Warehousing and Distribution Logistics Market Analysis

Global Warehousing and Distribution Logistics Market Overview:

The Warehousing and Distribution Logistics market Type is projected to grow from USD 13.2 Billion in 2023 to USD 24.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.00% during the forecast period (2023 - 2032). Global Warehousing and Distribution Logistics Market Size was valued at USD 12.2 Billion in 2022. The e-commerce industry's rising need for storage and distribution logistics as well as the rise of last-mile deliveries are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Warehousing and Distribution Logistics Market Trends

Increase in demand for warehousing and distribution logistics in e-commerce industry is driving the market growth

Due to the increase in connectivity solutions, the world market for warehousing and distribution logistics has grown significantly in recent years. The global need for time-effective delivery and return services for the transportation of goods in forward and reverse logistics is driven by the expansion of the e-commerce and logistics sectors. For instance, XPO Logistics, Inc. has announced the introduction of an automated solution in France starting in May 2021. In the French fashion e-commerce sector, the automated solution is projected to facilitate high-volume reverse logistics. Leading retail, e-commerce, and third-party logistics organisations (3PLs) have developed and adopted warehousing and distribution logistics services and solutions as a result of the recent, unprecedently rapid expansion of online shopping.

Perishable goods are safeguarded from temperature variations outside in refrigerated warehouses. Consumers are becoming more conscious of the value of wellness and good health. They are also aware of how food ingredients, particularly protein, affect a person's overall physical and mental development. Consumption habits of perishable foods, such as fruits, vegetables, and other protein-based goods, have changed as a result of this. Additionally, the Covid-19 outbreak has considerably raised the demand for pharmaceuticals and vaccinations. The vast majority of these vaccines must be kept in a refrigerator. As a result, during the projection period, the demand for refrigerated warehouses is anticipated to increase significantly.

Additionally, due to their growing urbanisation and consumers' shifting tastes and preferences, emerging nations are seeing a significant demand for perishable goods. Due to these nations' lower adoption rates, the market potential for processed and frozen food products is also substantial. In these nations, demand for facilities for refrigerated warehouses is rising as a result of a steady increase in the consumption of ready-to-eat foods such frozen pizzas and snacks. Therefore, during the anticipated period, a rise in the demand for chilled goods is fueling the expansion of the warehousing and distribution logistics market. Thus, driving the Warehousing and Distribution Logistics market revenue.

Warehousing and Distribution Logistics Market Segment Insights:

Warehousing and Distribution Logistics End Use Insights

The Warehousing and Distribution Logistics Market segmentation, based on end use, includes healthcare, manufacturing, aerospace, telecommunication, government and public utilities, banking and financial services, retail, media and entertainment, trade and transportation, and others. The retail segment dominated the global market in 2022. Inventory management technology is likely to evolve quickly and provide advantageous chances for industry expansion. Over the course of the forecast period, technological developments such as the use of RFID technology to manage inventory and track goods in real-time are anticipated to boost demand for the segment.

Warehousing and Distribution Logistics Business Type Insights

The Warehousing and Distribution Logistics Market segmentation, based on business type, includes warehouse, distribution, and value added services. Distribution segment dominated the Warehousing and Distribution Logistics Market in 2022. The use of cutting-edge technology, such as GPS anti-theft devices, is credited with the growth. The entire fleet's real-time position as well as the locations of individual products in transit can be found with this method.

Warehousing and Distribution Logistics Mode of Operation Insights

The Warehousing and Distribution Logistics Market segmentation, based on mode of operation, includes storage, roadways distribution, seaways distribution, and others. Roadways distribution segment dominated the Warehousing and Distribution Logistics Market in 2022. Roadways are the most frequently used section for the transportation of goods since they are convenient, affordable, and may offer door-to-door service. Over the forecast period, expanding e-commerce and technology improvements are anticipated to fuel the growth of the road transport segment.

Warehousing and Distribution Logistics Type Insights

The Warehousing and Distribution Logistics Market segmentation, based on type, includes solution and services. Solution segment dominated the global market in 2022. To improve system efficiency, all supply chain participants are utilising and creating a new software-based monitoring and analysis system. Because there are more 3PL and 4PL service providers available globally, the administration & supplies category has experienced significant expansion over the course of the projection period.

