Logistics: Key market research findings
- Dominance of integrated service providers
- Technological advancements
Technavio has released a new market research report on the logistics market in Europe, which is expected to grow at a CAGR of more than 6% between 2016 and 2020. The surge in e-commerce market, which primarily includes online shopping, has accelerated the demand for efficient logistics services for the shipment of products sold through them. The UK and Germany are expected to lead the logistics market in Europe, primarily because of the demand from the growing automobile industry in this region.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Of late, the European logistics market is witnessing the dominance of integrated service providers, which are a combination of both asset-type and non-asset-type providers. Integrators provide all types of logistics services, act as both 3PL and 4PL providers, and are capable of achieving economies of scale and improved efficiency. They have a strong information technology infrastructure that can electronically monitor the progress of all processes. The growth of integrators is expected to increase the demand for contract logistics services over the next four years, says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research
The use of upgraded technologies in logistics service is expected to increase in the coming years. Logistics service providers have a range of services such as global positioning system enabled transportation trucks for tracking, radio-frequency identification for inventory tracking, bar coding, and management information system related services. These information technology services increase the efficiency of logistics services on inventory management and scheduling transportation and delivery. Moreover, vendors in the logistics market in Europe are now using cloud-based customer relationship management solutions to enhance the vendor-shipper relationship by providing more visibility in the supply chain process, thus, reducing SCM complexity.
The key vendors in the logistics market in Europe include DB Schenker, Kuehne + Nagel, Deutsche Post DHL, SNCF, and UPS. This market is extremely fragmented due to the entry of new players. . The industry is becoming more competitive because of the disorganized nature of the market, which includes local truck and warehouse owners. The market is capital-intensive and requires advanced technologies.
A more detailed analysis is available in the Technavio report, Logistics Market in Europe 2016-2020.
We can customize reports by other regions and specific segments upon request.
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