The global retail logistics market is expected to reach $388.6 billion by 2027
The Research and Markets forecasts that the global retail logistics market will reach $388.6 billion by 2027 with a growth rate of 10.5% CAGR.
Retail logistics is an organized process for managing the flow of goods from sources to customers. Products from manufacturers, wholesalers, and intermediaries through warehouses, are transported to retailers and customers.
The report Global retail logistics market 2017-2027 of Research and Markets surveys the retail logistics market based on manufacturing type, mode of transport, and region. Accordingly, the report forecasts that the global retail logistics market scale will reach $388.6 billion by 2027 with a growth rate of 10.5% CAGR.
Specifically, based on type, the retail logistics market is divided into conventional retail logistics and e-commerce retail logistics. The e-commerce retail logistics market holds a significant revenue share in 2020 and is expected to continue to grow.
This growth is explained by the impact of the pandemic, causing sales on e-commerce platforms to skyrocket. In addition, the popularity of the Internet combined with the convenience of free returns, fast delivery, low shipping costs, and a wide variety of goods contribute to the growth of commercial retail logistics e-commerce.
Modes of transport in the retail logistics market are divided into rail, air, road, and waterway. Nowadays, road transport has accounted for the highest proportion of the retail logistics market, with over 100 billion USD revenue.
Due to the need to use road transport vehicles to transport retail products over long distances, especially for the domestic market, trucking has become a good choice for retail logistics businesses. Besides, an increase in the proportion of road transport depends on the advantages of capacity and growth-promoting policies from the governments of some countries.
By region, Research and Markets report examines the markets of Europe, Asia-Pacific, North America, and LAMEA (including Latin America, the Middle East, and Africa). Specifically, the Asia-Pacific market is the fastest-growing region in the global retail market and will reach 112.1 billion USD by 2027.
The expansion of e-commerce and large population-scale make Asia - Pacific continue to maintain the leading revenue from 2017 to 2027. In addition, the markets of India, Japan, China, and Australia are among the top 10 exporting countries and account for a significant proportion of retail e-commerce revenue worldwide. As a result, the remarkable growth of the e-commerce industry in some countries leads to growth in retail logistics across the region.
According to the report, the North American market is expected to have a CAGR of 10.3% during the period 2021-2017 and the European market to achieve a growth of 10% in the same period.
Analyzing the effects that lead to the growth of the global retail logistics market, Research and Markets believes that increasing the integration of drones helps improve flexibility and speed of delivery, thereby affecting the delivery of goods specific to the growth of the retail logistics market during the projected period.
In addition, the application of advanced technology such as artificial intelligence, blockchain, and machine learning allows for an increase in revenue. However, some of the negative effects of changing customer behavior after the pandemic also impacted the revenue of the global retail logistics market.