THE global logistics market is expected to expand by 7.5 percent annually and reach $15.52 trillion in revenue by 2023, according to a new market report published by Transparency Market Research (TMR).
The market was valued at $8.18 trillion in 2015, the report said. In volume terms, the total annual volume of 54.69 billion tons in 2015 is forecast to grow by an average of 6.0 percent annually to reach 92.1 billion tons by 2024.
Logistics includes all the activities of the supply chain such as transportation, customer service, inventory management, flow of information, and order processing. Some other activities of the supply chain are warehousing, material handling, purchasing, packaging, information, and maintenance. The logistics market is segmented based on transport infrastructure into road transport, waterways transport, rail transport, and air transport.
The TMR reported said that one of the biggest drivers of the logistics market growth is investment in technological innovation. Automated material handling equipment, trailer seals, GPS, warehouse control software, warehouse management software, biometrics and radio frequency identification tags (RFID) are technologies TMR said are being adopted at a rapid rate, improving efficiency and increasing the speed with which goods move through supply chains. The report cited as one example the 2014 agreement between Deutsche Post DHL and Escher Group, which assisted DHL’s effort to modernize its network by initiating easier parcel delivery and collection in Germany.
Road freight transport is still the most widely used transport infrastructure globally and it is vital to the social integration and economic development of various counties, the report said. Flexibility of operations, easy accessibility, reliability and door-to-door service has gained road transport an increasingly higher share of both freight traffic and passenger transport modes, it added.
With improving road infrastructure in the majority of the North American, European, and Asia Pacific economies road transport will remain the most favorable mode of logistic transport, TMR said.
The TMR report classified the global logistics market into four geographical regions: North America, Europe, Asia-Pacific, and Rest of the World (RoW). Currently, Asia Pacific holds the largest share of the global market, followed by North America, Europe, and Rest of the World (RoW). China is the largest logistics market in the Asia Pacific region, primarily driven by the country’s large population, the report said. In addition, the availability of logistics products in China is further driving the growth of the market in the country, it added.
Major logistics players either on a global or regional scaled identified by TMR include FedEx Corp., United Parcel Service Inc., JB Hunt Transport Services, CH Robinson Worldwide Inc., Expeditors International of Washington Inc., XPO Logistics Inc., Kenco Group, Americold Logistics, and UTi Worldwide Inc., all from the United States; LLC Ceva Holdings LLC from the UK; and Germany’s Deutsche Post DHL.