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E-commerce logistics market set to explode over the next four years: report


London, UK —Technavio analysts forecast the global e-commerce logistics market to grow at a compound annual growth rate (CAGR) of close to 10% between 2017 and 2021, according to their latest report.

According to Technavio, the global e-commerce logistics market is growing because many companies are offering automated solutions for the e-commerce industry. Moreover, software technologies are emerging in the e-commerce industry. For instance, WordPress is used as a host for e-commerce websites, and ReadyCLOUD is used as a cross-channel e-commerce customer relationship management (CRM) tool. These factors are generating a demand for e-commerce logistics and helping the growth of the global e-commerce logistics market.

Technavio analysts highlight the following three factors that are contributing to the growth of the global e-commerce logistics market:

  • Growing e-commerce industry
  • Emerging technologies in e-commerce logistics
  • Growing e-commerce penetration in the consumer-packaged goods (CPG) industry

The report says the global e-commerce logistics market is prospering because of the growing e-commerce industry. The e-commerce industry generated a revenue of more than USD 1.5 trillion in 2016. Also, it is expected to grow at a CAGR of more than 17% during the forecast. This is because of the presence of major global vendors such as Alibaba Group, Amazon, and eBay.

Shakti Jakhar, a lead logistics research analyst at Technavio, says, “The global e-commerce industry is growing because of a growing m-commerce industry with an increasing number of smartphones, which is helping the growth of online shopping via smartphones. Globally, there were more than 4 billion mobile phone users in 2016 which represent more than 45% of the global population.”

Technavio says the global e-commerce logistics market is growing because of emerging technologies such as IoT, drones, automated warehouses, and automated trucks in the market. Such technologies are helping in speed up the overall process of e-commerce logistics, and hence many e-commerce giants are adopting them because of such benefits.

“IoT provides a highly integrated transportation and warehouse management solution,” says Shakti. “It connects the integrated devices and in-vehicle sensors. Drones provide the delivery of the products within an hour, after the placement of the order. Automated warehouses provide automatic cross-docking, palletizing, and storing of the products by using time and space efficiently. Autonomous trucks offer improved safety by the elimination of driver error. It improves the efficiency by speeding up traffic flows.”

According to the report, the global e-commerce logistics market is growing, as more consumer goods are sold online when compared with offline, which shows the increase in e-commerce penetration. The e-commerce penetration is the percentage of online transactions in overall retail sales. The electronics products and entertainment products, such as books and music, account for the highest share in e-commerce penetration.


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