Logistics Market: Snapshot
The growth of the global logistics market is directly related to the development of international trade flow and the current economic environment. Asia Pacific and North America appear to be the most attractive markets for logistics, particularly when it comes to contract service such as third-party logistics. Intra-regional trade in emerging markets is becoming important, especially in Asia Pacific, and this, combined with high GDP rates, is projected to continue boosting the logistics market.
The usage of logistics services in different application such as manufacturing, retail, trade and transportation, government and public utilities, healthcare, media and entertainment, telecommunication, banking and financial services, and information technology is expected to rise considerably during the forecast period, which in turn, is estimated to strengthen the growth of the logistics market globally.
The global logistics market, in terms of revenue, is set to expand from US$8.1 trillion in 2015 to US$15.5 trillion by 2023, registering a CAGR of 7.5% from 2015 to 2024. By volume, the market is expected to clock in a 6.0% CAGR from 2016 to 2024.
Roadways to continue being Most Favored Mode of Logistic Transport
Based on the type of transport infrastructure, the logistics market is segmented into roadways, waterways, railways, and airways. Road freight transport is the most widely used transport infrastructure globally and has proven to be vital to the social integration and economic development of various counties. By revenue, roadways held the dominant share and by volume, waterways accounted for the leading share in 2015.
Flexibility of operations, easy accessibility, reliability, and availability of door-to-door services have enabled road transport to gain an increasingly higher share in the logistics market, both in terms of freight traffic and passenger transport. With improved road infrastructure in economies such as North America, Europe, and Asia Pacific, road transport is likely to continue its trend as the most favored mode of logistic transport.
Based on logistics model, the market is categorized into first-party logistics, second-party logistics, third-party logistics, and others. In terms of revenue, second-party logistics constituted the leading share in the market in 2015, followed by third-party logistics.
Promising Markets in APAC Attracting Investments from Government and Logistics Companies
In 2015, Asia Pacific led the global logistics market thanks to significant contribution from countries such as China, India, Singapore, Indonesia, Japan, and Malaysia. China is the major contributor to the growth in this region due to the presence of a large manufacturing base. India, on the other hand, is one of the most promising markets, which has attracted the government as well as logistics players to make massive investments in the country.
The logistics market in North America has grown significantly over the years. This can be attributed to an increase in trade activities between the U.S. and South America and Europe. U.S.’s trade relations with Asia Pacific, particularly China and India, has strengthened owing to the rising demand for foreign goods in these countries.
Germany is a prominent market for logistics in Europe, while other countries such as the U.K. and France have also been contributing considerably to the regional market. Europe is recovering from an economic slowdown and logistics companies are making massive investments to improve the infrastructure in various countries.
Latin America is perhaps the most noteworthy market for logistics in the Rest of the World (RoW) segment. Emerging nations such as Brazil and Argentina have shown massive potential for development thanks to growing trade activities among various other developing countries.
Key players in this market include J.B. Hunt Transport Services (U.S.), C.H. Robinson Worldwide, Inc. (U.S.), Ceva Holdings LLC (U.K.), FedEx Corp. (U.S.), United Parcel Service, Inc. (U.S.), Expeditors International of Washington Inc. (U.S.), XPO Logistics Inc. (U.S.), Kenco Group (U.S.), Deutsche Post DHL Group (Germany), Americold Logistics, LLC (U.S.), and UTi Worldwide Inc. (U.S.).
Logistics Market: Snapshot
Logistics is a part of supply chain management that is used to meet the customer demands through the implementation, control and planning of the storage and movement of the goods from origin to destination. The speedy growth in the internet retailing market is driving the growth of the logistics market. Increasing popularity of the online shopping globally is acting as one of the major driver of the logistics market globally. Increase in online shopping is due to increasing access to the internet and growing preference of customers for online shopping. In addition, ease of access, convenience related to the home delivery of objects and advantages such as customization and refinement of results from a variety of objects are supporting the market currently.
Logistics Market: Segmentation
Based on the various transport infrastructures, the logistics market is segmented into road transport, waterways transport, rail transport and air transport. Road transport is further being sub segmented into semi-trailer, truck-trailer, refrigerated truck, flatbed truck, lorry tank and others. Waterways transport is further be classified into dry storage container, open top containers, refrigerated ISO containers, tunnel container, insulated and thermal container and others. Rail transport is further being sub divided into tank railcars, covered hopper railcars, pressure differential railcars, air-slide railcars and others. Air transport is further be classified into deck cargo, upper deck cargo and over size or odd size cargo. Based on the various transport infrastructures of logistics, the road transport segment constituted the biggest market share, followed by the rail transport segment, in 2015. The road transport are largely served in automotive, industrial and manufacturing, oil & gas, fishing, retail, media and entertainment and military, therefore, the segment generates the largest revenue among all the segments in the logistics market. In addition, it is ideal for transporting perishables such as fruits and vegetables. Rail transport follows road transport and is one of the most widely used transport infrastructure to carry goods to various parts of a countries. A train can carry large volume of resources in a short period and so it is preferred by different application sectors.
Based on the various logistics model types, the logistics market is segmented into first party logistics, second party logistics, third party logistics and others. Rapid growth in internet retailing market such as Amazon, eBay and Walmart among others is one of the major factors that are driving the demand for logistics model types, globally. 2nd party logistics provide their own resources such as warehouse operators and truck owners among others. 2nd party logistics is a resources based carrier, which owns their own means of transportation. 2nd party logistics would be shipping lines which charter, lease or own their ships; airlines, charter or lease their truck and planes companies and lease or own their trucks.
Logistics Market: Region-wise Outlook
By geography, the logistics market is have been classified into four regions namely North America, Europe, Asia-Pacific, and Rest of the World (RoW). Currently, Asia Pacific held the major share of the market, followed by North America, Europe and Rest of the World (RoW). This region is expected to develop at a swift pace with increase in trade with North America and Europe. Regional players are focused on partnerships with players in regions such as Africa. It is expected that trade between China and Africa will surpass the trade between Europe and the U.S. in the coming years.
Logistics Market: Competitive Landscape
Key players profiled in this report include J.B. Hunt Transport Services (United States), C.H. Robinson Worldwide, Inc. (United States), Ceva Holdings LLC (United Kingdom), FedEx Corp. (United States), United Parcel Service, Inc. (United States), Expeditors International of Washington Inc. (United States), XPO Logistics Inc. (United States), Kenco Group (United States), Deutsche Post DHL Group (Germany), Americold Logistics, LLC (United States) and UTi Worldwide Inc. (United States) among others.
The segments covered in the Logistics market are as follows:
Global Logistics Market: By Transport Infrastructure Type
- Road Transport Infrastructure
- Lorry Tank
- Refrigerated Truck
- Flat Bed Truck
- Waterways Transport Infrastructure
- Dry Storage Container
- Refrigerated ISO Containers
- Open top containers
- Tunnel container
- Insulated and thermal container
- Rail Transport Infrastructure
- Pressure differential railcar
- Covered hopper railcars
- Air-slide railcars
- Tank railcars
- Air Transport Infrastructure
- Deck Cargo
- Upper Deck Cargo
- Over Size or Odd Size Cargo
Global Logistics Market: By Logistics Model Type
- 1st Party Logistics
- 2nd Party Logistics
- 3rd Part :Logistics
Global Logistics Market: By Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Rest of the World (RoW)
- Middle East
- Latin America