Global Warehousing and Distribution Logistics Market Size, Share, and COVID-19 Impact Analysis, By Component (Solution, Service), By Type (Air Freight, Ocean Freight, and Inland Freight), By Vertical (Automotive, Aerospace, High-Tech Industries, Retail & E-commerce, Healthcare, Energy & Utilities & Others), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) Analysis and Forecast 2022-2030
KEY MARKET INSIGHTS
The warehousing and distribution logistics market was valued at USD 962.3 Bn in 2021. The market is projected to grow USD 1,704.3 Bn in 2030, at a CAGR of 5.1%. Warehousing and distribution essentially refers to the storage of items intended for transportation, whether inbound or outward. The control of the flow of products from the point of origin to the point of consumption is a component of distribution. Commercial success depends on effective management of warehousing and distribution operations. The main goal of the warehouse and distribution logistics sector is to deliver the correct product to the appropriate location, on time, on budget, and with end-to-end visibility. The logistics sector is experiencing increasing demand for end-to-end supply chain solutions, such as warehousing and rapid delivery, in addition to basic commodities transportation.
Effective warehousing and distribution management is essential for business success in present competitive marketplace. The current logistic infrastructure is proving to be extremely dependent on technological innovation and intervention in warehousing and distribution logistics. Globally, both public and commercial actors are perceived to invest in a strong transportation and trade infrastructure. The industry has a promising future over the forecast period thanks to features like real-time location access and others.
The outbreak of COVID-19 has impacted severely on the supply chain of the retail industry. The COVID-19 pandemic has significant impact on the warehousing and distribution logistics business. Economic factors that affect the market, such as purchasing power, directly influence market growth. The manufacturing sector is directly impacted by the pandemic's economic effects due to the restricted people movement around the world and certain countries' complete lockdowns. Warehousing and distribution businesses are also affected. Due to the total lockdown, transportation and warehousing companies have suffered enormous losses because there is a labor shortage and manufacturing industries have stopped output. The global lockdown has hindered both domestic and international transportation, which has had a huge impact on the supply chains of many different businesses.
Rising Demand for Express Delivery
The demand for investments in warehouse services is demonstrated by the growth of online commerce and population growth in many nations. A sizeable portion of the supply of inland warehouse space is under the control of private sector logistics service providers. To improve their operations and cost-effectiveness, shippers are concentrating on outsourcing logistical activities. Same-day and one-day deliveries are more popular with customers. Major retailers therefore began investing in logistics services to match client expectations. Additionally, the need for logistics services in sectors like quick delivery & inventory management would increase due to e-ongoing commerce's development. Demand for effective inventory management services has increased as a result of globalization. For instance, the trend toward drop shipping started by Oberlo and Shopify has completely transformed the entire supply chain and increased the need for logistics for warehousing and distribution.
Increasing Digitalization Creating Better Efficiency
Warehouses need to scale up and fulfil the standards of an intelligent, efficient, and automated warehouse due to the introduction of always-on e-commerce, the need for quicker responses, and the requirement to manage a greater number of SKUs with fewer errors. The various benefits on the disruption of digitalization are increased interconnectivity, real-time data, mobility solutions, smart analytics, etc.
Rising E-commerce Leading to Support Warehousing and Distribution Centers
The e-commerce industry has dramatically increased during the pandemic. Customers' demands changed as a result of on-time delivery. Consumer electronics and fashion are the two most competitive categories in the growing e-commerce business. Because it encourages warehouses to upgrade for greater dependability, higher efficiency, and better fit for clients, its growth is closely tied to growth in the warehousing business.
Limitation of Infrastructure May Hamper the Market Growth
The development of logistical services continues to lag as compared poor countries to industrialized ones. The industry's dearth of highly skilled workers is to blame for this trend. The absence of qualified logistics professionals further restricts this market's expansion. Similar to China, industrialized nations' infrastructure is now insufficient to match the demand for innovative logistics services.
The global warehousing and distribution logistics market is segmented by Component (Solution and Service), by Type (Air Freight, Ocean Freight, and Inland Freight), by Vertical (Automotive, Aerospace, High-Tech Industries, Retail & E-commerce, Healthcare, Energy & Utilities & Others) and Region. Based on the component, the market is categorized solution and service. Based on type, the market is categorized into air freight, ocean freight, and inland freight. Based on vertical, the market is categorized into automotive, aerospace, high-tech industries, retail & e-commerce, healthcare, energy & utilities & others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.
