Globalisation and technological advancements to drive the global logistics market, notes TMR study
Sep 03, 2019
The global logistics market is a highly competitive one, states a latest market intelligence report.
The vendors in the global logistics market are expected adopt several organic as well as inorganic growth strategies in order to gain momentum in the industry. Among these, leveraging the latest technological innovations is a popular scheme amongst logistics market players.
The implementation and use of novel technology has significantly affected the logistics industry vendors. Some of the market's latest techniques are Warehouse Management Systems, Global Positioning System (GPS), Transportation Management System (TMS) and Order Entering Systems, among other. During the entire shipping cycle, technological progress made it possible to monitor the item. This is because of the emergence of tracking systems such as RFID, GPS and bar code technologies.
Logistics providers are using the latest technology, such as CPFR and VMI (Vendor Managed Inventory), to satisfy ever-changing customer requirements. DHL Express introduced a fresh TC55 technology which works on Android platform and which is simple to use, as well as the navigation skills in the global positioning system (GPS).
Leading players in the logistics market are J.B. Hunt Transport Services, Ceva Holdings LLC, Expeditors International of Washington Inc., C.H. Robinson Worldwide, Inc., and Americold Logistics, among others.
The global logistics market is projected to rise at a 7.4% CAGR over the forecast period 2018 to 2026. The market was estimated to reach a value of US$ 16445.1 Bn by 2026, according to report analysts.
The Asia Pacific logistics market is expected to grow rapidly over the forecast period. The study shows that, because of the development of the retail sector in e-Commerce, which is currently driving the logistics market, the worldwide logistics industry is expanding rapidly. A comparable trend is expected during the forecast period.
Soaring Global Trade Puts Logistics Market on the Spot
The development of the world market in logistics is mainly attributable to increased global trade activity for developing economies, increased trade agreements and worldwide logistic infrastructure and progress on IT and transport. Globalization also fosters the logistics industry because the supply chain has become more and more complicated and more multinational companies are outsourcing the logistics services to third parties, seconds and fourths.
In addition, the logistics administration makes an organisation's quality, price, flexibility and distribution more competitive. These variables are now helping organisations to improve their logistics activity. Logistics provides many benefits, including reducing operating costs, improving delivery and increasing client satisfaction. This is a key factor fueling the global logistics market in coming years.
Outsourcing to be Key Market Trend
The increased use of logistics services outsourced in the region has led to market growth. Growing imports and exports, together with the enormous demand for logistics services, are driving producers to trade worldwide as a result of economic growth and urbanization. The logistics infrastructure is improved to satisfy the requirement of additional logistics characteristics using the IT to ensure smooth data flows from one source to the next. This factor augments demand in the global logistics market to a great extent.
Free Trade Agreements to Bolster Logistics Market
The growth in trade-related contracts between the two nations is also a significant factor that affected the logistics industry. The FTA has allowed the taxes and obligations to be reduced. In addition, trade activities have increased as exporters and importers don't have to pay government taxes. Trade bloc countries lift bans and flexibility in trade. These supportive initiatives are expected to drive the global logistics market greatly in forthcoming years.