The global logistics market will be worth $15.5tn with 92.1bn tonnes of goods being handled within eight years, according to research.
The study, by Transparency Market Research (TMR), valued the current market at $8.1tn but this will grow to $15.5tn in 2023. Volumes, estimated to be 54.6bn tonnes in 2015, are likely to reach 92.1bn tonnes by 2024.
It said logistics was a highly fragmented sector where the top four players, Deutsche Post DHL, Ceva Logistics, UPS, and FedEx, control less than 15% of the market.
TMR said companies have been investing in product innovation, business expansions and new facilities to keep up with local and global competitors and strengthen their foothold in the industry.
Investment in technological innovation is one of the major drivers in the market. This includes automated material handling equipment, trailer seals, GPS, warehouse control software, warehouse management software and biometrics.
Demand for flexibility, easy accessibility, reliability and door-to-door service has meant road transport has gained an increasing share of freight traffic and passenger transport, accounting for a 44.6% share in terms of revenue.
By volume, waterways accounted for the leading share of freight with 47.9% of the global market.
Continued development of roads, especially in Asia Pacific, means road transport is likely to remain the preferred transport medium for logistics in coming years.
Manufacturing is the dominant sector at present and is likely to remain so as it has the longest supply chains compared to other sectors.
Geographically Asia Pacific dominated the logistics market, taking 46.6% of revenues.
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