Based on the component segment, the global warehousing and distribution logistics market is categorized into solution and service. The service segment has dominated the market share in 2020 of global warehousing and distribution logistics market owing to the rising number of small companies offering different services in the market.
Based on the type segment, the global warehousing and distribution logistics market is categorized into air freight, ocean freight, and inland freight. The inland freight segment has dominated the market share in 2020 of global warehousing and distribution logistics market owing to the large distribution network and also incur less costs while comparing to others. For instance, in July 2018, Dutch port service provider LBH group and the German 3PL Rhenus Group formed a joint venture in order to manage Europe using an inland seaway transport operation.
Based on the vertical segment, the global warehousing and distribution logistics market is categorized into automotive, aerospace, high-tech industries, retail & e-commerce, healthcare, energy & utilities & others. The retail & e-commerce segment is dominated the market share in 2020 of global warehousing and distribution logistics market owing to the 3rd party logistics (3PL) demand for warehouse space has increased as a result of the global e-commerce boom, and it will develop more quickly in rising economies like India and China. In the next years, it is anticipated that the demand for warehouses will increase as retail chains expand and see rapid expansion. Consumer preference have been influenced to purchase online by the implementation of lockdowns, physical distance norms, and other regulations in reaction to the COVID-19 crisis. The sale of household goods, prescription drugs, and food products through business-to-consumer (B2C) and business-to-business (B2B) e-commerce has increased as a result of this behavioural shift. The shopping habits of customers are being influenced by a growing number of online channels. Businesses in the e-commerce sector are accelerating order placement and shipping.
The global warehousing and distribution logistics market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. North America region is dominating the market share of global warehousing and distribution logistics market owing to the prominent logistics service companies are collaborating to include new projects. The growth of the regional market is also fueled by the creation of joint ventures to operate in the market and the inclusion of new services to serve nations. However, Asia Pacific region is anticipated to grow over the next few years of global warehousing and distribution logistics market owing to the spurred by e-commerce sector activities to include warehouse projects and its solution in the supply chain by local businesses. The expansion of the third party logistics sector is also being fueled by partnerships between logistics service providers and transport companies.
· CEVA Logistics
· Schenker A/S
· DHL (Deutsche Post AG)
· Mahindra Logistics Limited
· Linfox Pty Ltd
· Integrated National Logistics
· Logistics Solutions Company
· YUSEN LOGISTICS CO., LTD.
June 2022- Kuehne+Nagel has introduced electric vehicle services for airport transfers in Mumbai, India. With this service, Kuehne+Nagel hopes to gradually transition to electric cars in order to lessen its carbon impact, advance the cause of a sustainable future, and create a greener India. DHL Supply Chain has acquired Glen Cameron Group to strengthen the presence of DHL in Australia.
May 2022- OBE Organic, organic beef exporting company, has collaborated with Maersk ECO Delivery to export refrigerated meat through seaways using green biofuels.
April 2022- Shipa Freight (Agility) has merged with iContainers to aim for digital forwarding services ranging from small and medium-sized enterprises (SMEs) to multinational companies requiring spot shipments.
January 2022- Penske and Röhlig has announced the formation of a new contract logistics joint venture company called Rohlig Penske Logistics GmbH to expand into further Western European countries.
October 2021- Agility and Huawei have signed an MOU to transform their industrial and logistical parks into smart campuses. In accordance with the agreement, technologies and systems that control visitor management, vehicle entrances, "smart streets" with WiFi, and increased security at ALP complexes will be assessed.
May 2021- DB Schenker has setup the new facility of cold storage in 55,000 sqft area for pharmaceutical/healthcare to store their products and vaccines. As the growing need for temperature controlled logistics for medical purposes.
- Air Freight
- Ocean Freight
- Inland Freight
- High-Tech Industries
- Retail & E-commerce
- Energy & Utilities
- North America- U.S., Mexico, Canada
- Europe- UK, France, Germany, Italy, Spain, Rest of Europe
- Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
- South America- Brazil, Argentina, Colombia, Rest of South America
- The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa