According to the report published by Allied Market Research, the global logistics market was pegged at $7.64 billion in 2017, and is anticipated to reach $12.97 billion by 2027, registering a CAGR of 6.5% from 2020 to 2027.
Logistics is widely known as the process of coordinating and moving resources, such as equipment, food, liquids, inventory, materials, and people, from one location to the storage of the desired destination. It is the management of the flow of goods from one point of origin to the point of consumption, to meet the requirement of customers. Logistics management focuses on the efficiency and effective management of daily activities concerning the production of the company’s finished goods and services.
Growing e-commerce industry coupled with increase in reverse logistics operations, rise in trade related agreements, surge in the number of tech-driven logistics services, and mounting adoption of IoT enabled connected devices drive the growth of the global logistics market. On the other hand, poor infrastructure, higher logistics costs, and lack of control of manufacturers on logistics service impede the growth to some extent. Nevertheless, emergence of last mile deliveries is expected to pave the way for numerous opportunities in the coming years.
Considering the sudden and unprecedented onset of a global pandemic triggered by COVID-19 logistics enterprises which are directly involved in the packing and loading of goods were adversely affected. Flight terminations and travel bans also led to distorted supply chain and logistics across the globe, however, as the lockdown measures have slackened off, the manufacturing activities are gradually being reinstated, and the global logistics market is anticipated to revive soon.
Dynamic market conditions and improvement in global economy are the key factors driving globalization. Attributed to rise in globalization, various activities related to trade are witnessing increase. Therefore, it is becoming difficult for manufacturers or retailers to keep track of these activities in an efficient manner. This factor is expected to drive the logistics market for logistics companies. Moreover, development of the overseas market is a significant factor that fuels the growth of the market. Logistics services are becoming extremely vital for price-sensitive customers who require a wider choice of high-quality products with timely delivery.
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