The Logistics Industry Statistics has been growing by leaps and bounds for decades. But how does that translate into actual numbers? And why does it matter to you?
If you run a business that interacts with the logistics industry to some extent. Knowing logistics facts and figures is an essential skill.
Knowing logistics stats can help you discern whether the negative press. And around distribution, these days, is also justified.
Keep reading to get the inside scoop on the latest logistics industry statistics.
Impact of E-Commerce on Logistics
The logistics industry is a billion-dollar industry, and a huge part of its revenue comes from import and export businesses. But logistics go far past transporting goods from one country to another with the best shipping containers.
It encompasses shipping, warehousing, and supply chain management, all within one industry. Some of it is common knowledge, and some is not such well-known information.
Logistics Investment Growth Trends
The latest logistics industry statistics show that the logistics industry is one of the fastest-growing sectors in the global economy.
According to the Global Logistics Report 2018, the logistics industry has seen a compound annual growth rate (CAGR) of 6.23%. Over the past three years, and is set to reach a total of $15.5 trillion by 2020.
This trend is further driven by the growth of online retail and the demand for more efficient supply chain solutions, which are driving investment in logistics solutions and solutions providers.
This is also seen in the increased venture capital investments into logistics solutions. It also focuses on both large and small logistics companies. Upgrading their technology and expanding their services to keep up with rising customer demands.
Modern Logistics Practices
Logistics is now a $4.3 trillion dollar per year industry and growing. The value chain is becoming complex, together with companies seeking to invest in many modes of transportation and technologies to remain competitive.
The rise of e-commerce has seen a surge in e-retail and parcel deliveries. This has further led to large advancements in warehouse technology and automation.
Furthermore, with the rising trend of last-mile delivery options, 3PLs have continued to dominate the industry. They represent 59% of the global logistics market.
Optimizing Supply Chain Performance
To keep up with the competition, these individuals need to stay updated on the latest logistics industry statistics. Some of the most important statistics include a rise in cargo volume and capacity use. As well as a decline in transportation costs and lead times.
Customer demand for faster delivery times continues to increase. So companies must continue to invest in logistics services and technology to remain competitive.
Understanding industry trends and keeping up to date on the latest logistics industry statistics is essential for staying ahead of the curve.
Trends in Global Logistics Spending
One of the latest logistics industry statistics you should know about is the trend in global logistics spending. It is estimated that global logistics spending will grow by an average annual rate of 5 percent through 2023.
This will also be driven by strong economic growth and the increasing importance of e-commerce. It is also the expanding role of technology in the industry. The focus on sustainability will likely drive an increase in global logistics expenditures.
As the world adopts technology to support logistics operations, the cost of these services continues to decline. Make them more accessible to small and medium-sized businesses.
This leads to increased investment from enterprises in developing integrated supply chain solutions.
Industry Growth Trends
Industry growth trends in logistics are strong and continue to expand. Keeping up with the latest logistics industry statistics is a critical part of staying informed and up-to-date.
The global logistics market is projected to reach a whopping $15.5 trillion by 2023. This is according to a report published by Grand View Research. The report also expects transportation and warehousing activity to grow at a compound annual growth rate of 4.7%.
Other key statistics for the logistics industry include a 4.4% growth in international air freight in 2019. This is according to the International Air Transport Association.
The International Road Transport Union report states that the global value-added in road freight grew by 4.8% in 2019 and is expected to rise to over $7 trillion in 2024.
How Technology is Transforming Logistics
The Global Logistics Market is estimated to exceed $14 trillion by 2022. Advances in technology have been driving rapid transformation in the logistics industry.
Unmanned aerial vehicles (UAVs) are more efficient than traditional road transportation. This allows for faster shipments of goods and inventory from one location to another.
Big data and the internet of things (IoT) are being utilized to drive logistics performance. It helps companies capture meaningful insights from their data.
Companies are also using autonomous bots to automate their supply chain processes. It enables them to reduce costs, enhance the speed of delivery, improve asset use and safety, and provide better customer service.
Automation and Industry Impact
Automation has been a major force within the logistics industry for many years. Its impact is only growing. Automated systems now manage 55 percent of all domestic freight movements.
But that number jumps to 83 percent when it comes to truck transportation, showing the extensive impact automation has already had. Meanwhile, predictive analytics is being used to reduce fuel costs by up to 25 percent, making for a more cost-effective operation.
Autonomous systems could increase supply chain productivity by up to 30 percent. This, of course, could lead to shorter delivery times and a better customer experience.
Learn About Logistics Industry Statistics Today
The logistics industry is growing exponentially, and it is essential to stay updated on the latest and fastest-growing statistics.
It is imperative that companies, stakeholders, the shipping industry, and other interested parties stay knowledgeable about the evolving trends in order to make informed decisions.
Check out our website for more insight, and stay abreast of the latest logistics industry statistics! So, what are you waiting for? Start to know about the logistics industry and use it to your advantage today!
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