Global Logistics Management Services Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

Advancement of logistics management with technology integration

The Global Logistics Management Services Market is estimated to be USD 10.08 Tn in 2023 and is expected to reach USD 13.56 Tn by 2028 growing at a CAGR of 6.11%.

Freight management, cross-docking, reverse logistics, freight collaboration, logistics triangulation, market research and benchmarking, and other logistics management services are available. Logistics management assists in meeting consumer demand by coordinating, managing, and storing effective transportation. Furthermore, it is critical to client pleasure. Moreover, logistics management minimizes firm expenses while improving customer service.

E-commerce is the purchasing and selling of goods over the Internet. Third-party logistics service providers handle product delivery to customers. Furthermore, the e-commerce industry employs logistics services to manage and control e-commerce enterprises' supply chains, allowing these companies to focus on marketing and other business activities. As a result of the multiple benefits provided by logistics to the e-commerce industry, the adoption of logistics services is increasing rapidly, fueling the expansion of the logistics market.

A large amount of financial expenditure is required to construct a network of warehouses, transportation facilities, and other critical infrastructures such as warehouse automation and robotics. This creates a high barrier to entry for new market participants. Furthermore, workers, fuel, and equipment costs are high, forcing most logistics companies to optimize their operations to reduce costs while remaining competitive constantly. Again, many countries may lack the infrastructure required for logistical operations to run well. In some circumstances, roads, ports, and airports may be inadequately maintained, making commodities transit problematic. A lack of creative technology exacerbates this problem. These elements will likely hurt the evolution of the global logistics management services market.

Several technology improvements have been achieved that are extremely advantageous to the logistics management services sector. Technologies such as real-time shipment tracking and monitoring, warehouse automation, and digitizing logistics procedures help organizations increase logistics operations' overall efficiency. This is especially visible in the retail logistics sector. Furthermore, many businesses outsource their logistical operations to third-party service providers. This allows them to focus more on their core operations, which has increased demand for cost-effective, efficient logistics management systems. These characteristics are projected to boost the logistics management services industry.

Market Segmentations

• The Global Logistics Management Services Market (2023-2028) by Logistic Provider, Service, Mode of Transport, End-User, and Geography.
• By Logistic Provider, the market is classified into First & Second Party, Third Party, Fourth Party, and Fifth Party Logistics.
• A third-party logistics provider (3PL) holds the largest share of the market. It offers logistical services to businesses for a portion of, or often all, their supply chain management functions. Third-party supply chain managers are increasingly being used. However, levels of outsourcing vary greatly across countries. In general, activities are more heavily outsourced in the UK and the US, with China and India showing major future possibilities.
• By Service, the market is classified into Warehouse Services, Transportation, Inventory Management, and Administration & Supplies.
• The inventory management segment is the fastest-growing segment. Rapid technology improvements in inventory management are projected to provide market growth possibilities. Over the projected period, technological advancements such as using RFID technology to manage inventories and track goods in real-time are expected to enhance demand for the segment. Furthermore, the increased implementation of AI and machine learning in inventory management is expected to drive demand over the projection period.
• By Mode of Transport, the market is classified into Roadways, Railways, Waterways, and Airways.
• The Roadways category has the largest market share. Because it is cost-effective, simple, and provides door-to-door service, the roads segment is the most used for transporting goods. Over the forecast period, increasing technology improvements and e-commerce are expected to boost growth in the road transport segment. Furthermore, a global import and export activity surge will drive the segment's growth during the projection period.
• By End-User, the market is classified into Automobiles, Machinery, Apparel & Footwear, Pharmaceutical Products, Retail, Aircraft, Ships & Railways, Electronics, Petrochemicals, Agriculture, Building Materials, and Others.
• The petrochemicals segment is one of the significant segments in various industrial processes. Petrochemicals make industrial oils, plastics, detergents, and tires. Furthermore, a surge in demand for green warehouses drives the petrochemicals segment's growth throughout the projection period.
• By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
• Asia-Pacific region holds the maximum share of the market. The region's expanding middle-class population in India and South Korea is expected to increase demand for transport and logistics services. In addition, escalating political tensions between China and other countries have prompted organizations to invest in Southeast Asian countries such as the Philippines, Malaysia, Thailand, and Singapore. Furthermore, China dominates the market in this region due to its considerable European and American exports.

Recent Development

• FourKites and RCS Logistics partnership to provide RCS customers with a one-stop service that provides complete visibility into their shipments across the ocean, water, and air, intermodal and over-the-road (OTR). - February 2023
• DHL Supply Chain expanded its logistics service by offering a new solutions suite for electronic waste recovery management. The new circular supply chain solution helps companies enable appropriate reprocessing, reuse, or recycling of used electronic parts such as touchscreens, processors, computer modules, or tech assets. - October 2022

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are Kuehne + Nagel, Nippon Express, Panalpina World Transport, Toll Holdings, etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)

Competitive Quadrant

The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Logistics Management Services Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development, and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Logistics Management Services Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Logistics Management Services Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter's 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report also includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report also contains the competitive analysis using Positioning Quadrants, the Proprietary competitive positioning tool.

Report Highlights

• A complete analysis of the market, including parent industry
• Important market dynamics and trends
• Market segmentation
• Historical, current, and projected size of the market based on value and volume
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market