+91-8668442535

Logistics Market By Mode of Transport (Railways, Airways, Roadways, Waterways) By End Use (Healthcare, Manufacturing, Aerospace, Telecommunication, Government & Public Utilities, Banking & Financial Services, Retail, Media & Entertainment, Technology, Trade & Transportation, Others) - Growth, Future Prospects And Competitive Analysis 2016 - 2028

What is the Global Costs of Logistics?

Global logistics costs in 2020 were $9.1 trillion US dollars, down from $9.3 trillion US dollars the previous year. Asia Pacific dominated the global market in 2021, with India leading the charge. Market growth is fueled by factors such as the expanding e-commerce industry and an increase in reverse logistics operations and trade agreements. In addition, the growing acceptance of IoT-enabled linked devices and the rise of tech-driven logistics services are likely to propel the market forward.

logistics-market

What is the Market Size of the Logistics Market in term of value?

Global Logistics Market is projected to increase at a significant CAGR of 4.5% in the coming years. In 2021, the global logistics market was valued at USD 4.7 Trillion and is projected to reach a value of USD 6.1 trillion by 2028. The demand for logistics is projected to increase substantially in the coming years. It is presumed to generate revenue opportunities for the key industry players worth USD 1.4 trillion during the forecast period between 2022 and 2028.

What is the Skill Development Opportunities in the Logistics Sector?

By 2022, it is expected that the overall workforce would have grown from 21 million to over 31 million. That implies one sector alone will add nearly 9 million workers to the workforce across all modes (roads, rail, ports, and aircraft). To meet the industry's expanding training demands, the government and associated players, such as the sector skill council, training institutions, and logistics enterprises, will need to expand their training capacity. 

Interesting Facts about Logistics Industry

  • The logistics business's total growth is driven by increased demand for consumer goods, pharmaceuticals, beverages, and other products and services. The logistics industry's overall expansion is being fueled by the industry's members' strenuous efforts to provide efficient last-mile deliveries.
  • Poor infrastructure, a lack of diversification, and lower wages are all significant barriers to market growth. 
  • Asia Pacific region had a major share in terms of volume and value in the global logistics market in 2021 and is projected to continue its dominance over the forecast period.
  • Manufacturing is the most important end-use segment, accounting for the majority of the global market.

Who are the Top 10 players/companies in the logistics market in terms of value and volume?

The key players in the global logistics market in terms of value and volume include MOLLER – MAERSK, DB SCHENKER (Deutsche Bahn Group (DB Group)), United Parcel Service, Inc. (UPS)., H. Robinson Worldwide, Inc., GEODIS, Kuehne+NaRailways, Deutsche Post AG (DHL Group) (DHL Group), DSV (DSV Panalpina), FEDEX, and Nippon Express. These major businesses are focusing on new product development and technical innovation to improve their logistics output and achieve a competitive market share on a worldwide scale. Furthermore, some regional and country-level players are significantly investing in expanding their product variety and increasing sales. For instance, in 2021, Midair Aviation IFSC PVT LTD launched a tech-enabled courier platform designed to serve highly populated areas. The ModAir is the most significant advancement in the air cargo market, having pioneered the tech-enabled air cargo industry. Additionally, in 2020, Expeditors International partnered with Fleet Logistics, a Portland-based company that has previously entered the digital forwarding market.

Who are the Top 10 Countries in the Logistics Market?

The major countries in the global logistics market are China, India, Japan, the U.S., Canada, Mexico, the U.K., Germany, France, South Africa, and Brazil. India has a higher growth rate in the logistics industry, with a market value of USD 160 billion and over 22 million employees. As a result, the market value is predicted to expand at a healthy CAGR of 10% by 2023. In addition, India has recently focused on development projects and infrastructure creation. In addition, the country is undergoing a digital transformation, which is projected to change the landscape of the Indian logistics business. 

Which is the Key Mode of Transport in the Logistics Market?

The most profitable area is expected to be the waterways segment. Shippers are focused on outsourcing logistics to better their operations and cost-effectiveness, which is one of the major drivers driving the waterway segment's rise. As a result of the increased working capital and globalization, there is a greater demand for skilled inventory management services, which will contribute to the segment's growth. Also, the rapid rise of globalization has aided in the establishment of a global network of manufacturing operations, as well as the expansion of waterways. The strong adoption rates of the waterways segment are also favored by the restructuring of brick and mortar business practices. Over the forecast period, such factors are expected to accelerate the expansion of the category of the waterway. 

What are the Major Driving Factors for Logistics Market?

Improvements in delivery performance, lower operational costs, and higher customer satisfaction are all benefits of logistics. As a result, many manufacturers and merchants around the world regard it as a critical element of their business. Furthermore, it aids in the competitiveness of a business in terms of delivery, flexibility, cost, and quality. Furthermore, with a number of multi-national organizations outsourcing their logistics solutions, globalization is another factor driving market expansion. Moreover, logistics enables businesses to separate key portions of a manufacturing process across several nations. This results in a significant reduction in overall production costs. As a result, these factors are projected to propel the global logistics industry forward over the forecast period.

