Logistics Market Forecasts to 2030 – Global Analysis By Logistics Type (First Party, Second Party, Third Party, Contract Logistics and Other Logistics Types), Customer Type (B2C and B2B), Transportation Type, End User and by Geography

Logistics Market Forecasts to 2030 – Global Analysis By Logistics Type (First Party, Second Party, Third Party, Contract Logistics and Other Logistics Types), Customer Type (B2C and B2B), Transportation Type, End User and by Geography

According to Stratistics MRC, the Global Logistics Market is accounted for $11385.34 billion in 2024 and is expected to reach $17669.31 billion by 2030 growing at a CAGR of 7.6% during the forecast period. The planning, execution, and management of the economical and efficient movement and storage of products, services, and associated data from the point of origin to the point of consumption in order to satisfy customer demands is known as logistics. Transportation, warehousing, inventory control, order fulfilment, and supply chain coordination are just a few of the many tasks it includes. Moreover, businesses need to manage their logistics well if they want to guarantee on-time delivery, cut expenses, and improve customer satisfaction.

According to the Council of Supply Chain Management Professionals (CSCMP), logistics is defined as that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements.

Market Dynamics:

Driver:

Strong growth in e-commerce

The demand for highly efficient and flexible logistics services has increased due to the exponential rise in e-commerce, which has changed the logistics landscape. Logistics firms are facing pressure to streamline their supply chains as customers demand quick delivery, frequently the same day or the next. This entails making purchases of cutting-edge tracking devices, last-mile delivery services, and sophisticated warehouse management systems. Additionally, the demand for cutting-edge logistics services is also increased by omni-channel retailing strategies, which combine online and offline shopping experiences.

Restraint:

Excessive costs of operations

Significant operating costs, such as those for labor, fuel, and maintenance, are faced by the logistics sector. It can be difficult for logistics companies to remain profitable when fuel prices fluctuate because of the significant impact they can have on transportation costs. The growing expense of labor also contributes to the financial burden, especially in areas with strong labor laws and high wages. Furthermore, logistics companies may find it more difficult to grow and invest in new services or technologies as a result of these high operating costs.

Opportunity:

Utilizing cutting-edge technologies

Logistics companies have multiple opportunities to improve their operational efficiency and service offerings through the integration of advanced technologies. Drones and autonomous cars have the potential to completely transform delivery and transportation operations by cutting labor costs and boosting efficiency and dependability. Real-time shipment tracking and monitoring is made possible by the Internet of Things (IoT), which enhances inventory control and supply chain visibility. Moreover, block chain technology reduces the risk of fraud and provides immutable records of shipments, which can improve security, trust, and transparency in logistics transactions.

Threat:

Disruptions to the supply chain

Natural disasters, pandemics, and other unanticipated events can disrupt supply chains, which can be extremely dangerous for logistics operations. Natural disasters like hurricanes, floods, and earthquakes have the power to destroy infrastructure, halt shipments, and interfere with transportation systems. Additionally, to mitigate the effects of supply chain disruptions and guarantee operational continuity, logistics companies need to allocate resources towards risk management strategies that encompass supplier diversification, safety stock maintenance, and the development of comprehensive contingency plans.

Covid-19 Impact:

The COVID-19 pandemic caused major operational challenges for logistics companies as well as disruptions to global supply chains and consumer behaviour, all of which had a significant impact on the logistics market. Transportation networks were disrupted by lockdowns, travel bans, and social distancing measures. This resulted in shipments being delayed, essential goods being short-stocked, and a rise in the need for e-commerce logistics. Logistics providers had to quickly adjust to shifting market dynamics as a result of demand fluctuations and inventory imbalances caused by the closure of manufacturing facilities and retail outlets. Furthermore, in order to enable remote operations and contactless deliveries, increased health and safety concerns also called for improved sanitation protocols, workforce management techniques, and investments in digital technologies.

