Cross Docking Services Market
Cross Docking Services Market (Service Type: Manufacturing Cross Docking, Distributor Cross Docking, Transportation Cross Docking, Retail Cross Docking, and Opportunistic Cross Docking; and End User: 3PL and Warehouse [e-Commerce & Retail, Healthcare & Pharmaceuticals, Food & Beverages, Automotive, Defense & Aerospace, Industrial Manufacturing, Paper, Pulp & Rubber, and Others]) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030
Press Release :
Growth of e-Commerce Sector Paves Way for Advanced Cross-docking Services
Over the past couple of decades, globalization and industrialization have played a key role in transforming supply chain models and logistics across the perishable goods space. Logistics strategies have evolved with advancements in technology, as companies continue to seek different ways to optimize their supply chain framework of certain food products with a limited life span. In recent years, the pursuit of efficient transportation and logistics in the food & beverages sector has led to the adoption of cross-docking services. Cross-docking services are increasingly being utilized across the flourishing e-Commerce sector across the world to minimize delivery times– a factor that is expected to provide a solid foundation for growth of the global cross docking services market during the forecast period.
The logistics sector is evolving at a rapid pace, owing to several factors, including advancements in technology, evolving consumer habits, and the booming e-Commerce sector. Warehouse processes and management techniques have also witnessed considerable transformation over the past decade due to which, cross-docking services are likely to gain considerable traction in the upcoming years. While some companies rely on cross-docking services upon requirement, several companies are increasingly deploying cross-docking services on a permanent basis. Cross-docking services are increasingly being used across a host of industrial sectors, including food & beverages, automotive, pharmaceuticals, paper, pulp, defense & aerospace, and healthcare. At the back of these factors, the global cross docking services market is expected to attain a market value of ~US$ 340 Bn by the end of 2030.
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Cross Docking – An Ideal Solution to Optimize Logistics Operations
Order fulfilling techniques have come a long way over the past few decades. At present, cross docking has emerged as an effective strategy that is increasingly being deployed for distribution and logistics operations of consumer goods. Several companies around the world are using cross-docking services to enhance their warehousing operations. Companies operating in the pharmaceutical sector wherein mass distribution is critical are relying on cross-docking services to strengthen their foothold in the cross docking services market.
For instance, Roche Diagnostics, one of the top tier pharmaceutical companies, continues to deploy cross-docking services to enhance efficiency levels of the distribution center based in Barcelona. Although e-Commerce and food & beverages sectors are likely to present abundant lucrative opportunities to the participants operating in the current cross docking services market, over the past few years, the pharmaceutical sector continues to implement automated and cross docking warehousing systems, particularly for medication that is stored in controlled temperatures and swift & efficient supply of stock.
Evolving Consumer Demand and e-Commerce Sector Propel Demand for Cross-docking Services
The past couple of years have witnessed an exponential growth of the e-Commerce sector as online sales continue to skyrocket. As the number of e-Commerce customers continues to grow at a rapid pace, logistics companies are striving hard to fulfill the orders in the most efficient and time-efficient manner. At the back of the evolving consumer trends, the retail sector is also witnessing a considerable change due to which, last-mile delivery strategies have emerged as a critical differentiator among logistics companies.
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Within the food & beverages industry, last-mile solutions centers are expected to optimize cross-docking capacities. Cross-docking services have garnered considerable traction from the food & beverages, as they streamline the transportation of perishable goods. The fast-paced adoption of automation and robotics across the e-Commerce sector has played an imperative role in boosting the prospects of the cross docking services market during the forecast period.
Addressing Supply Chain Bottlenecks in Retail amid COVID-19
The COVID-19 pandemic continues to present a host of supply chain challenges across a host of industrial sectors. The food & beverages sector, along with the retail sector are expected be marred with a host of challenges put forward by the COVID-19 event. Challenges across the supply chain wherein distribution and transportation are integral components require a swift response due to which, the demand for cross-docking services is likely to witness considerable growth.
While some retailers are primarily dependent on storage short-term storage solutions, other players within the retail space are increasingly focusing on deploying the most ideal cross-docking services to minimize the impact of the COVID-19 pandemic. Imports from the Asia Pacific region, particularly China have declined in the first half of 2020 due to the outbreak of COVID-19 pandemic in Wuhan. However, the demand is expected to gain pace over the second half of 2020 when normalcy is restored.
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The global cross docking services market is expected to grow at a healthy CAGR of ~6% during the forecast period. The market growth can be primarily attributed to a host of factors, including growing adoption in a host of end-use industries such as food & beverages, pharmaceutical, e-Commerce, and more, optimizing efficiency across supply chains and streamlining operations in warehouses. The cross docking services market growth will also depend on the integration of new technologies such as artificial intelligence, warehouse mapping, 5G, etc. While the COVID-19 pandemic continues to affect supply chains across a host of industries, cross-docking services are likely to gain considerable traction.
Cross Docking Services Market: Overview
- The cross docking services market is expected to register a CAGR of ~6% between 2020 and 2030. The market is projected to be driven by increasing importance and dependence on IT & digitization within the shipping industry.
- The global cross docking services market is expected to reach ~US$ 342 Bn by 2030 from ~US$ 200 Bn in 2020. Increasing focus on customer satisfaction and rising trade among countries is expected to boost the growth of the market.
