Retail Logistics Market Share

Global Retail Logistics Market Overview

Retail Logistics Market Size was valued at USD 231.2 Billion in 2022. The Retail Logistics industry is projected to grow from USD 260.1 Billion in 2023 to USD 667.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.50% during the forecast period (2023 - 2032). Using cellphones and e-commerce services more frequently, as well as the speedy delivery options offered by retail logistics are the key market drivers enhancing the market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Retail Logistics Market Trends

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  Increased globalization is driving the market growth

  
  

The level of international competition among retailers has increased as a result of growing globalization. International merchants must contend with severe rivalry when opening new locations in growing nations like Asia Pacific. As a result, economic activity is increasing, and traveling across places is becoming simpler. As a result, there is a greater need for retail and logistical services to expedite product delivery. By raising tax money through the import and export of goods, which stimulates market expansion, international retailing aids nations in enhancing their economies. Similar to how there are more trade and e-commerce options available to international retailers thanks to the expanding use of the internet.

The popularity of multimodal transportation has grown significantly as a result of decreased vehicle prices, shorter cargo handling times, and looser customs regulations. One of the important developments in the market for retail logistics is the propensity to choose from a variety of modes of transportation. A combination of trucks, ships, railcars, and aircraft are used in this process. Inventory operators can reduce inventory costs and keep merchandise costs under control by integrating this multimodal transportation. During outbound logistics, multimodal transportation aids merchants in the quick and inexpensive transfer of goods.

Furthermore, the retail logistics industry is expected to grow in the near future as a result of the last-mile delivery method used by the retail e-commerce market. Distributors and brick-and-mortar businesses are at a disadvantage since customers may compare products from different internet sources based on delivery times, prices, features, specifications, and compatibility requirements. The retail e-commerce business is growing as a result of these benefits over brick and mortar establishments, and this trend is expected to last for the foreseeable future. Thus, driving the retail logistics market revenue.November 2023: Innovation in last-mile delivery solutions gained momentum. Startups offering drone delivery and micro-mobility options for urban areas secured significant funding, indicating a potential shift in how goods reach consumers in the final stage of the journey

Retail Logistics Market Segment Insights

Retail Logistics Type Insights

Based on type, the retail logistics market segmentation is divided into conventional retail logistics and e-commerce retail logistics. The conventional retail logistics segment held the largest revenue share of over 60.3% in 2022. The high percentage is a result of 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 traditional retail stores after doing their research online. In a retail setting, customers can pick up and inspect a product. Because buyers may buy something without waiting for delivery, it also provides instant satisfaction.

Figure 1: Retail Logistics Market, by Type, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Retail Logistics Solution Insights

Based on solution, the retail logistics market segmentation is divided into Commerce enablement, Supply chain solutions, Reverse logistics & liquidation, Transportation Management and Others. The supply chain solutions segment accounted for the largest revenue share of over 33.9% in 2022 and is expected to continue its dominance over the forecast period. The supply chain manages client returns effectively, personalizes kitting and order fulfillment, provides on-time delivery, and streamlines Omni channel operations. Additionally, it enables speedy direct-to-consumer and direct-to-store shipping, improving warehouse productivity and inventory control. Due to the increasing use of cloud-based supply chain solutions, which help track and optimize transportation and manage returns, the category is anticipated to develop at the quickest CAGR of over 13.8% from 2022 to 2030.

Over the projection period, it is projected that the market for reverse logistics and liquidation would expand quickly. Due to the growth of the e-commerce sector and an increase in online customers, there is a great demand for reliable reverse logistics services. Customers prefer quick and easy returns and exchanges, thus retailers work to make it as easy as possible for them to swap simple and convenient online goods. In the near future, it is projected that this component will boost the segment's expansion.

Retail Logistics Mode of Transport Insights

Based on mode of transportation, the retail logistics market segmentation is divided into Roadways, Railways, Airways, and Waterways. Roadways held the biggest revenue share of over 51.5% in 2022, and it is anticipated that this segment would continue to rule during the projected period. The highways market has expanded as a result of rising demand for roadway vehicles to move retail products over large distances, particularly in domestic regions. Retail businesses should use trucks and cargos with substantial carrying capabilities when choosing road transportation. Government policies in favor of growth are numerous. For instance, recent regulations from the Federal Motor Carrier Safety Administration encourage the use of cameras in place of rearview mirrors to improve truck drivers' safety.

Retail Logistics Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific retail logistics market accounted for the largest revenue share of 36.5% in 2022. The area has a sizable client base and has seen a considerable increase in consumer use of e-commerce channels. Among the top exporters of goods, China, Japan, Australia, and India account for a sizeable portion of global retail e-commerce sales. The region's bright potential for e-commerce growth are the main forces behind the expansion of the regional market. In addition, an increasing emphasis on transportation strategies and continuous logistics infrastructure improvements in emerging nations are anticipated to boost regional market expansion. Moreover, China’s retail logistics market held the largest market share, and the Indian retail logistics market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.August 2023: Sustainability became a major focus within the retail logistics sector. Several major logistics companies, including DHL and FedEx, announced ambitious goals for reducing their carbon footprint. This included investments in electric delivery vehicles, renewable energy sources for warehouses, and optimized delivery routes

Figure 2: RETAIL LOGISTICS MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

In terms of revenue, North America retail logistics market held the second largest share in 2022. The existence of multiple well-known rivals, including FedEx, Ryder System Inc., C.H. Robinson Worldwide, Inc., and Expeditors International of Washington, Inc., as well as United Parcel Service of America, Inc., XPO Logistics, Inc., and United States Postal Service, Inc., is assisting in the expansion of the regional market. Further, the U.S. retail logistics market held the largest market share, and the Canada retail logistics market was the fastest growing market in the North America region.

