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Contract logistics is the outsourcing process by 3PL for resource management services, which is very helpful for any organization to manage their entire supply chain process such as scheming and planning supply chains, warehousing, transportation and distribution of goods, processing orders and collecting payments, inventory management and customer service. With increasing globalization and ease of trade, the global market is expected to grow significantly in the upcoming period.
The global contract logistics market was valued at $XX Billion in 2018 and is estimated to reach $XX Billion by 2026, growing at a CAGR of around X.XX% during the forecast period. The market is driven by various growth factors such as improving trading activities due to globalization, expanding the number of regional trade agreements, increasing product sales through e commerce platforms, and a rise in reverse logistics operations. Some of the challenges faced by the market are the risk to the reputation of an organization and rising driver compensation. Big data scope, increased interest in automation in the contract logistics industry and a spike in the M&A activity are some of the latest market trends. In the forecast period, rapid urbanization, huge growth in the ecommerce sector and the increase in supporting government regulations such as foreign direct investment will foster the global market for contract logistics. In addition, growth is also expected to remain at such levels across the forecast horizon, suggesting ongoing strength at global level in core manufacturing and retail markets.
The global contract logistics market is segregated on the basis of type, services, end
Based on services, the market is sorted into transportation, warehousing, distribution, aftermarket logistics and others. Distribution management is a critical function involved in the supply chain owing to cost savings in the overall supply chain process. It is helpful in all types of services which come under contract logistics services such as network analysis, mode network optimization, warehousing, management of vendor compliance. Hence, distribution management has greater value-added service in the global contract logistics market.
Based on end user, the market is bifurcated into retail, e-commerce, manufacturing and others. The retail and e-commerce held the largest market share whereas, E-commerce is still an untapped area and has got huge growth potential attributed to increasing urbanization is expected to increase food consumption leading to the rapid growth of the retail sector.
Geographically, the market is currently dominated by Asia-Pacific and Europe, however, the market is expected to be in favor of North America and Middle East & Africa, which is anticipated to witness remarkable growth rate owing to the increase in demand for service integration, data management, and inclination of manufacturers towards more flexible solutions.
Along with these companies, there were many other companies considered/ cited in the report while analyzing the contract logistics market. These companies hold substantial share-owning to the nature of the industry whereas rest of the market shares are marginal chunks to regional and local level manufacturers. other players have considerable presence owing to its robust brand image, geographical reach and strong customer base.
Starting from $2700
Starting from $2700
Starting from $2700
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