Retail Logistics Market

Registering the revenue of approximately US$200 Bn in 2022, the global retail logistics market is all set for an impressive growth rate toward the end of 2030.

Market Analysis in Brief

Retail logistics is the orderly process of controlling the movement of goods from the point of supply to the buyer. The transportation of products on a physical level, the stockpiling of products in stockpiling points, the storage of products in sufficient quantities to fulfil customer demand, the management and administration of the process. Retailers establish central or regional distribution centers based on sales volume. The warehouse receiving, inventory management, fulfilment and shipping phases are the key elements of the retail logistics process. Retail logistics has been gaining popularity and will gain stronger ground further as IoT, and other futuristic technologies become more ubiquitous across business verticals. This is expected to drive the growth of retail logistics market. Preliminary research of Fairfield Market Research indicates a promising growth outlook for global retail logistics market during the course of projection, i.e., 2023 - 2030.

Key Report Findings

• The approximately US$200 Bn retail logistics market (as of 2022) is poised to exhibit a strong growth rate by 2030-end
• Growing ubiquity of connected technology sets the stage for retail logistics market expansion
• Asia Pacific’s retail logistics industry slated to display phenomenal growth
• Besides China, and India, Singapore has been developing a highly lucrative pocket for investors

Growth Drivers

Deeper Penetration of Connected Technology

According to Cisco, in 2020, non-PC devices accounted for roughly 71% of all IP traffic worldwide. By the end of 2023, Machine-To-Machine (M2M) connections will account for nearly 50% of all connected devices, and associations worldwide. Additionally, by 2023-end, there will be around 14.7 billion M2M connections. This will create a strong breeding ground for retail logistics market.

According to Verizon’s recent survey, more than one-third of fleet managers who do not already employ fleet monitoring solutions-mobile asset tracking systems often installed in trucks, and other vehicles-say they would anticipate higher production levels if the technology was deployed. The poll also shows that over 53% of businesses using asset performance management and monitoring solutions have achieved genuine productivity rise, with 53% of respondents reporting positive productivity growth and 53% reporting good compliance growth (52 percent of respondents).

Overview of Key Segments

Conventional Logistics Remain Dominant

Based on the type, the conventional retail logistics segment maintains its lead owing to the sustained consumer inclination toward traditional retail stores. In 2021, the conventional sector had the highest revenue share (more than 55%) of the retail logistics market space. The high percentage results from consumers using traditional retail logistics services more frequently since they rely less on the internet and prefer to shop in traditional retail stores.

According to studies, 36% of consumers prefer to buy products from conventional retail stores after researching online. In a retail setting, customers can pick up and inspect a product. As buyers may buy something without waiting for delivery, it provides instant satisfaction.

Growth Opportunities Across Regions

Asia Pacific Remains the Key Regional Market

Asia Pacific is projected to remain the most significant retail logistics market and will possibly grow at the fastest rate throughout the forecast period. During the projection period, the Asia Pacific area is anticipated to see strong revenue growth, particularly in developing nations like China, and India. Technology advancements, an increase in sensors, and automation are some aspects expected to drive the expansion of retail logistics market.

The region has a sizable client base, and a considerable increase in consumer use of eCommerce channels. China, Japan, Australia, and India account for a sizeable portion of global retail eCommerce sales among the top exporters of goods. The region's bright potential for eCommerce growth is the main force behind the expansion of retail logistics market in the region.

In addition, an increasing emphasis on transportation strategies, and continuous logistics infrastructure improvements in emerging nations are anticipated to boost regional market expansion. For instance, as a part of the Indian Government's Logistics Efficiency Enhancement Program, the Ministry of Road Transport & Highways (MoRTH) is creating multimodal logistics parks to address the country's undeveloped road, and material handling infrastructure (LEEP).

China’s Massive eCommerce Boom

China is the largest eCommerce market in the world, accounting for more than 50% of all eCommerce transactions worldwide. According to Dezan Shira & Associates, China will have more than 634 million digital consumers by 2020. Furthermore, it is anticipated that China's eCommerce market will surpass that of the United States, the United Kingdom, Japan, Germany, and France combined. The expansion of the internet infrastructure, and the creation of international logistics networks are credited with the eCommerce sector's recent boom in China.

Singapore Gears up

By combining the technologies with the current processes, Singapore started modernizing logistics to strengthen its position in Asia Pacific’s retail logistics market. The Singapore government has already begun restructuring logistics as part of its US$4.5 Bn Industry Transformation Programme. The program's primary goal is to promote excellence in logistics operations and innovation leadership while developing a solid base of local logistics talent and attracting foreign investment to Singapore. The Logistics Industry Transformation Map (ITM) is the program’s name, modelled after similar initiatives for Singapore's food and beverages, and precision engineering industries.

India’s Expanding Road and Highway Portfolio

For the fiscal years 2019–2025, the Indian government earmarked US$1.4 Tn for the National Infrastructure Pipeline. The sector of roads is anticipated to be responsible for 18% of capital spending from 2019 to 2025. The National Investment and Infrastructure Fund (NIIF) made headway in integrating its portfolio of roads, and highways in October 2020.

Through the NIIF master fund, the NIIF purchased the Issel Devanahalli Tollway, and the Essel Dichpally Tollway. These road infrastructure projects will be supported by Athaang Infrastructure, the exclusive road network of NIIF, with assistance from a group of seasoned experts with various transport-related specialties. Through several measures, the government is developing policies to pique the interest of large investors. By 2022, it is anticipated that 200,000 km of national highways will have been built.

Global Retail Logistics Market: Competitive Landscape

A few players in the global retail logistics market include XPO Logistics, Inc., FedEx, DHL International GmbH, DSV, C.H. Robinson Worldwide, Inc., Kuehne + Nagel International, Nippon Express, United Parcel Service, Schneider, APL Logistics Ltd, and A.P. Moller - Maersk.

Recent Notable Developments

• In April 2020, FedEx collaborated with BigCommerce Pty. Ltd., an open SaaS eCommerce platform supplier, to give small and medium-sized businesses access to online sales, connectivity, and delivery. Thanks to this partnership, BigCommerce Pty. Ltd. clients may now quickly and affordably employ FedEx shipping services on the company's current platform
• In 2021, DHL inaugurated the express sector’s largest airside facility in Bengaluru, India. The capacity of this new and extended facility to handle more than 90,000 metric tonnes of shipping annually while operating at total capacity. It is also supposed to shorten the daily cut-off time for shipment pick-up by up to 60 minutes

Regional Classification of the Global Retail Logistics Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global Retail Logistics Market

• Retail Logistics Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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