Transparency Market Research reported that the global logistics market is expected to grow from $8.1tr in 2015 to $15.5tr by 2023, or a compound annual growth rate (CAGR) of 7.5 per cent. Global logistics revenues were led by road transportation, with a 2015 market-share of 44.6 percent. In terms of freight volume, maritime transportation made up 47.9 per cent of the marketplace. The Asia-Pacific region constituted the largest component of global logistics at 46.6 per cent of market revenue.
In 2015, second-party logistics, which consists of transportation carriers, made up the largest revenue and volume share of the market. However, first-party logistics, which constitutes shippers, is forecasted to provide the highest rate of growth in the logistics market.
Manufacturing leads first-party logistics growth because of the sector’s long-established supply chains. According to FreightWaves SONAR, the national index for industrial production in manufacturing grew over 20 per cent from June 2009 to November 2018. Retail is the next-largest contributor to first-party logistics growth through the impact of e-commerce. Amazon’s emergence as an e-commerce giant is one of the driving forces behind the expansion of first-party logistics into new areas as the company develops in-house delivery services. The growth of Amazon Air, Amazon’s truck fleet, and the prospect of drone delivery gives Amazon the ability to compete with their second-party contractors such as FedEx