Logistics Service Market Size, Trends, Growth Scenario and Analysis 2027
Posted by Prabha Mahajan on October 14th, 2022
Latest market study on "Logistics Service Market to 2027 – Global Analysis and Forecast by Mode of Transportation (Roadways, Waterways, Airways, and Railways), Logistics Providers (First & Second Party Logistics, Third Party Logistics, Fourth Party Logistics, and Fifth Party Logistics); End-users (Government & Public Utilities, Healthcare, Industrial Manufacturing, Retail & Consumer Goods, and Aerospace & Defense, and Others), and Geography", The Global Logistics Service Market revenue accounted for US$ 1,122.58 Bn in 2018 and is expected to grow at a CAGR of 6.9% during the forecast period 2019 – 2027, to account to US$ 2,029.38 Bn by 2027.
The logistics services constitute the set of service or solutions related to the part of supply chain process, storage of goods, transportation, and management and planning among other critical services provided to the various end-users. The services facilitate aid in efficient flow of goods, services from material sourcing, processing, manufacturing, and distribution for consumption process along with providing necessary consulting, management as well as optimization services. The report summarizes the results of the detailed, exhaustive research assessment carried out by The Insight Partners in the field of logistics service across different industry verticals. Also, the report covers logistics service market segmented by mode of transportation, organization size, logistics provider, and end-user across major geographical regions for enabling a superior understanding of the global logistics service market.
The logistics services market worldwide has been experiencing an intense growth, owing to the constant investments, new product development, and integration of futuristic technology in present scenario. The market for Logistics services consists of some well-established players across the globe, which invest huge amounts in order to deliver the most advanced product to the customers. The logistics service providers, particularly the third partly service providers are making significant growth in the market in terms of geographical expansion and technological advancements. For instance, 3PL firms these days are implementing several software based solutions in their operations in order to reduce the inefficiency and costs with saving time for operations. In addition, the implementation of speech recognition software in warehouse management system communications will support order turn-round and inventory records with reducing employee-training requirements. Along with this, acceptance of cloud-based technology in 3PL companies will respond demands by recognizing the need for customer access which is expected to better meet the seasonal trends efficiently.
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The third party logistics continues to gain major traction across various end-user industries owing to growing popularity of outsourcing as well as achieving superior operation efficiencies. Furthermore, the increase in demand for shipping cost reduction & more focus on timely delivery management, reduction on company’s assets & permitting focus on core business, and advantage in managing seasonal variations are projected to drive the market for third party logistics during the forecast period. However, lesser control of manufacturers on logistic service and delivery process may adversely impact the market for third party logistics in near future. Moreover, the factor such as increase in adoption and growth of e-commerce in retail sector is projected to generate remarkable growth opportunity to the industry players. As a result, the third party logistics continue to provide numerous profitable business opportunities for the market players globally.
The growing population, coupled with an increase in disposable income of the individuals, has a profound positive impact over the growth of the numerous industry verticals, especially across the emerging economies in the past few years. As a result, the significant surge in the volume of production along with emphasis towards achieving enhanced operational efficiencies through technology-driven supply chain solutions has gained considerable momentum across different end-users globally. Furthermore, the rise in popularity of industrial internet of things has facilitated the integration of technologically driven logistics and supply chain solutions such as inventory management, tracking, route optimizing, consulting, analytics, improved project management, and network management among other logistics services has gained unprecedented audience especially among large enterprise having a global presence. Subsequently, paving the demand for numerous logistics and supply chain related services across the significant emerging as well as developed economies. Currently, the third party continues to dominate the logistics service market owing to emphasis towards outsourcing the supply chain and logistics processes for achieving improved operational efficiencies and subsequently lowering the operational costs. Also, improving trade relations between countries, coupled with a substantial increase in the exchange of trade through international routes, has also facilitated the demand for logistics services at global levels.
Some of the globally leading market players operating in the logistics service market are A.P. MOLLER - MAERSK, C.H. Robinson Worldwide Inc., CEVA Logistics, DB Schenker,DHL International GmbH, FedEx, KUEHNE + NAGEL, Nippon Express, PANALPINA WORLD TRANSPORT (HOLDING) LTD., United Parcel Service (UPS), and Expeditors International of Washington, Inc. among others having established themselves into specialized logistics over the past few years.
The selected strategies adopted by some of the leading manufacturers during the past few years:
1. In 2019 Maersk Logistics & Services announced the integration of APM Terminals Inland Services and Maersk Logistics & Services from 1 August 2019. The integration aimed to provide its customers with seamless access to a wider range of logistics & services offerings.
2. In 2018 CEVA Logistics is selected by Saraiva for expanding its distribution network across South-East Brazil. Through this venture the CEVA able to experience quick work and delivery practices to its customers across the region.
3. In 2018 CEVA announced the extension of its warehousing contract with Colgate-Palmolive. With this the company is dealing with about 140,000 sq feet warehouses that covers 14,000 pallet positions for delivering distribution and cross border transportation to Singapore and Thailand.
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
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About the AuthorPrabha Mahajan
Joined: September 26th, 2022
Articles Posted: 158
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