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Warehousing and Distribution Logistics Market Expected to Reach $25.8 Trillion by 2031

by Giezel Garcia
11/06/2024
in Warehousing & Distribution

The global warehousing and distribution logistics market is projected to grow significantly, reaching an estimated $25.8 trillion by 2031, according to recent industry reports. The market, valued at $12 trillion in 2021, is anticipated to expand at a compound annual growth rate (CAGR) of 7.7% from 2022 to 2031.

The report highlights factors such as the rising adoption of multimodal transport systems, growth of e-commerce platforms, and advancements in last-mile delivery mechanisms as key drivers of this growth. Emerging technology-driven warehousing solutions and increasing demand for refrigerated warehouses are also expected to contribute to the market’s upward trajectory.

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Segment Performance

By business type, the distribution segment held the largest share in 2021, accounting for nearly three-fifths of the global market. The segment is also expected to maintain its dominance with the highest growth rate (CAGR of 8.3%) through the forecast period. This trend is attributed to increasing demand for efficient raw material procurement and streamlined production supply chains.

In terms of mode of operation, the storage segment led the market in 2021, representing nearly one-third of the global share. The segment’s growth is driven by the need for increased productivity and delivery reliability. Meanwhile, the Seaways distribution segment is projected to witness the fastest growth, with a CAGR of 8.5%, owing to rising demand for cost-effective bulk transportation via ships.

Regional Insights

The Asia-Pacific region emerged as the largest market in 2021 and is expected to maintain its leading position over the next decade. The region accounted for approximately one-third of the global market share in 2021 and is forecasted to grow at the fastest rate, with a CAGR of 9.3%. This growth is supported by expanding e-commerce industries, government investments in logistics infrastructure, and the increasing adoption of outsourced logistics services, particularly in countries like China and India.

Other major markets include North America, Europe, and LAMEA (Latin America, Middle East, and Africa), each contributing significantly to the global warehousing and logistics landscape.

Key Market Drivers

The report identifies several factors driving the growth of the warehousing and distribution logistics market, including:

  • Growing demand for logistics solutions in the e-commerce sector
  • Rising need for refrigerated warehouses to handle perishable goods
  • Increasing adoption of last-mile delivery systems and automation technologies

Additionally, emerging economies such as Brazil, India, China, and South Africa are expected to present substantial opportunities for market expansion due to improvements in logistics infrastructure and increased freight forwarding services.

Leading Market Players

Key companies in the warehousing and distribution logistics market include:

  • CEVA Logistics
  • DB Schenker
  • DHL Supply Chain
  • Kuehne + Nagel
  • Yusen Logistics
  • Agility
  • Kerry Logistics
  • Gemadept

These players are focusing on enhancing logistics solutions through technological advancements, strategic partnerships, and infrastructure development to meet growing global demand.

The report underscores that continued investment in logistics automation, increased government support, and ongoing development of multimodal systems will further drive the sector’s growth through 2031.

Stay on top of supply chain logistics news updates at The Supply Chain Report. Visit ADAMftd.com for free international trade tools.

#WarehousingLogistics #DistributionMarketGrowth #SupplyChainInnovation #LogisticsIndustryFuture #GlobalTradeTrends

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