Based on transportation mode, roadways are the main transportation mode in the worldwide coordination showcase, representing about 66 percent of the overall market. Other major transportation modes incorporate railroads, seaways and aviation routes.
Based on the end-use manufacturing dominates the market holding around 5th of the global share. Manufacturing is followed by consumer and the retail, healthcare, F&B, IT hardware and telecom, automotive, oil & gas, constructions & others.
The logistics market is projected to register a CAGR of 2.7 percent during 2018-2023 reaching a value of USD 1,374 billion by 2023.
One of the major reasons for the expansion of logistics is the e-commerce industry. As logistics form a major part of transporting, storing & delivering of the goods purchased online, this has provided a positive thrust to the market growth.
The Indian Story
The India logistics industry is projected to be worth USD 215 billion by 2021, recording a 10 percent CAGR over its approximate size of USD 160 billion in 2017.
At present, the logistics industry is dominated by transportation, which has more than 85 percent offers in worth terms. Its share is set to stay high for the following couple of years. The rest of the 15 percent offer is represented by storage. The segment is business escalated, engrossing 22 million individuals.
At present, the Indian logistics industry is fragmented and unorganized. Owing to the presence of various unorganized players in the business, it stays divided, with the organized players representing roughly 10 percent of the complete piece of the overall industry. With the consumer base of the sector enveloping a wide scope of ventures, including retail, car, telecom, pharmaceuticals and substantial businesses, the logistics business has been progressively pulling in interests in the most recent decade.
Steep logistic costs in India versus different countries have been a vexing issue. Logistics costs as a percentage of the nation's (GDP) are 13-14 percent. The figure is higher contrasted with 10-11 percent for BRIC nations and 8-9 percent for creating countries. USA spends 9.5 percent of the GDP on logistics, while Germany is significantly progressively aggressive with an offer of 8 percent. Higher logistics costs in India could be attributed to the absence of proficient between modular and multi-modular traditional frameworks.
Blockchain in Logistics
Documentation and information verification continues to remain the problem for the logistic industry. The biggest challenge faced in the areas such as procurement, transportation management, order tracking & customer collaboration.
For the uninitiated, blockchain is a dependable framework including a progression of the block that record value-based data. Any data option or change in the past data-set must be finished by adding another square to the Merkle tree. It is then confirmed and synchronized by the majority of the collaborating parties – with all approaching the distributed ledger. The approach eliminates with the extent of information misrepresentation as the stakeholder can quickly recognize it.
Changing Customer Expectations
Purchasers' desires for delivery are rising: "quick transporting" to be inside two days, while only a year sooner most said it was inside three or four days. Indeed, even as clients' desires have expanded, however, their ability to pay for quick transporting has fallen, with 64 percent reluctant to pay anything additional for two-day shipping.
They additionally "need to know." Transparency about the status of their merchandise and power over conveyance area and timing are both under increasing demand. In one of the recent survey, a portion of online customers detailed abandoning a vendor because of poor order tracking and transparency.
Expanded Internet access and better tool for online-based shopping have been driving a developing volume of shipments and the proliferation of conceivable delivery location for organizations engaged with delivering products.
Just like car sharing, know logistic companies are also coming with asset sharing. Sharing asset allows transportation companies to accomplish more and take better advantage of their own network’s capacities.
For instance, for leveraging the adjacent network, a territorial carrier could utilize others' resources to deliver outside its typical area, expanding the usage of its own advantages by extending its reach. Regional parcel carriers already collaborate, yet technology could help reduce coordination costs and expand their range.