Global e-commerce logistics market to garner $709bn by 2022,

Logistics concept

A new report from Allied Market Research titled, ‘Global E-Commerce Logistics Market – Global Opportunity Analysis and Industry Forecasts, 2014–2022’, projects that the e-commerce market will be worth US$536 billion ($709 billion) by 2022, growing at a CAGR of 21.2 per cent from 2016 to 2022.

The transportation service type generated the largest market share in 2015 while the warehousing sub-segment is expected to register the fastest growth during the forecast period 2016–2022. Asia Pacific is expected to be the largest market.

“Booming e-commerce industry, execution in 3PL, and enhanced relationships between customers and suppliers provide heightened growth avenue for the e-commerce logistics industry,” the market research company said in a press release. “Retailers have revamped their traditional warehouses to cater to the requirements of e-commerce and logistics to improve the store-level inventory accuracy and increase their ability to serve larger consignments.

“Further, supply chain solutions are being customised to serve the user requirements with the transformed fundamentals of product distribution and advancements in technology. Additionally, business analytics has assisted logistics professionals to increase the speed and efficiency of work processes.

“The extended execution of supply chain footprint is highly opportunistic for the market growth. However, factors such as high deployment of warehouse management solutions and regulatory issues restrict the market growth to a considerable extent.”

In 2015, the transportation sub-segment dominated the market, the company observed, however the warehousing service type is expected to witness the fastest growth over the forecast period.

“The integration of e-commerce logistics with transportation management software (TMS) has boosted the e-commerce logistics market growth,” the company said. “TMS aids in planning deliveries across the supply chain. Furthermore, optimizing the flow of goods and leveraging consolidated capacity have increased the growth potential of the market. Further, the domestic operational area leads the global e-commerce logistics market and international operational area portrays the fastest growth rate in the global market.”

Sonia Mutreja, Lead Analyst – E-Commerce & Outsourcing, AMR said, “Asia Pacific is the most productive market for e-commerce logistics as compared to others owing to the increasing population, globalisation, upsurge in the sales of smartphones, and increasing number of netizens. Furthermore, LAMEA is projected to grow at the fastest pace over the forecast period owing to technological advancements and rising internet connectivity in the region.”

Key findings of the study:

  • Domestic operational area generated the highest revenue as compared to international area and is anticipated to maintain its dominance over the forecast period
  • Transportation is expected to exhibit a significant growth in the e-commerce logistics market
  • LAMEA is projected to exhibit a substantial growth during the forecast period
  • The key players in the global e-commerce logistics market include DHL International GmbH, Aramex International, FedEx Corporation, S.F. Express, Gati Limited, Amazon, Kenco Group, Inc., Ceva Holdings LLC, United Parcel Service, Inc., and Clipper Logistics Plc.