Bath, UK: The contract logistics market now exceeds pre-pandemic values but growth is set to slow, warn analysts from transport consultancy Ti.
Its latest research report, Global Contract Logistics 2022, predicts that the global contract logistics market is expected to grow at a slower pace of 7.1% year on year.
It also expects logistics giants DHL and GXO to maintain their dominant positions in North America and Europe, but China is poised to overtake the US in market value by 2026.
Ti says all regions have witnessed contract logistics market growth in 2021, a marked change from 2020.
Its latest report, one of several reports published each year, uses data from its GSCI knowledge portal, a data powerhouse with over 1m pieces of data and analysis.
“The report takes an in-depth look at the implications of a transforming retail market for logistics providers, as well as the current warehousing landscape. It outlines the forces which are shaping the future of warehousing, and questions whether multi-storey warehousing could be the answer to historically low vacancy rates,” Ti says.
Report Highlights
- The global contract logistics market grew by 8.7% year-on-year in 2021. The global market is expected to grow by a further 7.1% y-o-y in 2022 and at a Compound Annual Growth Rate (CAGR) of 4.9% over the five years to 2026.
- Asia Pacific remains the largest contract logistics market by region, with China poised to overtake the US’ market value by 2026.
- The implications for the logistics sector supplying retailers with logistics services will be transformative. The reality of retail logistics will no longer be that of ‘trucks & sheds’, but rather a very reengineered environment that empathises speed, precision, and responsiveness.
- DHL and GXO have led the global contract logistics market. Both have managed to maintain leading positions in North America and Europe which has helped both to top the list.
- Demand for warehousing is increasing, with low vacancy rates across the globe. The development of the global warehousing industry is also being influenced by three major categories of change drivers: supply chain trends, innovation, and customer needs.
