Retail Logistics Market Size, Share & Trends Analysis Report By Type (Conventional Retail Logistics, E-commerce Retail Logistics), By Solution, By Mode Of Transport, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global retail logistics market size was exhibited at USD 246.86 billion in 2023 and is projected to hit around USD 808.79 billion by 2033, growing at a CAGR of 12.6% during the forecast period of 2024 to 2033.

Retail Logistics Market Size 2024 To 2033

Key Takeaways:

  • The conventional retail logistics segment dominated the market, accounting for a revenue share of 56.1% in 2023.
  • The'supply chain solutions segment was valued at USD 87.80 billion in 2023 and held the largest revenue share of 35.5% in 2023.
  • The roadway mode of transport segment held the largest market share of 52% in 2023.
  • Asia Pacific accounted for the largest revenue share of 27% in 2023.

Retail Logistics Market: Overview 

The retail logistics sector plays a pivotal role in ensuring the seamless flow of goods from manufacturers to consumers. As consumer expectations continue to evolve and technology reshapes the industry, understanding the dynamics of the retail logistics market is essential for businesses seeking to thrive in this competitive landscape.

Retail Logistics Market Growth

The growth of the retail logistics market is underpinned by several key factors driving its expansion. Firstly, the rapid proliferation of e-commerce has significantly increased the demand for efficient and streamlined logistics solutions. As consumers increasingly turn to online shopping, retailers are compelled to optimize their supply chains to meet the expectations of quick and reliable deliveries. Moreover, technological advancements, including the integration of artificial intelligence and data analytics, play a pivotal role in enhancing the efficiency and accuracy of logistics operations. Additionally, the industry's focus on sustainability and environmental responsibility is driving the adoption of eco-friendly practices, further influencing market growth. The continual evolution of last-mile delivery solutions and the emphasis on creating resilient supply chains to navigate unforeseen disruptions also contribute to the overall positive trajectory of the retail logistics market.

Retail Logistics Market Report Scope

 Report Coverage  Details
Market Size in 2024 USD 246.86 Billion
Market Size by 2033 USD 808.79 Billion
Growth Rate From 2024 to 2033 CAGR of 12.6%
Base Year 2023
Forecast Period 2024-2033
Segments Covered Type, Solution, Mode Of Transport, Region
Market Analysis (Terms Used) Value (US$ Million/Billion) or (Volume/Units)
Regional Scope North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa
Key Companies Profiled XPO Logistics, Inc.; DSV; Kuehne + Nagel International; C.H. Robinson Worldwide, Inc.; Nippon Express; FedEx; Schneider; United Parcel Service; APL Logistics Ltd; DHL International GmbH; A.P. Moller - Maersk.

 

Retail Logistics Market Dynamics

  • E-commerce Revolution:

The retail logistics market is dynamically influenced by the ongoing e-commerce revolution. The surge in online retail activities has reshaped the logistics landscape, necessitating innovative solutions to accommodate the increasing demand for swift and reliable deliveries. As consumers increasingly favor the convenience of online shopping, retailers are compelled to optimize their supply chains, emphasizing last-mile delivery solutions to meet evolving customer expectations. This paradigm shift in consumer behavior has become a pivotal force driving the growth and transformation of the retail logistics sector.

  • Technological Advancements:

The relentless march of technological advancements continues to redefine the retail logistics industry. Automation, artificial intelligence, and data analytics are at the forefront, enhancing the efficiency and precision of logistics operations. Predictive analytics aid in demand forecasting, optimizing inventory management and reducing costs. Furthermore, the integration of technologies such as RFID (Radio-Frequency Identification) and IoT (Internet of Things) contributes to real-time tracking and visibility across the supply chain.

Retail Logistics Market Restraint

  • Last-Mile Delivery Challenges:

A significant restraint in the retail logistics market is the intricate challenges associated with last-mile delivery. The final leg of the supply chain, involving the delivery of goods to the end consumer, is fraught with complexities. Urban congestion, traffic bottlenecks, and the demand for rapid deliveries pose considerable obstacles. Retailers are grappling with the need for innovative solutions to optimize last-mile logistics, balancing speed and cost-effectiveness while meeting the increasing expectations for same-day or next-day deliveries. Overcoming these challenges is crucial for the sustained growth of the retail logistics sector.

