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Logistics Market – Snapshot

Logistics is a business to control, execute, and plan the movement of material, capital, and service. In a general sense, logistics is a part of supply chain management that controls, implements, and plans the effective and efficient flow of goods, information and services between the point of origin and point of consumption.

E-commerce plays very crucial role in offering freight customers new options to support their economic growth. E-commerce is anticipated to persist as the major driver of growth in the transportation industry. According to, FedEx CEO, Henry Maier, owing to E commerce logistics, the shipments and sales went up by more than a 100%. The prolonged growth through e-commerce will be significant for all freight and retail companies.

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Rising Internet based retailing is boosting the growth of the logistics market. Exponentially proliferating online shopping across global market is behaving as major driver of the logistic market. Moreover, hassle free shopping and home delivery options are supporting the market currently. Further, short time consignment delivery, after sales support and services are fueling the internet retail market. Knowing the fact, online retailer should provide good logistics services to form and maintain good and satisfactory relationships with the customers. The growth in internet retail market is thus driving the logistics market at present and similar trend is anticipated to be witnessed over the forecast period. Additionally, cross-border sales will prove to be a significant growth driver of overall e-commerce, according to survey participants. This was the view held by both shippers and LSPs.

On the basis of various transport infrastructure, the market is segmented into road transport, waterways transport, rail transport, and air transport. The waterways transport segment constituted the biggest market share, followed by the air transport infrastructure segment, in 2018.

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Global logistic market is segmented into logistics model types, where further categories are first party logistics, second party logistics, third party logistics, and fourth party logistics. Many retailers and manufacturers are recognizing logistics management as an important aspect globally. Moreover, logistics management is making an organization more competitive in terms of quality, cost, flexibility, and delivery. Due to these factors, organizations are now focusing on improving their logistics activities.

Logistics offers many advantages such as reduction in operational cost, improvement in delivery performance, and increase in customer satisfaction levels. Increasing number of international business activity is also supporting the logistics market, as more and more multinational companies are outsourcing the logistics services to third, second, and fourth parties, making the supply chain longer and complex. The reason for this growth is the presence of a large manufacturing base in dominant logistics oriented countries such as China and India. Manufacturing sector followed by the retail sector is growing. The reason for this growth is the growth of e-commerce. The internet retail market includes the display and purchase of items via internet and the delivery of the purchased item to the consumer. The popularity of online shopping has increased globally in the last couple of years. There are a large number of global online retailers such as Amazon.com, eBay, Wal-Mart, bestbuy.com and Target brands, Inc.

Exponentially proliferating Internet of things (IoT) in logistics sector enable freight companies and consumers to direct access to the company network via the internet. At the same time, IoT penetration also provide opportunities for hackers to mount an attack. Many security issues have been identified in recent years. This factor is working as a restraint for global logistics market.

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In terms of geography, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa and South America. Among these regions, in terms of revenue, Asia Pacific held the major market share, accounting for 32.5% in 2018, followed by North America. This trend is anticipated to continue over the forecast period. The growth of the global market is directly related to the growth of global international trade flow and economic environment. Asia Pacific and North America appeared to be the most attractive markets for logistics particularly in contract logistics such as fourth party logistics and second party logistics. Intra-regional trade in emerging markets is becoming important, particularly in Asia Pacific.

Major players profiled in this report includes

  • Americold Logistics, LLC
  • C.H. Robinson Worldwide, Inc.
  • Ceva Holdings LLC
  • DHL Supply Chain
  • Expeditors International of Washington Inc.
  • FedEx Corp.
  • J.B. Hunt Transport Services
  • Kuehne + Nagel Inc.
  • Penske Logistics
  • Ryder Supply Chain Solutions
  • SNCF Logistics
  • The Boeing Company
  • United Parcel Service, Inc
  • XPO Logistics Inc.
  • DSV A/S.

Logistics involves controlling, planning, and executing the movement of any service, capital, or material. Typically, logistics is a critical component of the supply chain management that plans, implements, and controls the efficient and effective flow of goods, information, and services between the origin point and the point of consumption.

Ecommerce has played a key role in the overall development of the global logistic market. The sector is projected to remain as the key driving factor for the transportation sector. Rising Internet based retailing is boosting the development of the logistics market. Dramatically multiplying online shopping across global market is acting as significant driver of the strategic market. Besides, bother free shopping and home delivery options are supporting the market at present. Further, brief timeframe transfer delivery, after sales backing and administrations are powering the internet retail market. Knowing the reality, online retailer ought to give great logistics administrations to shape and keep up great and agreeable associations with the clients. The development in internet retail market is in this manner driving the logistics market as of now and comparable pattern is foreseen to be seen over the gauge period. Moreover, cross-fringe sales will end up being a huge development driver of generally speaking internet business, as indicated by overview members. This was the view held by the two transporters and LSPs.

The global logistic market is segmented into five key regions namely North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa. The global market is projected to be led by the regional segment of North America in the coming years of the forecast period. On the other hand, the regional segment of Asia Pacific is expected to witness a highly promising growth in the near future. The growth of the regional market is mainly attributed to the booming e-commerce industry in emerging economies.

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