Logistics Service Market to account to US$ 2,029.38 Billion by 2027

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

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.

Also, the growing popularity of e-business such as e-commerce and m-commerce business models along with an increase in integration of third and fourth party vendors into core enterprise supply chain processes has a profound impact over the growth of the logistics service market, especially across the various economies. For instance, the fast-growing manufacturing and industrial end-user sectors especially across the emerging economies in Asia and Africa has witnessed a notable surge in demand for efficient management of their ship ports, railway, and airports owing to exponential growth in the volume of goods being imported and subsequently being distributed, Moreover, the retail and consumer goods industry has witnessed an attractive growth in the consumption of various FMCG related products due to the rise in the disposable income of the individuals along with rapid urbanization in the region.

Currently, the global logistics service market is highly fragmented with the presence of a large number of market players operating with limited geographical presence. Moreover, the availability of globally prominent players working with a specialized focus in selected services has positioned the global logistics service market towards fragmented globally. For instance, 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 table below depicts the selected strategies adopted by some of the leading manufacturers during the past few years.