E-commerce Logistics Market Overview, 2029

E-commerce logistics refers to the processes of storing and shipping inventory for an online store or marketplace. E-commerce logistics begins with the movement of goods from the manufacturer and lasts until it arrives at the end of the customer’s destination. It is a congregation of various processes such as warehousing, transportation, inventory management, packaging, labeling, billing, shipping, payment collection, return, and exchange that work in synchronization leading to a supply chain.

The e-commerce logistics market is growing in parallel with e-commerce sales in different regions and there are various factors that are likely to drive the market in the future the infrastructure improvements, improved awareness, tech-enabled logistics platforms, and appealing online shopping offers have all contributed to the growth of both the e-commerce as well as the logistics sectors. E-commerce and e-commerce logistics are becoming more and more demanding in terms of both innovative solutions and consumer expectations. The logistics needs of this are varied due to the growing diversity of products, due to their value, importance, and size. Warehousing, packing of orders, transportation return, and exchange are just a few of the procedures that fall under the category of logistics. All of these elements combine to create a time-sensitive assignment that necessitates the enactment of an extensive approach. Warehousing is one of the most important aspects of running an e-commerce logistics business. Warehousing service can be referred to as the operation of storing goods or inventory that are yet to be sold or distributed to potential customers. Storage technology has advanced dramatically over the years. For the most part, these developments make it simpler for e-commerce companies to monitor inventories utilizing warehouse management systems. Transportation in which, when order is manifested, it is picked up and sent to its ultimate destination. Based on service type, the market is segmented into warehousing, transportation, and other services.

According to the research report, “Global E-commerce Logistics Market Overview, 2029”, the market is expected to cross USD 1.38 trillion market size by 2029, with 12.7 % CAGR by 2024-29. Numerous important elements propel the global e-commerce logistics industry, greatly boosting its expansion and effectiveness. As more people turn to online shopping for convenience and variety, the e-commerce industry's spectacular growth is a major driver.

Because of this tendency, there is a greater need for effective logistics systems that can manage the challenges of order fulfilment and delivery. Digital technology developments like automation, real-time tracking, and data analytics have also revolutionized logistics operations, allowing for quicker and more dependable delivery. Cross-border e-commerce's growth is further fuelled by companies looking to reach global markets and consumers having access to a greater variety of goods.

The global e-commerce logistics market comprises warehousing, transportation, and other services, including returns and inventory management. Among these, transportation is the leading category, essential for ensuring the efficient movement of goods to meet the growing demands of online consumers. The rise of e-commerce has significantly increased the need for fast and reliable delivery services, prompting logistics providers to enhance their transportation capabilities through advanced technologies such as real-time tracking and route optimization.

This focus on transportation is complemented by warehousing, which plays a critical role in storing products and facilitating order fulfilment. Strategically located warehouses enable quicker access to major markets, streamlining the supply chain process. Additionally, other services encompass vital functions like returns management and inventory oversight, which are crucial for maintaining customer satisfaction in a competitive landscape.

The global e-commerce logistics market spans both international and domestic sectors, with the domestic segment emerging as the frontrunner. This prominence is largely attributed to the rising consumer trend towards online shopping, which has escalated the demand for effective logistics solutions that guarantee swift deliveries. Within this context, road transportation is highlighted as the primary mode, vital for last-mile delivery. The extensive road networks in various regions enable logistics providers to transport goods directly from warehouses to consumers efficiently, ensuring timely service that meets customer demands.

The growth of same-day and next-day delivery options has further underscored the significance of road transport in the logistics ecosystem. While rail, air, and sea transportation are crucial for bulk shipments and international trade, road transport remains the backbone of domestic e-commerce logistics. The international sector is also experiencing rapid growth, driven by globalization and cross-border trade, but domestic logistics continues to hold a larger market share due to its streamlined operations and proximity to consumers.

In the global e-commerce logistics market, various product categories such as electronics, apparel and accessories, home furnishing products, health, personal care and beauty, auto and parts, baby products, books, and others each play a significant role in shaping the logistics landscape. Among these, electronics and apparel and accessories dominate the market due to their high demand and rapid growth in the online shopping sector. Electronics, characterized by items such as smartphones, laptops, and consumer gadgets, require specialized logistics solutions, including secure packaging and careful handling, to ensure safe and timely deliveries.

The complexity of these products, along with their high value, makes efficient logistics crucial in meeting customer expectations. Apparel and accessories also represent a substantial portion of the global e-commerce market, driven by the ever-growing trend of fashion shopping online. The volume and variety of clothing items necessitate fast, flexible logistics systems to handle a range of sizes, styles, and seasonal demands. These two segments electronics and apparel require highly optimized supply chains with reliable inventory management, warehousing, and transportation solutions. Other product categories, such as home furnishings, health and beauty products, and baby items, also contribute to the market but tend to have different logistics requirements, such as bulk shipping for home goods or temperature-controlled transport for personal care items. Books and auto parts also follow specific logistical demands but typically represent smaller segments compared to electronics and apparel.

COVID-19 Impact

Downturns in global economies, including as a result of the COVID-19 pandemic, positively impact the e-commerce and e-commerce logistics industry and various companies’ businesses. Despite persistent cross-country differences, the COVID-19 crisis has enhanced dynamism in the e-commerce logistics landscape across countries and has expanded the scope of e-commerce and e-commerce logistics, including through new firms, consumer segments, and products. The pandemic situation has caused an increase in last-mile deliveries that are likely to persist. However, this pandemic situation has elevated the growth of the e-commerce and e-commerce logistics market and is expected to exhibit a twofold increase during the forecast period.

Major Companies present in the market

FedEx Corporation, Deutsche Post AG, SF Express Co. Limited, United Parcel Service, Inc., Aramex International, XPO Logistics, Inc., Deutsche Bahn AG, Nippon Express Co., Limited, Kerry Logistics Network Limited.

Considered in this report

• Geography: Global
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Global E-Commerce Logistics market with its value and forecast along with its segments
• Region-wise e-commerce logistics market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & Africa

By service type in the report

• Warehousing
• Transportation
• Other Service (Return, Inventory management)

By operational area in the report

• International
• Domestics

By transportation mode in the report

• Road
• Rail
• Air
• Sea

By product type in the report

• Electronics
• Apparel and Accessories
• Home Furnishing Products
• Health, Personal Care and Beauty
• Auto and Parts
• Baby Products
• Books
• Others

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, analyzing government-generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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