Global Retail Logistics Market Grows at a CAGR of 12.4%

Introduction

Intelligent logistics for customers are ushered in by technological advancements like intelligent distribution robots and autonomous item and sorting systems. Businesses are now better able to understand the actual needs of customers kudos to the development of new technologies like big data and AI, as well as the new retail model where the majority of links are digitalized and online in real-time. It is also used to guide supply chain optimization and improvement. New last-mile delivery mechanisms and the advent of the Internet of Things (IoT) in the supply chain are anticipated to fuel market expansion. In addition to managing established distribution channel systems, organizations must handle growing businesses such as B2B wholesale distribution, B2C e-commerce, and self-service vending machines to upgrade existing retail formats. In addition, globalization and a rise in international retailing due to an improvement in the economy as export and import of goods are anticipated to contribute to the retail logistics industry's growth in the coming years.

Market Dynamics

Enhanced International Commerce and Last-Mile Delivery Plan for the E-Commerce Retail Company Drives the Global Market

Global retailers presently face intense competition as a result of growing globalization. There is fierce customer competition among international retailers opening new stores in developing nations like Asia and the Pacific. This promotes increased business activity and makes traveling between different locations more accessible. As a result, there has been a growth in demand for retail and logistic services that can speed up the delivery of products. International retailing helps countries develop economies by increasing the tax revenue obtained from importing and exporting goods and expanding existing markets. Similarly, the proliferation of internet use has increased opportunities for international retailers to engage in trade and online commerce.

In addition, it is anticipated that the last-mile delivery method utilized by the retail e-commerce sector would contribute to the expansion of the retail logistics industry. Customers can evaluate products based on delivery time, prices, features, specifications, and compatibility requirements on an e-commerce platform, which allows them to evaluate products from multiple online sources.

Evolution of Logistics Technology Creates Tremendous Opportunities

Multimodal transportation has achieved immense popularity due to the decreased costs per vehicle, less time required to handle freight, and the less number of customs formalities. An increasing preference for employing several modes of transportation is one of the most significant trends in retail logistics. It requires numerous transportation, including airplanes, ships, trains, and trucks. By integrating this multimodal transportation, inventory managers can keep cost control over merchandise while minimizing inventory maintenance expenditures. Multimodal transportation enables firms to transfer goods efficiently and cost-effectively during outbound logistics.

Regional Analysis

E-commerce networks are widely used by people in Asia-Pacific, which has a sizable customer base. Australia, China, Japan, and India are among the biggest exporters, accounting for a significant share of global e-commerce retail sales. Consequently, the regional market expansion is primarily driven by the region's potential e-commerce growth prospects.

In addition to an increasing emphasis on transportation techniques and continuous logistical infrastructure improvements in developing nations are expected to fuel regional market growth. As part of the Indian Government's Logistics Efficiency Enhancement Program, the Ministry of Road Transport & Highways (MoRTH) is establishing multimodal logistics parks to address inadequate road and material handling infrastructure (LEEP). North America held a considerable market revenue share.

Key Highlights

• The global retail logistics market was valued at USD 227.72 billion in 2021. It is projected to reach USD 652.08 billion by 2030, growing at a CAGR of 12.4% during the forecast period (2022–2030).
• Based on type, the market is segmented into conventional and e-commerce retail logistics. The conventional type dominates the market, which can be attributed to consumers' growing reliance on traditional retail logistics services and their preference for traditional retail stores over online retailers.
• Based on solutions, the market is segmented into commerce enablement, supply chain solutions, reverse logistics and liquidation, and transportation management. The supply chain solutions segment is the dominant shareholder, growing at a CAGR of 13.8% during the forecast period.
• Based on transportation modes, the market is segmented into railways, airways, roads, and waterways. The road mode of transport category dominates the market during the projected period.
• E-commerce networks are widely used by people in Asia-Pacific, with a sizable customer base.

Competitive Players

Competitive Analysis

The global retail logistics market’s major key players are Kintetsu World Express, Inc. (APL Logistics Ltd.) (Kintetsu Group Holdings Co., Ltd.), A.P. Moller - Maersk A/S, DSV A/S, Deutsche Post DHL Group, FedEx Corporation, Kuehne + Nagel International AG, Nippon Express Co., Ltd., XPO Logistics, Inc., United Parcel Service, Inc., and C.H. Robinson Worldwide, Inc.

Recent Developments

Market News

• June 2022- KWE Opens U.S. Sales Office in Salt Lake County, Utah.
• June 2022- A.P. Moller – Maersk to acquire ResQ to strengthen Maersk Training’s offerings within safety training and emergency preparedness.
• May 2022- Maersk launches a revamped Middle Corridor rail service.
• May 2022- InterGlobe Enterprises and UPS Launch MOVIN - A New Logistics Brand Built for India.

Segmentation

Global Retail Logistics Market: Segmentation

By Type

• Conventional Retail Logistics
• E-commerce Retail Logistics

By Solution

• Commerce Enablement
• Supply Chain Solutions
• Reverse Logistics and Liquidation
• Transportation Management

By Mode of Transport

• Railways
• Airways
• Roadways
• Waterways

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA