E-commerce Logistics Market Share, Size, Trends, Industry Analysis Report, By Service Type (Transportation, Warehousing), By Type (Forward, Reverse), By Model (3PL, 4PL, Others), By Operation, By Vertical, By Region, And Segment Forecasts, 2023 - 2032
- Published Date:Oct-2023
- Pages: 119
- Format: PDF
- Report ID: PM2554
- Base Year: 2022
- Historical Data: 2019-2021
Report Outlook
The global e-commerce logistics market was valued at USD 312.03 billion in 2022 and is expected to grow at a CAGR of 20.8% during the forecast period.
E-commerce logistics encompasses a spectrum of services, including warehousing, transportation, & packaging solutions. The surge in digital technologies has led to a notable upswing in the demand for e-commerce logistics services. One of the primary catalysts behind this growth is the expanding cross-border e-commerce landscape and the increasing number of internet users, particularly in developing nations. As a result, online businesses have experienced significant momentum and opportunities.
To Understand More About this Research: Request a Free Sample Report
The trend of purchasing products through e-commerce websites is on the rise, replacing the traditional practice of visiting physical stores. From everyday essentials like groceries to electronics, personal care items, furniture, and fashion, a wide range of products can now be conveniently purchased online. Projections indicate that the e-commerce logistics market will witness substantial expansion in the foreseeable future, driven by factors such as the widespread use of smartphones, the advent of drone delivery services, digitalization, and the popularity of digital payment methods.
Furthermore, the industry's growth is fueled by the increasing adoption of hardware technologies like the Internet of Things (IoT), barcode systems, portable data terminals, Geographic Information Systems (GIS), and Global Positioning System (GPS) solutions. These technologies are reshaping the landscape of e-commerce logistics, providing enhanced efficiency and customer satisfaction. Market presents vast opportunities for growth, attracting considerable interest from venture capitalists (VC) worldwide. As a result, there has been substantial funding directed towards e-commerce logistics startups.
For Specific Research Requirements: Request for Customized Report
- For instance, Lalamove, secured a substantial USD 1.5 Bn investment, in January 2021, while J&T Express received an impressive USD 2.5 Bn in funding.
Industry Dynamics
E-commerce Logistics Market : Growth Drivers
The explosive growth of the e-commerce sector is a primary driver of the e-commerce logistics market.
As the e-commerce industry experiences rapid growth, logistics companies face the challenges of managing complex supply chains, navigating escalating fuel prices, and coping with intensified competition. To maintain their competitive edge, some 3PLs (third-party logistics providers) are turning to a multi-client fulfillment model, but even this approach is becoming increasingly challenging. Despite the difficulties, the multi-client fulfillment model offers cost-efficiency compared to dedicated fulfillment models.
The outbreak of the COVID-19 pandemic had a positive impact on the e-commerce logistics sector, setting it apart from many other industries. With physical shopping outlets forced to close, consumers turned to e-commerce for their daily necessities, spanning groceries, furniture, electronics, and clothing. Notably, according to a survey by DHL, even after the pandemic subsided, last-mile delivery for e-commerce remained the most sought-after logistic service, highlighting the lasting impact of the shift to online shopping.
Report Segmentation
The market is primarily segmented based on service type, type, model, operation, vertical, and region.
|
By Service Type |
By Type |
By Operation |
By Model |
By Vertical |
By Region |
|
|
|
|
|
|
To Understand the Scope of this Report: Speak to Analyst
By Service Type
Transportation segment accounted for the largest share in 2022
Transportation accounted for major global share. This significant share can be attributed to the crucial role that road transportation plays in facilitating last-mile deliveries. Roadways offer unparalleled flexibility and accessibility, making them the preferred mode of transportation for last-mile deliveries. Unlike other transportation modes like railways or airways, which have limitations on reaching individual households, roads provide direct access to various locations, including residential areas and businesses.
Airways segment is likely to register highest growth rate. This substantial growth is primarily driven by the escalating demand for same-day and next-day delivery services, where air transportation stands out as the most efficient and preferred mode of transport. The increasing popularity of fast and expedited deliveries has placed a significant emphasis on the need for swift logistics solutions. In this context, airways offer a compelling advantage, ensuring rapid movement of goods over long distances in relatively shorter timeframes. The speed and efficiency of air transportation make it the optimal choice to meet the demands of customers who seek immediate deliveries and businesses aiming to offer competitive delivery options.
