Global Warehousing and Logistics Market: 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) – Forecast till 2030

Description

Market Overview:

The Global Warehousing and Logistics Market, valued at USD 310.1 billion in 2021, is anticipated to grow to USD 528 billion by 2026, reflecting a CAGR of 11.25%. Serving as the backbone of the global logistics industry, warehousing plays a vital role in the storage and management of products. Our analysis indicates that the resurgence and growth of eCommerce have reshaped the market dynamics, increasing the need for rapid response times and efficient shipment inventory management. As eCommerce continues to expand, the market is set for a digital evolution, including the automation of numerous functions. The logistics sector’s growing focus on digital transformation is expected to alter the future characteristics and operational strategies of warehouses. Additionally, the rising demand for an omni channel retail model is projected to drive market growth, leading to an overall increase in the global warehousing market size during the forecast period.

Market Size for Global Logistics and Warehousing Market on the Basis of Revenues in USD Bn, 2018-2023

Source: Maven Market Research

Factors Leading to the Growth of the Global Warehousing and Logistics Market:

• Increasing demand for e-commerce: The surge in online shopping has escalated the need for efficient and cost-effective warehousing and distribution services.
• Growth of the manufacturing sector: The global manufacturing sector is anticipated to continue its expansion, driving the demand for warehousing and distribution services for raw materials, finished goods, and components.
• Globalization of businesses: As businesses increasingly extend their operations into new markets, the demand for efficient logistics services rises.
• Technological advancements: Innovations in technology are enhancing the efficiency and effectiveness of warehousing and distribution operations. For instance, warehouse management systems (WMS) and transportation management systems (TMS) are optimizing inventory management and transportation routes.

Restraints for the Global Warehousing and Logistics Market:

The development of logistical services continues to lag in less developed countries compared to industrialized ones. This trend is attributed to a shortage of highly skilled workers within the industry. The lack of qualified logistics professionals further constrains the market’s growth. Additionally, even in industrialized nations like China, existing infrastructure is often inadequate to meet the rising demand for advanced logistics services. This insufficiency hinders the full potential of the market, as modern logistics operations require robust and up-to-date infrastructure to function efficiently

What is the current structure of the Global Warehousing and Logistics Market?

Based on Component, the Service Segment Leads the Global Warehousing and Logistics Market

The global warehousing and distribution logistics market is divided into two main segments: solutions and services. In 2020, the service segment emerged as the leader in market share. This is largely due to the increasing presence of small companies providing a wide range of services, such as inventory management, packaging,

transportation, and distribution. These services are crucial for the smooth functioning of supply chains and cater to the varied demands of customers. The growing number of these small service providers has significantly boosted the overall capacity and adaptability of the warehousing and distribution logistics industry, driving its substantial growth.

Based on Type, the Inland Freight Segment Leads the Global Warehousing and Logistics Market

Based on the type segment, the global warehousing and distribution logistics market is categorized into air freight, ocean freight, and inland freight. In 2020, the inland freight segment dominated the market share. This segment’s leadership is driven by its extensive distribution network and cost-effectiveness compared to other segments. For instance, in July 2018, Dutch port service provider LBH Group and German 3PL Rhenus Group formed a joint venture to enhance their inland seaway transport operations across Europe. This strategic collaboration highlights the increasing importance of inland freight in optimizing logistics efficiency and reducing overall transportation costs within the industry.

Based on Vertical Segment, Retail & E-commerce Leads Global Warehousing and Logistics Market

Based on the vertical segment, the global warehousing and distribution logistics market includes automotive, aerospace, high-tech industries, retail & e-commerce, healthcare, energy & utilities, and others. In 2020, the retail & e-commerce segment dominated the market share. This was driven by increased demand for warehouse space from third-party logistics (3PL) providers amidst the global e-commerce surge. Emerging economies like India and China are expected to witness rapid growth in warehouse demand as retail chains expand and online shopping continues to grow due to changing consumer preferences influenced by COVID-19 lockdowns and online shopping convenience.

Based on Region, North America Dominates the Global Warehousing and Logistics Market

Based on region, North America is dominating the market share of the warehousing and distribution logistics market. This dominance is attributed to prominent logistics service companies collaborating on new projects. The growth of the regional market is further fueled by the creation of joint ventures to enhance market operations and the introduction of new services catering to national demands.However, the (APAC) Asia Pacific region is expected to witness major growth during the forecast period. This growth is spurred by increased activities in the e-commerce sector, leading to the establishment of new warehouse projects and solutions in the supply chain by local businesses.

Competition Landscape

Global Logistics and Warehousing Market is in the growing stage, being driven by rising demand from manufacturing along with increasing Government Initiatives. The competition scenario is highly fragmented with some of the major players namely DHL, Move Logistics and Warehousing, Halls Group, NZ post, Toll Group, and FedEx

Market Segmentation

By Component

• Solution
• Service

By Type

• Air Freight
• Ocean Freight
• Inland Freight

By Vertical

• Automotive
• Aerospace
• High-Tech Industries
• Retail & E-commerce
• Healthcare
  Energy & Utilities
• Others

By Region

• North America
• S.
• Mexico
• Canada
• Europe
• UK
• France
• Germany
• Spain
• Italy
• 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
• Others

Major Key players in the warehousing and  logistics market include:

• DHL Group
• GAC
• LSC Logistics and Warehousing Co.
• DB Schenker Logictics
• Ceva Logistics
• APL Logistics
• Kuehne + Nagel
• Yusen Logistics
• Kerry Logistics
• Rhenus Logistics
• CJ Century Logistics
• Agility Logistics
• Linfox
• Aramex
• GWC