By The Nation
While the research looks ahead to 2023, Ti’s 5-year CAGR forecast for the global contract logistics market suggests an expansion rate of 4.7 per cent.
The latest round of contract logistics market sizing reveals a mixed picture in major economies, however. In China, one of 95 markets for which contract logistics market sizing is available, the market shows remarkable vigour with a 2018 growth rate of more than double the global rate powered by an expanding consumer market and the growth of advanced manufacturing fields such as robotics, IoT and 3D printing. In the US, the story in 2018 was reasonably positive, but while the contract logistics market grew, the rate of expansion was more modest and well below the global rate. The 5-year CAGR to 2023 for the US is muted at 2 per cent.
“2018 was a strong year for contract logistics providers in many respects,” said Nick Bailey, Ti’s Head of Research. “While the fundamentals remain positive, players in the market need to take advantage and react to some significant changes. Across key verticals like retail, pharmaceuticals, automotive and beyond, demands are changing and shippers are expecting higher levels of service, digital offers and greater end-to-end value. The pressure is on contract logistics providers to make sure their offer stays relevant.”
Analysis in the 2019 edition of Global Contract Logistics also places DHL Supply Chain well ahead of its nearest competitors XPO and Kuehne + Nagel as the largest contract logistics provider globally, with a 6.2 per cent market share.
“The global market for contract logistics grew at a strong pace in 2018, down only slightly on what was an excellent year in 2017. There are some stark contrasts between the significant bright spots in China, India and Southeast Asia, when compared with developed markets in Europe, but even these are showing a reasonable level of expansion. This means that 3PLs across the world have had significant opportunities to grow their businesses,” said Andy Ralls, Quantitative Analyst at Ti.