Global Logistics expected to reach US$12 trillion in value by 2025

Posted by Daily Shipping Times on 27-10-2017        Tweet

PUNE: Global logistics is expected to reach US$12 trillion in value by 2025, recording a 6% CAGR over the period, says a research report.

According to US based Research firm, 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% CAGR over 2015-2025 lowest among key logistics customers. China and the US are expected to remain lucrative markets that will account for over 50% 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% 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 of 10% 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% over 2015-2025.