The global modern logistics warehouse properties market was valued at USD 11,875.1 million in 2019 and is projected to reach USD 26,633.7 million by 2027, expanding at a CAGR of 11.7% during the forecast period. A modern logistics warehouse is defined as a large covered space or hall area equipped with modern facilities such as temperature control and electric lifting platform (used for goods storage), and operations such as order picking (A process where products are found and extracted from a warehouse as per the customer’s order) and distribution of goods. Logistics warehouse properties often have a similar layout; however, their use may differ as per the company, which is using the warehouse for its product. Logistics warehouse properties are similar to a conventional warehouse; however, they differ in size. Standard of construction of modern logistics warehouses is high and upgraded, and emphasizes the modernization, scale effect, and synergy effect of management, as compared to traditional logistics warehouses.
The market growth is attributed to the factors such as increasing concentration of last mile deliveries in urban areas, growing internet retail industry, and rising traffic of container ships at sea ports. Moreover, the high demand for inventory control and storage is driving the modern logistics warehouse properties market.
Concentration of last mile deliveries is increasing in urban areas, as people prefer direct deliveries of products at home rather than going to a shop, due to the busy urban lifestyle. Many local businesses have started delivery services for their products in various cities. These factors are driving the need for larger storage spaces, which are located near or in the urban areas. Increasing demand for doorstep delivery of products is driving the demand for modern logistics warehouse properties in urban areas.
Growth in GDP has fueled the trade of many developing countries, which has increased the container ship traffic on various ports,as nearly 90% of the world trade is handled by sea ports. Ports in need of well-equipped and large storage spaces are developing shipping hubs, which encourage ‘portcentric’ logistics facilities. Such facilities include large logistics facilities at ports as well as at connecting inland ports. Rising demand for adequate storage space for goods is driving the global modern logistics warehouse properties market.
Modern logistics warehouse properties are usually rented by the owners to different companies, which require storage for their products. The rent for these facilities is typically high in comparison to the traditional logistics warehouse properties, as they are large in size and provide facilities such as temperature control. Few large businesses can afford to rent these facilities. This factor is hindering the growth of the global modern logistics warehouse market.
The concept of attached coworking space with the warehouse is growing as the acceptance of e-commerce is on the rise around the globe. The attached coworking space are being used by the e-commerce startups who are looking for the space of logistics. These spaces provide, workspace, storage and logistics operation all at one location. The concept of attached coworking space is relatively new and a growing concept in countries such as Australia and many countries in Asia Pacific. The acceptance of such coworking spaces is expected to grow in the future, due to their efficiency.
By end user type, the modern logistics warehouse properties market has been segmented into automotive, electronics/high-tech, construction & infrastructure, FMCG, non-FMCG retail trade, life sciences, and others. The automotive segment held a substantial share of the market in 2019 and is anticipated to expand at a significant CAGR during the forecast period. This is attributed to increasing demand for fast shipments across the automotive industry. Moreover, advancements in warehouses and increasing focus on inventory control and storage are expected to contribute to the growth of the automotive segment during the forecast period. Moreover, companies operating in industries such as home improvement, apparel & footwear, and packaging industries require modern logistics warehouse properties for proper storage and control of their products. Hence, the demand for modern warehouses is expected to increase during the forecast period.
In terms of regions, the global modern logistics warehouse properties Market has been fragmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The North America region held the highest market share in 2019 as compared to the other regions while Asia Pacific is expected to expand at the highest CAGR during the forecast period, 2020-2027. China, Japan, and South Korea are major producers and exporters of electronic and high-tech equipment. This makes Asia Pacific a key region, in terms of production and export of electronics and high-tech goods. Thus, the demand for advanced modern logistic warehouse storage spaces is expected to increase in the Asia Pacific region during the forecast period.
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Additional company profiles can be provided on request.
According to the Growth Market Reports, the market from modern logistics warehouse properties is likely to register a CAGR of 11.7% during forecast period 2020-2027, with an anticipated valuation of USD 26,633.7 million by the end of the 2027.
The global modern logistics warehouse properties market report provides the additional data such as number of modern logistics warehouse properties across the globe and regulations impacting the market.
The growth of modern logistics warehouse properties market is driven by the factors such as increasing concentration of last mile deliveries in urban areas, growing internet retail industry, and rising traffic of container ships at sea ports.
Factors such as competitive strength and market positioning are key areas considered while selecting top companies to be profiled.
The market is expected to expand at a moderate CAGR of 3.2% between 2019 and 2020 owing to the slight negative impact of COVID-19.
The base year considered for the global modern logistics warehouse properties market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017 & 2018 are the historic years and the forecast is provided from 2020 to 2027.
The key end user types for modern logistics warehouse properties are the industries such as automotive, electronics/high-tech, construction & infrastructure, FMCG, non-FMCG retail trade, and life sciences.
Major players include GLP, JLL, Goodman, Mapletree investments pte ltd, Duke Realty, and Prologis Inc.