Logistics Market in Europe by 2020
26/05/2017 - 10:34:00
Extensive market research carried out by the analysts at Technavio has shown that the logistics market in Europe will grow at a moderate CAGR of close to 7% over the forecast period.
The growing e-commerce market in Europe is one of the key factors driving the growth of this market in the coming years. The popularity of online shopping in Europe has led to an increasing demand for efficient logistics services for the shipment of products sold through them. In 2015, the e-commerce market in Europe was valued close to USD 480 billion. The growth of revenue in this sector is mainly because of the supply side. Moreover, efficient inventory management and quick delivery are the keys to operational success. Efficient supply chain management, in terms of logistics and warehouse services, is the primary business function of most e-commerce companies. Therefore, the growth of the e-commerce industry will directly impact the logistics market in Europe in a positive way during the next four years.
In this market study, the analysts have estimated factors such as the growing demand for professional logistics services to contribute to the growth of this market in the coming years. The logistics market in Europe is witnessing tremendous demand for professional logistics services that provide high-end logistics and supply chain solutions, along with value added services like assortment and grading of products, packaging, and information management system services. However, only a very few vendors provide such all-inclusive services. The market is witnessing a trend where shippers prefer contract logistics providers that offer a complete solution as it helps them to avoid the tediousness associated with outsourcing different tasks to different vendors. Therefore, it can be estimated that the augmented demand for contract logistics service providers during the forecast period will foster the growth of this market until the end of 2020.
Segmentation by type of logistics model and analysis of the logistics market in Europe
The 3PL segment dominated the logistics market in Europe and is expected to reach close to USD 45 billion by 2019. Factors such as the rise in intra-regional trades and the relocation of manufacturing facilities to countries such as Bulgaria, Romania, Lithuania, and Latvia, where labor costs are low will contribute to the growth of the both domestic and international transportation logistics in the region. Also, different initiatives have been taken up by the EU to streamline logistics activities for domestic and international trade in Europe. The introduction of such initiatives will lead to the growth of this market over the next few years.
Competitive Landscape and key vendors
The logistics market in Europe is highly disorganized and fragmented with several new players entering the market. The competition is expected to intensify because of the disorganized nature of the market, which includes local truck and warehouse owners. Additionally, companies are expanding their businesses through M&A to increase their global presence and expand their product portfolios.
Key vendors in this market are -
• DB Schenker
• Deutsche Post DHL
• Kuehne + Nagel
Other prominent vendors in this market are ACP Freight Services, Agility, Alkomtrans, APL Logistics, AWT, Baltic Rail, BDP International, BLS, Bulk Logistics Solutions, Czech Logistics Alliance, Dachser, Damco, DAN-CZECH SPECIALTRANSPORT, DEIJ Transport, DSV, Expeditors International, FedEx Supply Chain, FERCAM, FM Logistic, Gondrand, hansa-express logistics, Hub Group, Huktra, IMPERIAL Logistics International, Ital Logistics, J.B. Hunt Transport Services, Jawimex Logistics, Jordon Freight, Karakus International Transportation, KLG Europe, LCL International, LKW WALTER Internationale Transportorganisation, Mainfreight, Menlo Worldwide Logistics, Move Intermodal, Neovia Logistics Services, NFI, Norbert Dentressangle, OGRIS Logistics, Paolli, Rhenus, RJ International Freight, Rob Masters Specialist Transportation, Ryder, Schneider Logistics, STEF, TNT Express, VECCHI ZIRONI, VTG, Warrant Group, Werner Enterprises Dedicated and Logistics, and Ziegler Group,