The global Logistics Service Market generated a revenue of US$ 1,122.58 billion in 2018, with projections indicating a compound annual growth rate (CAGR) of 6.9% from 2019 to 2027, potentially reaching US$ 2,029.38 billion by the end of the forecast period.
There is a growing focus on enhancing operational efficiencies, alongside an increasing trend of outsourcing logistics and specific supply chain processes to lower operational expenses. This trend has gained considerable momentum across various sectors, driving the expansion of the logistics service market. Additionally, the rise of third-party and fourth-party logistics providers has significantly contributed to the heightened demand for logistics services, further stimulating market growth on a global scale. Currently, leading logistics providers offer a wide array of services, including freight forwarding, freight management, consulting, route optimization, network analysis, project management, inventory and storage management, as well as supply chain consultancy, among other logistics solutions. The adoption of technology-driven logistics services, which offer benefits such as real-time tracking, monitoring, analytics, forecasting, and planning, is anticipated to create numerous lucrative opportunities for stakeholders in the logistics service market in the years ahead. Consequently, the logistics service market is expected to present a wealth of profitable opportunities for market participants in the near future.
Worldwide, there is a significant increase in the demand for logistics services from various organizations aiming to enhance efficiency, fulfill customer delivery expectations, and reduce overall operational costs. Outsourcing logistics services has become a prevalent strategy among large manufacturers to establish an effective supply chain and enhance operational flexibility. Major corporations typically outsource non-core logistics functions, which allows them to distribute their diverse products and brands globally, facilitating rapid sales growth. Enterprises across multiple industry sectors, including industrial manufacturing, retail, aerospace, and others, are increasingly adopting logistics services due to the numerous advantages they offer, such as time savings, cost efficiency, accountability, flexibility, and risk reduction. As a result, logistics service providers deliver a comprehensive range of solutions to large enterprises in both domestic and international markets, positioning the logistics service market to offer a multitude of profitable business opportunities during the forecast period.
The logistics service market in the Asia Pacific region encompasses countries like China, Japan, India, Australia, South Korea, and others. The robust manufacturing sectors for automotive, semiconductors, and electronics have spurred the adoption of automation and control systems across these industries. Rapid advancements, digital economic transformation, strong government support, increased educational awareness, and the rising incomes of the middle class are key factors facilitating the transition of these economies from developing to developed status. Both government initiatives and industrial efforts are crucial for the growth of the logistics service market in this region. With approximately 60% of the global population residing in the Asia Pacific, and many countries serving as manufacturing hubs, the growth of respective industries in the region is further amplified. The increasing number of industries and manufacturers drives the demand for enhanced value-added logistics services to effectively manage the supply chain, from raw material procurement to last-mile delivery. Therefore, the emerging economies in Asia are expected to significantly boost the global logistics service market in the coming years.
A comprehensive 360-degree approach was employed in conducting research for the logistics service market. The overall market size was determined using both primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the logistics service market. Following this, numerous primary interviews were conducted with industry participants and experts to validate the data and analysis concerning the logistics service market. Participants typically involved in this process include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the logistics service sector, thereby enriching the insights into the logistics service market.