Introduction of Logistics Management Services
The procedures and tasks that must be carried out to guarantee that material resources are delivered to satisfy client needs are known as logistics management services. These services are primarily intended to increase a company's supply chain operations' efficacy and efficiency. The rising demand for goods and services, globalization, and developments in logistics technology are all credited with driving the market's expansion. Global economic expansion, increased international trade, technical improvements, and increased demand from end-user industries are among the market growth reasons for logistics management services. Additionally driving the market are the quickening growth of e-commerce and rising demand for just-in-time delivery services.
What are the Primary Opportunities Influencing the Logistics Management Services Market?
- Emergence of Various Technologies Such as 5G, Artificial Intelligence to Propel Market Growth
AI actively improves driver safety conditions and optimizes vehicle maintenance and performance to boost the broader logistics management services industry. Additionally, AI is working harder and more aggressively to produce self-driving or autonomous cars. AI also advances robotics and other types of technology in the logistics supply chain. Leaders in the sector estimate that logistics, transportation, and supply chains will all need to undergo significant change. Supply chain management with AI integration can lower service levels by 65%, inventory levels by 35%, and logistics costs by 15%. According to various sources, 35–40% of major, mid-sized, and smaller organizations have successfully implemented AI capabilities for their logistics, boosting operational efficiency and income. Therefore, it is anticipated that integration into the supply chain and ongoing advancements in advanced computing technologies will propel the logistics management services industry.
The Major Restraints for the Logistics Management Services Market
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Lack of Uniform Governance Standards to Hinder Market Growth
The absence of governance is one of the main obstacles to the widespread adoption of digital logistics. The logistics sector is highly fragmented, necessitating the creation of a standardized IoT infrastructure. Transportation and logistics companies worldwide are concentrating on increasing supply chain efficiency to maintain profitability and viability. To prevent confusion, governance must be kept as uniform as feasible. Every service provider could offer most solutions in one package easily and conveniently if the logistics and supply chain system were uniformly standardized.
Impact Of COVID-19 on the Logistics Management Services Market
The consumer sector, which drives the majority of economic growth, has been harmed by the COVID-19 pandemic epidemic. Due to dwindling sales and high fixed expenditures, the retail, catering, and travel industries are under extreme cash flow strain. The increased focus of the national government on the ongoing provision of necessities like food and medicine has put pressure on logistics and supply chain enterprises. Thus, the disruption brought on by the COVID-19 pandemic is causing unexpected and significant losses in logistics management services. The trade and efficient operation of the logistics sector have been hampered by factory closures, a lack of workers to unload goods, and drivers to drive trucks for cargo clearance.
Competitive Landscape of Logistics Management Services Market
There is a fierce and varied level of competition in the logistics management services for logistics management services. It includes a range of logistics management service providers, including large multinational enterprises and smaller specialized businesses.
June 2023: GEODIS, a global leader in transportation and logistics, announced today that a new multi-user warehouse and distribution center would open in Mexico City in July 2023. The new facility was unveiled during a ribbon-cutting event attended by Economic Development Secretary of the State of Mexico Pablo Peralta and GEODIS leaders, staff, and customers.
(Source:geodis.com/in/newsroom/press-releases/geodis-unveils-new-distribution-center-mexico-city)
March 2023: DSV has agreed to buy S&M Moving Systems West and Global Diversity Logistics, both of which are situated in the United States. These acquisitions will boost DSV's position in the semiconductor industry, align with its new Phoenix-Mesa Gateway Airport operations, and assist DSV's expanding Latin American cross-border services.
