The global warehousing and distribution logistics market is on a growth trajectory, with a projected value of $25,788.7 billion by 2031, growing at a CAGR of 7.7%. This significant expansion is being driven by several key factors, including the adoption of multimodal transport systems and the increasing use of e-commerce tools worldwide.
The COVID-19 pandemic did disrupt the supply chain activities of the logistics and transportation sector, negatively impacting the global warehousing and distribution logistics market. However, there was a surge in demand for healthcare and FMCG supplies, such as gloves, perishable food items, hospital supplies, vaccinations, and sanitizers, which helped mitigate the market’s decline.
Key Insights from the Report:
- Manufacturing Dominates: The manufacturing segment is expected to contribute the highest revenue share in the global warehousing and distribution logistics market in 2031, accounting for approximately one-third of the market share. The segment is driven by the increasing demand for industrial manufacturing logistics services. On the other hand, the healthcare segment is anticipated to grow the fastest, with a CAGR of about 12.7% over the next decade, reflecting the growing need for fast-track assistance in the healthcare sector.
- Distribution Takes the Lead: In terms of business type, the distribution segment holds the highest market share in 2021, making up nearly three-fifths of the global warehousing and distribution logistics market share. It is expected to maintain its dominance throughout the forecast period and is predicted to register the highest CAGR of 8.3%. This growth can be attributed to the rising demand for procuring raw materials and delivering them to manufacturers for production. The report also covers other segments such as Warehouse and Value-added services.
- Storage Leads the Way: Among the modes of operation, the storage segment contributed the highest market share in 2021, accounting for almost one-third of the global warehousing and distribution logistics market share. This segment is set to continue making notable contributions to the market share in 2031. The surging need for maximizing productivity and delivery reliability is driving the growth of this segment. However, the seaways distribution segment is predicted to register the fastest CAGR of 8.5% during the forecast period, primarily due to the increased demand for cost-efficient transport facilities, such as ships, for the movement of bulk goods.
- Asia-Pacific Dominance: In terms of regions, Asia-Pacific held a significant share in the global warehousing and distribution logistics market in 2021 and is expected to maintain its dominance through the forecast period. The region accounted for one-third of the global market share in 2021 and is set to record the highest CAGR of 9.3% from 2022 to 2031. The growth can be attributed to continuous government support for the development of logistics infrastructure in the region.
Key Market Players:
- Agility Public Warehousing Company K.S.C.P.
- CEVA Logistics
- Century Logistics Holdings Bhd
- CWT Ltd.
- DB Schenker
- DHL Supply Chain
- Gemadept Corporation
- Keppel Logistics Pte Ltd
- Kerry Logistics Network Limited
- Kuehne + Nagel International AG
- Singapore Post Limited
- Tiong Nam Logistics Holdings Bhd
- WHA Corporation Public Company Limited
- YCH Group Pte Ltd
- Yusen Logistics Co., Ltd.
These key players in the global warehousing and distribution logistics market have implemented various strategies to enhance market penetration, including strategic expansion, new product launches, alliances, and joint ventures. Their contributions play a crucial role in the market’s expansion and development.
As the warehousing and distribution logistics market continues to evolve and grow, it presents new opportunities for various industries and businesses worldwide. This growth is influenced by changing market trends, innovative value chains, and competitive scenarios.
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