Press release
Contract Logistics Market Projections & Future Opportunities Recorded for the Period until 2025
The global contract logistics market accounted for US$ 203.9 Bn in 2017 and is expected to grow at a CAGR of 5.0% over the forecast period 2018-2025, to account for US$ 298.8 Bn by 2025.Logistic industry can be considered as the wheel of globalization and competitive product availability for the increase in the number of global consumers. Asia-Pacific is the fastest emerging region owing to the economic development and dynamic business environment. Currently, Asia-Pacific is leading the global contract logistics market overtaking Europe. The growth in this region is attributed to the rising retail enactment, strong economic growth, and increase in disposable income. Moreover, the increase in urbanization and growth in middle-class population have supported the domestic consumption of fast-moving consumer goods, household items, and luxury items. As a result, an increase in retail sales in Asia-Pacific is augmenting the growth of contract logistics market in the region. Rapid growth in the e-commerce sector and rise in foreign direct investment is also attracting numerous non-asset entrants and existing players in this region and further drive the contract logistics market.
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Swift growth of manufacturing industry and their focus laid on core competencies, burgeoning needs for achieving cost efficiency, task optimizations & technological integrations pertaining to supply chain activities, and benefits in managing seasonal variations of products are projected to drive the market for contract logistics market during the forecast period. However, regional diversities and the complex nature of the supply chain may negatively impact the market for contract logistics in the near future. Moreover, the factor such as the unprecedented growth rate of the e-commerce sector and enhanced focus on risk management in the supply chains and increasing collaborations are projected to generate remarkable growth opportunity for the industry players. These factors drive the demands for efficient service and further fuel growth of contract logistics market.
The global contract logistics market has been segmented on the basis of type, services, and end user. On the basis of type, the contract logistics market is categorized into insourcing and outsourcing. Amongst them, insourcing is the dominant segment as many of the companies are shifting their insourcing the logistics services. On the basis of service, the market is classified into transportation, warehousing, packaging processes and solutions, distribution, production logistics, aftermarket logistics, and others. Transportation is the leading segment which is expected to grow at a CAGR of 5.3% during the forecast period. On the basis of the end user, the market is segmented into aerospace, automotive, consumer, high-tech, industrial, pharma & healthcare, retail, and others. Amongst them, a retail segment dominated the market in 2017 with the market share of 26.8%, and it is expected to maintain its lead during the forecast period.
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The overall contract logistics market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the Contract logistics market. It also provides the overview and forecast for the global contract logistics market based on all the segmentation provided with respect to five major reasons such as North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Also, primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the contract logistics industry.
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