The Contract Logistics segment is expected to be the largest during the forecast period

It is projected that the contract logistics segment will command the largest market share in the logistics industry. Contract logistics is the practice of contracting out a range of logistics functions to outside parties, such as distribution, fulfillment, transportation, and warehousing. Businesses use contract logistics services to cut expenses, simplify supply chain management, and concentrate on their main business activities. Moreover, these services, which are tailored to a variety of industries like retail, manufacturing, healthcare, and automotive, provide flexibility, scalability, and expertise in handling complex logistics requirements.

The Airways segment is expected to have the highest CAGR during the forecast period

In the logistics industry, the airways segment usually has the highest CAGR. Air freight transportation is a favoured option for high-value and time-sensitive goods due to its numerous benefits, such as speed, dependability, and worldwide reach. Air freight logistics are expanding as a result of the growing need for expedited delivery services, especially in sectors like electronics, pharmaceuticals, and e-commerce. Additionally, the market for air logistics is also growing as a result of developments in aircraft technology, enhanced cargo handling procedures, and the development of air cargo infrastructure.

Region with largest share:

The global logistics market is typically dominated by the Asia-Pacific region. Numerous factors contribute to this dominance, such as the region's strong manufacturing sector, growing e-commerce industry, and vast trade networks. The demand for logistics services is fueled by fast economic growth, urbanization, and rising consumer demand in nations like China, India, and Southeast Asia. Furthermore, the region's advantageous position as a crossroads for international trade routes makes it easier for goods to travel between important markets in Asia, Europe, and North America.

Region with highest CAGR:

The Middle East and Africa (MEA) region has been showing the highest CAGR in the logistics market. The need for effective logistics solutions is being driven by the region's rapid urbanization, population growth, and rising consumer demand. Furthermore, in order to support trade and commerce, economic diversification initiatives in nations like South Africa, Saudi Arabia, and the United Arab Emirates are encouraging investment in infrastructure, such as ports, airports, and transportation networks. Moreover, the increasing focus on digitalization and e-commerce is driving up demand for logistics services, especially last-mile delivery options.

Key players in the market

Some of the key players in Logistics market include Ceva , Expeditors International of Washington Inc, DSC Logistics, XPO Logistics, United Parcel Service Inc. (UPS), C.H. Robinson Worldwide Inc, Deutsche Post AG, FedEx Corporation, DSV (DSV Panalpina), Geodis logistic., Kuehne+Nagel Inc, Nippon Express Co., Ltd, APL Logistics, Kerry Logistics.

Key Developments:

In December 2023, FedEx Corp. announced that it has entered into an accelerated share repurchase (""ASR"") agreement with Mizuho Markets Americas LLC (“Mizuho”) to repurchase $1.0 billion of FedEx’s common stock as part of the company’s previously announced share repurchase program.

In November 2023, Global logistics provider CEVA Logistics completed its acquisition of Stellar Value Chain on 20 November 2023. CEVA acquired a 96% stake in the Mumbai-based warehousing and transportation specialists from an affiliate of private equity form Warburg Pincus and other shareholders. The acquisition adds to CEVA’s existing presence in India, allowing for the delivery of holistic supply chain services to customers across the Asia Pacific region and beyond.

In October 2023, Deutsche Bahn AG has signed an agreement to sell Arriva Group, as part of its strategic focus on rail transport growth and core business development. Deutsche Bahn AG (DB) has announced that it has signed an agreement to sell the entire Arriva Group, including its operating businesses across 10 European markets, to I Squared Capital, a global infrastructure investment manager.

Logistics Types Covered:
• First Party
• Second Party
• Third Party
• Contract Logistics
• Other Logistics Types

Customer Types Covered:
• B2C
• B2B

Transportation Types Covered:
• Railways
• Airways
• Roadways
• Waterways
• Other Transportation Types

End Users Covered:
• Healthcare
• Manufacturing
• Aerospace
• Telecommunication
• Government and Public Utilities
• Banking and Financial Services
• Retail
• Media and Entertainment
• Trade and Transportation
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements