Logistics Service Market 2027 By Mode of Transportation, Logistics Providers, End-users

Logistics Service Market to 2027 - Global Analysis and Forecasts by Mode of Transportation (Roadways, Waterways, Rail and, Airways); Logistics Providers (First & Second Party Logistics, Third Party Logistics, Fourth Party Logistics, and Fifth Party Logistics); End-users (Government & Public Utilities, Healthcare, Industrial Manufacturing, Retail & Consumer Goods, and Aerospace & Defense, and Others)

Publication Month : May 2019

  • Report Code : TIPTE100001284
  • Category : Automotive and Transportation
  • Status : Published
  • No. of Pages : 226
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The Logistics Services market was valued at US$ 1,122.6 Bn in 2018 and is projected to reach US$ 2,029.4 Bn by 2027; it is expected to grow at a CAGR of 6.9% from 2019 to 2027.

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.

Lucrative Regions for Logistics Services Market

Lucrative Regions for Logistics Services Market

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Market Insights

Growing needs of unification amongst the increasingly complex supply chains

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.

Mode of Transportation-Based Market Insights

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.

Logistic Providers -Based Market Insights

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.

Organization Size – Based Market Insights

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.

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Logistics Service Market: Strategic Insights

Market Size Value inUS$ 1,122.6 Billion in 2018
Market Size Value byUS$ 2,029.4 Billion by 2027
Growth rateCAGR of 6.9% from 2019-2027
Forecast Period2019-2027
Base Year2019
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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:

  • In 2019, Maersk announced the integration of APM Terminals Inland Services and Maersk Logistics & Services from 1 August 2019. The integration aimed to provide its customers with seamless access to a wider range of logistics & services offerings.
  • In 2019, DHL Express and EHang entered into a strategic partnership to jointly launch a fully automated and intelligent smart drone delivery solution to tackle the last-mile delivery challenges in the urban areas of China..

Logistics Services Market Segmentation:

By Mode of Transportation

  • Roadways
  • Railways
  • Waterways
  • Airways

By Logistics Provider

  • First & Second Party Logistics
  • Third Party Logistics
  • Fourth Party Logistics
  • Fifth Party Logistics

By Organization Size

  • Small & Medium Enterprise
  • Large Enterprise

Company Profiles

  • CEVA Logistics
  • United Parcel Service (UPS)
  • C.H. Robinson Worldwide, Inc.
  • Nippon Express
  • FedEx
  • DB Schenker
  • DHL International GmbH
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Mode of Transportation ; Logistics Providers ; End-users

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

The List of Companies - Logistics service market

  1. CEVA Logistics
  3. United Parcel Service (UPS)
  4. C.H. Robinson Worldwide, Inc.
  6. Nippon Express
  7. FedEx
  8. DB Schenker
  9. DHL International GmbH

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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