The growth of the global Logistics Market is directly related to the development of international trade flow and the current economic environment. Asia Pacific and North America appear to be the most attractive markets for logistics, particularly when it comes to contract service such as third-party logistics. Intra-regional trade in emerging markets is becoming important, especially in Asia Pacific, and this, combined with high GDP rates, is projected to continue boosting the logistics market.
The usage of logistics services in different application such as manufacturing, retail, trade and transportation, government and public utilities, healthcare, media and entertainment, telecommunication, banking and financial services, and information technology is expected to rise considerably during the forecast period, which in turn, is estimated to strengthen the growth of the logistics market globally.
The global logistics market, in terms of revenue, is set to expand from US$8.1 trillion in 2015 to US$15.5 trillion by 2023, registering a CAGR of 7.5% from 2015 to 2024. By volume, the market is expected to clock in a 6.0% CAGR from 2016 to 2024.
Roadways to continue being Most Favored Mode of Logistic Transport
Based on the type of transport infrastructure, the logistics market is segmented into roadways, waterways, railways, and airways. Road freight transport is the most widely used transport infrastructure globally and has proven to be vital to the social integration and economic development of various counties. By revenue, roadways held the dominant share and by volume, waterways accounted for the leading share in 2015.
Flexibility of operations, easy accessibility, reliability, and availability of door-to-door services have enabled road transport to gain an increasingly higher share in the logistics market, both in terms of freight traffic and passenger transport. With improved road infrastructure in economies such as North America, Europe, and Asia Pacific, road transport is likely to continue its trend as the most favored mode of logistic transport.
Based on logistics model, the market is categorized into first-party logistics, second-party logistics, third-party logistics, and others. In terms of revenue, second-party logistics constituted the leading share in the market in 2015, followed by third-party logistics.
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In 2015, Asia Pacific led the global logistics market thanks to significant contribution from countries such as China, India, Singapore, Indonesia, Japan, and Malaysia. China is the major contributor to the growth in this region due to the presence of a large manufacturing base. India, on the other hand, is one of the most promising markets, which has attracted the government as well as logistics players to make massive investments in the country.
The logistics market in North America has grown significantly over the years. This can be attributed to an increase in trade activities between the U.S. and South America and Europe. U.S.’s trade relations with Asia Pacific, particularly China and India, has strengthened owing to the rising demand for foreign goods in these countries.
Germany is a prominent market for logistics in Europe, while other countries such as the U.K. and France have also been contributing considerably to the regional market. Europe is recovering from an economic slowdown and logistics companies are making massive investments to improve the infrastructure in various countries.
Latin America is perhaps the most noteworthy market for logistics in the Rest of the World (RoW) segment. Emerging nations such as Brazil and Argentina have shown massive potential for development thanks to growing trade activities among various other developing countries.