The Global E-Commerce Logistics market is anticipated to grow at a CAGR of more than ~13% which would result in making it an approximately US$ 1 Tn industry by 2028 as per the findings of Ken Research.
STORY OUTLINE:
- E-commerce growth is a driving force behind the growth and expansion of Global E-commerce Logistics Market.
- Technological advancements such as AI, GPS, IoT, automated trucks and drones are boon for the growth of the Global E-commerce Logistics market.
- Customers demanding fast deliveries also act as a reason behind the growth of the Global E-commerce Logistics Market.
- Globalization accelerating the growth of the Global E-commerce Logistics Market.
A fast-growing industry, Technological advancements, E-commerce growth, and the demand for same-day/fast delivery by customers along with Globalization are the various factors contributing to the growth of the Global E-Commerce Logistics Market. This market is predicted to witness a CAGR of more than ~13% in the next 5 years.
1.E-Commerce growth: a driving force behind the growth and expansion of Global E-Commerce Logistics Market.
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The growth of E-commerce is a major factor in the growth of E-Commerce Logistics. As more and more people shift towards adopting E-Commerce, this in turn also increases the demand for E-Commerce Logistics for transportation and warehousing purposes
China (with internet users ~73.1% of the population), United States (with internet users ~90.9% of the population), United Kingdom (with internet users 94.8% of the population), Japan (with internet users ~90.2% of the population), and South Korea (with internet users ~96.5% of the total population) are five of the strongest and biggest E-Commerce markets
One thing that is common among these 5 biggest E-commerce markets is that they have a high percentage of internet users. When people spend their time on internet, they also come across various E-commerce sites through which they place their orders. Additionally, Covid-19 also increased the reach of internet and online shopping.
As these markets are constantly expanding, and, since most of the population in various countries have an internet appearance. Thus, it is evident that more and more people are also shifting towards online shopping which naturally fuels the E-commerce logistics market
2.Technological Advancements in the economies: a boon for the growth of the E-commerce Logistics Market:
Technological Advancements such as AI automation, the Internet of Things, Real-Time analytics, GPS, and automated trucks and drones are known to boost the E-Commerce Logistics Market Growth
Artificial Intelligence is used by various global companies such as Coupa, Epicor, LivePerson, Echo Global Logistics, etc. Epicor has Epicor Digital Assitant which helps user to interact with their enterprise resource planning systems. LivePerson uses AI in the form of a messaging platform. What makes this AI-enabled messaging platform different is that it gives B2B, B2C, HR, ITSM related solutions to various businesses. Echo Global Logistics uses AI to primarily automate carrier management and to work out shipping rates.
A global leader, Amazon, is a perfect example of the application of GPS technology in the logistics market. It uses GPS technology when it comes to delivering packages so that they reach the right location. Not only limited to that, GPS technology also helps Amazon in scheduling packages as to know which should be delivered first and in what sequence that helps in maximization resource utilization and cost minimization.
Just like AI, IoT technology is also used by many global companies within the logistics companies such as Maersk, Nippon Express, DB Schenker, DHL, etc
Maersk uses their special refrigerator-containers. This way they are not only tracking their routes but can also control the atmosphere inside the containers. DHL on the other hand uses IoT technology to manage their supply chain to get a better idea of their inbound and outbound logistics. Nippon Express partnered with Intel to develop an IoT (which is known as Global Cargo Watcher Advance) to track all of their shipments that demand quality control throughout.
Global logistics companies such as TuSimple, DHL, Kodiack Robotics, and Amazon, are known for using Automated Trucks and Drones. The trucks of these companies are equipped with radars and sensors through which they can communicate to other vehicles and can follow the pre-defined routes with pre-defined speeds.
3.Customers’ demands for having same-day delivery or the fastest possible delivery: a major reason for the growth of the global E-commerce logistics market:
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Customers demanding same-day delivery also play an important role in the growth of the global E-commerce logistics market. Global logistics companies such as FedEx, Amazon, United Parcel Service, DHL, UberRush, Stuart Delivery, etc. are known for providing fast deliveries and thereby accelerating the global e-commerce logistics market.
FMCG products such as Groceries, over-the-counter medicines, packaged foods, cosmetics, etc are some of the fast-moving products in the logistics market.
FedEx typically is known for delivering products between 1 to 3 business days, Amazon generally ships the orders anywhere between 1 to 2 days, DHL is known to deliver packages ranging from approximately 2 to 14 days, UPS at times delivers on the same day and within several days.
4.Globalization: Making the Global E-commerce Logistics market not only easy but better also:
It is needless to say how does Globalization contributes in the growth of Global E-Commerce Logistics Market. Nowadays, more and more businesses are going global to have wide reach in terms of global customers and compete with international competitors. This in turn, also increases the demand for the global E-commerce Logistics to ensure that the packages are delivered to customers in every corner of the world.
Some of the countries that are leading the Globalization index include Switzerland (with a globalization index of ~90.6), New Zealand (with a globalization index of ~89.0), Singapore (with a globalization index of ~83.2), Israel (with a globalization index of ~76.2), and Japan (with a globalization index of ~75.3).
With the advent of Globalization, the demand for cross border logistics has drastically increased which significantly has given a rise in the growth of Global E-Commerce Logistics Market because when businesses go global, they also have wide reach and global customers, and to deliver their packages in different parts of the world, a business needs requires E-commerce Logistics. Thus, globalization accelerates the growth of Global E-commerce market.
CONCLUSION
As per this research, there are many growth drivers of Global E-commerce Logistics Market. The growth of E-commerce, Technological advancements, Globalization and customers demanding fast delivery are some of the major factors that contribute towards the growth and expansion of Global E-commerce Logistics market. With all of these factors, it is anticipated, that the Global E-commerce Logistics Market is predicted to soon become a US$ 1 Tn. Industry by 2028.
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