- The cross docking services market in Asia Pacific and South America is anticipated to expand at a rapid pace during the forecast period, followed by Europe
- Asia Pacific is expected to remain the dominant leader in the global cross docking services market in year 2020, primarily due to large volume of trade shipment from the region
- North America is projected to witness significant growth in the global cross docking services market during the forecast period. Adoption of digital technologies in the logistics industry is expected to drive the consistent growth of the North America cross docking services market.
- The cross docking services market report provides analysis of the global cross docking services market for the period 2020 – 2030, wherein 2019 is the base year and 2020 to 2030 is the forecast period. Data for 2019 has been included as historical information.
- The report studies the cross docking services market from the perspective of different components and industry verticals
Cross Docking Services Market: Snapshot
- Asia Pacific is expected to see highest opportunity addition in the cross docking services market globally, with Europe being the next closest region
Key Growth Drivers of Cross Docking Services Market
- Increasing Importance and Dependence on IT & Digitization in Shipping Industry: Dependence on IT & digitization in almost every segment is increasing. IT & digitization in the logistics industry has optimized operations and enhanced the business of companies. It enables the market to be driven by a structured vision by integrating business potential with networking. Carriers are installing IT systems in the business to gradually enhance the business, which they need to do to sustain in this competitive world. According to United Nations Conference on Trade and Development (UNCTAD), autonomous ships, drones, and various blockchain applications with the help of IT are driving the demand for solutions related to logistics management. Digitization has drastically improved efficiencies of shipping companies by enabling the integration of artificial intelligence technologies, blockchain, Internet of Things, and robotics with shipping models. The growing dependence on IT and adoption of IT technologies is driving the growth of the cross docking services market.
- Rising Importance of Customer Satisfaction: Shipping companies are more focused on customer satisfaction and customer engagement. Client retention is the key to expand rapidly and gain a competitive edge compared to other players. Client focus is crucial in the marine freight industry as it is a service industry where client responsiveness and intangible assets need to be measured and appropriate steps need to be taken. For instance, in July 2017, Maersk launched a remote container management program for customers, which would provide location and tracking of refrigerated containers throughout its journey. Such programs and solutions are designed due to increased importance of client retention and customer satisfaction. Digitization has enhanced transparency and enabled better response to customer needs which could help shipping companies to cater more appropriately to customer needs. Medium competition in the market and the growing importance of customer satisfaction is expected to drive the cross docking services market.
Key Challenges Faced by Cross Docking Services Market Players
- Several countries have increased trade protection and changed the policy regarding shipping through waterways. This has impacted the digital transformation of the maritime freight market. For instance, rising trade tension between the United States and some of its trading partners (such as China) may impact this market. In March 2018, the United States applied tariffs to steel and aluminum imports within the framework of the North American Free Trade Agreement. In May 2018, the U.S. proceeded to apply such tariffs to imports from the European Union.
Cross Docking Services Market - Company Profile Snapshot
- The research study includes profiles of leading companies operating in the global cross docking services market. Key players profiled in the report include
- CEVA Logistics (A CMA CGM Company)
- Ryder System, Inc.
- Schneider Electric SE
- XPO Logistics
- J.B. Hunt Transport Services
- Kenco Group
- Saddle Creek Logistics Services
- Toll Holdings Limited
- Deutsche Bahn Group
- Kane Is Able, Inc.
- Delivery Lane Express, Inc.
- Kanban Logistics
- World Distribution Services,
- Cannon Hill Logistics.
- Companies are shifting toward advanced technology to gain competitive advantage in the cross docking services market apart from maintaining their position in the market.
Cross Docking Services Market – Scope of the Report
A new study on the global cross docking services market was published by Transparency Market Research (TMR). It presents a wealth of information on the key market dynamics including the drivers, market trends, and challenges, as well as the structure of the cross docking services market. TMR’s study offers valuable information about the cross docking services market, to illustrate how growth will discern during the forecast period 2020-2030.
Key indicators of market growth, which include value chain as well as supply chain analysis, and Compound Annual Growth Rate (CAGR), are elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret the quantitative growth aspects of the cross docking services market during the forecast period.
An extensive analysis of business strategies of leading market players is featured in TMR’s study on the cross docking services market. This can help readers understand principal factors to foresee growth in the cross docking services market. In this study, readers can also find specific data on the qualitative and quantitative growth avenues for the cross docking services market, which will guide market players in making apt decisions in the future.
Key Questions Answered in TMR’s Cross Docking Services Market Study
- What is the scope of growth of cross docking service companies across the globe?
- What will be the Y-o-Y growth of the cross docking services market between 2020 and 2030?
- What is the influence of the changing trends in technologies on the cross docking services market?
- Will North America continue to dominate the market for cross docking services?
- Which factors will impede the growth of the cross docking services market during the forecast period?
- Which are the leading companies in the global cross docking services market?
A unique research methodology is utilized by TMR to conduct comprehensive research on the growth of the cross docking services market, and arrive at conclusions on the future growth prospects of the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the drawn conclusions.
Secondary resources referred to by analysts during the production of the cross docking services market report include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and industry white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who contributed to the production of TMR’s study on the cross docking services market, as a primary resource.
These primary and secondary resources provided exclusive information during the interviews, which serves as a validation from cross docking services industry leaders. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the cross docking services market with accuracy. The study also uses a top-down approach to assess the numbers for each segment, and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on the future prospects of the cross docking services market more reliable and accurate.
Cross Docking Services Market – Segmentation
TMR’s study on the cross docking services market includes information divided into three sections ? by service type, end user and region. Changing industry trends and other crucial market dynamics associated with these sections of the cross docking services market are discussed in detail.