PUBLISHER: Grand View Research | PRODUCT CODE: 1301151
PUBLISHER: Grand View Research | PRODUCT CODE: 1301151
The global retail logistics market size is anticipated to reach USD 626.59 billion by 2030, registering a CAGR of 12.5% over the forecast period, according to a new report by Grand View Research, Inc. The growth is likely to be driven by new last-mile delivery methods, such as the introduction of the Internet of Things (IoT), the use of data analytics, and urban warehousing, among others, in the supply chain.
An IoT-based supply chain connects much technical equipment using sensors, allowing for real-time data collecting on critical aspects such as filing rate and temperature. IoT-based supply chain solutions also provide merchants with unprecedented inventory control and accuracy. IoT sensors integrated into warehouses and storage facilities continually check stock levels, initiating replenishment orders automatically when specific criteria are achieved. This data-driven strategy reduces stockouts and overstocks while optimizing inventory levels and lowering carrying costs.
Customers can also benefit from technical improvements such as intelligent distribution robots and automated sorting systems, ushering in a new era of smart logistics. Key firms can comprehend the genuine demands of customers faster and more accurately owing to t the majority of the links in the new retail format that have been digitalized and are readily available in real-time, combined with the usage of new technologies such as machine learning (ML), big data, and artificial intelligence (AI).
Moreover, AI and ML algorithms may improve logistics planning in various ways, including route planning, fleet management, and delivery scheduling. AI-powered systems construct optimal delivery routes by considering elements such as traffic conditions, delivery time windows, and vehicle capacity, lowering transportation costs and enhancing operational efficiency. Advanced AI algorithms may also optimize resource allocation, such as warehouses, labor, and transportation, to simplify operations and satisfy consumer needs cost-effectively.
To update existing retail formats, retail firms and traditional distribution channels should focus on B2C e-commerce, self-service vending machines, B2B wholesale distribution, and O2O. Additionally, factors such as growing globalization, an increase in international retailing, and an improvement in the economy owing to the increasing tax-generated revenue from the goods imported and exported are expected to assist the industry's growth in the coming years.
The rapid expansion of retail e-commerce has opened up several new opportunities for new and prominent players in the market. However, retail e-commerce is facing several financial and operational issues in recent years. Return shipments are becoming a more common element of logistics processes, thus posing operational issues and the potential to minimize logistic-related costs. Moreover, poor infrastructure can hinder the market's growth by making market participants hesitant to spend and expand.