  • Supply Chain Disruptions:

Another key restraint impacting the retail logistics market is the vulnerability of supply chains to disruptions. Global supply chains are susceptible to various external factors, including natural disasters, geopolitical tensions, and pandemics. These disruptions can lead to delays, increased costs, and logistical bottlenecks. In an era where resilience is paramount, retail logistics providers face the ongoing challenge of developing strategies to mitigate these risks and build more robust and adaptable supply chain systems. The ability to navigate and recover from unforeseen disruptions is critical for maintaining the efficiency and reliability of retail logistics operations.

Retail Logistics Market Opportunity

  • E-commerce Expansion in Emerging Markets:

A significant opportunity within the retail logistics market lies in the expansion of e-commerce into emerging markets. As internet accessibility grows in regions with burgeoning consumer populations, there is a substantial untapped market for online retail. Logistics providers have the chance to capitalize on this opportunity by establishing efficient and scalable supply chain networks tailored to the unique challenges of these markets. Developing robust last-mile delivery solutions and adapting logistics strategies to meet the specific needs of diverse consumer bases present avenues for substantial growth and market penetration.

  • Integration of Sustainable Practices:

The increasing emphasis on sustainability presents a noteworthy opportunity for the retail logistics sector. Consumers are becoming more environmentally conscious, and retailers are actively seeking eco-friendly logistics solutions to align with this shift in consumer preferences. Opportunities abound for logistics providers to integrate sustainable practices, such as optimizing transportation routes, adopting greener packaging options, and exploring alternative energy sources for their fleets. 

Retail Logistics Market Challenges

  • Last-Mile Delivery Complexities:

A primary challenge in the retail logistics market is the intricate nature of last-mile delivery. The final leg of the supply chain, involving the direct delivery of goods to consumers, poses considerable complexities. Urban congestion, traffic hurdles, and the demand for swift and reliable deliveries create substantial obstacles for logistics providers. The quest for cost-effective and timely last-mile solutions requires innovative approaches, including the exploration of alternative delivery methods, to address the evolving expectations of consumers and the logistical challenges presented by densely populated urban areas.

  • Supply Chain Disruptions:

The retail logistics sector faces persistent challenges related to supply chain disruptions. Global supply chains are susceptible to various external factors, including natural disasters, geopolitical events, and pandemics. These disruptions can lead to delays, increased costs, and logistical bottlenecks. Navigating the complexities of a globalized supply chain requires resilient strategies, contingency planning, and the implementation of technologies to enhance visibility and agility. Balancing the need for efficiency with the imperative of building robust, adaptable supply chain systems is an ongoing challenge for retail logistics providers.

Segments Insights:

Type Insights

The conventional retail logistics segment dominated the market, accounting for a revenue share of 56.1% in 2023. The segment’s growth is attributed to the growing usage of conventional retail logistics services by customers who have limited reliance on the Internet and hence prefer to shop in conventional retail establishments. Furthermore, it has been discovered that approximately 36% of shoppers prefer to purchase things from traditional retail outlets after researching them online. Moreover, buyers can pick up and check a product in a retail store. It also delivers immediate gratification because customers can purchase a thing without waiting for it to be delivered.

The e-commerce retail logistics segment is estimated to grow at the highest CAGR of 13.2% over the forecast period. The growth is primarily attributable to the global spread of the coronavirus, which resulted in a surge in sales for e-commerce portals. Furthermore, rising internet penetration, combined with perks such as easy and free returns and exchanges, fast delivery, lower shipping costs, and a vast product selection, contribute to e-commerce retail's rapid rise.

As a result, logistics companies invest in enhancing and diversifying their services to meet the fast-rising e-commerce sector. For instance, in October 2023, Aramex PJSC recently declared that it had successfully acquired Access USA Shipping, LLC (MyUS), a technology-focused worldwide platform facilitating cross-border e-commerce. Aramex obtained all required regulatory authorizations and finalized the acquisition, paying a total cash amount of approximately USD 265 million.

