According to a recent report by US-based Transparency Research Market, the logistics industry in revenue terms is expected to grow at a compound annual growth rate (CAGR) of 7.5 percent till 2024; the global market is expected to reach USD 15.5 trillion by 2023 – up from 8.1 trillion in 2015.
By Kumar S
The late Chinese General Sun Tzu famously said that the line between disorder and order lies in logistics. Thanks to advancements in modern logistics, international trade has become seamless and highly efficient, making global trade more lucrative than ever…
Logistics services’ is required in virtually all areas across manufacturing and services’ sectors be it retail, healthcare, banking, financial services, media and entertainment, trade, tourism, transportation, delivery, construction, hospitality and information technology.
The logistics market globally is categorized into first-party logistics, second-party logistics, third-party logistics, and others.
In terms of revenue, second-party logistics constituted the leading share in the market in 2015, followed by third-party logistics.
The logistics infrastructure encapsulates the entire ecosystem comprising of warehouses, transportation, manpower, software and hardware systems, customer service, inventory management, flow of information and order processing.
Logistics Market
North America occupies pole position in the global logistics market with US taking the biggest share of the pie. The US currently has trade activities with nearly all markets throughout the world. It has substantial trade exchanges with South America and Europe. Its presence in the Asia pacific region is ever growing, particularly in mass markets like India and China, with American brands being very much in demand in both countries.
Asia Pacific is becoming an important market in the logistics space. The sheer size of Chinese and Indian markets may make them a lucrative bet among foreign investors.
The report has put China as the biggest contributor to the growth of this sector in the region since 2015. China, with its large manufacturing base, augurs well for the logistics industry. India, while still a developing market, is showing immense potential with the Indian Government and private enterprises making attractive incentives and tax breaks to attract greater foreign investment.
Interestingly, the website Forward with Toll published an article in June 2017, quoting China’s claim that it had surpassed the US logistics market in 2016; the former registering USD 1.6 trillion in revenue, outperforming the US market. This figure represented a 2.9 percent on-year increase in the value of the Chinese logistics market from the previous year...
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