Market Dynamics

Technological innovation is one of the prominent factors that drive the global total logistics market

Rising technological innovations have been gaining traction across a wide range of industries, with logistics and supply chain being one of the most impacted industries. Heavy use of manual processes and large amounts of data stored in different ways at different places, the total logistics industry has perhaps gained valuable data from implementing new technologies and following the most innovative supply chain and logistics technology trends. Currently, the total logistics industry has seen massive advancements, particularly in areas such as artificial and augmented intelligence, advanced analytics, and automation. These technologies have gained a lot of attention and have evolved faster than ever before, while startups with newer solutions and innovations are gaining traction. Various innovations are being used to integrate logistics and supply chain companies. This is accomplished through the application of technological innovations such as block chain to real-time supply chain visibility. 

Total logistics reduce inefficiencies in inventory management

When compared to many developed markets, India's perceived potential for logistics cost reduction through inventory efficiency is consistent with the development path of total logistics. For example, the US had total logistics costs that exceeded 14 percent of GDP, with 7.2 percent being inventory costs, 6.8 percent being transportation costs, and 0.5 percent being overhead, a composition that is very similar to India's current composition. A drastic reduction in inventory costs was a core element of the revolution of total logistics concept (TLC). Furthermore, according to NITI Aayog statistics, one of the major factors driving the total logistics market is accelerating urbanization, which has increased from 29 percent in 2007 to 34 percent in 2017 and is expected to reach 60 percent by 2050. This increased urbanization has led to an explosion of consumer demand, specifically in e-commerce where the market is predicted to grow from its current INR 2.6 trillion to INR 13.6 trillion by 2026.

Reducing unnecessary regulations drives the total logistics market globally

The government has implemented various strategies for reducing burdens on ports and the shipping industry. Furthermore, according to the Department of Transport report, the government intends to develop proposals that will allow increasing the time required between tachograph data downloads. Aviation, on the other hand, contributes significantly to the UK economy. In 2017, air freight represented 49% of the UK’s non-EU exports by value (£91.5 billion) and 35% of non-EU imports (£89.9 billion), over 40% of total trade by value but under 1% by volume of goods shipped. The government has created a long-term framework for UK aviation that will encourage export-led growth in industries with high-value or time-sensitive goods.

Market Opportunities

Evidence from the UK logistics industry and its users, supported by evidence from international statistical, academic, and industry sources, demonstrates five core areas where government can play a critical role in increasing the productivity of the UK industry and thus strengthening its role in the UK economy. Furthermore, providing an opportunity to invest in the short term by removing planning barriers to sustainable logistics development with a strong focus on strategic rail freight interchanges, promoting the use of private capital in a funding approach for the strategic road network, and facilitating access to capital for commercial investment is driving demand for global total logistics market.

Segmental Analysis

The global total logistics market is segmented based on mode of transport and end-use. Based on mode of transport, the market is segmented as railways, airways, roadways, and waterways. By end-user, the market is segregated as healthcare, manufacturing, aerospace, telecommunication, media & entertainment, oil, and others. In terms of mode of transportation, the roadways segment is expected to grow at an exponential rate in the coming years. This is strongly supported by the government's involvement in improving the long-term capacity, performance, and resilience of the congested road and rail networks, which improves connectivity to ports. Furthermore, the government is focusing on assisting local businesses from various sectors in securing funding for sustainable development projects for the growth of the logistics sector, which will result in the delivery of sub-national and local employment opportunities and growth. Furthermore, by end-user, the manufacturing segment will experience profitable growth during the forecast period. Manufacturing is gaining prominence globally as different countries have large consumer bases. Catering to last-mile logistics in remote cities and villages with high consumption rates is a critical challenge for all businesses' logistics processes. To meet the rapidly increasing demand rate across multiple regions, a dedicated total logistics industry is required.

Regional Overview

North America is dominating the total logistics market in 2020 and is expected to continue a similar trend in the forthcoming years. Europe will hold the second largest market share in the forecast period for the total logistics market. Furthermore, Asia-Pacific will record significant CAGR in the forthcoming years for the growth of the global total logistics market.

Competitive Landscape

The prominent players involved in total logistics market are XPO Logistics, DHL Supply Chain, FedEx, Ceva Logistics, Kuehne + Nagel, C.H. Robinson, Penske Logistics, Geodis, NFI, Swift transportation, APL Logistics, and DB Schenkar USA

Market Segmentation

Market By Mode of Transport

Railways
Airways
Roadways
Waterways

Market By End Use

Healthcare
Manufacturing
Aerospace
Telecommunication
Media & Entertainment
Oil
Others

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa