Retail Logistics Market Size, Share & Trends Report

Retail Logistics Market Size, Share & Trends Analysis Report By Type (Conventional Retail Logistics, E-commerce Retail Logistics), By Solution, By Mode Of Transport, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-288-4
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 80

Report Overview

The global retail logistics market size was valued at USD 205.44 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 11.8% from 2021 to 2028. The demand for retail logistics is witnessing an incremental surge due to the increase in global trade activities, especially in emerging economies. Developments in logistics infrastructure are anticipated to fuel the growth of the market. The retail logistics system enables a smooth flow of durable and non-durable goods from various prominent suppliers and distributors to customers. Besides, the use of logistics in the retail industry has led to shorter delivery times, low fulfillment costs, and improved ability to focus on service delivery rather than on administrative processes.

North America retail logistics market size, by type, 2016 - 2028 (USD Billion)

International retailers have become intensely competitive due to the rise in globalization. As a result, the retail logistics market is witnessing intense competition among international retailers establishing new stores in developing economies such as the Asia Pacific. This is propelling the increase in trade activities, which facilitate transportation between different regions, therefore, leading to an upsurge in demand for retail logistic services to expedite product transportation. Moreover, international retailing is also supporting countries in improving their economy as the import and export of goods lead to increased tax revenue, which in turn is contributing to the overall market growth. Besides, the rising penetration of the internet has also boosted the number of trade and e-commerce opportunities for international retailers.

The usage of multimodal transportation has increased owing to several benefits such as reduced customs controls, decreased cargo-handling time, and reduced costs per vehicle. This growing use of multiple means of transportation is one of the primary market trends, as it involves the use of a combination of ships, trucks, aircraft, or railcars. Combining these multimodal transportations can help in reducing inventory costs as well as helps in keeping the costs of the merchandise under control. Multimodal transportation also helps retailers to transport goods efficiently during outbound logistics with reduced transportation costs.

Moreover, the last-mile delivery method in the retail e-commerce market is expected to propel the growth of the retail logistics industry in the forthcoming years. As an e-commerce platform allows comparison of products based on delivery time, prices, features, specifications, and compatibility requirements, it becomes easier for customers to compare products from several online sources, which is a drawback with distributors or brick-and-mortar stores. These benefits over brick-and-mortar stores propel the retail e-commerce industry and are expected to continue this trend in the forthcoming years.

The ongoing COVID-19 pandemic has taken a severe toll on the global economy in majorly three ways: suppressing profitability, directly affecting production and demand, and drying up financial reserves and cash flows. Retail logistics companies are equally affected by the COVID-19 pandemic. The industry suffered a minor setback during the initial phases (Q1 and Q2) of the pandemic due to a shortage of labor and supply chain disruptions. Later, with consumers avoiding the in-store purchases and preferring online shopping, the increase in online orders did put an unprecedented strain on retail logistics companies' transportation and logistics services.

Type Insights

The conventional retail logistics segment accounted for the largest revenue share of 56.70% in 2020 and is expected to remain dominant over the forecast period. The high share is attributable to the rising adoption of conventional retail logistics services by consumers with limited dependence on the Internet which therefore contributes to their preference for conventional retail stores. Moreover, it has been observed that around 36% of shoppers prefer to buy products from traditional retail stores after checking them online. Besides, retail stores enable consumers to pick up and inspect a product. It also provides instant gratification, as shoppers can purchase a product instantly rather than waiting for it to get delivered.

The e-commerce retail logistics segment is expected to emerge as the fastest-growing segment, registering a CAGR of 12.5% from 2021 to 2028. The growth is primarily attributed to the emergence of the coronavirus pandemic across the globe, wherein e-commerce channels witnessed sudden growth in terms of sales. Moreover, the growing internet penetration coupled with benefits such as easy and free returns/exchange, fast delivery, reduced shipping charges, and humongous product options, among others, are contributing to the high growth of the segment. Therefore, to cater to the rapidly growing e-commerce market, logistics companies are investing in developing and broadening the services. For instance, in December 2020, FedEx announced the acquisition of ShopRunner, an e-commerce platform. The acquisition aimed at enabling FedEx to use ShopRunner’s e-commerce capabilities, thereby enhancing its e-commerce portfolio and increase customer base.

Solution Insights

The supply chain solutions segment accounted for the largest revenue share of 34.60% in 2020 and is expected to continue its dominance over the forecast period. The supply chain enables on-time delivery, optimizes omnichannel operations, personalizes kitting and order fulfillment, and effectively processes customer returns. It also enables fast direct-to-consumer and direct-to-store shipping, which improves warehouse efficiencies as well as optimizes inventory. Further, the segment is anticipated to register the fastest CAGR of over 13% from 2021 to 2028 owing to the rising use of cloud-based supply chain solutions as it helps to track & optimize transportation and manage returns.

The reverse logistics & liquidation segment is expected to register considerable growth over the forecast period. The surging e-commerce industry and the consecutive increase in the number of e-shoppers are resulting in increasing demand for robust reverse logistics services. Customers are increasingly opting for easy and fast returns/exchanges; therefore, retailers are emphasizing making the process of returning online goods simple and convenient for customers.

Mode of Transport Insights

The roadways mode of transport segment accounted for the largest revenue share of 52.87% in 2020 and is expected to continue its dominance over the forecast period. The high share is attributable to the growing demand for roadways vehicles in long distances transportation of retails products, especially in domestics regions. Also, it provides high carrying capacity making it a preferable option. Besides, several government initiatives are supporting segmental growth. For instance, the recent regulations imposed by the Federal Motor Carrier Safety Administration allow the use of the cameras as a substitute for rearview mirrors are likely to benefit truck drivers in terms of safety.

Global retail logistics market share, by mode of transport, 2020 (%)

Moreover, increasing road connectivity in the developing countries and great connectivity by roads among all the developed nations is another major factor boosting demand for roadways mode of transport segment. The majority of the tier2 and tier3 cities in several countries are well connected by roads, therefore making it easier for the retail logistics companies to deliver and pick up the products. This trend is expected to continue in the forthcoming years due to road transportation systems advancements and the betterment of roadways across the globe.

Regional Insights

The Asia Pacific region accounted for the largest revenue share of 25.98% in 2020. The region is anticipated to continue its dominance over the forecast period on the back of the high growth of e-commerce coupled with the presence of a large consumer base for retail products. Countries such as India, Japan, China, and Australia are among the top 10 exporters of merchandise and account for a large portion of global retail e-commerce sales. Thus, the strong growth prospects of the e-commerce industry in the region are the primary factors supporting the regional market growth.

Moreover, increasing focus on transportation practices and several ongoing logistics infrastructure development in the emerging countries are other factors expected to boost the regional market growth. For instance, the Ministry of Road Transport & Highways (MoRTH), under the Logistics Efficiency Enhancement Program (LEEP) established by the Government of India, is creating multi-modal logistics parks to address under-developed road infrastructure and material handling infrastructure. Besides, North America is projected to exhibit a considerable share in 2020. The presence of several key players, including United Parcel Service of America, Inc., C.H. Robinson Worldwide, Inc., XPO Logistics, Inc., Ryder System Inc., FedEx, and Expeditors International of Washington, Inc. aiding the regional market growth.

Key Companies & Market Share Insights

Major players operating in the market include XPO Logistics, Inc.; DSV; Kuehne + Nagel International; C.H. Robinson Worldwide, Inc.; and Nippon Express. Key companies are engaging in service portfolio extension, partnership, and mergers and acquisitions with small and medium-sized companies aiming to increase the consumer base. For instance, in April 2020, FedEx announced a partnership with BigCommerce Pty. Ltd., an open SaaS e-commerce platform. The partnership aims to help small and medium businesses sell online and stay connected to commerce and deliver. This collaboration also gives BigCommerce Pty. Ltd. customers affordable and easy access to FedEx shipping services within the existing platform. Some of the prominent players operating in the global retail logistics market are:

  • XPO Logistics, Inc.

  • DSV

  • Kuehne + Nagel International

  • C.H. Robinson Worldwide, Inc.

  • Nippon Express

  • FedEx

  • Schneider

  • United Parcel Service

  • APL Logistics Ltd

  • DHL International GmbH

  • A.P. Moller - Maersk

Retail Logistics Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 227.61 billion

Revenue forecast in 2028

USD 498.34 billion

Growth Rate

CAGR of 11.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments Covered

Type, solution, mode of transport, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; France; China; India; Japan; Australia; Brazil; Mexico

Key companies profiled

XPO Logistics, Inc.; DSV; Kuehne + Nagel International; C.H. Robinson Worldwide, Inc.; Nippon Express

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global retail logistics market report based on type, solution, mode of transport, and region:

  • Type Outlook (Revenue, USD Billion, 2016 - 2028)

    • Conventional Retail Logistics

    • E-Commerce Retail Logistics

  • Solution Outlook (Revenue, USD Billion, 2016 - 2028)

    • Commerce Enablement

    • Supply Chain Solutions

    • Reverse logistics & liquidation

    • Transportation Management

    • Others

  • Mode of Transport Outlook (Revenue, USD Billion, 2016 - 2028)

    • Railways

    • Airways

    • Roadways

    • Waterways

  • Regional Outlook (Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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