U.S. Retail Logistics Market Size, Share & Trends Analysis Report By Type, By Solution (Commerce Enablement, Supply Chain Solutions, Transportation Management), By Mode Of Transport, And Segment Forecasts, 2022 - 2030

The U.S. Retail Logistics market gathered revenue around USD 43.18 billion in 2021 and market is set to grow USD 109.33 billion by the end of 2030 and is estimated to expand at a modest CAGR of 11.8% during the prediction period 2022 to 2030.

The escalating demand for retail logistics across the U.S. due to the pandemic is expected to propel market growth in the forthcoming years. A retail logistics company provides services, including inventory management, packaging, cross-docking, and door-to-door delivery. The rapid growth of the global e-commerce sector and the development of new technologies drive the demand for logistics services. The end-use industries and manufacturers generally lack the internal control needed for addressing logistics issues. Such factors have provided a boost to the growth of the logistics industry.

Globalization has increased international trades and demands for greater efficiency, in transportation and logistics activities by the end-users, to enable on-time delivery. Regardless of whether the supply chain is international or domestic, effective management of the purchased transportation process, to reduce cost and complexity and improve control, is essential.

Retail logistics include the entire process between a customer ordering a product and receiving it after a few days. The value chain of the target market encompasses each stage of the product movement from the warehouse and final delivery to the customer. It includes receiving the goods, warehousing inventory, processing the order, and delivering them after the requisite packaging and labeling process. During this entire process, a specific value is added at each stage of the process, therefore, contributing to the final value of the delivered product.

The retail logistics value chain constitutes the basic elements such as clients, material suppliers, customers, and vendors. Several clients or companies outsource a part or all of their logistics activities to service providers or vendors. These vendors typically handle more than one client at any given time. The client communicates the receipts or shipments to the logistics vendor, who then conducts the transaction on the client’s behalf. The client is thus either a buyer or seller for a transaction. The activities that are typically carried out by logistics vendors are warehousing, inventory management, cross-docking, transportation, and freight forwarding.

Report Scope of the U.S. Retail Logistics Market

Type Insights

The conventional retail logistics segment accounted for the largest revenue share of 57.31% in 2021 and is expected to remain dominant during the forecast period. The high share is attributable to the rising adoption of conventional retail logistics services by consumers who have limited dependence on the internet, and therefore prefer buying from conventional retail stores. It has been observed that around 36% of shoppers prefer to buy products from traditional retail stores after checking them online. Besides, retail stores enable consumers to pick up and inspect a product. It also provides instant gratification, as shoppers can purchase a product instantly.

The e-commerce retail logistics segment is expected to emerge as the fastest-growing segment, registering a CAGR of 11.9% from 2022 to 2030. The growth is primarily attributed to the emergence of the coronavirus pandemic across the globe, wherein e-commerce channels witnessed sudden growth in terms of sales. Moreover, the growing internet penetration coupled with benefits such as easy & free returns/exchange, fast delivery, reduced shipping charges, and humongous product options, among others, are contributing to the high growth of e-commerce retail. Therefore, to cater to the rapidly growing e-commerce market, logistics companies are investing in developing and broadening their services.

Solution Insights

The supply chain solutions segment accounted for the largest revenue share of 35.99% in 2021 and is expected to continue its dominance during the forecast period. The supply chain enables on-time delivery, optimizes omnichannel operations, personalizes kitting and order fulfillment, and effectively processes customer returns. It also enables fast direct-to-consumer and direct-to-store shipping, which improves warehouse efficiencies as well as optimizes inventory. Further, the segment is anticipated to register the fastest compound annual growth rate (CAGR) of over 12.6% from 2022 to 2030, owing to the rising use of cloud-based supply chain solutions as it helps to track & optimize transportation and manage returns.

The reverse logistics & liquidation segment is expected to register considerable growth during the forecast period. The surging e-commerce industry and the consecutive increase in the number of e-shoppers are resulting in the increasing demand for robust reverse logistics services. Customers are increasingly preferring easy & fast returns/exchanges; therefore, retailers are emphasizing making the process of returning online goods simple and convenient for customers.

Mode of Transport Insights

The roadways mode of transport segment accounted for the largest revenue share of 53.19% in 2021 and is expected to continue its dominance during the forecast period. The high share is attributable to the growing demand for roadways vehicles in long distances transportation of retail products, especially in last-mile deliveries. Also, it provides a high carrying capacity, making it a preferable option. Besides, several government initiatives are supporting segmental growth. For instance, the recent regulations imposed by the Federal Motor Carrier Safety Administration allowing the use of the cameras as a substitute for rearview mirrors are likely to benefit truck drivers in terms of safety.

Moreover, increasing road connectivity and great connectivity by roads is another major factor boosting demand for roadways mode of transport segment. The majority of Tier 2 and Tier 3 cities in several countries are well connected by roads, therefore making it easier for the retail logistics companies to deliver and pick up the products. This trend is expected to continue in the forthcoming years due to road transportation systems advancements and the betterment of roadways across the globe.

Some of the prominent players in the U.S. Retail Logistics Market include:

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

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at  regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

• By Type

• Conventional Retail Logistics
• E-Commerce Retail Logistics
• By Solution
• Commerce Enablement
• Supply Chain Solutions
• Reverse Logistics & Liquidation
• Transportation Management
• Others
• By Mode of Transport
• Railways
• Airways
• Roadways
• Waterways

By Geography

Key Points Covered in U.S. Retail Logistics Market Study:

• Growth of U.S. Retail Logistics in 2022
• Market Estimates and Forecasts (2017-2030)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for U.S. Retail Logistics and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  U.S. Retail Logistics Consumption Analysis
•  U.S. Retail Logistics Production Analysis
•  U.S. Retail Logistics and Management