PUBLISHER: Allied Market Research | PRODUCT CODE: 1298400
PUBLISHER: Allied Market Research | PRODUCT CODE: 1298400
Contract logistics includes a long-term partnership that comprises a variety of services, from the transportation of goods or replacement parts to the delivery of goods to the ultimate customer. This includes the tools required for the variety of services provided, including warehouses, staff, appropriate equipment, dispatch follow-up, stock management, and after-sales services. The growing adoption of multimodal transportation along with the rise in international retailing is the primary factor for the growth of the logistics market in the retail sector. In addition, the innovative last-mile delivery mechanism in the retail e-commerce market is expected to accelerate the retail logistics industry. Moreover, the growing disposable income coupled with the increasing purchasing power of consumers is expected to drive the demand for retail logistics services, thereby boosting the logistics market in the retail segment. Furthermore, the growing e-commerce industry, increasing usage of smartphones, and rapid internet penetration are anticipated to fuel the growth of the logistics market. For instance, in August 2020, Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited, acquired the retail, wholesale business, logistics, and warehousing business of Future Group, an Indian conglomerate company, to strengthen the retail, wholesale, and supply chain business of Reliance's retail business.
The e-commerce industry contract logistics is driven by several factors, including increase in demand for online shopping, the need for faster & more flexible fulfillment options, and the trend toward outsourcing logistics functions to specialized providers. Moreover, the e-commerce industry is projected to have a prominent impact on the growth of the market due to improved relationships between suppliers & customers, which has fueled the growth of the market. In addition, the introduction of business analytics has assisted logistics professionals to increase the speed and efficiency of the work process that has proved to be a factor supplementing the growth of the segment in the global market.
As the demand for specific processes along the value chain and comprehensive services is growing, contract logistics is becoming the ideal solution for companies. The Western European region dominates the Europe market by taking more than three-fourths of the market, with Germany accounting for the major share. However, countries in the Central and Eastern Europe regions are expected to achieve high growth in the future. As of 2020, the program called 'Move to 4.0' was launched to support the transformation of existing manufacturing companies in Europe by diversifying or transforming their businesses through innovative technologies and new business models.
The market is segmented on the basis of service, type, industry vertical, mode of transportation, and region. By service, the market is divided into transportation, warehousing, distribution, and aftermarket logistics. By type, it is bifurcated into insourcing and outsourcing. By industry vertical, it is categorized into retail, e-commerce, aerospace, automotive, industrial, high-tech, pharma & healthcare, and others. By mode of transportation, it is classified into railways, airways, roadways, and waterways. By region, it is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, Spain, and Rest of the Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The leading players that operate in the contract logistics market are: A.P. Moller - Maersk, Agility, CEVA Logistics AG, CJ Logistics Corporation, DB Schenker, Deutsche Post AG, DSV, GEODIS, Hellmann Worldwide Logistics, Logisteed, Ltd., Kuehne+Nagel International AG, Neovia Logistics Services, LLC, Penske, Ryder System, Inc., United Parcel Service, Inc. (UPS), XPO Logistics, Inc., and Yusen Logistics Co., Ltd.