Moreover, the Aerospace retail market encompasses the display and purchase of goods over the internet and the delivery of those goods to the consumer. In the last few years, Aerospace shopping has grown in popularity worldwide. This is due to increased internet connectivity and clients' growing preference for Aerospace purchasing over traditional shopping. Furthermore, the market is currently supported by the ease of access, convenience associated with object delivery to the home, and benefits such as customization and refinement of results from various objects. As a result, these factors are likely to drive market expansion over the next several years.

What are the Major Restraints for Logistics Market?

Poor infrastructure, a lack of diversification, and lower wages are all major barriers to market growth. Various logistics companies currently have ineffective recruiting and hiring processes, resulting in a shortage of young and skilled workers. The industry's wage levels are low compared to other industries'. Moreover, although globalization is a driving force, growing economies such as Brazil, India, Argentina, and Canada are seeing increased regulation and protectionism to safeguard local businesses. As a result, native producers demand protection from imports. These manufacturers and other business interests get together to push for regulations that limit imports. Regulatory protectionism, for example, can be seen in several US measures that shield businesses from overseas competition. Furthermore, protectionism stifles trade between two foreign parties and has a negative effect. As a result, these issues are projected to stifle global logistics industry growth in the next years. 

Which Region Dominated the World Logistics Market?

In terms of value, the Asia Pacific region dominated the worldwide logistics market in 2021, accounting for 33% of the market. For instance, the Indian logistics sector is worth $150 billion and accounts for 14.4% of the country's GDP. The sector is predicted to reach $200 billion by 2020, thanks to the relaxation of FDI requirements, the proposed implementation of GST, increased globalization, the expansion of e-commerce, positive improvements in regulatory regulations, and government programs such as "Sagarmala" and "Make in India." As a result, India climbed 19 places in the World Bank's Logistics Performance Ranking 2016 from 54th in 2014 to 35th in 2016. The unorganized sector (such as owners of less than five trucks, affiliated with a broker or a transport company, small warehouse operators, customs brokers, freight forwarders, etc.) accounts for nearly 99 percent of the USD 150 billion logistics cost.

In contrast, the organized sector contributes slightly more than 1%, or approximately USD 1.5 billion. However, the industry is rapidly expanding, and lowering India's logistics costs from 14% to 9% of GDP (the level in the US) would result in savings of USD 50 billion at the current GDP level, making Indian goods more competitive in the global market. Furthermore, increased expansion in the logistics industry would indicate enhanced service delivery and customer satisfaction, resulting in increased exports of Indian goods and the possibility of job creation.

Due to increased economic operations between the American and European countries, the logistics industry in the United States and Europe is seeing chances for overall expansion. Additionally, the growing use of e-commerce in North America is assisting the logistics industry's overall growth. Furthermore, the European countries are investing in logistics research and development. Furthermore, the availability of prospective infrastructure and personnel across the continent presents European countries with a profitable opportunity for the logistics industry's overall growth. The logistics market's growth is fueled by rising trends in the e-commerce sector and a growing reliance on the e-commerce sector across the region.

Segmentation of Global Logistics Market-

Global Logistics Market – By Mode of Transport

  • Railways
  • Airways
  • Roadways
  • Waterways

 Global Logistics Market – By End Use

  • Healthcare
  • Manufacturing
  • Aerospace
  • Telecommunication
  • Government & Public Utilities
  • Banking & Financial Services
  • Retail
  • Media & Entertainment
  • Technology
  • Trade & Transportation
  • Others

Frequently asked questions about the global logistics industry

The COVID 19 pandemic has thrown various industrial verticals and manufacturing businesses into disarray. As a result, production rates and manufacturing procedures have been curtailed, and numerous plants have been closed. As a result of these circumstances, the demand for logistics services has decreased. In addition, demand for non-essential commodities has decreased, reducing the demand for logistical services.

In terms of both value and volume, Asia Pacific had the largest share of the worldwide logistics market.

The logistics business's total growth is driven by increased demand for consumer goods, pharmaceuticals, beverages, and other products and services. The logistics industry's overall expansion is being fueled by the industry's members' strenuous efforts to provide efficient last-mile deliveries.

The most profitable area is expected to be the waterways segment.

Manufacturing is the most important end-use segment, accounting for the majority of the global market.

Logistics Market Scope

Report Attribute Details
Market Value in 2021 USD 4.7 Trillion
Market Value in 2028 USD 6.1 trillion
CAGR 4.5%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
Choose License Type
Budget Buying
Executive Summary - Brief Global Market Size - Current & Forecast
Regional Market Size - North America
Country Market Size - US
Company Profile – 1
Trusted By
Godaddy
Published Date:  Jul 2022
Category:  Automotive & Transportation
Report ID:   58415
Report Format:   PDF
Pages:   190
Rating:    4.7 (60)
Delivery Time: 24 Hours to 48 Hours   
Connect With Us
+91-8668442535
24/7 Research Support