Top Companies Market Share in Logistics Management Services Industry: (In no particular order of Rank)
- DHL Supply Chain & Global Forwarding
- Kuehne + Nagel
- DB Schenker Logistics
- Nippon Express
- C.H. Robinson Worldwide
- UPS Supply Chain Solutions
- DSV
- Sinotrans
- CEVA Logistics
- Expeditors International of Washington
- Dachser
- Panalpina
- GEODIS
- Toll Holdings
- J.B. Hunt (JBI
- DCS & ICS)
- Hitachi Transport System
- XPO Logistics
- GEFCO
- Yusen Logistics
- Agility
Logistics Management Services Market Analysis
Global Logistics Management Services Market Report 2024 Edition talks about crucial market insights with the help of segments and sub-segments analysis. In this section, we reveal an in-depth analysis of the key factors influencing Logistics Management Services Industry growth. Logistics Management Services market has been segmented with the help of its Type, Application Service, and others. Logistics Management Services market analysis helps to understand key industry segments, and their global, regional, and country-level insights. Furthermore, this analysis also provides information pertaining to segments that are going to be most lucrative in the near future and their expected growth rate and future market opportunities. The report also provides detailed insights into factors responsible for the positive or negative growth of each industry segment.
By Type, the Inland Segment Predominant in the Logistics Management Services Market
Inland usage is the most common in the logistics management services market, according to Cognitive Market Research. The inland segment is the one that is most frequently used to transport commodities since it is convenient, affordable, and can offer door-to-door service. Over the projection period, rising technology improvements and e-commerce are anticipated to fuel expansion in the inland category.
Maritime is the second-most used type. Global demand for imported commodities has increased due to increased trade agreements, infrastructural development such as the construction of canals to shorten trade routes, and rising consumer disposable income. These elements will help the maritime segment keep its second-largest position during the projection period.
- Inland
- Maritime
- Air
- Rail
- Import
- Export
By Application, the Healthcare Segment Dominating the Logistics Management Services Market
Healthcare is the most widely used application in logistics management services, according to the Cognitive Market Research. Since drugs and medical equipment must be transported and handled with exceptional care, healthcare logistics is essential to the medical system. A subset of logistics services called healthcare logistics is responsible for handling, storing, and transporting medical supplies from their point of manufacture to their final destination.
It is predicted that the automobile sector will expand significantly. Logistics management services are employed to guarantee that a product reaches its destination on time. These services assist with warehousing, distribution, and transportation so that they can reach their destinations easily.
- Consumer Goods
- Healthcare
- Industrial
- Food
- Groceries
- Automotive
- Technological
- Retailing
- Energy
- Textiles
- Chemicals
- Other
Logistics Management Services Service Segment Analysis
In 2022, the warehousing service held a major market share. The growth of the global warehousing industry results from increased trade in developing countries like Brazil, Russia, India, and China. Due to the rising need for refrigerated storage, the industry is expected to expand.
The second-most popular product, according to Cognitive Market Research, is transportation. The use of cutting-edge technology, such as GPS anti-theft devices, is credited with the growth. The entire fleet's real-time position and locations of individual products in transit can be found with this method.
- Transportation
- Warehousing
- Packaging
- Distribution
- After-sales
- Reverse Logistics
Logistics Management Services End-User Segment Analysis
Manufacturing, which dominated the market in 2022, is anticipated to grow at the strongest rate as logistics increase production and efficiency while reducing costs and raising customer satisfaction. The segment is expected to develop as demand for industrial production facilities increases.
Retailers frequently utilize logistics management services to store and manage their goods. Retailers may track and monitor the movement of goods from suppliers to stores by implementing a logistics management system.
- Manufacturing
- E-commerce
- Retail
- Agriculture
- Government
- Construction
- Other
The North America Logistics Management Services Market Account for Largest Share
In terms of revenue over the projected period, the global market for logistics management services is expected to be dominated by the North American market. The rising demand for e-commerce and online retail operations in the United States and Canada is responsible for expanding this geographical market. These nations' sound economies enable the area to invest significantly in cutting-edge logistics management services products and services.
The U.S. Logistics Management Services Market Expected to Grow at Fastest Rate in North America
The US is the world's largest logistics management services market, with a tightly integrated supply chain network that links producers and consumers via rail, truck, and ocean transportation and express and air delivery services. As a result of activities carried out by governmental bodies like the Department of Transportation (DOT) in the United States, the market in this region is also growing. The United States is one of the region's major markets for logistics management services thanks to its highly integrated supply chain network that connects producers and consumers via various transport modes, including truck transport, freight rail, maritime transport, and air and express delivery services.
