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The progress of cross-border trade to increase E-commerce logistics is the major factor driving the E-commerce Logistics Market growth at a CAGR of 20.64% between 2020 and 2026.
Emergence of blockchain technology offering efficient and cost-saving business operations for logistics companies drive e-commerce logistics market growth. Moreover, advancements in printed electronics technology which makes E-commerce logistics economical by reducing prohibitive costs is set to boost market growth.
With online shopping as the upcoming market trend driven by the availability of mobile, internet connections, enlargement of digital payments creates long-term market growth opportunities. Key market providers are offering improved delivery operations to make logistics robust and cost-effective.
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Companies are investing to expand businesses and tap into the newer market through cross-border e-commerce supporting foreign trade thereby accelerates the market demand and value.
Although there are many prospects in this market, challenges including delays in shipping, slack processes of a carrier operator, counterfeit products, and troubles arising from supply chain operations hinder the market growth.
E-commerce logistics market trends across key segments set to trigger the market growth during the forecast period
The transportation segment holds the largest e-commerce logistics market share due to the cumulative practice of different modes of transport like road, rail, air, and water. Further, various large and small logistics key companies to focus on last-mile delivery which is growing the importance of transportation in the e-commerce logistics process.
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Major OEMs of the industry are currently trying and testing various innovative concepts including drones and vehicle-based deliveries for goods transportation. Therefore, the e-commerce logistics to become prevalent with transport facilities shifting the market trend towards ultramodern operations.
Shipping in both the international and domestic sector propels e-commerce logistics market growth. Most of the online suppliers opt cargo carriages to ship internationally, cargo carriages then facilitate storage, transit, and customs clearance provided by e-commerce logistics service providers.
Additionally, a huge sum of logistic from overseas and value-added services including pioneering tracking of parcel and route optimization to create key opportunities for the market players.
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Among key End User, B2B and B2C to entice market value and demand
B2B E-commerce is widely used to grow business, and emerging entrepreneurs are significantly contributing towards the market growth. In addition, B2B dealings prices are highly fluctuating as companies have much larger entities due to the volume of products and services which are higher too.
Whereas, the correct balance of good management of capital, fundamental management, leadership skills, scale branding of product to drive the B2C segment.
Regional E-commerce logistics market overview during the forecast period
The Asia Pacific region is set to hold the larger market share driven by growth in GDP, rise in population which shaped to increase the overall demand for goods through the online channel. Accordingly, major E-commerce companies in India to contribute 4% to increase the country’s GDP by 2022
Rising urban population and an increase in smartphone adoption in the Asia Pacific, specifically in China, India, and Indonesia along with advance connectivity is intensifying the competitive landscape in the region.
Further, the growth of the e-commerce trade in countries such as China, India, and Japan is one of the primary factors driving the market value during the forecast.
Moreover, a large number of e-commerce start-ups emerging in developing countries such as India, Brazil, and Mexico to propel the growth of the e-commerce logistics market growth.
Logistics companies are facing intense competition in both domestic and international markets, numerous vendors operating in the market possess strong financial and operational capabilities leading to high consolidation and forging of strategic alliances across the E-commerce logistics market in North America.
Alliance, expansion, and innovations across key players to boost E-commerce logistics market size
Quick and reliable E-commerce logistics and investments in R&D activities by key market participants to boost the E-commerce logistics market demand. Accordingly, DHL Supply Chain in Brazil offers reliable, cost-effective transportation of high-value goods risk with its High-Value Transportation solutions. In addition, DHL eCommerce created new opportunities in cross border e-commerce for India’s e-tailers through the opening of its new distribution center in Delhi.
In addition, key players are exploring market growth opportunities with expansion, for example, Russia-based global e-commerce Joom established its E-commerce logistics company in Turkey in 2019.
Further, key players are observe to enter alliances to boost the market value, in 2019, Agility together with Shipa signed a memorandum with JD Logistics to make it easier for consumers in some of the fastest-growing markets worldwide to get access to JD’s product range and products offered by JD Logistics’ merchant partners.
Key market players such as DHL International GmbH, Aramex International, FedEx Corporation, S.F. Express, Gati Limited, Amazon, Kenco Group, Inc., Ceva Holdings LLC, United Parcel Service, Inc., and Clipper LogisticsPlc., C.H. Robinson Worldwide, Inc., Kerry Logistics Network Limited and Nippon Express Co., Ltd among others are contributing to the E-commerce Logistics Market share.
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