NEW YORK, April 6, 2020 /PRNewswire/ --
On-Demand Logistics Market Research Report: By Vehicle Type (Light Commercial Vehicle, Medium/Heavy Commercial Vehicle), End Use (B2B, B2C), Application (E-Commerce, Industrial, Moving and Shifting, Peer to Peer Delivery) â€" Global Industry Size, Analysis and Forecast to 2030
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The major drivers for the on-demand logistics market are the increasing efficiency of product transportation by trucks, convenience, cost-effectiveness and real-time tracking advantages offered by this model, and expanding e-commerce sector. From $9.1 billion in 2019, the market revenue is expected to massively rise to $75.0 billion by 2030, at a 21.1% CAGR during the forecast period (2020–2030). On-demand logistics refers to the communication between end users and shippers via online platforms, which also provide additional features, such as global positioning system (GPS)-based vehicle tracking, time scheduling, and order booking.
Based on vehicle type, the market is bifurcated into medium/heavy commercial vehicle (M/HCV) and light commercial vehicle (LCV). Of these, LCVs led the on-demand logistics marketin 2019, as a large number of service providers use these vehicles for last-mile delivery, in cases that do not involve the transportation of heavy goods.During the forecast period, the M/HCV bifurcation would grow faster, as shipping firms are purchasing them to transport heavy stuff for large businesses, which are looking at high-volume goods transportation to reduce their costs.
Under the application segment, the market is categorized into industrial, e-commerce, peer-to-peer delivery, and moving and shifting. Among these, the largest share, in 2019, was held by the e-commerce category, as several firms in the sector, including Walmart Inc., Amazon.com Inc.,and Flipkart Online Services Pvt. Ltd., are turning to on-demand logistics to meet the growing online ordersof various products. The expanding e-commerce industry itself is one of the major growth drivers for theon-demand logistics market.
From 2017, the share of e-commerce in the global retail sales grew by 15% in 2018, and it is projected to further increase to 17% by 2021.The major reason behind it is that online shopping platforms offer customers utmost convenience, by giving them lucrative deals on products that can be delivered swiftly. Apart from the increasing number of online shoppers, their preference for and expectations of timely delivery and competitive pricing are also rising. As traditional shippers face challenges in the wake of these developments, companies are changing their strategies.
Another key reason behind the progress of the on-demand logistics market is the cost-effectiveness and convenience of shipping that this model offers. A number of companies aren't able to ship products in a consistent volume, owing to cost, production, and demand constraints, which leads to the non-feasibility of long-term logistics agreements. On-demand logistics helps businesses by not binding them in a contract and only charging them for the products they ship at a particular time. Additionally, such service providers are also able to handle a sudden increase in the shipping volume.
The market is also growing on account of the increasing efficiency of trucks, which are the preferred mode for high-volume terrestrial product transportation. In conventional logistics, after delivering the goods, trucks often return empty, which leads to wastage of fuel and extra operational costs for Service providers. Additionally, a broker liaisons between the shipper and customer, for which the charges can be as high as 18% of the shipment cost. As on-demand logistics helps deal with all such challenges, companies are rapidly embracing this concept.
Geographically, North America held the largest revenue share in the on-demand logistics market in 2019, as trucks conduct almost 70% of all product transportation in the U.S. Additionally, the region faces a considerable shortage of drivers, which becomes a problem when the orders suddenly increase. This is leading to the shift in companies' preference to a more-efficient goods transportation model, thereby driving the market. During the forecast period, the highest CAGR would be experienced by Asia-Pacific (APAC), owing to the rising e-commerce sales and consumer awareness regarding the concept.
Hence, as the e-commerce sector prospers and people become aware about a better shipping method, on-demand logistics is forecast to witness widespread adoption in the coming years.
Read the full report: https://www.reportlinker.com/p05879077/?utm_source=PRN
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