E Commerce Logistics Market Size, Share & Growth Report 2031

Report Description

The global e-commerce logistics market size was valued at USD 427.5 billion in 2021 and is expected to surpass USD 2,110.7 billion by 2030, expanding at a CAGR of 21.6% during the forecast period, 2022–2030. The growth of the market is attributed to the rapid advancements in transport services and the growing number of warehouses that offers wide storage of products and timely delivery for consumers. 

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E-commerce logistics or e-logistics primarily deals with the shipment of products for online customers. E-logistics involves a range of activities such as inventory management, picking-up, packaging, labeling, and product delivery to ensure that the products are safely and timely delivered to consumers. The rising growth of e-logistic services can be majorly attributed to the rapid expansion of domestic and international transportation globally, which are primarily conducted using air-based, marine-based, on-road, and railway transports. With the advancement of new technologies, a service provider can easily monitor the shipping or track vehicle movements and gain real-time updates on whether products are delivered to the targeted customers’ location address within the prescribed time. Warehousing plays an important role in the rapid growth of e-commerce logistic services as it allows proper management of inventory and constant checking of weights, expiration date, and other specific details of products by service providers.

The COVID-19 pandemic had accelerated the market growth due to the rising online sale and rapid development of e-commerce platforms offering various consumers’ products at discounted prices. The prolonged shutdown of bricks and mortar stores as well as movement restrictions, imposed by government lockdowns during the pandemic forced customers to buy essential items ranging from medicines to groceries from e-commerce platforms, which ultimately boosted the logistics market. Moreover, the increasing use of drones for delivery services and the rising usage of electronic items for buying products online are likely to propel the market further in the near future.

Market Trends, Drivers, Restraints, and Opportunities

• Rising users of smart devices including smartphones and laptops as well as high penetration of the Internet among consumers present a key factor driving the market.   
• Rapid expansion of the transport industry, an increasing number of online merchants, and the rapid growth of e-commerce businesses are other key drivers of the market.
• Growing demand for fast order and delivery services along with rising automation or digitalized shipping services are expected to propel the market in the coming years.
• Issues concerning security and data breaches of users as well as the presence of a large pool of population preferring to buy items from offline stores act as major challenges that can hamper the market during the forecast period.  
• Increasing integration of advanced technologies such as Artificial intelligence (AI) and cloud-based solutions in logistics services are offering several growth opportunities for the market.

Scope of the Report

The report on the global e-commerce logistics market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Increasing cross-border trade drives the transportation segment

Based on service types, the global e-commerce logistics market is divided into transportation, warehousing, and others. The transportation segment is further segmented into trucking/over road, freight/rail, maritime, and air/express delivery while the warehousing segment is sub-classified as hubs/delivery centers, mega centers, and returns processing centers. The transportation segment accounted for a dominant market share in 2021 and is expected to expand at a CAGR of 17.5% during the forecast period. The segment growth is attributed to the rising expansion of the logistic industry in transportation due to the increasing volume of cross-border trade and rapid development of the overall global economy. The rapid integration of advanced logistic technology offers several advantages in transport services including effective tracking of shipping movements and timely delivery services.

On the other hand, the warehousing segment is anticipated to hold a key share of the market in the coming years owing to the rising availability of large-sized warehouses in several remote places besides the existing warehouse facilities located in metropolitan cities. Moreover, the rapid establishment of warehouses owned by various retail e-commerce, increasing online sales, and rising integration of innovative technologies to monitor real-time updates of inventory further boost the segment.    

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Rapid growth of online sales fuels the domestic operations segment

On the basis of operational areas, the global e-commerce logistics market is bifurcated into international operations and domestic operations. The domestic operations segment is projected to register a CAGR of 17.9% during the forecast period due to the rising need for e-commerce logistic systems, impacted by the rapid growth of online sales and increasing demand for home delivery services. With the expansion of various transport means and systems including on-road transport vehicles, railways, and air transports; the domestic e-commerce logistic services such as truck shipping, air freight shipping, and railway-based shipping are expanding rapidly. Since the cost of logistic services is available at a much cheaper rate for domestic transport, small retailers increasingly adopt e-commerce logistics, which presents another key factor driving the segment.  

Asia Pacific to dominate the market

In terms of regions, the global e-commerce logistics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held a major market share in 2021 and is expected to dominate the market during the projected period owing to the wide number of smartphone users and increasing portion of customers preferring to buy their needs from online platforms. The presence of a large pool consumer population, the emergence of new players, and increasing public-private investments in the development of robust e-commerce channels in the region further propel the regional market. Moreover, several initiatives for infrastructure developments are being taken by the governments of major economies such as China, India, and Japan in terms of new construction of roads, railways, bridges, and ports to ensure better connectivity and effective transport in the region. The e-commerce logistic market in China is projected to account for more than USD 270 billion during the targeted period.

On the other hand, the market of North America is projected to account for a large market share in the coming years owing to the well-establishment of the e-commerce logistic services and the presence of key global players. Furthermore, the existing strong infrastructure systems in terms of road connectivity, rail services, ports, and air transport systems in the region are key factors boosting the regional market. The rapid expansion of maritime logistics, autonomous vehicle services, and increasing acceptance of advanced technology in transportation, especially in the US has further pushed the market in the region.     

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