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Primary Catalyst Driving Retail Logistics Market Evolution in 2025: Impact Of E-Commerce Growth On Retail Logistics Market Driver
Retail Logistics Market Analysis
The scale of the retail logistics market has seen fast-paced expansion in recent years. The forecasted growth predicts a rise from $241.33 billion in 2024 to $266.74 billion in 2025, witnessing a compound annual growth rate (CAGR) of 10.5%. This historical elevation can be linked to the surge in globalization, expansion of retail e-commerce ventures, increased economic operations, growth of the retail logistics sector, and wider smartphone usage.
The projected size of the retail logistics market is predicted to witness swift expansion in the years to come. The market size is forecasted to escalate to $394.1 billion in 2029, growing at a compound annual growth rate (CAGR) of 10.2%. The predicted growth in the upcoming years is attributed to the demand for proficient order management, effective supplier coordination, increasing urban demographics, regulatory restrictions, and the growth of disposable income. Forecast period trends are likely to involve the utilization of robots, innovations in last-mile delivery, initiatives for sustainability, integrating omnichannel, and the implementation of same-day and hyperlocal deliveries.
What Is Contributing to the Growth of the Retail Logistics Market?
The retail logistics market is anticipated to experience significant growth due to the expanding e-commerce sector. E-commerce, which refers to commercial transactions conducted digitally over the internet, is gaining ground due to broader internet access, the convenience provided by online shopping, and the rise of digital payment methods. Retail logistics plays a vital role in e-commerce by ensuring efficient storage, management, and delivery of goods, thus leading to customer contentment through accurate and timely order fulfillment. For example, the European Commission, a Belgium-based governing institution that enacts decisions and preserves the EU treaties, reported that 92% of those surveyed between the ages of 16-74 used the internet in the past year as of April 2024. Among these individuals, 70% purchased goods or services, marking a 2% increase from 2022. Furthermore, 75% of EU internet users made online purchases in 2023, underlining the sustained expansion of e-commerce. Consequently, the rising e-commerce sector is propelling the growth of the retail logistics market.
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Which Key Market Leaders Are Driving Retail Logistics Industry Growth?
Major companies operating in the retail logistics market are United Parcel Service Of America Inc., FedEx Corp., DHL International GmbH, A.P. Moller - Maersk AS, Delhivery Pvt. Ltd., DSV AS, C.H. Robinson Worldwide Inc., Nippon Express Co. Ltd., Expeditors International of Washington Inc., J.B. Hunt Transport Services Inc., Ryder System Inc., GXO Logistics Inc., XPO Logistics Inc., Lineage Inc., Americold Logistics Inc., APL Logistics Ltd., Blue Dart Express Ltd., Rhenus Logistics Sarl, ACT Fulfillment Inc., Freight Tiger, Safexpress Pvt. Ltd., NTC Logistics Pte Ltd., Avg Logistics, Secured Delivery Services, Ark India
What Are the Emerging Trends in the Retail Logistics Industry?
Leading firms in the retail logistics sector are advancing their technological offerings, including location intelligence solutions, in order to improve customer service with sophisticated features. Location intelligence tools use geographic data to help businesses make informed decisions backed by insights and analytics. An example of this was seen in September 2023 when Delhivery, a logistics firm based in India, introduced LocateOne, a location intelligence software which relies on API to enhance the quality and accuracy of address data. This solution significantly eliminates fraudulent activities in the retail, commerce, finance, banking, and fintech sectors by improving rooftop precision. Delhivery's innovative solution, which is powered by patented technology for address identification and disambiguation, is positioned to promote operational excellence in commerce. Delhivery perceives its OS1 platform essential in affirming its position as the operating system for commerce, affording businesses with remarkable opportunities for optimizing operations.
What Are the Main Segments in the Retail Logistics Market?
The retail logistics market covered in this report is segmented -
1) By Type: Conventional Retail Logistics, E-Commerce Retail Logistics
2) By Solution: Commerce Enablement, Supply Chain Solutions, Reverse Logistics And Liquidation, Transportation Management, Other Solutions
3) By Mode Of Transport: Railways, Airways, Roadways, Waterways
Subsegments:
1) By Conventional Retail Logistics: In-Store Logistics, Distribution Centers And Warehousing, Inventory Management, Last-Mile Delivery For Physical Stores
2) By E-Commerce Retail Logistics: Fulfillment Centers, Cross-Border E-Commerce Logistics, Return Logistics (Reverse Logistics), Last-Mile Delivery For Online Orders
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Which Geographic Area Leads the Retail Logistics Market?
North America was the largest region in the retail logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the retail logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Is Covered In The Retail Logistics Global Market Report?
- Market Size Analysis: Analyze the Retail Logistics Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Retail Logistics Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Retail Logistics Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Retail Logistics Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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