Top Market Shifts Transforming the Retail Logistics Market Landscape: Key Insights

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What Is the Expected CAGR for the Retail Logistics Market Through 2025?
The market size of retail logistics has experienced swift expansion in the previous years. The projection is an increase from $241.33 billion in 2024 to $266.74 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 10.5%. The historical growth trend is linked to factors such as heightened globalization, the booming e-commerce sector in retail, an upswing in economic activities, growth in the retail logistics industry itself, and a rise in smartphone usage.

What's the Projected Size of the Global Retail Logistics Market by 2029?
In the coming years, a swift expansion is anticipated in the retail logistics market, with projections stating it will reach $394.1 billion by 2029, propelled by a compound annual growth rate (CAGR) of 10.2%. This growth during the forecast period is associated with the growing requirement for effective order fulfillment, harmony among suppliers, increasing urban inhabitants, regulatory restrictions, and rising disposable income. The forecast period also brings forth several trends including advancements in robotics, last-mile delivery creativity, sustainability efforts, omnichannel blending, and same-day and hyperlocal deliveries.

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Top Growth Drivers in the Retail Logistics Industry: What's Accelerating the Market?
The growth of the retail logistics market is expected to be driven by the burgeoning e-commerce industry. E-commerce, which includes all commercial transactions executed electronically via the internet, is experiencing rapid growth due to factors such as increased internet access, the comfort of online shopping, and the growth of digital payment methods. Efficient storage, management, and delivery of goods in retail logistics contribute significantly to customer satisfaction by ensuring prompt and accurate order fulfillment. As an illustration, data from the Belgium-based European Commission released in April 2024 showed that out of the individuals aged 16-74 surveyed, 92% used the internet last year, while 70% bought goods or services, showing a 2% rise from 2022. Furthermore, 2023 saw 75% of the EU's internet users purchasing items online, underlining the sustained growth of the e-commerce sector. Hence, the surging e-commerce industry is catalyzing the expansion of the retail logistics market.

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What Trends Will Shape the Retail Logistics Market Through 2029 and Beyond?
Leading enterprises in the retail logistics sector are innovating by introducing high-tech offerings including location intelligence solutions to augment services with cutting-edge features. The use of geographical data in location intelligence solutions offers invaluable insights and analytics for smarter business choices. For example, in September 2023, Delhivery, a logistics firm hailing from India, launched its application programming interface (API)-driven Location Intelligence Stack LocateOne. LocateOne improves the quality and precision of address data, focusing on rooftop accuracy and detecting fraudulent activities in the retail, e-commerce, fintech, banking, and financial service sectors. Delhivery's breakthrough solution is powered by patented technology for address identification and disambiguation, setting it up as a key player for operational success in commerce. Delhivery sees its OS1 platform as instrumental in securing its place as the operating system for commerce, offering businesses ample prospects for more efficient 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 Top Companies are Driving Growth in the Retail Logistics Market?
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

Which Regions Will Dominate the Retail Logistics Market Through 2029?
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.

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