Before we get to know about how big is the logistics industry, let us know what exactly logistics is termed as.
So, logistics incorporates the physical procedure of collecting resources, the transportation or situating of those resources, and the final distribution of resources.
What encompasses logistics can be extremely wide too and covers basically everything from a resource’s beginning to a finished good’s destination.
Most supply chains are highly coordinated with various degrees of automation allowing merchandise to move flawlessly from mode to mode until destination.
Logistics as an industry incorporates the sourcing of goods, manufacturing, inventory, handling/sortation, transportation, storage/warehousing, etc. Further, logistics expense lines can also include IT, in terms of the exchange of information and data, as well as the cost of security.
In short, Logistics is just like a transaction wherein a shipper makes it’s own product or ships it directly to the customer.
How Massive is the Logistics Industry?
The estimated size of the global logistics industry range from $8 trillion to $12 trillion annually.
Globally, the logistics market represents approximately 12% of the entire world’s GDP.
The dissimilarity in the level of GDP used to anticipate the size of the logistics market has been credited to the inefficient aspects that exist in supply chains in numerous districts outside of the U.S., making a raised cost structure by comparison.
In 2018 the global logistics industry was $9.6 trillion, according to research and consulting firm Armstrong & Associates Inc.
Trucking accounted for 43% of the total logistics price globally. The costs related to storing inventory represented one-third with non-trucking modes – maritime, rail, and air – under 14% of the total.
The surprising and exciting factor is the market size of the logistics industry is seen climbing to $250 billion by 2020.
What about the Indian Logistics Market?
Headways in computerized innovations, changing customer inclinations due to eCommerce, government reforms, and move-in administration sourcing techniques are relied upon to lead the change of the Indian logistics ecosystem.
Increased investment in infrastructure, last-mile connectivity, and emerging technologies are streamlining the logistics terrain in India.
India’s GDP is expected to reach $3.02 trillion in 2020, representing about 4% of the global GDP. Between 2019 and 2025 the logistics market in India is forecasted to grow at a CAGR of 10.5%.
Logistics start-ups in India gained a substantial foothold after the onset of eCommerce, and several new companies are gaining traction in the industry.
Quick development upheld by government changes, transportation part improvement plans, and furthermore the eCommerce segment are probably going to be the key drivers of the logistics segment in India.
The logistics sector is booming like anything. The arrival of new technological methods such as automated material handling equipment, GPS and biometrics has aided businesses and organizations to work proficiently, thereby propelling the growth of the logistics market.
Hence the future of logistics will be shaped by the emerging trends. The logistics industry is having a rapid transformation, paving the way for innovation and upheaval soon.