Market research firm, Valuates Reports, said the global logistics industry is expected to grow 3.48% by 2022 with the Asia Pacific market seen to expand the most.

"Due to the recent COVID-19 impact, logistics companies are concentrating on the continued supply of essential commodities, the creation of supply chain stabilization task force, and distribution of personal protective equipment," Valuates Reports said.

It noted that with this, most countries are under pressure due to a lack of supply because of panic buying — and as a result, logistics companies are actively monitoring the current situation, and new approaches are being implemented to ensure continued supply.

From 2016 to 2022, the global logistics market size is projected to grow at a CAGR of 3.48% Valuates Reports said, to reach US$12,256 billion. 

Some of the trends that would influence the logistics market size include:

• Rising internet-based retailing which is boosting the growth of the logistics market size;
• Exponentially proliferating the Internet of things (IoT) in the logistics sector that enables freight companies and consumers to direct access to the company network via the internet;
• Increasing the use of RFID, Bluetooth, and other newly introduced technologies such as Drone Delivery and Driverless vehicles are being witnessed in logistics services;
• Globalization is also driving growth with different trade-related activities experiencing an increase — this is expected to drive the logistics market size.

Asia Pacific to drive the growth

Meanwhile, Valuates Reports said high inventory prices and insufficient warehousing space are expected to hamper global logistics market growth.

"The Asia Pacific accounts for the largest logistics market share in 2016, followed by North America and Europe. In the forecast period, Asia Pacific is expected to grow at the highest CAGR. This growth can be attributed to the increased adoption of outsourcing logistics services," it added.

Valuates Reports added that global logistics industry growth is directly linked to the advancement of the flow of foreign trade and the current economic climate. It involves integrating information, transport, inventory, warehousing, handling materials, packaging, and protection.

Favorable government trade policies it added have resulted in increased demand for logistics services, creating opportunities for expansion to existing vendors.