based on application, the market has been segmented into manufacturing, consumer goods, retail, healthcare, and others. The manufacturing segment will account for the largest share of this segment. Public warehousing provides manufacturers with flexibility and scalability. Instead of committing to fixed warehouse space, manufacturers can scale their storage and distribution needs based on changes in production volumes or market demand. This flexibility is particularly beneficial for businesses with varying inventory levels. Public warehousing provides manufacturers with flexibility and scalability. Instead of committing to fixed warehouse space, manufacturers can scale their storage and distribution needs based on changes in production volumes or market demand. Thus, these factors will drive the growth of the manufacturing segment and impel the global public warehousing market during the forecast period.
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APAC is estimated to contribute 52% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The rapid economic growth in many APAC countries, such as India and China, has led to increased industrialization and trade activities. This growth generates demand for warehousing services to store and distribute goods efficiently. With the rise of e-commerce, consumers in APAC have heightened expectations for faster and more reliable delivery services. Public warehousing plays a crucial role in achieving last-mile delivery efficiency.
Moreover, the ongoing infrastructure development projects in various APAC countries, such as India, including the development of logistics parks and transportation networks, contribute to the growth of the warehousing sector. Improved infrastructure enhances the efficiency of supply chain operations. For instance, in July 2023, the Ministry of Road, Transport and Highways (MoRTH) of India announced the development of 35 Multimodal Logistics Parks (MMLPs) under Bharatmala Phase 1. 6 MMLPs are undertaken by MoRTH in port cities namely Cochin (Kerala), Chennai (Tamil Nadu), Vishakhapatnam (Andhra Pradesh), Mumbai (Maharashtra), Kolkata (West Bengal), and Kandla (Gujarat). Higher consumer spending is another factor that has increased the demand for consumer goods and is ultimately driving the growth of goods manufacturing.
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.
Agility Public Warehousing Co.: The company offers public warehousing solutions with recycle zones, solar panels, xeriscaping, and drought-tolerant plants.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
K.S.C.P, CEVA Logistics S A, Deutsche Bahn AG, Deutsche Post AG, FedEx Corp., Fullers Logistics Ltd., GEODIS, Globe Express Services logistics and Shipping Co., Kenco Group Inc., Kuehne Nagel Management AG, NFI Industries Inc., Penske Corp., PiVAL International, Ryder System Inc., Saddle Creek Logistics Services, The China Fox Group Pty Ltd., United Parcel Service Inc., Warehouse Services Inc., Wincanton Plc, and XPO Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies 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 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In the realm of supply chain management, public warehousing and private warehousing emerge as a cornerstone, offering diverse solutions tailored to meet the demands of modern commerce. From transportation services to packing services, these warehouses facilitate seamless logistics operations. Efficient inventory management ensures optimal stock levels, while big data and analytics drive informed decision-making. With automation and robotics, processes are streamlined, enhancing efficiency and reducing labor shortages. Security concerns are addressed through robust measures, safeguarding sensitive items. Expanding distribution networks cater to the needs of urban customers, with on-demand storage solutions and short-term storage options available. Embracing sustainable practices, including energy-efficient lighting and waste reduction, warehouse management systems minimize their carbon footprint. As third-party logistics provider, they offer comprehensive services, including contract warehousing, dedicated warehousing, refrigerated warehousing, and multi-client warehousing, meeting every aspect of the evolving market landscape. In partnership with e-commerce platforms and industry leaders like Lineage Logistics, sustainability practices, labour shortages, public warehousing services continue to pave the way for efficient, sustainable logistics solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.6% |
Market Growth 2024-2028 |
USD 59.14 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.1 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 52% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, CEVA Logistics S A, Deutsche Bahn AG, Deutsche Post AG, FedEx Corp., Fullers Logistics Ltd., GEODIS, Globe Express Services logistics and Shipping Co., Kenco Group Inc., Kuehne Nagel Management AG, NFI Industries Inc., Penske Corp., PiVAL International, Ryder System Inc., Saddle Creek Logistics Services, The China Fox Group Pty Ltd., United Parcel Service Inc., Warehouse Services Inc., Wincanton Plc, and XPO Inc. |
Market dynamics |
Parent market analysis, Market growth analysis 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 market 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 Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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