Project Logistics Market Forecasts to 2030 – Global Analysis By Service (Transportation, Forwarding and Other Services), End User (Mining and resources, Oil and gas, Construction, Defense and Other End Users) and By Geography

Project Logistics Market Forecasts to 2030 – Global Analysis By Service (Transportation, Forwarding and Other Services), End User (Mining and resources, Oil and gas, Construction, Defense and Other End Users) and By GeographyAccording to Stratistics MRC, the Global Project Logistics Market is accounted for $22.45 billion in 2023 and is expected to reach $32.15 billion by 2030 growing at a CAGR of 5.26% during the forecast period. Planning, arranging, managing, processing, and controlling the entire flow of commodities, materials, and information are all part of the integrated process of project logistics. These are related to a project's successful conclusion. Managing freight with unusual dimensions is never easy for a transporter. Larger-sized cargo necessitates the use of entirely different infrastructure, employees, and equipment. Shippers and service providers are, nevertheless, gradually becoming more skilled in the transportation of big and heavyweight shipments.

According to the China International Contractors Association, in 2017 alone, Chinese contractors concluded 7,217 construction contracts along the Belt and Road and 13,267 construction contracts globally

Market Dynamics:

Driver:

Growing use of renewable energy sources

As the world transitions towards sustainable energy sources, there is a growing demand for the construction and installation of renewable energy projects, such as wind farms, solar parks, and hydroelectric plants. These projects often involve the transportation of large and heavy components, including wind turbine blades, solar panels, and hydroelectric turbines, across various locations. Project logistics providers play a crucial role in coordinating the movement of these oversized components, ensuring their timely delivery to project sites. The rising focus on renewable energy development creates lucrative opportunities for project logistics companies, driving innovation and investments.

Restraint:

Complex regulations

Companies must navigate through several regulatory frameworks that are constantly evolving and crossing international borders and engaging multiple countries. It becomes difficult and time-consuming to comply with safety requirements, environmental rules, customs processes, and documentation requirements. If these rules are broken, logistics activities may be delayed, fined, or otherwise interfered with. To make matters more difficult, different nations may have contradictory or unclear legislation. Project logistics suppliers need to invest in skilled staff and technology to stay up to date on regulatory changes, assure seamless compliance, and maintain fast and efficient project deliveries in order to get around this constraint.

Opportunity:

Increasing need from the automobile industry for project logistics

The transportation of machinery, completed goods, and car components through international supply chains is a major function of effective and dependable logistics services in the automotive industry. The demand for specialized transportation and handling solutions grows as the automobile sector experiences significant improvements, including the introduction of electric vehicles and driverless technologies. By providing specialized services to assist the expanding activities of car manufacturers, project logistics providers can profit from this trend. Companies may build solid relationships with automotive clients by utilizing their knowledge and offering flawless logistics solutions, which will spur growth and provide them a competitive edge in the project logistics industry.

Threat:

High investments and operational costs

The nature of project logistics often involves handling oversized and heavy cargo, which requires specialized equipment and expertise, leading to substantial upfront investments. Higher operating costs are also a result of the complexity of project logistics operations, including regulatory compliance, managing a variety of transportation modalities, and negotiating difficult terrain. These high costs can put pressure on profit margins, especially during competitive bidding processes. Moreover, project delays or unforeseen challenges can lead to cost overruns, impacting project logistics providers' financial viability.

Covid-19 Impact:

The COVID-19 pandemic has straightforwardly affected project logistics, which are engaged with the transit, stockpiling, and stream of wares. Thus, industrial network disruptions brought on by the pandemic could have an impact on intensity, economic growth, and job creation. However, when the country's shutdown is aided, it is typical for the area to recover. Project strategies ultimately depend on many firms carrying out their obligations and returning to their previous levels of activity. Significant creation offices have closed as a result of the general lockdown, seriously disrupting the supply chain in every assembly area. Because of the development of delays and travel disruption, the global road providers have risen.

The transportation segment is expected to be the largest during the forecast period

The transportation segment held the largest share in the market. The timely and secure delivery of project goods to its destination, which frequently involves remote or difficult areas, depends on efficient transportation. To meet the needs of various project requirements, the market relies on a variety of transportation methods, including trucks, ships, airplanes, and specialized heavy-lift equipment. To ensure smooth cross-border transportation, project logistics suppliers must also manage the complex regulatory and customs frameworks of several nations. In the cutthroat project logistics sector, efficient transportation management is crucial for project success, cost minimization, and client satisfaction.

The oil and gas segment is expected to have the highest CAGR during the forecast period

During the projection period, the oil and gas segment is expected to have the greatest CAGR. Oil and gas projects involve transporting massive and heavy equipment, such as drilling rigs, pipelines, and offshore structures, often across challenging terrains and remote locations. Project logistics providers play a critical role in coordinating the movement of these oversized components from manufacturing facilities to project sites. They ensure compliance with strict safety and environmental regulations, as well as manage complex logistics operations, including sea and air transportation, heavy-lift operations, and specialized handling.

Region with largest share:

The Asia Pacific region market is estimated to witness the highest share of the global Project Logistics market during the forecast period, with rapid industrialization, urbanization, and infrastructural development, there is a growing demand for project logistics services in the region. Asia Pacific's significant role in industries like oil and gas, energy, construction, and manufacturing drives the need for transporting heavy and oversized cargo. Project logistics providers in the region must navigate diverse terrains, challenging weather conditions, and varying regulatory landscapes across multiple countries. The region's strategic location also makes it a critical hub for global trade, further boosting demand for efficient project logistics solutions.

Region with highest CAGR:

The North America region is expected to have the highest growth rate over the forecast period. With a robust economy and extensive infrastructure projects, the region witnesses a steady demand for efficient and reliable project logistics services. North America's vast geography and diverse terrain present unique challenges, necessitating specialized logistics solutions for oversized cargo movements. Project logistics providers in the region must adhere to stringent safety and environmental regulations while executing complex logistics operations. The region's strategic location and strong trade relationships also make it a significant hub for project logistics, attracting both regional and international players seeking to capitalize on North America's lucrative market opportunities.

Key players in the market

Some of the key players in Project Logistics market include Agility Logistics, Bema International Pte. Ltd., Bollore Logistics, BT Transport & Logistics, Ceva Logistics, CH Robinson Worldwide Inc., Chu Kong Logistics, Expro, Freight Tiger, Hellmann Worldwide Logistics, Indo Trans Logistics Corporation, Kuehne + Nagel International AG, LF Logistics, Panalpina, Rhenus Logistics, Rohlig Logistics, Ryder System Inc. and Tiger logistics Ltd.

Key Developments:

In March 2022, Bollore Logistics successfully transported 30,000 ton of equipment from January to December 2021 for a solar farm project in the Atacama region of Chile.

In December 2021, NMT Global Project Logistics and Fortescue Metals Group (FMG) entrusted BBC Chartering to carry heavy-lift steel module structures, ancillary cargoes, and containers for the Iron Bridge project.

In April 2021, LaserShip Inc. agreed to acquire Western U.S. rival OnTrac Logistics Inc. in a $1.3 billion deal to expand the local last-mile delivery specialist's reach across a broader section of the United States at a time of booming e-commerce demand.

Services Covered:
• Transportation
• Forwarding
• Inventory Management and Warehousing
• Other Services

End Users Covered:
• Mining and Resources
• Oil and Gas
• Construction
• Defense
• Renewable Energy
• Oil and Gas, Mining, and Quarrying
• Energy and Power
• Manufacturing
• Agricultural Supplies
• Government
• 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 2021, 2022, 2023, 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