Europe retail logistics market held the third largest share in 2022. The German retail logistics market held the largest market share, and the U.K. retail logistics market was the fastest growing market in the European region.

Retail Logistics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Retail Logistics market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Retail Logistics industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Retail Logistics industry to benefit clients and increase the market sector. In recent years, the Retail Logistics industry has offered some of the most significant advantages to medicine. Major players in the Retail Logistics market, including DSV, XPO Logistics, Inc., Kuehne+Nagel International, C.H Robinson Worldwide, Inc., FedEx, APL Logistics Ltd, Nippon Express, Schneider, United Parcel Service, A.P Moller- Maersk and DHL International GmbH.

DSV AS (DSV), originally known as DSV Panalpina AS, is a company that offers logistics and transportation services. It provides customers all around the world with air freight, sea freight, and road freight services. Additionally, the business offers warehouse, inventory management, and contact logistics solutions. Break-bulk, sea containers, specialist transport, customer support, and logistical solutions are all provided by DSV. The company offers road freight services for full, half, and group loads. The business provides services to the oil and gas, petrochemical, energy, mining, consumer goods, healthcare, high-tech logistics, and automotive industries. It operates in the Americas, Asia-Pacific, the Middle East, Africa, and Europe. Hedehusene, Denmark serves as the home office for DSV. In August 2022, DSV A/S developed a strategy to expand its business operations in the United States as the acquisition-focused freight forwarder consolidated its dominance among the biggest supply-chain corporations in the globe.

Supply chain management services are offered by Kuehne + Nagel International AG (Kuehne + Nagel). The company provides logistics services such integrated logistics, road contract logistics, air freight, and sea freight. Additionally, it provides supply chain consultancy, industry solutions, packaging solutions, after-sales logistics solutions, and logistics planning, control, and execution for incoming, outbound, in-house, and internal logistics. Aerospace, automotive, high-tech, retail, fast-moving consumer goods, pharmaceutical and healthcare, industrial, and oil & gas industries are among the sectors served by Kuehne + Nagel. The business has operations throughout Asia-Pacific, the Middle East, Africa, Europe, and the Americas. The headquarters of Kuehne + Nagel are located in Schindellegi, Schwyz, Switzerland. Even if freight volumes and rates are falling, Kuehne + Nagel International AG stated in March 2023 that it has significant growth ambitions.

Key Companies in the Retail Logistics market include

• DSV


• XPO Logistics, Inc.


• Kuehne+Nagel International


• H Robinson Worldwide, Inc.


• FedEx


• APL Logistics Ltd


• Nippon Express


• Schneider


• United Parcel Service


• P Moller- Maersk


• DHL International GmbH

Retail Logistics Industry Developments

In February 7th 2023, Amazon said they are working with Green Mountain Power, an electric utility company in Vermont that will have fleets of electric delivery vans delivering products to customers. This is aimed at reducing carbon emissions as well as establishing a sustainable logistics industry.

In November 3rd 2021, DHL International GmbH launched MySupplyChain, which is their Digital platform using AI and ML for seamless end-to-end visibility and control of supply chains. With this platform, retail trade is expected to gain from quicker and more effective logistics services.

Aramex PJSC, for example, proclaimed recently that it had effectively bought Access USA Shipping, LLC (MyUS), a technology-enabled global platform facilitating cross-border e-commerce. Aramex received all necessary regulatory clearances and later concluded the acquisition at about USD 265 million in cash in October 2022.

For instance, Boohoo Group plc picked DHL Supply Chain in October 2022 – a Germany-based contract logistics firm that is part of Deutsche Post DHL Group – to oversee their first-ever distribution center in the US. Warehousing solutions provided by DHL Supply Chain will enable Boohoo’s projected expansion in the US market, as the British fashion retailer has annual sales of over $2.4 billion.

The Logistics Efficiency Enhancement Program (LEEP) of the Government of India, August 2022 saw the Ministry of Road Transport & Highways (MoRTH) developing multimodal logistics parks to address inadequate roads and material handling infrastructure.

Retail Logistics Market Segmentation

Retail Logistics Solution Outlook

• Commerce enablement


• Supply chain solutions


• Reverse logistics & liquidation


• Transportation Management


• Others

Retail Logistics Type Outlook

• Conventional retail logistics


• E-commerce retail logistics

Retail Logistics Mode of Transport Outlook

• Roadways


• Railways


• Airways


• Waterways

Retail Logistics Regional Outlook

• North America
  
  
  
  • US.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK.
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America