PUBLISHER: The Business Research Company | PRODUCT CODE: 1574708
PUBLISHER: The Business Research Company | PRODUCT CODE: 1574708
Distribution logistics involves managing and coordinating the movement, storage, and delivery of goods from manufacturers to end consumers. Its goal is to ensure products are transported efficiently and accurately through the supply chain, minimizing costs while meeting customer demand. This process is essential for optimizing inventory levels, reducing lead times, and improving overall supply chain performance.
The main types of inventory management in distribution logistics include just-in-time (JIT) inventory, warehousing, drop shipping, and vendor-managed inventory. JIT inventory is a strategy where materials and products are ordered and received only as needed in the production process, which helps to reduce storage costs and waste by keeping inventory levels low and closely aligned with actual demand. Transportation modes include road transport, rail transport, air freight, and sea freight, while distribution channels encompass direct-to-consumer, retail stores, wholesalers, and e-commerce.
The distribution logistics market research report is one of a series of new reports from the business research company that provides distribution logistics market statistics, including distribution logistics industry global market size, regional shares, competitors with an distribution logistics market share, detailed distribution logistics market segments, market trends and opportunities, and any further data you may need to thrive in the distribution logistics industry. This distribution logistics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The distribution logistics market size has grown strongly in recent years. It will grow from $8,883.40 billion in 2023 to $9,504.54 billion in 2024 at a compound annual growth rate (CAGR) of 7%. The growth during the historic period can be attributed to the expansion of online shopping, increased international trade and global supply chains, rising consumer expectations for fast and reliable delivery services, advancements in logistics, new regulations and compliance requirements, and investments in logistics infrastructure.
The distribution logistics market size is expected to see strong growth in the next few years. It will grow to $12,512.35 billion in 2028 at a compound annual growth rate (CAGR) of 7.1%. The anticipated growth in the forecast period can be attributed to the increased use of robotics and automated systems in warehousing and distribution, the rise of omnichannel retail, a growing emphasis on sustainability, the expansion of smart cities, the emergence of blockchain technology, and continued growth in global trade and cross-border e-commerce. Key trends expected during this period include the adoption of robotics, automated sorting systems, and automated guided vehicles (AGVs), integration of AI and machine learning, development of integrated logistics solutions, creation of smart warehouses with IoT sensors and real-time data analytics, a focus on green logistics, and innovative last-mile delivery methods.
The expansion of the e-commerce sector is anticipated to drive the growth of the distribution logistics market. This growth is fueled by increased global internet access, which broadens online shopping opportunities, and improved supply chain and delivery solutions that ensure faster and more reliable shipping. In e-commerce, distribution logistics plays a crucial role by facilitating the efficient and timely delivery of products from warehouses to customers, thus enhancing overall satisfaction and operational efficiency. For example, Ecommerce Europe, a Belgium-based non-profit association, reported in June 2022 that the European e-commerce sector reached approximately USD 869 billion in 2021, representing a 13% increase from the previous year's USD 681.90 billion. The sector is expected to continue growing in 2022, with a projected 11% increase and an anticipated turnover of around USD 958 billion. Consequently, the expanding e-commerce sector is set to drive growth in the distribution logistics market.
Leading companies in the distribution logistics market are focusing on AI-powered delivery solutions, such as route optimization technologies, to boost efficiency, cut costs, and enhance delivery accuracy. AI-powered route optimization improves logistics operations by leveraging real-time data and predictive analytics to ensure timely deliveries and reduce costs. For instance, in March 2024, Walmart Commerce Technologies, a US-based provider of technology solutions for retail and logistics, introduced an AI-powered Route Optimization technology as a Software as a Service (SaaS). This technology aids businesses in optimizing truck routes, efficiently packing trailers, and minimizing emissions. Key features include automated multi-stop route planning, efficient trailer packing, reliable on-time deliveries regardless of weather and traffic conditions, strategic inventory pickup, and actionable insights for better decision-making.
In May 2024, Total Distribution Inc., a US-based warehousing and storage company, acquired D+S Distribution Inc. and Integrated Logistics Services, Inc. for an undisclosed amount. This acquisition allows Total Distribution Inc. to broaden its distribution and logistics operations and enhance its service quality and flexibility. Both D+S Distribution Inc. and Integrated Logistics Services, Inc. are US-based companies specializing in distribution and logistics services.
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, Kuhne + 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
Asia-Pacific was the largest region in the distribution logistics market in 2023. The regions covered in the distribution logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the distribution logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The distribution logistics market includes revenues earned by entities by providing services such as transportation, route planning, fleet management, supply chain optimization, and order fulfillment. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Distribution Logistics Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on distribution logistics market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for distribution logistics ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The distribution logistics market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.