A recent report published by
Infinium Global Research on the logistics outsourcing market provides an in-depth
analysis of segments and sub-segments in the global as well as regional
logistics outsourcing market. The study also highlights the impact of drivers,
restraints, and macro indicators on the global and regional logistics
outsourcing market over the short term as well as long term. The report is a
comprehensive presentation of trends, forecast and dollar values of the global
logistics outsourcing market. According to the report, the global logistics
outsourcing market is projected to grow at a CAGR of 4.77% over the forecast
period of 2021-2027, growing from nearly USD 948 billion in 2020 to over USD 1301
billion in 2027.
The supply chains have become very
complex over the past few years due to rapid globalization, advancements in
technology, and e-commerce. Logistics is one of the important functions for
many industries, and several stakeholders are dependent on this function.
Moreover, several manufacturers and service providers outsource different parts
of logistic functions such as shipping, storing, packing, and delivering goods,
from raw materials to the finished products. The companies use independent
parties to perform logistic activities, which would be traditionally carried by
internal staff and resources. Logistics outsourcing saves resources and ensures
on-time delivery. Logistics outsourcing offers many benefits including cost
savings, human capital reduction, and streamlined operations. The logistics
service providers such as UPS, DHL, FedEx, and Kuehne + Nagel are some of the
leading market players in the logistics outsourcing market.
The novel coronavirus pandemic had
a serious impact on the global supply chains. The transportation and logistics
resources faced heavy strain during the pandemic. The lockdowns across several
countries created uncertainty in the movement of goods. Many ports and
warehouses were closed in the countries with lockdown restrictions. Moreover,
lack of staff and reduced working time due to health concerns and government
restrictions further reduced the logistics activities. The market players faced
many problems during the pandemic, such as disrupted transportation due to the
boundary closure, and flooded warehouse facilities by the goods that were not
sold due to the lockdown. Nevertheless, as the panic subsided, the logistics
operations were back to their normal state. The demand for logistics
outsourcing increased, as the sales from online channels increased rapidly over
the period of pandemics. This augmented the growth of logistics outsourcing
over a short period and is expected to drive the market in the future.
The rapid development of logistics
infrastructure across developing regions such as Asia Pacific, the Middle East,
and South America is majorly driving the growth of the logistics outsourcing
market. Several new ports, airports, highways, and warehouses are been built
across these regions, supporting the logistic operations. Moreover, the
globalized product availability has further augmented the adoption of logistics
outsourcing by the shippers. Many manufacturers offer the same product across
the world without any major changes, increasing its appeal across the world.
However, many shippers have their in-house logistics, and some are developing
their own logistics departments, which poses a challenge to the market players.
Nevertheless, technological advancements such as AI, IoT, and 5G are
anticipated to offer growth opportunities to the market players. By adopting
these modern technologies, the vendors can streamline their operations, and
provide better services to their clients.
In terms of region, the global
logistics outsourcing market is segmented into North America, Europe,
Asia-Pacific, and the Rest of the World. The Asia-Pacific accounted for the
largest share in the global logistics outsourcing market, and it is expected to
grow with the highest rate over the forecast period. The domination of the
Asia-Pacific accounted is majorly attributed to the growing trans-regional
trade corridors and gateways. Moreover, countries such as China, Taiwan,
Vietnam, and Thailand have become manufacturing hub for global companies.
This has increased the demand for logistics in the region. Furthermore, the
continuous development of logistics infrastructure across the region is
supporting the growth of logistic activities in the Asia Pacific. On the other
hand, North America held the second-largest share in the global logistics outsourcing
market. The presence of the leading market players in the region is majorly
driving the growth of the market in North America. The market players have
large fleets of trucks, and planes to transport heavy shipments.
The report on global logistics
outsourcing market covers segments such as logistics providers, service type,
and mode of transportation. On the basis of logistics providers, the
sub-markets include 3PL, 4PL, 5PL, and others. On the basis of service type,
the sub-markets include material management, supply chain management,
distribution management, shipment packaging, channel management, and others. On
the basis of mode of transportation, the sub-markets include railways,
roadways, waterways, and airways.
The report provides profiles of
the companies in the market such as United Parcel Service of America, Inc., XPO
Logistics, Inc., A.P. Møller - Mærsk A/S, DHL International GmbH, Kuehne +
Nagel International AG, FedEx Corporation, Deutsche Bahn AG, Nippon Express
Co., Ltd., DSV A/S, and SNCF Group.
The report provides deep insights
into the demand forecasts, market trends, and micro and macro indicators. In
addition, this report provides insights into the factors that are driving and
restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis
given in the report brings an insight into the investment areas that existing
or new market players can consider. The report provides insights into the
market using analytical tools such as Porter's five forces analysis and DRO
analysis of the logistics outsourcing market. Moreover, the study highlights
current market trends and provides forecast from 2021-2027. We also have
highlighted future trends in the market that will affect the demand during the
forecast period. Moreover, the competitive analysis given in each regional
market brings an insight into the market share of the leading players.