Figure 1: Warehousing and Distribution Logistics Market by Type 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Warehousing and Distribution Logistics Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Warehousing and Distribution Logistics Market dominated this market in 2022 (45.80%). In order to address growing environmental concerns, there is an increasing demand for green logistics, which is one of the main elements promoting this region's growth. Additionally, the market is anticipated to be driven by growing e-commerce sectors and the popularity of online shopping in nations like the United States and Canada. Further, the U.S. Warehousing and Distribution Logistics market held the largest market share, and the Canada Warehousing and Distribution Logistics market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Warehousing and Distribution Logistics Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Warehousing and Distribution Logistics market accounted for the healthy market share in 2022. The market in Europe has also grown significantly, and it is concentrating on methods to strengthen its position in the market, like early adoption of Al technology in the transportation and logistics service sector. Goods that might avoid delivery through the United Kingdom and have warehousing and distribution facilities are likely to close due to a fall in demand and the construction of new facilities in the EU region. Further, the German Warehousing and Distribution Logistics market held the largest market share, and the U.K Warehousing and Distribution Logistics market was the fastest growing market in the European region

The Asia Pacific Warehousing and Distribution Logistics market is expected to register significant growth from 2023 to 2032. The usage of transport and logistics services in this region is anticipated to increase as the middle class grows in South Korea and India. Organisations have been forced to invest in Southeast Asian countries including the Philippines, Malaysia, Thailand, and Singapore as a result of the escalating political tensions between China and other governments. Moreover, China’s Warehousing and Distribution Logistics market held the largest market share, and the Indian Warehousing and Distribution Logistics market was the fastest growing market in the Asia-Pacific region.

Warehousing and Distribution 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 Warehousing and Distribution 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, Warehousing and Distribution 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 Warehousing and Distribution Logistics Industry to benefit clients and increase the market Business Type. In recent years, the Warehousing and Distribution Logistics Industry has offered some of the most significant advantages to medicine. Major players in the Warehousing and Distribution Logistics market, including Kerry Logistics, WHA Corp, DHL Supply Chain, Keppel Logistics, CJ Century Logistics, CWT Ltd, Kuehne + Nagel, AGILITY, Tiong Nam Logistics, Ych Group, CEVA LOGISTICS, Gemadept, DB Schenker, Yusen Logistics, Singapore Post, are attempting to increase market demand by investing in research and development operations.

A maritime yard is operated by International Maritime Industries. In addition to providing MRO services for all of these items, the company's marine yard meets the building requirements of offshore oil and gas rigs, offshore support vessels, very large crude carriers, and a variety of maritime equipment and commercial boats. In September 2022, Bahri Logistics, one of Bahri's business units, and International Maritime Industries (IMI), the largest shipyard in the MENA area, signed a long-term agreement to enhance their supply chain through cutting-edge storage and logistics services.

A contract logistics business in North America is called DHL Supply Chain. It functions as the supply chain division of Deutche Post DHL, the top logistics company in the world. A wide range of industries, including the automotive, consumer, retail, engineering, manufacturing, life sciences and healthcare, technology, energy, and chemicals, are served by the company's customer-focused solutions. Additionally, it provides third-party logistics services and supply chain solutions. In addition to the US, Canada, and Latin America, the corporation operates there. Westerville, Ohio, in the US, serves as the headquarters of DHL Supply Chain. In October 2022, DHL Supply Chain increased the scope of its logistics services by introducing a new suite of solutions for the management of electronic trash recovery.

Key Companies in the Warehousing and Distribution Logistics market include

• Kerry Logistics


• WHA Corp


• DHL Supply Chain


• Keppel Logistics


• CJ Century Logistics


• CWT Ltd


• Kuehne + Nagel


• AGILITY


• Tiong Nam Logistics


• Ych Group


• CEVA LOGISTICS


• Gemadept


• DB Schenker


• Yusen Logistics


• Singapore Post

Warehousing and Distribution Logistics Industry Developments

DHL Supply Chain: March, 2024: The company introduced a new sustainability initiative aimed at reducing carbon emissions in their supply chain operations by 30% by 2030 and DHL Supply Chain announced the opening of a new automated fulfillment center in Texas, enhancing their capacity to handle e-commerce orders.

November 2022: Shaheen Express, a brand-new ocean shipping service, was introduced by A.P. Moller-Maersk. For the India-UAE-Saudi Arabia route, it will rotate between Mundra, Pipavav, Jebel Ali, Dammam, and Jebel Ali before returning to Mundra.

Warehousing and Distribution Logistics Market Segmentation

Warehousing and Distribution Logistics End Use Outlook

• Healthcare


• Manufacturing


• Aerospace


• Telecommunication


• Government and Public Utilities


• Banking and Financial Services


• Retail


• Media and Entertainment


• Trade and Transportation


• Others

Warehousing and Distribution Logistics Business Type Outlook

• Warehouse


• Distribution


• Value Added Services

Warehousing and Distribution Logistics Mode of Operation Outlook

• Storage


• Roadways Distribution


• Seaways Distribution


• Others

Warehousing and Distribution Logistics Type Outlook

• Solution


• Services

Warehousing and Distribution 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