Preliminary research of Fairfield Market Research indicates a promising growth outlook for global retail logistics market during the course of next few years.
Rapidly Increasing Use of IoT to Fuel Growth of Retail Logistics Market
Nowadays, there are many different products on the market and this calls for a planned strategy from the point of receiving an order to the point of delivery. By using effective retail logistics and added value, we can make sure that everything is in place to provide better delivery and service at reduced costs. Retail logistics is the orderly process of controlling the movement of goods from the point of supply to the buyer. The transportation of products on a physical level, the stockpiling of products in stockpiling points, the storage of products in sufficient quantities to fulfil customer demand, the management and administration of the process. Retail logistics has been gaining popularity and will become more popular as IoT, and other futuristic technologies become more widely used in various business verticals. This is expected to drive the growth of retail logistics market. Retailers establish central or regional distribution centres based on sales volume. The warehouse receiving, inventory management, fulfilment and shipping phases are parts of the retail logistics process.
According to Cisco, in 2020, non-PC devices accounted for roughly 71 percent of all IP traffic worldwide. By 2023, Machine-To-Machine (M2M) connections will account for 50% of all connected devices and associations worldwide. Additionally, by 2023, there will be 14.7 billion M2M connections. According to a recent survey by Verizon, more than one-third of fleet managers who do not already employ fleet monitoring solutions-mobile asset tracking systems often installed in trucks and other vehicles—say they would anticipate higher production levels if the technology were deployed. The poll also shows that over 53% of businesses using asset monitoring solutions achieved genuine productivity increases, with 53% of respondents reporting positive productivity growth and 53% reporting good compliance growth (52 percent of respondents).
Sustained Consumer Inclination Toward Traditional Retail Stores Supports Retail Logistics Market
In 2021, the conventional sector had the highest revenue share (more than 55%). The high percentage results from 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 conventional retail stores after researching online. In a retail setting, customers can pick up and inspect a product. Because buyers may buy something without waiting for delivery, it provides instant satisfaction.
Increased Technology Advancements Account for Asia Pacific’s Key Positioning in Global Retail Logistics Market
Asia Pacific is projected to remain the most significant retail logistics market and will possibly grow at the fastest rate throughout the forecast period. During the projection period, the Asia Pacific area is anticipated to see strong revenue growth, particularly in developing nations like China, and India. Technology advancements, an increase in sensors, and automation are some aspects expected to drive the expansion of retail logistics market. For instance, China is the largest e-commerce market in the world, accounting for more than 50% of all e-commerce transactions worldwide. According to Dezan Shira & Associates, China will have more than 634 million digital consumers by 2020. Furthermore, it is anticipated that China's e-commerce market will surpass that of the United States, the United Kingdom, Japan, Germany, and France combined. The expansion of the internet infrastructure and the creation of international logistics networks are credited with the e-commerce sector's recent boom in China. By combining the technologies with the current processes, Singapore started modernizing logistics to strengthen its position in Asia Pacific retail logistics market. The Singapore government has already begun restructuring logistics as part of its US$4.5 Bn Industry Transformation Programme. The program's primary goal is to promote excellence in logistics operations and innovation leadership while developing a solid base of local logistics talent and attracting foreign investment to Singapore. The Logistics Industry Transformation Map (ITM) is the program’s name, modelled after similar initiatives for Singapore's food and beverages, and precision engineering industries.
For the fiscal years 2019–2025, the Indian government earmarked US$1.4 Tn for the National Infrastructure Pipeline. The sector of roads is anticipated to be responsible for 18% of capital spending from 2019 to 2025. The National Investment and Infrastructure Fund (NIIF) made headway in integrating its portfolio of roads and highways in October 2020. Through the NIIF master fund, the NIIF purchased the Issel Devanahalli Tollway, and the Essel Dichpally Tollway. These road infrastructure projects will be supported by Athaang Infrastructure, the exclusive road network of NIIF, with assistance from a group of seasoned experts with various transport-related specialties. Through several measures, the government is developing policies to pique the interest of large investors. By 2022, it is anticipated that 200,000 km of national highways will have been built. The area has a sizable client base and a considerable increase in consumer use of e-commerce channels. China, Japan, Australia, and India account for a sizeable portion of global retail e-commerce sales among the top exporters of goods. The region's bright potential for e-commerce growth is the main force behind the regional market expansion. In addition, an increasing emphasis on transportation strategies and continuous logistics infrastructure improvements in emerging nations are anticipated to boost regional market expansion. For instance, as part of the Indian Government's Logistics Efficiency Enhancement Program, the Ministry of Road Transport & Highways (MoRTH) is creating multimodal logistics parks to address the country's undeveloped road and material handling infrastructure (LEEP).
Global Retail Logistics Market: Competitive Landscape
In Bengaluru, India, DHL inaugurated the largest airside facility in the express sector. This new and extended facility can handle more than 90,000 metric tonnes of shipping annually while operating at total capacity. It can also shorten the daily cut-off time for shipment pick-up by up to 60 minutes. On the other hand, in April 2020, FedEx collaborated with BigCommerce Pty. Ltd., an open SaaS e-commerce platform supplier, to give small and medium-sized businesses access to online sales, connectivity, and delivery. Thanks to this partnership, BigCommerce Pty. Ltd. clients may now quickly and affordably employ FedEx shipping services on the company's current platform.
A few players in the retail logistics market include XPO Logistics, Inc., FedEx, DHL International GmbH, DSV, C.H. Robinson Worldwide, Inc., Kuehne + Nagel International, Nippon Express, United Parcel Service, Schneider, APL Logistics Ltd, and A.P. Moller - Maersk.
The Global Retail Logistics Market is Segmented as Below:
By Type Outlook
Mode of Transport Outlook
Key Elements Included In The Study: Global Retail Logistics Market
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