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Tuesday, November 21, 2017

Global Logistics to Reach $12 Trillion by 2025

October 23, 2017

Photo: CMA CGM

Photo: CMA CGM

The global logistics industry is expected to reach $12 trillion in value by 2025, recording a 6 percent CAGR over the period, says a research report. 

According to Wiseguyreports, 2015 was a difficult year for global logistics companies. However, accelerating Asia Pacific economies and recovering manufacturing in Western Europe are expected to have a positive effect on global logistics, which started to recover in 2016 and is expected to continue solid growth in the next 10 years.
 
The key opportunities lie in construction industry and transportation of cement, metals, textiles and electronic components. Retail and wholesale, in the meantime, will become an increasingly challenging area with limited potential and growing supply chain complexity.
 
Retail and wholesale growth is expected to stand at 4 percent CAGR over 2015-2025 -lowest among key logistics customers. China and the U.S. are expected to remain lucrative markets that will account for over 50 percent of future value growth in retail and wholesale until 2025. Following growth of e-commerce, logistics companies will have to adopt innovative delivery solutions and integrate delivery systems.
 
Construction expected to become the largest logistics customer in the next 10 years, outperforming retail and wholesale. Global construction CAGR of 7 percent over 2015-2025 will come mainly from Asia -China, India and Indonesia. Key future challenges are logistics in increasingly tightly urbanised areas and trend towards construction project fragmentation.
 
The cement, stone and ceramic products industry is already the largest logistics customer in manufacturing and additionally is expected to record the strongest growth -10 percent CAGR until 2025. The growth will be driven by quickly urbanising economies in Asia, the Middle East and Africa.
 
Apart from cement, other key areas of growth will be metals (especially non-ferrous and precious), textiles and electronic components that will each record turnover CAGRs of around 8 percent over 2015-2025.
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