Recently, a report found that the global ecommerce logistics market is projected to nearly triple over the next decade, thanks to the growing global appetite for online shopping. The report also highlights several other core drivers of this growth, and takes a look at the various segments that make up the industry as a whole.
Massive Growth Expected For the Ecommerce Logistics Market
According to the report, the ecommerce logistics market is projected to grow by nearly three times over the next decade. In 2024, the market was valued at just over $597 billion, and expected to skyrocket to over $1.79 trillion by 2035.
This means the market is expected to grow by a compound annual growth rate (CAGR) of 10.5% throughout the forecast period.
The Core Drivers of the Projected Growth
The report mentions a few of the core drivers and major factors behind this growth. First, the general rise in ecommerce will help to propel ecommerce logistics with it. As more retail shifts online, the companies buying and selling these items will need logistics solutions to manage, move, store, and deliver the inventory successfully.
Next, the growing importance of delivery speed among customers has forced companies and providers to rethink their logistics strategies to meet these rising demands. Consumers want items quickly, and companies need to invest in everything from micro-fulfillment centers to advanced routing technologies to make it happen.
To meet these expectations, 69% of brands now aim to deliver domestic orders within 2 to 3 days, with plenty offering same-day or next-day delivery, as well.
Technology is also a major driver of this growth, as things like robotics and automation are streamlining the warehousing process, drastically speeding up sorting, packing, and more. In addition to speed, better and more advanced tech also boosts efficiency and scalability, too.
Also, a growing push for sustainability is also reshaping the space and forcing many companies and providers to make changes. Sustainability is one of the largest ecommerce trends, and many consumers demand that brands use sustainable packaging and adopt eco-friendly practices and processes.
Being sustainable is no longer a niche that only a few consumers care about, but a necessity or requirement for a company to have a chance at selling to certain eco-friendly consumers.
A Closer Look at the Ecommerce Logistics Market Segments
In addition to highlighting the growth drivers of this industry, the report also goes over the various segments that make it up. By service type, the industry consists of both warehouse and transportation services.
Transportation has the largest market share in this segment, largely fueled by the massive operational scale needed to move products across the world. This includes delivery hubs, vehicles of all kinds, mega centers, and large transportation networks.
Broken down by operational area, the domestic segment has the largest share. The volume of daily shipments that mega ecommerce retailers like Amazon or Alibaba send to their home countries is staggering. That being said, cross-border ecommerce is certainly on the rise and growing rapidly, too.
Regional Differences in Ecommerce Logistics
Finally, the report concludes by breaking down the ecommerce logistics market region-by-region. North America is the largest market, as it holds around 40% of the global share. The growth in this region is powered by tech adoption, strong infrastructure, and strong regulatory support for innovations.
Europe is largely seen as an innovation hub for ecommerce logistics, and has about 30% of the global market share. The area has a strong regulatory framework, innovative last-mile solutions, and a focus on green and sustainable logistics.
The Asia Pacific region is rising quickly, and currently accounts for 25% of the market share. It’s the center of future growth, driven by things like rapidly increasing internet penetration and a mobile commerce boom.
While the Middle East and Africa only make up 5% of the market share, it has significant future potential. Smartphone adoption, increasing urbanization, and a young tech-savvy population could eventually set the stage for the area to take a much larger piece of the pie.
This report provides a detailed look at the ecommerce logistics market, and I believe it helps brands across the globe better understand the trends that are shaping the growing industry, and the drivers that are pushing it forward so quickly.
