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The retail logistics market is estimated to grow at a CAGR of 12.13% between 2022 and 2027. The size of the market is forecast to increase by USD 192.18 billion. The growth of the market depends on several factors, including the rise in international retailing, the increasing online sales owing to the rise in Internet penetration, and the increasing multimodal transportation.
This report extensively covers market segmentation by mode of transportation (roadways, railways, waterways, and airways), type (conventional retail logistics and e-commerce retail logistics), and geography (APAC, North America, Europe, South America, and Middle East and Africa). 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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Technavio categorizes the global retail logistics as a part of the global air freight and logistics market within the global transportation market. The parent global air freight and logistics market covers revenue generated by companies providing air freight transportation; courier; and logistics services, including package and mail delivery and customs agents. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increasing multimodal transportation is notably driving the market growth, although factors such as the operational inefficiencies may impede the market growth. 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.
Key Retail Logistics Market Driver
Increasing multimodal transportation is a key factor driving the growth of the global retail logistics market. Multimodal transportation refers to the combination of two or more modes of transportation, such as road, sea, air, or rail, for the movement of goods. It involves the use of a combination of trucks, railcars, aircraft, or ships in succession to each other. An efficient combination of multiple means of transportation can help cut back inventory costs, thereby keeping the costs of the merchandise under control. Multimodal transportation also helps retail businesses to transport products efficiently during outbound logistics with reduced transportation costs.
Some other advantages of multimodal transportation are a decrease in cargo-handling time, a reduction in customs controls, a decrease in costs per vehicle, and the requirement of just one contract. Such advantages encourage vendors to offer multimodal transport services to their customers. Hence, the increasing adoption of multimodal transportation will drive the growth of the market during the forecast period.
Significant Retail Logistics Market Trend
The use of sustainable logistics is the primary trend in the global retail logistics market growth. Global warming has compelled retailers in the market to make simple changes in their operations to reduce their energy requirements and carbon footprint, as well as save resources and money. Sustainable logistics aims at improving supply chain operations by implementing sustainable measures to reduce environmental pollution. As environmental issues due to pollution are continuously increasing around the world, retail logistics vendors are opting for eco-friendly strategies to garner profits as well as to attain environmental and social sustainability.
Many vendors are adopting electric vehicles for retail logistics, which is expected to significantly reduce carbon emissions during the transportation of merchandise. Sustainable approaches by vendors will also enhance their brand image at a lower expense. Hence, the use of sustainable logistics will positively impact the global retail logistics market during the forecast period.
Major Retail Logistics Market Challenge
Operational inefficiency is a major challenge to the growth of the global retail logistics market. Structuring and operating an efficient supply chain involves optimizing resources, reducing inventory, enabling greater collaboration and communication between external and internal stakeholders, and accelerating the product cycle time. Attaining adequate operational efficiency in retail logistics is a difficult task as retail supply chains generally lack transparency across key business departments, with silos of information existing in each business segment. Therefore, vendors must opt for the latest enterprise resource planning software, as traditional spreadsheets are not enough to keep pace with the functions and operations of the end-user companies.
Static spreadsheets lack the ability to efficiently keep track of the retail supply chain, which adversely impacts operations and may lead to multiple errors. Additionally, the lack of communication, collaboration, and consistency across organizations hamper the visibility across key supply chain functions. Owing to the presence of manual and bulky processes, retailers fail to manage the complexity and rapid change associated with operations. Hence, the operational inefficiency in retail logistics is expected to hinder the market growth during the forecast period.
Key Retail Logistics Market Customer Landscape
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 Retail 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.
Expeditors - The company offers retail logistics services such as custom-tailored retail logistics solutions built to optimize inventory, lead times, and shipping costs.
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 roadways segment will be significant during the forecast period. In this segment, a significant increase in global truck production will complement increased freight demand from sectors such as retail and manufacturing. In addition, trucks are the most flexible, responsive, and economical means of transport favored by merchants to transport various goods, further driving market growth. Additionally, various technological advances such as vehicle-to-vehicle communication, integrated supply chains, remote diagnostics, and autonomous driving are transforming the logistics industry, resulting in a growing global demand for road transportation services. Thus, the global retail logistics market is expected to witness high growth during the forecast period.
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The roadways segment was valued at USD 53.40 billion in 2017 and continue to grow by 2021. Roadways transport is defined as the transportation of goods by road. The segment is anticipated to witness substantial growth during the forecast period owing to rapid urbanization and population growth coupled with the e-commerce industry expanding across the globe. The thriving global online retail industry has demonstrated the need for fast parcel delivery. The growth of the e-commerce industry has given rise to new service requirements, such as express delivery and a new class of logistics companies. Promising future growth prospects for the e-commerce industry can soon lead to increased demand for road freight transportation due to the rapid adoption of smartphones and global Internet penetration. The growing automotive and transportation sector also contributes significantly to the expansion of the market.
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APAC is estimated to contribute 41% 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. Factor such as the increase in consumer expenditure has increased the demand for consumer goods and is driving the growth of retail logistics. With the rise in disposable incomes and the growing aging population in countries such as Japan and China, the expenditure on healthcare in this region is witnessing strong growth rates. This is resulting in an increased demand for temperature-controlled healthcare products such as biopharmaceuticals, vaccines, and clinical trial materials. Such factors fuel the demand for cold chain logistics from the healthcare industries as it helps maintain the shelf life as well as the quality of these products during transportation. This is further encouraging vendors to invest in APAC and launch new solutions that will help them cater to the growing demand from the market. These factors are expected to collectively drive the retail logistics market in this APAC during the forecast period.
In 2020, the COVID-19 outbreak negatively impacted the regional retail logistics market in the region. However, in 2021, 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 led to the lifting of stringent lockdown restrictions. This has resulted in the resumption of business and industrial activities, which has increased the demand for retail logistics as companies have moved from physical shopping to online shopping. Such factors are expected to drive the growth of the regional retail logistics market 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.
Retail Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.13% |
Market growth 2023-2027 |
USD 192.18 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
11.46 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, India, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Burris Logistics Co., C H Robinson Worldwide Inc., DB Schenker, Deutsche Post AG, DSV AS, Expeditors International of Washington Inc., FedEx Corp., Hub Group Inc., J.B. Hunt Transport Services Inc., Kenco, Kuehne Nagel Management AG, Lineage Logistics Holdings LLC, Nippon Express Holdings Inc., Penske Corp., Ryder System Inc, Schneider and Cie. AG, Total Quality Logistics LLC, Uber Technologies Inc, 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 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 Mode of Transportation
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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