Solution Insights

The ‘supply chain solutions segment was valued at USD 87.80 billion in 2023 and held the largest revenue share of 35.5% in 2023. This segment is expected to continue its dominance over the forecast period. The supply chain ensures personalized kitting & order fulfillment, on-time delivery, optimizes omnichannel operations, and manages customer returns efficiently. It also allows quick direct-to-consumer and direct-to-store shipment, boosting warehouse efficiency and inventory management. Furthermore, the segment is expected to rise at the fastest CAGR of over 14.0% from 2023 to 2030, owing to the growing usage of cloud-based supply chain systems, which assist in tracking and optimizing transportation and managing returns.

Over the projection period, the reverse logistics and liquidation segment is expected to increase significantly. The booming e-commerce business, combined with an increase in the number of e-shoppers, is driving up demand for reliable reverse logistics services. Customers are increasingly favoring simple and quick returns/exchanges, so retailers aim to ease the process of replacing online goods that are simple and convenient for customers. Companies such as FedEx plan to launch a return solution for merchants in the U.S. marketplace. For instance, FedEx Corp. announced the debut of FedEx Consolidated Returns in the United States, a service that provides a low-cost, simple e-commerce returns alternative for merchants to pass on to customers. The extended solution will be available in early 2023.

Mode of Transport Insights

The roadways mode of transport segment held the largest market share of 52% in 2023 in terms of revenue and is expected to dominate over the forecast period. Increasing demand for roadway vehicles to transport retail goods over long distances, especially in domestic regions, has increased the growth of the roadways segment. Trucks and cargos with large carrying capacities make a better choice for retail companies to opt for road transport. Moreover, several government measures encourage sector growth. For instance, the Federal Motor Carrier Safety Administration's recent regulations promote the use of cameras to substitute rearview mirrors to increase the safety of truck drivers.

Retail Logistics Market Share, By End-use, 2023 (%)

Furthermore, the demand for the roadways mode of transportation segment is driven by the improved road connectivity in developing countries and the excellent road infrastructure in developed nations. This enhanced connectivity plays a vital role in facilitating the delivery and pick-up of products for retail logistics companies in numerous tier 2 and tier 3 cities across different countries. With ongoing advancements in road transportation systems and the continuous improvement of highways globally, this trend is expected to persist and grow in the years to come.

Regional Insights

Asia Pacific accounted for the largest revenue share of 27% in 2023. The region is home to a vast customer base and has witnessed significant adoption of e-commerce channels by individuals. China, Japan, Australia, and India are among the leading item exporters, accounting for a considerable share of worldwide retail e-commerce sales. As a result, the region's promising e-commerce growth prospects are the primary drivers of regional retail logistics market expansion.

Retail Logistics Market Share, By Region 2023 (%)

Additionally, various government initiatives, such as Digital India and the implementation of the Goods and Services Tax (GST) have created a conducive environment for e-commerce growth. These initiatives have aimed to digitize various sectors, simplify taxation processes, and promote a digital economy, further supporting the expansion of e-commerce in India. Such initiatives offer significant opportunities for market growth over the forecast period.

Other factors projected to enhance regional market expansion include a growing focus on transportation methods and ongoing logistics infrastructure upgrades in emerging countries. For instance, in August 2023, the Ministry of Road Transport & Highways (MoRTH) is developing multimodal logistics parks to solve underdeveloped road and material handling infrastructure as part of the Indian Government's Logistics Efficiency Enhancement Program (LEEP).

In addition, North America is expected to have a significant share in 2023. The presence of numerous prominent competitors such as United Parcel Service of America, Inc., XPO Logistics, Inc., FedEx, Ryder System, Inc., C.H. Robinson Worldwide, Inc., and Expeditors International of Washington, Inc. is helping to drive regional market growth.

Some of the prominent players in the retail logistics market include:

  • XPO Logistics, Inc.
  • DSV
  • Kuehne + Nagel International
  • C.H. Robinson Worldwide, Inc.
  • Nippon Express
  • FedEx
  • Schneider
  • United Parcel Service
  • APL Logistics Ltd
  • DHL International GmbH
  • A.P. Moller - Maersk

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global retail logistics market.

