Increase in demand for the supply of essential commodities is expected to drive the logistics market.
Post COVID-19, the global logistics market size is projected to grow from USD 2,734 billion in 2020 to USD 3,215 billion by 2021, at a Y-O-Y of 17.6%. The major drivers of this market are increasing focus on the continued supply of essential commodities, creation of supply chain stabilization task force to fight COVID-19, and growing demand and distribution of personal protective equipment. The factors that restrain the market are labor shortage and a shortage of COVID-19 testing kits. The projection for 2021 is estimated to be down by over 10-15% as compared to the pre-COVID-19 estimation.
FMCG is expected to have the largest market sizing in the global logistics market during the forecast period.
FMCG and healthcare are among the major industries facing prominent logistics challenges.Most consumers are experiencing the fear of limited availability of fast-moving consumer goods as well as healthcare goods such as disinfectants.
Most countries are experiencing supply pressure due to panic buying by consumers amid COVID-19 impact. As a result, FMCG companies are continuously tracking the current situation and are coming up with new strategies to ensure continued supply.
The agriculture sector has been exempted from the restrictions laid by the countries.This has ensured sufficient supplies of food and other daily needs products.
E-groceries continue to meet the increasing demand for daily supplies by the consumers. Amid the COVID-19 pandemic, Walmart Grocery application hit all-time high downloads in the US.
Roadways is the largest segment for the logistics market by mode of transport.
Roadways are relatively less affected by the COVID-19’s impact on the logistics sector when compared with airways and waterways.Trucking is seen as a critical mode of transport amid the pandemic.
However, the primary concern faced by the road transport segment is driver shortage and ensuring the health safety of the available drivers as well as their infrastructure. Being the preferred mode of transport for essential goods, road transport is relied upon heavily for the continued supply of food, medicine, and other essential products.
Asia Pacific to have the largest market size during the forecast period
Asia Pacific is expected to have the largest logistics market size as the region has taken stringent and quite early measures to contain the virus outspread.China has started to recover from the COVID-19 pandemic faster than any other country.
Only some provinces of the entire country are in lockdown after the second wave of COVID-19.The World Health Organization has also appreciated India’s control over the spread of the pandemic.
This has allowed the logistics and supply chain companies to meet consumer demands during the pandemic situation.The supply of vital products in Singapore, South Korea, and Japan has also regained normalcy.
Thus, Asia Pacific region is expected to show positive signs in the near future as the supply chain industry recovers gradually.
In-depth interviews were conducted with CEOs, marketing directors, innovation and technology directors, and executives from various key organizations operating in the logistics and supply chain marketplace.
Note: Others in Company Type include Industry Consultants and in the region includes other regions such as North America and RoW.
Some of the key players in the logistics and supply chain industry are DHL (Germany), UPS (US), FedEx (US), Kuehne+Nagel (Switzerland), CEVA Logistics (Switzerland), DB Schenker (Germany), SNCF (France), XPO Logistics (US), Kenco Group (US), and Hitachi Transport System (Japan). The study includes an analysis of the key strategies and practices followed by these players to handle the impact of COVID-19.
Source : https://www.reportlinker.com/