Ti’s latest report, Total Logistics 2020, provides the most concise and easy to understand view of the €6.0 trillion global logistics market to date.
Amidst a slowdown in global economic growth, in part caused by trade tensions between the US and China, the logistics industry remains buoyant. Certainly, many elements of the global market remain under strain, but underpinning all domestic and global goods trade, the logistics industry, valued at €6.0 trillion, is too big and too complex to be dominated by any one issue.
The report looks into some of the major trends shaping the global market, including a focus on megacities, Just-in-Case manufacturing, value-added services, inventory centralization and outsourcing.
Market size estimates, including breakdowns by individual market are provided for Asia Pacific, Europe and North America. Asia Pacific is found to account for nearly 45% of global logistics spend and given its GDP growth potential, this share of the logistics market is likely to increase in the years ahead. There are separate deep dives into these regions, as well as others; for example in the Middle East and North Africa where there has been and continues to be significant developments in logistics infrastructure in region.
Andy Ralls, Quantitative Analyst at Ti, said, “Although the US-China trade war has taken its toll in air and sea freight growth this year, we expect more positive growth rates for these markets in the years ahead. Additionally, buoyed by faster growing markets, such as domestic and international express which are boosted by e-commerce growth, the global logistics market is expected to show strong growth up to by 2024.”
In addition, the report takes a look at the global market from a variety of perspectives. At a market level, the report provides a breakdown of the state of each major market, from international freight forwarding to intermodal.
Ti has provided forecasts for a number of major markets. Domestic express is expected to grow at a real compound annual growth rate (CAGR) of 8.4% over the next five years. This comfortably surpasses growth for the logistics sector as a whole, which is estimated to expand at a still healthy CAGR of 4.5%. Further breakdowns are provided for Asia Pacific, Europe and North America.
At a sector level, the report examines logistics needs within pharmaceuticals, consumer goods, retail, high tech and spare parts. It also takes a look at the automotive sector, where supply chains will undergo radical transformations over the next decade as the internal combustion engine is phased out in favour of alternative propulsion systems.
Holly Stewart, Research Analyst at Ti, added, “Total Logistics 2020 provides a blend of trends which are affecting the market right now, and those that look set to do so in the future. Technological changes are particularly important here. As supply chains become more complex, the development of new solutions that provide greater visibility, more information and increased efficiency can give vital competitive advantages.”
Source: Transport Intelligence, January 22, 2020
Author: Transport Intelligence