Type

  • Conventional Retail Logistics
  • E-commerce Retail Logistics

Solution

  • Commerce Enablement
  • Supply Chain Solutions
  • Reverse Logistics & Liquidation
  • Transportation Management
  • Others

Mode of Transport

  • Railways
  • Airways
  • Roadways
  • Waterways

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa (MEA)

Frequently Asked Questions

The global retail logistics market size was exhibited at USD 246.86 billion in 2023 and is projected to hit around USD 808.79 billion by 2033.

The global retail logistics market is expected to grow at a compound annual growth rate of 12.6% from 2024 to 2033 to reach USD 808.79 billion by 2033.

XPO Logistics, Inc.; DSV; Kuehne + Nagel International; C.H. Robinson Worldwide, Inc.; Nippon Express; FedEx; Schneider; United Parcel Service; APL Logistics Ltd; DHL International GmbH; A.P. Moller - Maersk.

Chapter 1. Methodology and Scope

1.1. Research Methodology

1.2. Research Scope and Assumptions

1.3. List of Data Sources

1.4. List of Abbreviations

Chapter 2. Executive Summary

2.1. Market Insights

2.2. Market Snapshot

2.3. Segmental Insights

2.4. Retail Logistics Market Revenue Estimates, 2021 - 2033

Chapter 3. Market Variables, Trends, & Scope Outlook

3.1. Market Segmentation

3.2. Retail Logistics Market Size & Growth Prospects

3.3. Retail Logistics Market - Value Chain Analysis

3.4. Retail Logistics Market Dynamics

3.4.1. Market Driver Analysis

3.4.2. Market Restraint Analysis

3.4.3. Market Opportunity Analysis

3.5. Retail Logistics Penetration & Growth Prospects Mapping

3.6. Retail Logistics Market - Porter's Five Forces Analysis

3.6.1. Supplier power

3.6.2. Buyer power

3.6.3. Substitution threat

3.6.4. Threat from new entrant

3.6.5. Competitive rivalry

3.7. Retail Logistics Market - PEST Analysis

3.7.1. Political landscape

3.7.2. Economic landscape

3.7.3. Social landscape

3.7.4. Technology landscape

Chapter 4. Retail Logistics Type Outlook

4.1. Retail Logistics market, By Type Analysis & Market Share, 2024 & 2033

4.2. Conventional Retail Logistics

4.2.1. Market estimates and forecasts, 2021 - 2033

4.2.2. Market estimates and forecasts, By Region, 2021 - 2033

4.3. E-Commerce Retail Logistics

4.3.1. Market estimates and forecasts, 2021 - 2033

4.3.2. Market estimates and forecasts, By Region, 2021 - 2033

Chapter 5. Retail Logistics Solution Outlook

5.1. Retail Logistics market, By Solution Analysis & Market Share, 2024 & 2033

5.2. Commerce enablement

5.2.1. Market estimates and forecasts, 2021 - 2033

5.2.2. Market estimates and forecasts, By Region, 2021 - 2033

5.3. Supply Chain Solutions

5.3.1. Market estimates and forecasts, 2021 - 2033

5.3.2. Market estimates and forecasts, By Region, 2021 - 2033

5.4. Reverse logistics & liquidation

5.4.1. Market estimates and forecasts, 2021 - 2033

5.4.2. Market estimates and forecasts, By Region, 2021 - 2033

5.5. Transportation Management

5.5.1. Market estimates and forecasts, 2021 - 2033

5.5.2. Market estimates and forecasts, By Region, 2021 - 2033

5.6. Others

5.6.1. Market estimates and forecasts, 2021 - 2033

5.6.2. Market estimates and forecasts, By Region, 2021 - 2033

Chapter 6. Retail Logistics Mode of Transport Outlook

6.1. Retail Logistics market, By Mode of Transport Analysis & Market Share, 2024 & 2033

6.2. Railways

6.2.1. Market estimates and forecasts, 2021 - 2033

6.2.2. Market estimates and forecasts, By Region, 2021 - 2033

6.3. Airways

6.3.1. Market estimates and forecasts, 2021 - 2033

6.3.2. Market estimates and forecasts, By Region, 2021 - 2033

6.4. Roadways

6.4.1. Market estimates and forecasts, 2021 - 2033

6.4.2. Market estimates and forecasts, By Region, 2021 - 2033

6.5. Waterways

6.5.1. Market estimates and forecasts, 2021 - 2033

6.5.2. Market estimates and forecasts, By Region, 2021 - 2033

Chapter 7. Retail Logistics market: Regional Estimates & Trend Analysis

7.1. Retail Logistics market Share by Region, 2024 & 2033

7.2. North America

7.2.1. Market estimates and forecasts, 2021 - 2033

