The Global Logistics Service Market revenue accounted for US$ 1,122.58 Bn in 2018 and is expected to grow at a CAGR of 6.9% during the forecast period 2019 – 2027, to account to US$ 2,029.38 Bn by 2027. Globally, the market continue to witness a surge in demand for logistics services owing to rise in trade activities especially from emerging economies.
As per the LPI (Logistics Performance Index) published by the World Bank, Europe’s score was 3.68, which was the relatively highest score in 2018. Europe’s leadership as the LPI score is majorly attributed to its robust infrastructure, custom services, logistics competence, timeliness and tracking and tracing abilities.
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The report enables you to-
• Formulate significant competitor information, analysis, and insights to improve R&D strategies
• Identify emerging players with potentially strong product portfolio and create effective counter strategies to gain competitive advantage
• Identify and understand important and diverse types of Logistics Service under development
• Develop market entry and market expansion strategies
• Plan mergers and acquisitions effectively by identifying major players with the most promising pipeline
• In-depth analysis of the product’s current stage of development, territory and estimated launch date
The timeliness factor has been derived as a vital contributor to Europe’s position in the global LPI, which was 4.04. Furthermore, snowballing interest of the manufacturing, automotive, retail, and other industries in outsourcing of the logistics services has also fueled the growth of the logistics service market in Europe.
Besides, persistent propulsion in industrialization 4.0 is also expected to contribute to the growth of the logistics service market, as the production index of the region enhances and the demand for timely and complicated delivery would also increase. Warehousing, inventory management, and transportation are some of the popular logistics services that are highly outsourced in the European region. However, the key challenge faced by the logistics service providers in the region is to gain profits despite the surging price pressure from the end-consumers.
Leading Key Players:
• CEVA Logistics
• PANALPINA WORLD TRANSPORT (HOLDING) LTD.
• United Parcel Service (UPS)
• C.H. Robinson Worldwide, Inc.
• A.P. MOLLER – MAERSK
• Nippon Express
• DB Schenker
• DHL International GmbH
• KUEHNE + NAGEL
The global manufacturing industry has witnessed rapid growth in recent times owing to huge investments coming up from Governments of various countries and especially the developing economies. As per the China Federation of Logistics and Purchasing (CFLP), the global manufacturing purchasing managers index (PMI) accounted 55.1 in October 2017, which was down from 55.9 in September 2017 however, still at a comparatively high level. The PMI index remained above 53.5 since the beginning of 2017, signifying a steady recovery of the manufacturing sector in developed countries. The services offered by Logistics Services providers add substantial value to the manufacturing companies.
These firms enabled different companies to reduce weak points that outcomes in loss of revenue or profits and further help to assure maximal profitability. Logistics service providers specialize in network analysis, mode network optimization, management of vendor compliance, and other management operations. In contrast with this, it is challenging for the core companies to gain such expertise such as inventory management & storage, assembly needs, or shipping, etc. in every business division.
Globalization has led to increasing domestic and international trade relations between nations. Further, as many international companies lean towards globalization and market expansions, logistical challenges have become more complex than ever. The logistical complexities have multiplied mainly due to the diverse nature of consumer demands observed in different regions of the world pertaining to any product.
For successful market expansions, organizations focus on increasing the product assortments catering to the needs of the local market, giving rise to a highly diverse portfolio of products. The larger the diversity, the higher is the complexity of the supply chain for the organization to manage efficiently in delivering products as well as services.This factor is foreseen to increase the procurement volume of smart kitchen appliances during the forecast period, thereby, helping the logistics service market to foster during the coming period.
The Logistics Service Market by logistics provider is further segmented into first & econd party logistics, third party logistics, fourth party logistics, and fifth party logistics. The third party logistics dominated the global logistics service market in 2018 and is expected to continue its dominance throughout the forecast period from 2019 – 2027. The growing popularity of outsourcing the non-essential supply chain and other logistics process among different end users, is catalyzing the growth of third party logistics segment in a logistics service market.
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Logistics Service Market – Strategic Insights
Market Initiatives was observed as the most adopted strategy in the global logistics service market. Few of the recent market initiatives are listed below:
2019: The company, Maersk became the first container shipping company to offer digital Ocean Customs Clearance. The solution provides downstream benefits of full governance and compliance, eliminates the need to provide a quote as pricing is displayed online, saving three to five minutes per quote. It is currently present in Germany, France, Denmark, The Netherlands, Poland, United Kingdom and Spain. However, by the end of 2019, it is expected to become globally operable.