On-Demand Logistics Industry Size, Analysis and Forecast to 2030
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 market in 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.
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.
Research Background
1.1 Research Objectives
1.2 Market Definition
1.3 Research Scope
1.3.1 Market Segmentation by Vehicle Type
1.3.2 Market Segmentation by End Use
1.3.3 Market Segmentation by Application
1.3.4 Market Segmentation by Region
1.3.5 Analysis Period
1.3.6 Market Data Reporting Unit
1.3.6.1 Value
1.4 Key Stakeholders
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.
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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.
