Retail Logistics Market

Global Retail Logistics Market Size (2024 to 2032)

The global retail logistics market was valued at USD 300.41 billion in 2023 and is anticipated to reach USD 335.66 billion in 2024 from USD 793.75 billion by 2032, growing at a CAGR of 11.4% from 2024 to 2032.

Retail logistics refers to planning, implementing, and controlling the flow of goods from manufacturers or distributors to retail stores or customers. This involves coordinating and managing the various stages of the supply chain, including warehousing, transportation, and distribution, to ensure that products are delivered to their intended destinations promptly and efficiently. Retail logistics also involves managing inventory levels, forecasting demand, and analyzing data to optimize the supply chain and improve the overall customer experience.

MARKET DRIVERS

Increased global trade is a key factor propelling the growth of retail logistics. Global trade refers to the exchange of goods and services between countries. This can include the import and export of goods, the exchange of currencies, and the movement of people and resources across national borders. Global trade plays a crucial role in the global economy, as it allows countries to specialize in producing certain goods and services and then trade them with other countries for the goods and services they need. The growing number of trade activities from the developing countries of Asia-Pacific is expected to have a significant positive impact on the retail logistics market. APAC is a vast region with diverse economies and trade activities. Some of the key industries in the region that are involved in trade include manufacturing, technology, and agriculture. Many countries in APAC, such as China and India, are major exporters of goods and services, while others, like Japan and South Korea, are known for their advanced manufacturing industries. Additionally, the region is home to several major shipping ports and transportation hubs, which play a crucial role in facilitating international trade. Overall, the trade activities in APAC are an essential driver of the global economy.

Growing developments in the transportation infrastructure worldwide are another factor promoting the growth rate of the retail logistics market. Transportation infrastructure refers to the systems and facilities used to move people and goods from one place to another. These include roads, highways, bridges, airports, ports, and rail networks. The quality and availability of transportation infrastructure play a crucial role in the development and growth of economies. In many parts of the world, transportation infrastructure is a key factor in facilitating trade and commerce. It allows goods to be moved efficiently and reliably between different regions and countries. In recent years, there has been a significant focus on improving transportation infrastructure in many parts of the world, particularly in developing countries where the infrastructure may not be as advanced as in more developed regions. This includes the construction of new roads, bridges, and other facilities and the modernization of existing infrastructure.

MARKET RESTRAINTS

Infrastructure issues associated with the retail logistics market significantly restrain the market growth. In addition, some of the key challenges in retail logistics include managing inventory, coordinating the movement of goods between different locations, and dealing with unexpected events such as delays and disruptions. Additionally, retailers must consider factors such as cost, customer service, and sustainability to stay competitive in the market. As a result, many retailers are adopting advanced technologies such as automation and data analytics to overcome these challenges to improve their logistics processes and reduce costs.

MARKET OPPORTUNITIES

Growing urbanization is anticipated to be the most significant opportunity for the retail logistics market. As urbanization increases, it can significantly impact the retail logistics industry. In cities and other urban areas, there is typically a higher concentration of consumers and retail outlets, which can lead to increased demand for goods and services. This, in turn, can put pressure on retailers and logistics providers to ensure that goods are delivered efficiently and reliably. However, urbanization can also lead to challenges such as congestion and limited storage and transportation space, making it more difficult to manage the flow of goods. To overcome these challenges, many retailers and logistics providers are adopting new technologies and strategies, such as automation, data analytics, and urban fulfillment centers, to improve their operations in urban areas.

REPORT COVERAGE

SEGMENT ANALYSIS

Global Retail Logistics Market Analysis By Type

Based on type, the conventional segment captured the leading share of the retail logistics market in 2021 and is anticipated to register domination throughout the forecast period. On the other hand, e-commerce held a considerable share of the global retail logistics market in 2021 and is expected to project a better CAGR than the conventional segment during the forecast period.

Global Retail Logistics Market Analysis By Solution

Based on solutions, the supply chain solutions segment led the retail logistics market in 2021 and is expected to register intense domination throughout the forecast period. The supply chain plays a vital role in retail logistics. Therefore, the supply chain solutions segment is also expected to register the fastest CAGR among all the global retail logistics market segments during the forecast period.

Global Retail Logistics Market Analysis By Mode of Transport

The roadways segment is expected to play a leading role in the global retail logistics market during the forecast period. The growing usage of vehicles running on roads for transportation is one of the key factors helping the segment position in the retail logistics market. In addition, retail companies prefer trucks to a considerable extent for the transportation of goods as they can carry large quantities of goods.

REGIONAL ANALYSIS

APAC dominated the retail logistics market in 2021. This is because APAC countries do a massive volume of export activities and also hold a considerable share in worldwide online retail sales. In addition, a growing volume of online trade activities is anticipated to promote the Asian-Pacific market.

On the other hand, the North American region is anticipated to hold a considerable share of the global market in 2021 and is expected to hold a prominent share in the global market during the forecast period. Many of the major market participants are located in the North American region, contributing to the retail logistics market growth in North America.

KEY PLAYERS IN THE GLOBAL RETAIL LOGISTICS MARKET

FedEx, Schneider, United Parcel Service, C.H. Robinson Worldwide, Inc., Nippon Express, APL Logistics Ltd, DHL International GmbH, A.P. Moller – Maersk, XPO Logistics, Inc., DSV, Kuehne + Nagel International. Some of the market players that are dominate the global retail logistics market.

RECENT HAPPENINGS IN THE GLOBAL RETAIL LOGISTICS MARKET

• In December 2022, Darktrace, a company that offers cybersecurity and AI solutions, announced that a considerable number of companies from the United States that operates in the transport and logistics industry had adopted their AI technology service to safeguard themselves from cyber-attacks. An undisclosed largest retail logistics company from the United States has been included in the list of companies that adopted their AI technology.

DETAILED SEGMENTATION OF THE GLOBAL RETAIL LOGISTICS MARKET INCLUDED IN THIS REPORT

This research report on the global retail logistics market is segmented and sub-segmented into the following categories.

By Type

• Conventional Retail Logistics
• E-commerce Retail Logistics

By Solution

• Commerce Enablement
• Supply Chain Solutions
• Reverse Logistics & Liquidation
• Transportation Management
• Others

By Mode of Transport

• Railways
• Airways
• Roadways
• Waterways

By Region

• North America
• Europe
• APAC
• Latin America
• Middle East and Africa