Publication Month: May 2019 | Report Code: TIPTE100001284 | No. of Pages: 226 | Category: Automotive and Transportation | Status: Published
The growing emphasis towards achieving improved operational efficiencies coupled with the rise in popularity of outsourcing logistics operations and selected supply chain process for reducing the operational costs has gained significant traction across various industries. Moreover, the emergence of third-party logistics and fourth party logistics provider has further boosted the demand for logistics service providers globally. Currently, some of the primary services rendered by the leading logistics provider include freight forwarding, freight management, consulting, route optimization, network analysis, project management, inventory & storage management, and supply chain consultancy among others. Also, the versatile benefits associated with the adoption of technologically driven logistics services such as real-time tracking & monitoring, analytics, forecasting, and planning is expected to provide numerous profitable opportunities for the market players over the forecast period. Currently, the global logistics service market is highly fragmented owing to the presence of multiple players globally, having specialization across various logistics service with a substantial customer base. Also, the regional players from different emerging economies such as Asia and Africa with stable competitive prices of logistics service fueling the market competition. The supply chain networks are transforming rapidly, and this in response has increased the visibility of new trade corridors. The organizations and economies capable of capitalizing on these new trade corridors, are expected to benefit most from the evolution of globe trade. As developing markets endure to grow, the logistics service providers are anticipated to witness a host of growth opportunities in the coming year. A part of these opportunities are projected to stem from the sharing of complete range of good practices, which are commonly applied in developed markets, but have relatively shallow penetration or are not fully deployed in several growing economies. Some of these good practices include strategy and consultation for people management, such as managerial accounting system, diversity management along with use of sharing lessons learned, KPIs during previous liberalization processes and creating a strong CSR (Corporate Social Responsibilities) practices and reporting.
The logistics services market worldwide has been experiencing an intense growth, owing to the constant investments, new product development, and integration of futuristic technology in the present scenario. The market for Logistics services consists of some well-established players across the globe, which invest huge amounts in order to deliver the best service to the customers. The logistics service providers, particularly the third party service providers, are making significant growth in the market in terms of geographical expansion and technological advancements. For instance, 3PL firms these days are implementing several software based solutions in their operations to reduce the inefficiency and costs with saving time for operations. In addition, the implementation of speech recognition software in warehouse management system communications will support order turn-around and inventory records with reducing employee-training requirements. Globally, APAC acquires the majority share in the market as well as it is expected to be the fastest growing region in the logistics services market. The emergence of industrial manufacturing as well as growth in e-commerce and consumer goods industry the region is expected to drive growth.
Globalization has led to increasing domestic and international trade relations between nations. Further, as many international companies’ lean towards globalization and market expansions, logistical challenges have become more complex than ever. The logistical complexities have multiplied mainly due to the diverse nature of consumer demands observed in different regions pertaining to any product. For successful market expansions, organizations focus on increasing the product assortments catering to the needs of the local market, giving rise to a highly diverse portfolio of products. The larger the diversity, the higher is the complexity of the supply chain for the organization to manage efficiently in delivering products as well as services.
Efficient transportation is physically moving supplies in a relatively safe manner at the right time, in the right condition, and in a cost effective manner. The role of transport is the movement of goods from the point of manufacturer or storage to the point of use or the distribution points to end use. On the basis of mode of transport, the global market is segmented into roadways, railways, waterways, and airways. The selection criteria for the mode of transport depend on the physical characteristics of goods and supplies. In certain situations, environmental factors such as destruction of roads and railways may have a considerable impact on the mode of selection.
The global logistic services market by component type is broadly segmented into 1st and 2nd Party Logistics, 3rd Party Logistics, 4th Party Logistics, 5th Party Logistics. A third-party logistics provider (3PL) provides logistics services to companies for a part, or sometimes all of their supply chain management functions. Outsourcing to third-party supply chain managers is an ongoing trend. Out of the estimated US$ 1,122.58 Bn Logistics services market, majority is currently outsourced to third-parties, that provide considerable headroom. However, levels of outsourcing vary significantly between countries. Generally, activities are more highly outsourced in the UK and the US, with China and India offering significant potential going forward.
Logistics services are essential for businesses that involve transportation of goods from one place to other, and to avoid the complications related to the process various SMEs and large organizations are adopting logistics services. Currently, outsourcing logistic services are worldwide growing business dynamics. With the rapid development of technology, several small & medium and large enterprises are opting for logistics services to focus on core competencies, restructuring of the company, and to gain cost reduction. Based on organization size, the global logistics service market is categorized into small & medium enterprises and large enterprises.
|Market Size Value in||US$ 1,122.6 Billion in 2018|
|Market Size Value by||US$ 2,029.4 Billion by 2027|
|Growth rate||CAGR of 6.9% from 2019-2027|
|No. of Pages||226|
|No. of Tables||110|
|No. of Charts & Figures||87|
|Historical data available||Yes|
|Segments covered||Mode of Transportation ; Logistics Providers ; End-users|
|Regional scope||North America, Europe, Asia Pacific, Middle East & Africa, South & Central America|
|Country scope||US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Free Sample Copy Available|
Product development is the commonly adopted strategy by companies to expand their product portfolio. Fedex, Maersk, DHL, UPS, Expeditors, among others are the key players implementing strategies to enlarge the customer base and gain significant share in the global Logistics Services market, which in turn permits them to maintain their brand name. A few of the recent key developments are:
The List of Companies - Logistics service market