By Model Analysis
3PL segment held the largest share in 2022
3PL segment held the largest share. Enlisting the services of a 3PL provider offers businesses the opportunity to concentrate on their core activities, such as research and development, manufacturing, and strategic planning, while alleviating the daily operational burdens. By outsourcing product fulfillment operations to a 3PL provider, companies can access a comprehensive logistics infrastructure encompassing warehousing, order processing equipment, and sophisticated computer and software systems, all without incurring fixed overhead expenses.
For companies with constrained in-house resources, this approach presents a cost-effective means to efficiently handle high order volumes. By entrusting their logistics operations to a specialized 3PL partner, businesses can streamline their supply chain processes, improve order fulfillment, and focus on driving growth and innovation in their core areas of expertise.
By Type Analysis
Forward logistics segment held the largest growth in 2022
Forward logistics segment held the largest share. It plays a pivotal role in overseeing the smooth movement of goods, services, and products from suppliers to customers at the downstream end of the e-commerce supply chain. The prominence of forward logistics in the market is attributable to its vital function in ensuring efficient and effective order fulfillment, enabling seamless delivery of items from the source to the end consumers. As e-commerce continues to expand, the demand for streamlined and responsive forward logistics services is expected to increase, further driving its growth in the forecasted period.
Regional Insights
Asia Pacific region dominated the global market in 2022
APAC region dominated the global market. This success can be attributed to the widespread adoption of smartphones and internet connectivity in the region, which has driven a surge in e-commerce demand and, consequently, the demand for efficient logistics services. The emergence of new e-commerce players in the region has been a significant factor in boosting the e-commerce logistics industry's overall growth.
These players have been instrumental in expanding the online retail landscape, creating higher demands for reliable and timely logistics solutions. China has witnessed substantial growth in logistics services, primarily due to significant investments in infrastructure development. Chinese investments in enhancing ports, railways, and highways have considerably bolstered logistics capabilities, enabling smoother and faster movement of goods across the country.
Key Market Players & Competitive Insights
The E-commerce logistics market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market:
- Agility Public Warehousing
- Aramex International
- CEVA Logistics
- Clipper Logistics
- DHL International
- FedEx Corp.
- Gati Ltd
- Kenco Group
- United Parcel Service
- XPO Logistics
Recent Developments
- In November 2022, ASOS has signed a multi-year contract extension with CEVA Logistics, entrusting them with e-commerce fulfillment, warehousing, and inbound and outbound services.
- In October 2022, Aramex PJSC has recently acquired USA Shipping. This strategic acquisition is intended to bolster Aramex's cross-border express business, paving the way for robust revenue growth opportunities.
- In September 2022, DHL has made a significant investment by acquiring a substantial stake in Monta. The primary objective of this partnership is to reinforce and enhance DHL's core logistics business through strategic collaboration with Monta.
- In January 2022, FedEx & Microsoft Corp. have joined forces to create a cross-platform solution named "logistics as a service" for the e-commerce industry. This innovative service is designed to empower brands, merchants, and retailers, enabling them to enhance their competitiveness in the fast-growing e-commerce landscape.
E-commerce Logistics Market Report Scope
|
Report Attributes |
Details |
|
Market size value in 2023 |
USD 360.39 billion |
|
Revenue forecast in 2032 |
USD 1,968.08 billion |
|
CAGR |
20.8% from 2023 – 2032 |
|
Base year |
2022 |
|
Historical data |
2019 – 2021 |
|
Forecast period |
2023 – 2032 |
|
Quantitative units |
Revenue in USD billion and CAGR from 2023 to 2032 |
|
Segments covered |
By Service Type, Type, Model, Operation, Vertical, By Region |
|
Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
|
Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
The e-commerce logistics market report covering key segments are service type, type, model, operation, vertical, and region.
E-commerce Logistics Market Size Worth $1,968.08 Billion by 2032.
The global e-commerce logistics market is expected to grow at a CAGR of 20.8% during the forecast period.
Asia Pacific is leading the global market.
key driving factors in e-commerce logistics market are Rapid Growth of E-commerce Industry.
© 2024 Polaris Market Research and Consulting. All rights reserved
