Logistics Market: Influential Factors Determining the Trajectory of the Market

The global logistics market is prognosticated in a report by Transparency Market Research (TMR) to stay exceptionally fragmented with top four companies accounting for a small aggregate share in the recent past. FedEx, UPS, Inc., CEVA Logistics, and Deutsche Post DHL have been showcasing their prominence in the market since several years. According to the report, companies have been putting in efforts for the extension of their physical presence across different regions, product enhancement, and business development. They are said to continually adjust to changing marketplaces to stay ahead of the game. Competitive rivalry could be extreme, taking into consideration the rise of mergers and acquisitions.

TMR envisions the global logistics market to touch a valuation of US$15.5 trillion by the completion of 2023, rising at a 7.5% CAGR for the forecast tenure 2016-2024. By type of transport infrastructure, road could secure a staggering share of the market due to its broad usage across the world. In terms of geography, Asia Pacific could be a real revenue supporter for the market because of large acceptance of outsourced logistics administrations.

Impressive Development of Internet Business Massively Triggers Growth

The world logistics market is anticipated to come under positive influence of the internet business industry’s productive development rate. Keeping product assortment and comfort in view, it could be said that web-based shopping has gained widespread popularity and become a go-to option for almost all types of purchasers. This has raised the need for logistics administrations that are more productive, efficient, and faster than others. One of the key factors empowering the pursuit of web-based shopping getaways could be the rising count of customers having access to high-speed internet.

Shopper-driven approach of today’s logistics services is expected to produce better consumer loyalty appraisals in the long run. This could be achieved by tapping into a range of interest points of customers and their buyers, including improved capacity of purchaser portfolio, sophisticated execution of conveyance using computerized stamping, and operational cost diminishments.

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Warehouse and Inventory Issues Interfere with Development of Market

Logistics companies commonly deal with challenges such as low warehousing space, expensive inventory cost, and increased pollution levels when operating in the market. These are predicted to slow down the development of the market in the coming years. Nonetheless, introduction of green logistics solutions could create profit-making business prospects in the market. Moreover, extension of trade agreements is foreseen to set the tone for consistent market growth.

Logistics administrations are finding large interest to stay in line with expanded logistics needs of exporters and merchants because of the rise of ideal government exchange arrangements. In exchange, the casual trade agreements help with reduced levies and other benefits. This also improves business proficiency and reduces travel times.

The information presented in this review is based on a TMR report, titled “Logistics Market (Transport Infrastructure – Road, Waterways, Rail, and Airways; Logistics Model – 1st Party Logistics, 2nd Party Logistics, and 3rd Party Logistics) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 – 2024.”

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The global logistics market has been segmented as presented below:

Global Logistics Market: Transport Infrastructure

Road Transport Infrastructure
Waterways Transport Infrastructure
Rail Transport Infrastructure
Airways Transport Infrastructure

Global Logistics Market: Logistics Model

1st Party Logistics
2nd Party Logistics
3rd Party Logistics

Global Logistics Market: Region

North America
- U.S.
- Canada
- Mexico
Europe
- U.K.
- Germany
- France
- Italy
- Rest of Europe
Asia Pacific
- India
- China
- Japan
- Rest of Asia Pacific
Rest of the World
- Middle East
- Latin America
- Africa

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