Europe is a leader in the global contract logistics market. The market for contract logistics in Europe is expected to register a CAGR of more than 2.5% during the forecast period (2019
NEW YORK, Feb. 27, 2020 /PRNewswire/ --
Market Overview
Europe is a leader in the global contract logistics market. The market for contract logistics in Europe is expected to register a CAGR of more than 2.5% during the forecast period (2019-2024).
Read the full report: https://www.reportlinker.com/p05865872/?utm_source=PRN
- Owing to the rise in demand for more integrated services, data management and the preference for flexible solutions, the contract logistics market is expected to witness high growth.
- As the demand for specific processes along the value chain and comprehensive services is growing, the contract logistics is becoming the ideal solution for the companies.
- The Western Europe region dominates the market, by taking more than three-fourths of the market, with Germany accounting for the major share. However, countries in the Central and Eastern Europe region are expected to achieve high growth in future.
- The retail sector is a key end-user sector of the contract logistics market, in general. With Europe being a global hub for the automotive industry, it accounts for a significant share of the European contract logistics market.
- The contract logistics market across the world is witnessing the trends of consolidation. From strategies adopted by major players, it can be observed that the companies are following the trend of acquisition, to maintain a competitive edge in the market.
Scope of the Report
A complete background analysis of the Europe contract logistics market (market overview, market size estimation for key segments, emerging trends by segments, and market dynamics) are covered in the report.
Key Market Trends
The Outsourced Contract Logistics Market to Grow at a High Pace
The degree of outsourcing in contract logistics is low, indicating significant room for growth. Globally, the share of outsourced contract logistics in the total market stands in the range of 10-15% only. For Europe, this share is estimated to be more than 20%. The levels of outsourcing vary significantly between countries. Generally, transport and warehousing services are majorly outsourced.
E-Commerce is expected to be a major driver for the growth of outsourcing. As the e-commerce market is growing rapidly, the consumer expectations for faster and reliable deliveries is also growing. In this context, outsourcing of services, such as warehousing, and order fulfilment, among others, is expected to grow. Contract logistics offers the e-commerce businesses of all sizes advantages, such as easy management of business, advanced technological solutions, reduced risk, and scalability. The e-commerce market of Europe is valued at more than USD 600 billion, and it is growing at a rate of more than 10%.
Growth in Manufacturing is Expected to Drive the Demand for Contract Logistics Services
With the advent of technology, automation has become key for manufacturing companies. Moreover, the developed countries in Europe are of high importance, as they have the required infrastructure and skills that are readily developed. This is expected to result in a trend of reshoring manufacturing back to Europe, and automation is very often one of the reasons for reshoring in Europe. As of February 2019, 253 reshoring cases were observed in Europe between 2014 and 2018 in the United Kingdom, Italy, and France witnessing the high number of reshoring cases.
The Central and Eastern Europe region have a significant opportunity with emerging economies, and the manufacturing sector in the region is growing steadily. The automotive sector has been one of the leading growth sectors in this region, with the German companies investing large amounts.
Competitive Landscape
The prominent players in the market include Deutsche Post DHL Group, Schenker AG (DB Schenker), Ceva Logistics, Kuehne + Nagel International AG, DSV AS, and SNCF Logistics/Geodis. These players based out of Europe have a significant presence across the world, they are among the top 20 global contract logistics companies. Even though these major players have strong footprint across the region and account for significant market share, the market is still fragmented to some extent, with many players providing contract logistics services at different levels.
It is necessary for the companies to make sure that they are constantly evolving to match the trends in the industry. This is likely to help them gain a stronger foothold in the market by attracting new customers.
Most of the major companies are based out of the Western Europe region, the number of local contract logistics providers in the CEE region are comparatively lower. This is an opportunity for the existing local logistics players in the CEE region, to enter the contract logistics market and gain significant market share.
As mentioned earlier, the companies are following the trend of acquisitions, in order to grow and be competitive. Few of these in the European market in past five years include acquisition of Logiter by ID Logistics and Norbert Dentressangle SA by XPO Logistics.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05865872/?utm_source=PRN
About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
__________________________
Contact Clare: [email protected]
US: (339)-368-6001
Intl: +1 339-368-6001
SOURCE Reportlinker
Share this article