7.2.2. Market estimates and forecasts, By Type, 2021 - 2033

7.2.3. Market estimates and forecasts, By Solution, 2021 - 2033

7.2.4. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.2.5. U.S.

7.2.5.1. Market estimates and forecasts, By Type, 2021 - 2033

7.2.5.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.2.5.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.2.6. Canada

7.2.6.1. Market estimates and forecasts, By Type, 2021 - 2033

7.2.6.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.2.6.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.3. Europe

7.3.1. Market estimates and forecasts, 2021 - 2033

7.3.2. Market estimates and forecasts, By Type, 2021 - 2033

7.3.3. Market estimates and forecasts, By Solution, 2021 - 2033

7.3.4. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.3.5. UK

7.3.5.1. Market estimates and forecasts, By Type, 2021 - 2033

7.3.5.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.3.5.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.3.6. Germany

7.3.6.1. Market estimates and forecasts, By Type, 2021 - 2033

7.3.6.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.3.6.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.3.7. France

7.3.7.1. Market estimates and forecasts, By Type, 2021 - 2033

7.3.7.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.3.7.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.4. Asia Pacific

7.4.1. Market estimates and forecasts, 2021 - 2033

7.4.2. Market estimates and forecasts, By Type, 2021 - 2033

7.4.3. Market estimates and forecasts, By Solution, 2021 - 2033

7.4.4. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.4.5. China

7.4.5.1. Market estimates and forecasts, By Type, 2021 - 2033

7.4.5.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.4.5.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.4.6. India

7.4.6.1. Market estimates and forecasts, By Type, 2021 - 2033

7.4.6.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.4.6.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.4.7. Japan

7.4.7.1. Market estimates and forecasts, By Type, 2021 - 2033

7.4.7.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.4.7.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.4.8. Australia

7.4.8.1. Market estimates and forecasts, By Type, 2021 - 2033

7.4.8.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.4.8.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.5. Latin America

7.5.1. Market estimates and forecasts, 2021 - 2033

7.5.2. Market estimates and forecasts, By Type, 2021 - 2033

7.5.3. Market estimates and forecasts, By Solution, 2021 - 2033

7.5.4. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.5.5. Brazil

7.5.5.1. Market estimates and forecasts, By Type, 2021 - 2033

7.5.5.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.5.5.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.5.6. Mexico

7.5.6.1. Market estimates and forecasts, By Type, 2021 - 2033

7.5.6.2. Market estimates and forecasts, By Solution, 2021 - 2033

7.5.6.3. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

7.6. Middle East & Africa

7.6.1. Market estimates and forecasts, 2021 - 2033

7.6.2. Market estimates and forecasts, By Type, 2021 - 2033

7.6.3. Market estimates and forecasts, By Solution, 2021 - 2033

7.6.4. Market estimates and forecasts, By Mode of Transport, 2021 - 2033

Chapter 8. Competitive Landscape

8.1. Key Market Participants

8.1.1. XPO Logistics, Inc.

8.1.2. DSV

8.1.3. Kuehne + Nagel International

8.1.4. C.H. Robinson Worldwide, Inc.

8.1.5. Nippon Express

8.1.6. FedEx

8.1.7. Schneider

8.1.8. United Parcel Service

8.1.9. APL Logistics Ltd

8.1.10. DHL International GmbH

8.1.11. A.P. Moller - Maersk

8.2. Key Company Market Share Analysis, 2024

8.3. Company Categorization/Position Analysis, 2024

8.4. Strategic Mapping

8.4.1. Expansion

8.4.2. Mergers & Acquisitions

8.4.3. Partnership & Collaborations

8.4.4. Product/service launch

8.4.5. Others

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