Logistics has always been the forbearer of change across any century or region. People rely on goods transport since time immemorial. The growing reliance of the global populace on goods and products has brought excellent prospects and has led to expansive growth. As the years progressed, the shape of the logistics sector changed rapidly. New technologies and innovations emerged to make the transport process smoother. Hence, based on many aspects, the logistics market will observe exponential growth across the assessment period of 2019-2027.
Logistics is a sector dealing with the planning, controlling, and execution of material, service, and capital movement. They are a part of the supply chain management that deals with the overall management of transporting goods from one place to another. Almost all sectors make use of logistics on a massive scale, which help improve the logistics sector’s growth trajectory.
The penetration of novel technologies is proving to be exceptional growth generators for the logistics market. Big Data, Artificial Intelligence (AI), machine learning, and others are generating promising profits for the logistics market. Other aspects such as automation and robotic process automation (RPA) are also playing a major role in the growth of the logistics sector. One of the prominent functions of RPAs in logistics is the automation of a tracking system for both vehicles and shipments. These factors bring golden growth opportunities for the logistics market.
Transparency Market Research (TMR) has conducted phenomenal research on all the factors associated with the logistics market. The logistics market, according to the TMR experts, after an expansive study on aspects such as regional growth, competitive insights, and others, will expand at a CAGR of 4.5 percent during the forecast period of 2019-2027. The global logistics market is extrapolated to reach a value of US$ 15,273.21 bn by 2027, the end year of the forecast period.
Omnichannel Shipping to Add Extra Stars of Growth
The growing demand for quick delivery mechanisms for the customers has led to the adoption of numerous methodologies and processes. The omnichannel shipping method is one of them. The goal of the omnichannel shipping method is to increase customer loyalty and retain them. Such factors bode well for the growth of the logistics market.
Escalating Demand for Refrigerated Shipped Goods to Bring Immense Growth Prospects
The demand for refrigerated shipped goods has increased exponentially over the years. The shifting consumer preferences will also act as a crucial part. For instance, a shift from localized food to non-localized foods has been observed among a considerable chunk extensively. The demand for COVID10 vaccines is also increasing the need for refrigerated shipped vehicles. Ocean Network Express, a logistics company, recently announced the addition of 13,429 new refrigerated counties. Such aspects assure good growth opportunities.
Waves of Sustainability to Touch the Shores of the Logistics Market
Sustainability and environmental conservation are garnering outstanding popularity among many individuals around the globe. Reducing half-full trucks, route optimization, and the digitization of the supply chain to a considerable extent are some important measures taken by the logistics sector. The players in the logistics market are also focusing on innovating on transport methods to assure clean and green transport of goods and services.
In addition, the government bodies of numerous sectors are also implementing new emission standards to reduce the carbon footprint. The International Maritime Organization recently tightened regulations regarding the utilization of sulfur dioxide at sea. Such developments serve as growth contributors for the logistics market.
Challenges Faced by Logistics Market due to the COVID-19 Pandemic
Bullwhip Effect: The bullwhip effect is the perfect word to describe the logistics sector during COVID-19. Many products experienced a sudden rise in demand, like toilet paper while many items were lying in the inventory due to less demand. This stark contrast resulted in expansive disruptions.
Border Restrictions: The COVID-19 pandemic forced many countries to close their borders for foreigners. Although goods and products were allowed to be transported, disruptions were witnessed, and it affected the overall growth fabric of the logistics market.
Single Source Dependencies: The COVID-19 pandemic highlighted the disadvantage of relying heavily on the suppliers or partners in a single country. For instance, China’s manufacturers shut down during the pandemic, which resulted in tremendous losses for key companies. Such developments will prepare the players in the logistics market to tackle future pandemics.
The pandemic brings many new experiences and lessons for the players in the logistics market. With the advent of COVID-19, digitalization has strengthened its influence across the logistics market substantially.
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