Press release
Distribution Logistics Market Landscape to 2034: Key Forces Shaping the Next Decade of Growth
Distribution Logistics
How Large Will the Distribution Logistics Market Size By 2025?
In recent times, the market size of distribution logistics has witnessed robust growth. The sector is projected to expand from a worth of $9504.54 billion in 2024 to $10196.86 billion in 2025, implying a compound annual growth rate (CAGR) of 7.3%. The historical growth has been propelled by factors such as the proliferation of online shopping, the surge in international trade and global supply chains, an increase in consumer demand for rapid and dependable delivery services, improvements in logistics, the introduction of new rules and compliance necessities, and investments made in the logistics infrastructure.
How Big Is the Distribution Logistics Market Size Expected to Grow by 2029?
The market size of distribution logistics is projected to experience significant expansion in the coming years, escalating to $13377.63 billion by 2029 at a compounding annual growth rate (CAGR) of 7.0%. This imminent growth during the outlook period can be credited to the advanced application of robotics and automatic systems in distribution and warehousing, the prevalence of omnichannel retail, a burgeoning attention towards sustainability, the development of smart cities, the advent of blockchain technology and the consistent expansion in global trade and cross-border e-commerce. Major upcoming trends during the outlook period encompass the incorporation of robotics, automated sorting systems, and automated guided vehicles (AGVS), the integration of AI and machine learning, unified logistics solutions, the evolution of smart warehouses embedded with IoT sensors and real-time data analytics, a focus on eco-friendly logistics, and revolutionary last-mile delivery strategies.
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Which Key Market Drivers Powering Distribution Logistics Market Expansion and Growth?
The expansion of the distribution logistics market is forecasted to be fueled by the burgeoning e-commerce industry. The rise of e-commerce is spurred by improved global internet connections, which opens the door for amplified online shopping avenues and elevated supply chain and delivery solutions, leading to quicker and more trustworthy transportations. Application of distribution logistics in e-commerce ensures swift and precise delivery of goods from warehouses to consumers, thereby raising general contentment and operational efficiency. For instance, records by Ecommerce Europe, a non-profit organization from Belgium, reveal that in 2021, the aggregate e-commerce sector of Europe spiked to nearly USD 869 billion, marking a growth rate of 13% from the preceding year's USD 681.90 billion. The growth acceleration is predicted to persist in 2022, with a projected growth rate of 11% and an expected gross of nearly USD 958 billion. Consequently, the expanding e-commerce industry will stimulate the growth of the distribution logistics market.
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Which Fast-Growing Trends Are Poised to Disrupt the Distribution Logistics Market?
Key players in the distribution logistics market are innovating AI-driven delivery logistics solutions, such as route streamlining options, to bolster operational efficiency, decrease expenses, and boost delivery accuracy. AI-enabled routing optimisation augments logistics by increasing efficiency, slashing costs, and assuring punctual delivery through real-time information and foresight analytics. For instance, Walmart Commerce Technologies, a technology firm for retail and logistics based in the US, rolled out AI-infused Route Optimization as a Software as a Service (SaaS) in March 2024. This software aids businesses of varying sizes to refine their supply chain by streamlining truck routing, effectively loading trailers, and minimising emissions. Noteworthy features include automated planning for multi-stop routes, efficient trailer loading, on-time deliveries regardless of weather or traffic, strategic inventory collection, and actionable information for better decision-making.
What Are the Emerging Segments in the Distribution Logistics Market?
The distribution logistics market covered in this report is segmented -
1) By Inventory Management: Just-In-Time Inventory, Warehousing, Drop Shipping, Vendor Managed Inventory
2) By Transportation Mode: Road Transport, Rail Transport, Air Freight, Sea Freight
3) By Distribution Channel: Direct To Consumers, Retail Stores, Wholesalers, E-Commerce
Subsegments:
1) By Just-In-Time (Jit) Inventory: Demand-Driven Inventory Management, Lean Inventory Systems, Jit For Manufacturing, Jit For Retail And Distribution
2) By Warehousing: Public Warehousing, Private Warehousing, Automated Warehouses, Cold Storage Warehousing, Cross-docking Warehousing
3) By Drop Shipping: Supplier-Based Drop Shipping, Third-Party Drop Shipping Services, E-Commerce Drop Shipping, Direct-To-Consumer Drop Shipping
4) By Vendor Managed Inventory (Vmi): Collaborative Vmi (Between Manufacturer And Retailer), Vendor-Driven Vmi Solutions, Vmi For E-Commerce, Real-Time Vmi Platforms
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Who Are the Global Leaders in the Distribution Logistics Market?
Major companies operating in the distribution logistics market are Deutsche Post AG, UPS SCS Inc., FedEx Corporation, Maersk Logistics and Services UK Ltd., Ceva Holdings LLC, Kühne + Nagel International AG, DSV A/S, DB Schenker, C.H. Robinson Worldwide Inc, Nippon Express Company Ltd., Kerry Logistics Network Limited, XPO Inc., ZTO Express (Cayman) Inc, Landstar System Inc., Yusen Logistics Co. Ltd, Agility Logistics Private Limited, Keppel Logistics Pte Ltd, Singapore Post Limited, GWC Logistic, YCH Group Limited, WHA Corporation, CWT Limited, Gemadept Corporation, CJ Century Logistics Holdings Berhad, Tiong Nam Logistics Holdings Berhad
Which are the Top Profitable Regional Markets for the Distribution Logistics Industry?
Asia-Pacific was the largest region in the distribution logistics market in 2024. The regions covered in the distribution logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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