The freight transportation market will grow up despite next five years
According to GlobeNewswire Agency, the Freight and Logistics Market are estimated to grow approximately 5% from 2020 to 2025.
Amidst a slowdown in global economic growth, in part caused by trade tensions between the US and China, the logistics industry remains buoyant. The slowdown in world trade is expected to hit the air the cargo market’s volume growth and yield performance, as freight capacity growth is expected to outstrip demand due to weakened consumer confidence.
World trade has been very volatile over the past decade, with underlying development being driven — until very recently — by strong growth of export and import traffic from China and related economies. The outsourcing of logistics has been one of the defining trends of the global logistics industry. The logistics provider’s importance has risen considerably with the ongoing trend towards outsourcing non-core competences.
Logistics industry majors across the value chain are expected to prioritize operational efficiencies, with investments in technology adoption. Freight forwarders that offer innovative online solution offerings in freight matching, custom brokerage, and transportation management solutions are expected to transform the segment with enhanced customer experience. The warehousing industry is expected to transform significantly with process automation due to the emergence of cross-border eCommerce and increasing demand for integrated supply chain solutions.
Rapid growth in the E-Commerce market would intensify competition among eCommerce logistics solution providers. Innovation in order fulfillment, delivery models, and value-added services is expected to reshape the last-mile delivery segment.
Manufacturers and retailers have increased both the level of global sourcing and the scope of the markets that they supply. Many logistics companies have chosen to globalize their operations in line with the changing requirements of their clients.
The rise of e-commerce and the digital marketplace phenomenon has changed the composition of consumer buying behavior and expectations, as consumers now expect fast, free shipping, and competitive pricing. This demanding delivery schedule challenges traditional logistics and supply chain models, and companies are now forced to adjust their strategies to provide the low-cost and on-demand delivery service that consumers now demand. E-commerce represents a growing share of the retail market, This exponential growth and demand will undoubtedly impact the logistics and transportation industry as companies will need to be prepared to manage increased volume and delivery expectations.
The Freight and Logistics market is Consolidated due to the top 5 companies hold more than 50% market share in the industry. The market is expected to grow further during the forecast period as there is an increase in the E-commerce sector and growing infrastructure would push the demand for the logistics and freight sector.