Logistics Market Size, Share, Industry & Opportunities 2031

Report Description

The global logistics market size was valued at around USD 8.12 Trillion in 2022 and is projected to reach at around USD 14.80 Trillion in 2031 and is anticipated to expand at a CAGR of 6.9% during the forecast period, 2023–2031. The growth of the market is attributed to growing e-commerce industry and rising logistics operations.

Logistics is defined as the process of moving and arranging resources from one location to the storage of desired destination of consumers, including equipment, food, inventories, liquids, materials, and people. Logistics sector controls the flow of commodities from manufacturing to retail stores in order to meet client demands.

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Logistics management focuses on the efficient and effective administration of daily activities related to the production of completed goods and services for the organization. Logistics management is a part of supply chain management and it is responsible for planning and controlling the efficient storage service of raw materials or primary agriculture products.

Third-Party Logistics (3PL), Fourth-Party Logistics (4PL), outbound logistics, inbound logistics, construction logistics, green logistics, and digital logistics services are an effective way of arranging transportation and flow of commodities.

COVID-19 pandemic has a wide range of consequences, including airline cancellations, travel bans, and quarantines, all of which resulted in a major slowdown in logistical activities around the globe. COVID-19 pandemic has a direct impact on Freight logistics companies that deal with the storage, movement, and flow of goods.

Certain industries are suffering due to the pandemic, while others, including healthcare and medicines, are booming. E-commerce and industries manufacturing products for daily necessities have a favorable impact on the logistics market. The increase in demand for FMCG and medical products such as sanitizers, gloves, hospital supplies, immunizations, and perishable food items fueled the logistics market.

Logistics Market Trends, Drivers, Restraints, and Opportunities

• Growing e-commerce industry and rising reverse logistics operations are expected to drive the market.

• Rising trade-related agreements is anticipated to propel the market during the forecast period.

• Increasing adoption of IoT-enabled connected devices is projected to boost the market in the coming years.

• Lack of control of manufacturers on logistics services and poor infrastructure are expected to hinder the market growth.

• High logistics cost is anticipated to hamper the market growth during the forecast period.

• Logistics automation, emergence of last mile deliveries, and cost-cutting & lead time reduction, due to adoption of multi-model system, is expected to create lucrative opportunities for the market players.  

Scope of Logistics Market Report

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

Logistics Market Segment Insights

Mode of Transportation Segment Analysis

On the basis of mode of transportation, the logistics market is segmented into airways, roadways, railways, and waterways. The waterways segment is projected to expand at a considerable CAGR during the forecast period, due to low maintenance cost of water transport. The roadways segment is anticipated to account for a major market share during the forecast period, as it saves package costing, is suitable for short distance, and enables door to door services.

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End-users Segment Analysis

Based on end-users, the market is divided into aerospace, telecommunication, government & public utilities, banking & financial services, retail, media & entertainment, technology, trade & transportation, and others.

The healthcare segment is expected to hold a significant share of the market in the coming years, due to increasing demand for pharmaceuticals, medical equipment, and medical supplies across the globe. The manufacturing and retail logistics segments account for a significant market share, owing to last mile deliveries of raw materials and consumer products.  

Regional Analysis

In terms of regions, the logistics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to constitute a key share of the market during the forecast period, owing to technological integration in the logistics process in the region.

The market in North America is anticipated to expand at a rapid pace during the forecast period, due to increasing business activities between the countries in North America and rising utilization of e-commerce in the region.

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