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The warehousing and distribution logistics market is estimated to grow by USD 72.96 billion at a CAGR of 6.2% between 2022 and 2027. The growth of the market depends on several factors, including the flourishing e-commerce industry, the increasing demand for express delivery; and good data quality and extensive automation.
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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The flourishing e-commerce industry is notably driving the market growth, although factors such as redundant procedures and cost saving 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 Driver
The flourishing e-commerce industry is notably driving market growth. The most important factors boosting the growth of the market are the increase in demand in e-commerce, increased demand for cold storage, and the emergence of last-mile deliveries along with the automation of logistics.
The economies of countries such as China, India, Brazil, and South Africa are developing. As a result, these countries are witnessing significant growth in the logistics sector, which is expected to create lucrative opportunities for the market. Additionally, the global market is expected to grow as freight forwarding services become more common in some developing countries. These factors will drive the growth of the market during the forecast period.
Significant Trend
Service providers utilizing IT potentials is an emerging trend in the market. The introduction of effective information technology has been an important trend in the warehouse and distribution logistics system. The industry was encouraged by the continuous decrease in technology prices and the increasing concentration of IT potential among transport and logistics stakeholders.
Companies have increased the use of IT to provide customers and businesses with real-time technology that updates the status of the warehouse and distribution logistics operations of the system. Therefore, trends in IT adoption can propel the focused market to positive growth during the forecast period.
Major Challenge
Redundant procedures and cost-saving are major challenges impeding the market. A product is handled more than once owing to the nature of the storage process by the warehouse workers. Having warehouse workers pass the same ticket through multiple hands is a significantly wasteful process. Although sometimes necessary, such unnecessary procedures take time and increase labor costs.
Transportation costs make up a significant portion of all costs. Rising fuel prices, which account for most of the increase in transportation costs, are a major concern for companies around the world. In connection with the increase in the price of fuel, customers practically ask for an additional surcharge, which also affects turnover and profit when fuel prices fall. These factors will hinder the market during the forecast period.
Key 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 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.
CWT - The key offerings of the company include solutions for warehousing and distribution logistics for multiple industries.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 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 share growth by the warehousing segment will be significant during the forecast period. Warehousing means storing tangible inventory for eventual sale or distribution.
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The warehousing segment was valued at USD 63.87 billion in 2017 and continued to grow until 2021. For the majority of business types that deal in tangible goods, warehousing is a crucial link in the supply chain. It may be a consumer business holding a product before it is eventually sold to a retail customer, or it may be a B2B company holding a product before it is ultimately sold to a business customer. Service providers are focusing on capacity planning, receiving incoming shipments, tracking inventory better, developing new methods of storing goods, and managing the market environment by rearranging the current inventory. The growing involvement of warehousing with e-commerce is also pushing the growth of the market. Hence, the innovation and new initiatives being taken along with e-commerce coming into existence are the factors that are expected to drive the segment growth during the forecast period.
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APAC is estimated to contribute 49% 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.
The demand is growing in countries such as India and China. However, land availability is limited near cities with increasing land costs. To tackle the challenge of land supply, developers are building multi-story warehouses. The growing regional e-commerce industry will increase the demand for multi-story warehouses. This is because e-commerce generally requires warehousing facilities such as distribution centers near cities to facilitate faster delivery. This will boost the regional market growth during the forecast period.
The introduction of Goods and Service Tax (GST) in India in 2017 has boosted the growth of the market. Furthermore, the growth of the pharmaceutical market in APAC is expected to increase the demand for warehouses and distribution logistics. India is one of the largest generic drug suppliers across the globe. Hence, the growing manufacturing and export of medicine and drugs from APAC will increase the need for warehouses and distribution logistics.
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.
The market is evolving rapidly, driven by advancements in Logistics automation, Tech-driven warehousing & logistics services, and Connectivity solutions. Stock control and Inventory management services are enhanced through Automation solution and Internet of things (IoT) solutions.
Strategic locations like Heathrow’s Cargo Terminal and facilities like Refrigerated warehouses cater to diverse needs, including handling Perishable products and Health and wellness items like Protein-based products and Vaccines. The market is also influenced by the Pharmaceutical products sector, especially with the rise of Direct-to-consumer (DTC) logistics. Last mile deliveries are optimized through Digital freight forwarding and Mode of operation strategies. French fashion e-commerce industry and players like Amazon are driving demand for Multi-modal systems and Tech-driven solutions. Overall, the market's future lies in leveraging Artificial intelligence (AI), Machine learning, and IoT Supply Chain Monitoring Devices to enhance efficiency and meet the demands of Emerging economies and Urbanization trends.
Warehousing And Distribution Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.2% |
Market growth 2023-2027 |
USD 72.96 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.8 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Americold Realty Operating Partnership LP, CEVA Logistics AG, CWT Pte. Ltd., DB Schenker, Deutsche Post AG, Expeditors International of Washington Inc., GEODIS SA, Kerry Logistics Network Ltd., Kuehne Nagel Management AG, NFI Industries, Nippon Express Holdings Inc., Penske Truck Leasing Co. LP, Ryder System Inc, Singapore Post Ltd., Tiong Nam Logistics Holdings Berhad, WHA Corp. PCL, XPO Logistics Inc., YCH Group, and Gemadept Corp. |
Market dynamics |
Parent market analysis, 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 Business Segment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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