Table of Contents 2
Table of figures 4
1 - EVOLVING LOGISTICS MODELS WITH E-COMMERCE 7
1.1 Asia Pacific 7
1.2 MENA 9
1.3 South and Central America 11
1.4 How can Emerging Market Governments help grow the e-commerce business and reduce logistics costs? 12
2 – GLOBAL E-COMMERCE LOGISTICS MARKET SIZE & GROWTH 2021 14
2.1 Global 14
2.2 Asia Pacific 17
2.3 North America 22
2.4 Europe 25
2.5 South America 30
2.6 Russia, Caucasus and Central Asia 33
2.7 Middle East and North Africa 36
2.8 Sub-Saharan Africa 39
3 – GLOBAL E-COMMERCE LOGISTICS SEGMENTATION AND TRENDS 2021 43
3.1 DOMESTIC 43
3.1.1 Asia Pacific 43
3.1.2 North America 45
3.1.3 Europe 47
3.2 CROSS-BORDER 49
3.2.1 Asia Pacific 49
3.2.2 North America 50
3.2.2 Europe 50
3.3 FULFILMENT 51
3.3.1 Asia Pacific 52
3.3.2 North America 54
3.3.3 Europe 55
3.4 LAST-MILE 56
3.4.1 Asia Pacific 57
3.4.2 North America 58
3.4.3 Europe 58
4 – E-COMMERCE FULFILMENT LANDSCAPE 60
4.1 The State of the Market – Development of the Post-Covid e-fulfillment Market Landscape 60
4.2 The e-fulfilment Market 60
4.2.1 Definition of the e-fulfilment Market 60
4.2.2 Categories of e-fulfilment Provider Technology 60
4.3 Growth of e-fulfilment 61
4.4 Broadening of Service Capabilities from Different Players 61
4.4.1 Value Proposition 62
4.4.2 Partnerships 65
4.4.3 Quality 67
4.4.4 Automation and Robotics 68
4.4.5 Scale and Growth 69
4.4.6 Systems 71
4.5 Market Map 73
4.6 Logistics Provider Profiles 74
4.6.1 GEODIS 74
4.6.2 GEOPOST DPD 77
4.6.3 Aramex 79
4.6.4 DHL 81
4.6.5 DSV 84
4.6.6 FedEx 86
4.6.7 Kuhene+Nagel 88
4.6.8 UPS 91
4.6.9 GXO 94
4.6.10 Alibaba 98
4.6.11 Walmart 102
4.6.12 Amazon 104
4.6.13 JD.com 107
4.6.14 Ti’s interviews - Focus on….byrd 110
Caterina Ciccone joined Ti in 2019 as a researcher. She studied English and Spanish Modern Languages in Italy where she developed a passion for research. After graduating Caterina studied teaching education at Bath Spa University. She has since then worked as a sales administrator using her Italian and Spanish language skills to support customers and as a researcher in the operational risk field. Caterina is passionate about learning about logistics companies and their strategies and contributes to Logistics Briefing and Ti’s Global Supply Chain intelligence portal.
Michael Sinclair joined Ti in 2021 as a researcher. He studied Criminology and Sociology at Cardiff University where he developed a passion and skillset for research. Michael is passionate about learning about researching logistics companies’ strategy, and what future developments may occur. Michael contributes to Logistics Briefing and Ti’s Global Supply Chain intelligence portal.
Nia Hudson joined Ti as a research analyst in 2021. She studied History as an undergraduate, before moving on to complete a master’s in public policy at Bristol University, where she developed a keen interest in globalisation and supply chains. During her time at Bristol, she also worked as a teaching assistant in a primary school. Nia is passionate about research and contributes to Logistics Reports and Ti’s Global Supply Chain intelligence portal.
Raghu Ramachandran is a Guest Author at Ti and the founder of 13 Colony Global LLC. Raghu retired from UPS in 2015 after 28+ amazingly “fulfilling” years. The company gave him the latitude to get engaged in numerous interesting projects worldwide, and in his last few assignments, Raghu focused on the design, development and launch of an e-commerce solution and leading a team of Managers to assess, evaluate and recommend efficiencies in the Supply Chain of large and medium sized US retailers. Raghu consults on projects covering the 3PL market, supply chain trends, fulfillment, last mile delivery operations, network planning, M & A due diligence and generating new product ideas in an omnichannel environment leveraging technology.
e-commerce logistics market grew by 19.9% in 2021, says Ti’s latest report
15th March, 2022, Bath, UK, Transport Intelligence (Ti): Ti’s latest report, Global e-commerce logistics 2022, shows that rapid growth in the market continues with growth of 19.9% in 2021, though growth has slowed from 2020’s Covid-19 induced peak.
- The global e-commerce logistics market grew by 19.9% in to reach a value €441.47bn in 2021.
- Global e-commerce logistics market to grow at a CAGR of 11.8% from 2021-2026
- Cross-border e-commerce market forecasted to grow at a CAGR of 10.65% to 2026
- Global e-fulfilment market made up 46.8% of the total for e-commerce logistics, with last mile making up the remaining 53.2% in 2021
- E-fulfilment service providers have broadened their service offerings to capture more of the e-commerce value chain
Ti’s latest data shows that, regionally, in 2021 Asia Pacific is still the biggest e-commerce logistics market, followed by North America and Europe. However, in 2026, Ti forecasts that North America will be the biggest e-commerce logistics market, with the US, Canada and Mexico all experiencing nominal 2021-26 CAGR above the global average.
There are expectations that the Asia Pacific’s market growth will be affected by both the Chinese and the South Korean market’s 2021-26 CAGR slowing down below not only the global average but the regional average of 7.1% too. Their percentage of online retail sales as a percentage of total sales, at 28.0% and 24.5% respectively, are testimony of mature markets. In addition, the parcel pricing war we’ve seen in China has hampered overall growth. However, the two countries will remain amongst the biggest e-commerce logistics markets globally on the back of a high number of e-shoppers.
A similar situation is likely to happen with the UK’s e-commerce market, with online sales as a percentage of total retail sales standing at 26.6% as of December 2021 as reported by the UK Office of National Statistics. The UK’s e-commerce logistics market is also expected to be affected by Brexit too over the next five years, but it will maintain its place as the third e-commerce logistics market globally after the United States and China.
Ti’s new research also shows for the first time the growth of the developing cross-border e-commerce logistics market, which is forecast to grow at a CAGR of 10.65% from 2021-2026. This growth is expected to continue as consumers seek luxury goods that may not be available within their own countries. However headwinds remain, particularly in terms of compliance with tax and customs regimes surrounding cross-border movements.
The new report also highlights how the e-commerce logistics market is broken down between e-fulfilment and last mile delivery services. In 2021 the global e-fulfilment market was valued at €235.42bn and represented a total of 46.8% of the market. Whereas the larger last mile market had a total value of €253.10bn and constituted the other 53.2% of the market.
Ti’s latest report also drills down further in to the e-fulfilment market, highlighting the structural changes which have taken hold since the beginning of the pandemic. Showing how fulfilment service providers from LSPs to software providers have broadened their service offering to capture more of the e-commerce value chain.
Ti’s Head of Commercial Development, Michael Clover, said: “In 2021 e-commerce has been one of the key growth sectors for logistics and we’ve seen some spectacular revenue growth from individual service providers. Overall growth has slowed since 2020, with growth levelling off as the extraordinary conditions for e-commerce growth brought about by the pandemic unwind, but growth is still above pre-pandemic levels. The forecast out to 2026 portrays a maturing market where online retail penetration levels are sustained in the most mature markets between 25-30% and other markets move up to this level.”