The global retail logistics market is ushering into an era of remarkable growth and opportunity, according to a new research report by Grand View Research.
The global retail logistics market is poised for substantial growth in the coming years, with a projected size of USD 626.59 billion by 2030. This significant expansion, at a compound annual growth rate (CAGR) of 12.5% during the forecast period, can be attributed to the adoption of innovative last-mile delivery methods, including the Internet of Things (IoT), data analytics, and urban warehousing.
As retailers strive to optimize their supply chain operations and meet evolving consumer demands, technological advancements, and strategic logistics solutions will play a pivotal role in shaping the industry’s future.
Key Insights and Findings from the Report
Grand View Research report offers valuable insights into the retail logistics market, highlighting significant trends and market dynamics.
Key findings include:
- Due to rising internet penetration and increased worldwide trade activities, the retail logistics industry is expected to develop significantly during the projected period.
- The conventional retail logistics segment held a substantial market share in 2022, due to the growing preference of customers; who relied less on the Internet and favored shopping in traditional brick-and-mortar stores.
- The supply chain solution segment accounted for a notable market share in 2022 as a result of the increased adoption of cloud-based solutions in supply chain management. These solutions enabled retail companies to effectively track and optimize transportation as well as efficiently manage returns.
- The roadways segment emerged as the dominant market player in 2022 within the mode of transport segment. This can be attributed to the rising demand for road vehicles in the transportation of retail products over long distances, especially within domestic regions.
- In terms of regional share, the Asia Pacific region led the market in 2022 and is projected to grow significantly during the forecast period. The presence of a significant consumer base for retail items is accelerating the expansion in the region.
- The leading market players’ principal strategies consist of partnerships & collaborations, mergers & acquisitions, and expansions among others. For instance, in October 2022, Boohoo Group plc, a UK-based fashion retailer with annual sales exceeding $2.4 billion, selected DHL Supply Chain, a contract logistics firm and a subsidiary of Deutsche Post DHL Group based out in Germany, to oversee its inaugural distribution center in the United States. DHL Supply Chain will offer warehousing solutions to support Boohoo’s anticipated expansion in the US market.
Technological Advancements Propelling Smart Logistics
Technological advancements, such as intelligent distribution robots and automated sorting systems, are ushering in a new era of smart logistics. By digitalizing retail formats and leveraging technologies like machine learning (ML), big data, and artificial intelligence (AI), key industry players can better understand customer demands and optimize operations. AI and ML algorithms improve logistics planning by optimizing delivery routes, resource allocation, and operational efficiency, resulting in cost-effective solutions that meet consumer needs.
Opportunities and Challenges
As the retail e-commerce sector experiences rapid expansion, new opportunities arise for both established and emerging market players. However, this growth is not without challenges. Operational issues related to return shipments and the need to minimize logistic costs pose hurdles. Additionally, poor infrastructure in certain regions may deter market participants from investing and expanding their operations.
The global retail logistics market is poised for remarkable growth, driven by advancements in technology and strategic logistics solutions. As retailers embrace IoT, data analytics, and smart logistics, they can enhance supply chain efficiency, improve inventory management, and meet the demands of an evolving consumer base. Collaboration, innovation, and a focus on e-commerce and omnichannel retailing will be key to future success in this dynamic industry.
For a comprehensive analysis of the retail logistics market, refer to the “Retail Logistics Market Size, Share & Trends Analysis Report” published by Grand View Research.